EU May Designate ChatGPT and Roblox as Very Large Online Platforms

The European Commission is preparing to designate OpenAI's ChatGPT and Roblox as "Very Large Online Platforms" (VLOPs) or "Very Large Online Search Engines" (VLOSEs) as early as August. This move signals a shift in EU regulatory strategy, extending the most rigorous oversight of the Digital Services Act (DSA) beyond traditional social media to include generative AI and immersive gaming environments.

According to reports and a statement from Commission spokesperson Thomas Regnier, who noted that such inclusion was "definitely possible" and could "come sooner or later," the designation is triggered by a threshold of more than 45 million monthly active users within the EU. Once classified, these companies must adhere to the DSA's most stringent requirements, including mandatory systemic risk assessments and independent audits. Failure to comply with these regulations can result in severe financial penalties, with fines reaching up to 6% of a company's total annual worldwide revenue.

The Regulatory Burden

The DSA's VLOP/VLOSE framework requires platforms to move away from self-regulation toward a regime of transparency and accountability. Specifically, the companies must provide clearer terms and conditions and increase transparency regarding their recommendation systems and content moderation practices. They are also required to report suspected criminal offenses to authorities and share data with vetted researchers to allow for external scrutiny of their impact on society.

Mitigating Systemic Risk

Central to this designation is the requirement to identify and mitigate systemic risks. The EU mandates that these platforms address harms related to illegal content, the protection of children's rights, public security, and the integrity of elections. Additionally, platforms must evaluate and mitigate risks concerning the mental and physical wellbeing of their users. For Roblox, this follows a period of intense scrutiny over child safety, while OpenAI has faced ongoing challenges regarding the real-world harms and dangerous behaviors potentially encouraged by AI chatbots.

Industry Implications

This regulatory expansion forces the newest generation of digital giants to internalize safety and risk mitigation into their core product design. By applying the same standards to AI and virtual worlds as it does to legacy social networks, the EU is establishing a global precedent for how emerging technologies are moderated. The industry is now watching to see how OpenAI and Roblox will restructure their internal governance to meet these transparency and auditing mandates.