EU Flags ChatGPT, Reddit, and Roblox for Stricter Regulations

The European Commission has designated three US-based companies - ChatGPT, Reddit (NYSE: RDDT), and Roblox (NYSE: RBLX) - as 'very large' platforms under its Digital Services Act (DSA).

This move means the companies will be subject to stricter regulations and oversight from Brussels. They have four months to prove they have sufficient tools in place to handle risks associated with minors, elections, and public safety.

ChatGPT has been designated as a Very Large Online Search Engine (VLOSE), while Reddit and Roblox are categorized as Very Large Online Platforms (VLOP).

The 'very large' designation is based on the number of users each platform has in the EU, with the threshold set at 45 million average monthly users. ChatGPT reportedly had 120 million users last year, but its exact user count was disputed.

Roblox's general manager for Europe, Joost Hagesteijn, welcomed the designation and invited further 'constructive engagement' with the European regulator.