ChatGPT, Reddit, and Roblox Designated 'Very Large Platforms' by EU, Face Stricter Rules

The European Commission has designated OpenAI's ChatGPT, Reddit, and Roblox as "very large" online services, bringing them under the most stringent tier of the European Union's Digital Services Act (DSA). The classification, announced by the EU's executive arm, means the companies now face heightened obligations regarding content moderation, risk management, and user safety.

New Obligations Under the DSA

According to the Commission, the three platforms declared they each have more than 45 million monthly active users in the EU, surpassing the threshold for the designation. Following the decision, ChatGPT, Reddit (RDDT), and Roblox (RBLX) have four months to comply with the new, more demanding rules.

Key obligations for these newly designated services include:

• Assessing and mitigating systemic risks related to the dissemination of illegal content.
• Addressing potential negative effects on minors and the physical and mental well-being of users.
• Limiting risks to fundamental rights, public security, and electoral processes.

Classifications and Oversight

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The European Commission specified the classifications for each service under the DSA framework. The AI system ChatGPT qualifies as a "very large online search engine," while gaming platform Roblox and discussion forum Reddit are designated as "very large online platforms."

This distinction is based on their function, with Reddit and Roblox enabling users to share third-party content publicly. The Commission will directly supervise compliance with the DSA and is granted investigative powers to assess the platforms' functionalities and algorithms.

Market and Company Impact

This designation places the companies in the same regulatory category as tech giants like Meta, Google, and X, signaling a significant increase in compliance responsibilities and potential costs. Failure to adhere to the DSA's obligations can result in substantial fines, adding a new layer of regulatory risk for investors in the publicly traded Reddit and Roblox. The move underscores the EU's expanding effort to regulate influential digital services, particularly those involving user-generated content and artificial intelligence.