ChatGPT, Reddit, and Roblox have been included in the EU's "super platform" regulatory framework, with penalties of up to 6% of global revenue for violations.
The EU is extending its regulatory reach to more technology platforms.
On August 31, it was reported that the European Commission announced that ChatGPT, Reddit and Roblox would be included in the "Megascale Online Platforms and Search Engines" regulatory framework of the Digital Services Act (DSA). The three platforms must meet a series of additional compliance obligations within four months, which will increase compliance pressure and operating costs.
All three services have declared that they have 45 million or more monthly active users in the EU, triggering the "super-large" threshold set by the DSA. The European Commission stated that this designation means these platforms must assume stricter content governance responsibilities, including assessing and mitigating the risk of illegal content dissemination, protecting the physical and mental health of minors and users, and preventing potential threats to fundamental rights, the electoral process, and public safety.
Under DSA requirements, companies must also submit transparency reports, disclose risk mitigation plans, and pay annual regulatory fees; violations could result in fines of up to 6% of their global annual sales. The European Commission will also gain investigative powers to review platform functions and operational mechanisms and monitor their DSA compliance.
ChatGPT has been recognized as an "online search engine".
It is worth noting that the European Commission has explicitly classified OpenAI's ChatGPT as an "online search engine" based on DSA, rather than a regular online platform.
This classification means that ChatGPT needs to fulfill additional obligations under the rules applicable to online search engines, including conducting risk assessments, implementing risk mitigation measures, and submitting transparency reports. This also signifies that generative AI services have officially entered the EU's "mega-scale" digital services regulatory framework.
Reddit and Roblox are classified as "online platforms" primarily because they allow users to share third-party content with the public. Therefore, both platforms need to focus on addressing the risks posed by user-generated content and strengthening the protection of minors.
Roblox has faced criticism in recent years for child safety issues, and the company has recently tightened restrictions on children's social and gaming content. Meanwhile, as Roblox expands its advertising business, the DSA's requirements for transparency in marketing to children will also create new compliance pressures.
The EU continues to expand its regulatory scope
According to DSA regulations, the three platforms will have four months to complete the compliance deployment of relevant obligations after obtaining the "super-large" designation.
Since the DSA came into effect in 2022, the European Commission has launched more than ten investigations into online platforms. Previously, large tech platforms such as Meta, Google, and TikTok were included in the "super-large" list and have faced EU investigations or penalties.
The addition of ChatGPT, Reddit, and Roblox signifies a further expansion of the EU's regulatory scope over large internet platforms and indicates that generative AI services are being rapidly incorporated into the EU's digital regulatory framework. These regulatory measures had previously drawn criticism from the Trump administration for allegedly targeting American tech companies, potentially escalating tensions over tech regulation.
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