EU TO DESIGNATE CHATGPT AND ROBLOX AS LARGEST PLATFORMS

The European Union is set to designate ChatGPT and Roblox as "very large online platforms" under its Digital Services Act, according to reports citing Bloomberg. The designations are expected to be announced in August. Both services will join 21 existing platforms already subject to the DSA's strictest rules, including X, Amazon, Apple, Microsoft, LinkedIn and TikTok. The threshold for designation is 45 million monthly active users in the EU; ChatGPT crossed 120 million monthly users in Europe last year.

The VLOP designation triggers substantial compliance requirements. Within four months of official designation, platforms must establish points of contact for authorities and users, create user-friendly terms and conditions, and report criminal offences. They must identify and assess systemic risks linked to their services, including illegal content, electoral processes, gender-based violence, freedom of expression and discrimination. Platforms must also be transparent about advertising, recommendation systems and content moderation, undergo annual audits, and share data with the European Commission and approved researchers. Failure to comply carries penalties of up to 6 per cent of global annual turnover.

The designations occur amid ongoing enforcement activity. Since the DSA took effect in early 2024, the Commission has launched numerous investigations and issued penalties against X, Temu and AliExpress collectively amounting to nearly €900 million. The EU recently found TikTok breached the DSA by allowing minors' content to reach global audiences, risking unwanted contact and cyberbullying. Roblox faces multiple lawsuits alleging failure to protect children from predatory behaviour, whilst OpenAI has faced criticism over its handling of credible threats and safeguarding procedures.