EU Cracks Down on ChatGPT, Reddit, Roblox Under Stricter Regulations
The European Commission has designated OpenAI's ChatGPT, Reddit (NYSE: RDDT), and Roblox (NYSE: RBLX) as 'Very Large Online Search Engine' (VLOSE) and 'Very Large Online Platform' (VLOP) respectively under the Digital Services Act (DSA). This means they must adhere to stricter regulations and oversight from Brussels.
The companies have four months to demonstrate compliance with EU rules, which include addressing risks associated with minors, elections, and public safety. Failing to comply could result in fines of up to 6% of global revenue.
The designation is based on the platforms' user base, with a cutoff of 45 million average monthly users. ChatGPT reportedly has 120 million users, while Reddit had 57.2 million EU users and Roblox had 46.6 million in July.