Roblox, ChatGPT to fall under strictest EU digital rules

OpenAI's ChatGPT and Roblox Corp. will be designated as a 'very large search engine' and 'very large online platform' under the EU's Digital Services Act after surpassing 45 million monthly users in the bloc, a person familiar with the matter said. The designations, expected as soon as August, subject the companies to stricter scrutiny, transparency reports, risk mitigation plans, and annual fees, with fines of up to 6% of global annual sales for breaches.

Getting your Trinity Audio //trinityaudio.ai player ready...By Gian Volpicelli and Cecilia D’Anastasio OpenAI’s ChatGPT and video game company Roblox Corp. will be subject to stricter scrutiny and monitoring requirements under the European Union’s content moderation rules after surpassing a threshold of 45 million monthly users in the bloc. The EU’s executive arm will designate ChatGPT’s search function as a “very large search engine” and Roblox as a “very large online platform” in line with the Digital Services Act, a person familiar with the matter said. The designations will come as soon as August, the person said, asking not to be identified because the decision was confidential. OpenAI said in a statement that it continues to engage positively with the commission regarding the DSA. A European Commission spokesperson declined to comment, and Roblox didn’t immediately respond to a request for comment. The DSA requires all social networks and search engines to clamp down on illegal and harmful content on their platforms. The “VLOPs,” which also include Meta Platforms and Elon Musk’s X, must also file transparency reports, detail risk mitigation plans and pay an annual fee to the EU. Companies that breach the DSA risk fines of as much as 6% of their annual global sales. The DSA aims to protect children online by compelling tech companies to safeguard their experiences. Roblox, which has faced criticism over its child-safety protections, recently implemented stronger controls over who kids talk to and what games they play. The company is also moving more into advertising, which the DSA aims to make more transparent when it comes to marketing to kids. The commission has opened more than a dozen probes into online platforms since the DSA came into force in 2022. The rules have riled US President Donald Trump’s administration, which has accused the EU of censoring American companies. In December, X was fined €120 million $137 million for deceptive design and a lack of transparency. The company appealed. Alibaba Group Holding Ltd.’s e-commerce service was fined €550 million earlier this month after the EU said it failed to properly evaluate unsafe or counterfeit products sold on its platform.