It’s seldom a good time for a tech company when a regulatory body comes knocking at the door.
For ChatGPT, Reddit, and Roblox, the European Commission is offering no solace with its latest decision to regulate the platforms.
‘ChatGPT, Reddit, and Roblox will now be held to a higher standard of scrutiny.’
At the end of August, the European Union’s division on Tech Sovereignty, Security, and Democracy decided that it will grant itself access to the backends of the three tech giants by labeling them with a special designation.
“We have designated ChatGPT as a Very Large Online Search Engine and Reddit and Roblox as Very Large Online Platforms under the Digital Services Act. They now have four months to comply with additional DSA obligations,” the commission wrote on X.
By January 2027, the platforms are required to assess and mitigate any “systemic risks” that come as a result of their services or algorithms, the EU wrote in a press release.
This includes how the platforms are used to disseminate illegal content, any “negative effects on minors,” the physical and mental “well-being” of users, and effects on “electoral processes and public security.”
At the same time, the designation gives the European Commission the ability to “assess the functionalities” behind the services and any related systems they may be operating.
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The commission justified its designations by describing ChatGPT as a “hybrid service” that qualifies as an online search engine.
Reddit was described as a discussion-based platform used to create, share, and interact with content, while Roblox was considered similarly, but with gaming.
“As these services enable users to disseminate third-party content to the public, they qualify as online platforms” under the EU’s Digital Services Act, the press release stated.
“These new designations mean that ChatGPT, Reddit, and Roblox will now be held to a higher standard of scrutiny and accountability in the European Union, in line with their large impact on our citizens and society,” said Henna Virkkunen, a Finnish politician who serves as the executive vice president for Tech Sovereignty, Security, and Democracy.
“We continue to watch the digital landscape closely and will not hesitate to designate any platform that meets the threshold for enhanced supervision under the Digital Services Act.”
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Other companies that received designation from the EU as Very Large Online Platforms or Very Large Online Search Engines include Ali Express, Pinterest Europe, TikTok, X, and several Irish versions of companies like OpenAI, Meta, Microsoft, LinkedIn, and Google.
Ireland is typically chosen for multinational companies due to significantly lower corporate tax rates, which sit at 12.5% versus a European average of 19%.
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