News

The EU is Cracking Down on Big Tech Companies Again: ChatGPT, Reddit, Roblox in Focus

ChatGPT, Reddit and Roblox are facing tougher scrutiny from the European Union after being designated under the bloc’s strictest Digital Services Act category. The companies will have to meet additional requirements covering systemic risks, user safety, transparency and platform accountability.

Written By : Soham Halder
Reviewed By : Manisha Sharma

The European Union is tightening its oversight of some of the world's most widely used digital services, placing ChatGPT, Reddit and Roblox under its strictest category of online regulation. The European Commission announced on August 31 that ChatGPT has been designated a Very Large Online Search Engine (VLOSE), while Reddit and Roblox have been classified as Very Large Online Platforms (VLOPs) under the bloc's Digital Services Act, or DSA.

The classification applies to services that reach at least 45 million average monthly users in the European Union. The three companies have reported crossing this threshold, bringing them under additional obligations aimed at addressing risks created by large-scale digital platforms.

Four Months to Meet New Requirements

Following the designation, the services have four months to comply with the additional DSA requirements. The rules require companies to assess and reduce systemic risks linked to their services and algorithmic systems.

These risks include the spread of illegal content, potential harm to minors, effects on users' physical and mental wellbeing, threats to fundamental rights, electoral processes and public security.

The companies will also face greater scrutiny from European regulators, who can investigate how their systems operate and assess whether the platforms are taking adequate measures to manage identified risks.

For the companies involved, compliance could mean higher operational and regulatory costs, particularly as they must strengthen risk assessments, safety measures, transparency processes and independent oversight.

ChatGPT Gets a Different Classification

The EU's decision is particularly significant for ChatGPT, as it is the first AI chatbot to receive the VLOSE designation. The Commission considers ChatGPT's web-search functionality sufficient to classify it as an online search engine under the DSA. This means OpenAI will face obligations designed for services that have a significant role in helping users find and access information online.

OpenAI's reported monthly ChatGPT search users in the EU averaged around 159 million for the six months ending March 2026, according to reporting on the Commission's decision.

Reddit and Roblox fall into the VLOP category because users can publicly create and distribute content through their services. Reddit reported around 57.2 million monthly EU users, while Roblox reported approximately 48 million.

Also Read: Facebook, Instagram Under Scanner as EU Tightens Child Safety Rules; What This Means for You

Financial Stakes Could be Significant

The stricter designation matters beyond content moderation. Companies that fail to meet the DSA's requirements can face penalties of up to 6% of their worldwide annual turnover. That creates a potentially substantial financial exposure for large technology businesses.

The EU has already demonstrated its willingness to use the DSA to impose major penalties on digital companies. The latest designations bring the number of platforms and search engines under the EU's strictest DSA category to 28. The move signals that Brussels intends to extend its digital oversight as online services grow more influential.

WhatsApp Tests a New Way to Catch Scammers Without Reading Your Chats

GTA 6 Will Have No Generative AI, Rockstar Confirms

AI Cyberattacks Could Move Faster than Banks Can Respond, FSB Warns

UAE’s Starlink Boom Hits Capacity Limits: New Users Told to Wait

Tim Cook Steps Down as Apple CEO After 15 Years, John Ternus Takes Over