I dont really use it much tbf just thought it was a cool project but I’ve just read about how lemmy instances can be fined for not complying with GDPR Read more
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That would be true if their instance wasn’t federating. If the instance is federating, then it’s downloading content from other users, even if the user isn’t registered on the instance. And that content is publicly available.
So if someone discovers their content on their instance and sends them a GDPR request (eg Erasure), then they are legally required to process it.
I do not believe that is true, but I’m happy to be wrong.