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EU designates ChatGPT, Reddit, Roblox under Digital Services Act

newsAug 31, 202612288

The European Commission has designated OpenAI's ChatGPT as a Very Large Online Search Engine and Reddit Inc. and Roblox Corp. as Very Large Online Platforms under the Digital Services Act after each exceeded the 45 million average monthly user threshold in the EU. That designation triggers the DSA's strictest obligations, including mandatory annual risk assessments, independent audits, and enforced mitigation measures for systemic risks such as illegal content, disinformation, and protection of minors. The DSA, which entered into force fully in early 2024, applies based on user residency rather than a service's headquarters and exposes noncompliant firms to fines up to 6 percent of worldwide annual turnover. The affected services must submit inaugural compliance reports and independent risk assessments to the European Commission within the four-month preparation window following verification of their user counts. For users in the EU, regulators say the change means tougher safety features, clearer reporting mechanisms for harmful material, and greater transparency about recommendation algorithms; for the companies it means substantial investment in moderation, risk engineering, and legal reporting infrastructure.

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