Digital Services Act: EU apparently wants to control ChatGPT and Roblox more strictly

The European Commission has reportedly classified the AI-powered chatbot ChatGPT by OpenAI and the gaming platform Roblox as very large online platforms (VLOPs), effective in August. This classification under the Digital Services Act (DSA) follows reports from Bloomberg, citing an insider familiar with the process. Both companies have exceeded the threshold of 45 million monthly users within the EU. ChatGPT claims its search function alone reaches approximately 159 million users, while Roblox reports around 48 million. Under the DSA, VLOPs face stringent obligations including conducting risk assessments, undergoing independent audits, publishing annual transparency reports, and providing data to the European Commission. Non-compliance could result in fines of up to six percent of their global annual turnover. As of now, the European Commission has not issued an official statement on this classification. Neither OpenAI nor Roblox have responded to Bloomberg’s inquiries regarding the matter. This move marks the expansion of VLOP regulations to include AI developers and video game creators for the first time. In 2023, major platforms such as YouTube, Facebook, and Instagram were among the initial VLOPs designated. More recently, online retailers like Shein and Temu were added to the list. The inclusion of OpenAI and Roblox signals a broader regulatory focus on emerging digital services. Roblox faces specific challenges due to past criticisms over inadequate child protection measures. The company has already implemented stricter controls for children's interactions and content, yet it continues expanding its advertising business. The DSA prohibits profiling-based advertising targeting minors if the platform knows their age. This regulation directly impacts Roblox’s marketing strategies. For OpenAI, the requirement to conduct risk assessments primarily involves demonstrating efforts to combat disinformation, protect user privacy, and prevent copyright infringements. These obligations align with the DSA’s goal of ensuring greater accountability and transparency from major tech firms operating within the EU. The decision reflects a growing trend of the EU tightening oversight over digital services, particularly those involving artificial intelligence and interactive entertainment. With increasing concerns over data privacy, misinformation, and youth safety, regulators are pushing for more rigorous compliance standards. The implications for both companies could be substantial, affecting their operational practices and revenue models. As the regulatory landscape evolves, further developments are expected. The European Commission may soon provide more detailed guidance on how these new classifications will be enforced. Meanwhile, OpenAI and Roblox must prepare for potential scrutiny and adjustments to their services. The outcome of this regulatory shift could set a precedent for other tech firms entering the EU market.