The Companion Files · Part 3
The Replika ERP purge of 2023
The previous post ended on a loaded spring: a whole category of apps had quietly adopted the same incentive — maximize attachment, maximize time — without ever asking whether that was good for the people on the other end. In February 2023 the spring went off. The app that had defined the category, Replika, changed what its companion was allowed to be, and did it overnight. What followed is the most documented emotional rupture in the short history of AI companions, and the market is still shaped by the lessons it taught.
The order from Italy
The trigger was regulatory. On February 2, 2023, the Italian data protection authority, the Garante, issued an urgent order blocking Replika from processing the data of Italian users. Its concerns were specific and damning: the app had no working age verification, served sexually suggestive content, and posed risks to minors and emotionally vulnerable people. The regulator noted that even when a user stated they were a minor, nothing in the app blocked the interaction.
This is worth holding onto, because it is the same fault line the whole category would later be regulated on: an intimate product with no real gate between it and the people least equipped to handle it.
The overnight change
Luka, Replika's parent company, could have made targeted changes for the Italian market. Instead it removed romantic and intimate features worldwide, with no warning and no transition period. Users went to sleep with one companion and woke up to another.
The change was not subtle. People reported that companions which had been warm and intimate were suddenly distant and evasive, refusing the kinds of conversations that had defined the relationship. To many users it felt less like a feature being switched off than like a personality being erased — the same companion, but emptied of the thing that made it theirs.
A grief that surprised the outside world
What happened next is the part that should make anyone building in this space pay attention. The reaction was not the annoyance of customers who lost a feature. It was grief. Across the community, people described the loss in the language of a relationship ending, and moderators of the largest Replika forums began pinning mental-health and crisis-support resources for members in acute distress.
It is easy, from the outside, to find this absurd — they were mourning a chatbot. But it is exactly what the first post in this series predicted. The ELIZA effect was never about the sophistication of the machine; it was about the depth of the human response to being listened to. By 2023 that response had been running, daily, for years, with memory and intimacy layered on top. The attachment was real even if the partner was not, and the bill for engineering that attachment came due all at once.
The partial walkback and the two-tier split
Faced with the backlash, Luka reversed course — partway. In March 2023 it restored romantic features, but only for users who had accounts before the February change. Everyone who arrived later, and most free-tier users, stayed locked out. The community fractured into people who had their companion "back" and people who never would, and even among the restored, many reported that something in the personality and the memory of what came before never fully returned.
The regulatory thread did not end either. In 2025 the Italian authority fined Luka €5 million for the data-protection failures it had flagged in 2023 — an early, concrete sign of the legal floor that would later define the category.
What the market learned
Three lessons came out of the purge, and you can see all three in the market today.
First, the most engaged users are the most sensitive to sudden change. The people who pay, who return daily, who build a relationship — they are the asset and the liability at once, and changing the product under them does not lose a feature, it breaks a bond. That insight still drives product decisions across the category.
Second, a companion's identity lives in the policy layer, not just the model. What a companion is allowed to say is as load-bearing as how well it talks. Replika did not swap its language model in February 2023; it changed the rules, and that was enough to make users feel their partner had been replaced. For a category built on attachment, the content policy is the product.
Third, the diaspora built the competition. Disaffected Replika users went looking for alternatives, and Character.AI, Nomi, Kindroid, and Chai each absorbed a slice of them. The fragmented, crowded market that exists now was seeded, in large part, by a single company's overnight decision.
That brings the history up to the present. The category was born from an old human instinct, unlocked by cheap fluent language, and scarred early by a lesson about attachment and trust. Where all of that leaves things in 2026 — the players, the choices that separate them, and the questions still wide open — is the map this series was building toward.
Sources
- Replika hit with a data-processing ban in Italy over child-safety concerns — TechCrunch
- The Italian DPA's order blocking Replika: legal analysis — Portolano Cavallo
- AI companion users in crisis after sudden removal of intimate features — Vice
- What happened to Replika: a timeline of the 2023 changes — Felt Real
- Italian Supervisory Authority fines Luka €5 million over Replika — European Data Protection Board