ChatGPT, Reddit Inc. and video game company Roblox Corp. are set to face increased scrutiny from the European Union after each surpassed the bloc’s threshold of 45 million monthly users.
According to a statement issued by the European Commission on Monday, OpenAI’s ChatGPT has been designated a very large online search engine, while Reddit and Roblox have been classified as very large online platforms under the EU’s Digital Services Act.
The designations subject the platforms to stricter regulatory requirements, including additional obligations aimed at addressing systemic risks and protecting users online.
The DSA requires social media platforms and search engines to take measures to curb illegal and harmful content on their services. Very large online platforms, or VLOPs, including Meta Platforms Inc.’s Facebook, Instagram and WhatsApp, as well as Elon Musk’s X, are subject to additional obligations such as publishing transparency reports, outlining measures to mitigate systemic risks and paying an annual supervisory fee to the EU.
Companies found to be in breach of the DSA could face fines of up to six per cent of their annual global turnover.
The legislation also seeks to strengthen child safety online by requiring technology companies to take steps to protect minors.
Roblox, which has previously faced criticism over its child-safety measures, recently introduced stricter controls governing who children can communicate with and the games they can access.
Roblox is also expanding its advertising business, an area the DSA seeks to regulate more closely, particularly regarding the transparency of advertising and marketing aimed at children.
Since the DSA came into effect in 2022, the European Commission has launched more than a dozen investigations into online platforms over potential violations of the rules.
The legislation has also drawn criticism from US President Donald Trump’s administration, which has accused the EU of disproportionately targeting American technology companies.
