EU subjects ChatGPT and Reddit to strict digital regulations
AI services and social platforms must comply with the EU's new digital rules.
1EU's new digital regulations
The European Commission announced that ChatGPT, Reddit, and Roblox are classified as 'very large online platforms' under the Digital Services Act. This decision requires platforms to take on additional obligations such as removing illegal content and protecting underage users. Companies failing to comply risk fines of up to 6% of their global revenue.
2Critical threshold crossed
The inclusion of these platforms was triggered by them surpassing 45 million monthly active users in the EU. This threshold activates enhanced scrutiny requirements under the Digital Services Act. Companies were given until the end of December 2024 to comply with the new rules. An OpenAI spokesperson stated they're working on additional compliance measures.
3AI regulation expands
The decision shows the Digital Services Act extending into generative AI. X's Grok AI chatbot is already under investigation under this law. The EU has also begun implementing the AI Act, the world's first comprehensive AI legislation, and is investigating whether Google's AI services comply with competition rules.
4Platforms' responses
Roblox expressed pride in being the first gaming platform to reach this milestone in the EU, emphasizing safety as foundational. Reddit didn't immediately respond to requests for comment. OpenAI confirmed ongoing compliance efforts. Chinese e-commerce giant AliExpress was previously fined €550 million under the DSA for insufficient prevention of illegal product sales.
5US-EU tension
The EU's move escalates tensions with Washington over tech regulations. The US claims the EU unfairly targets American companies like Elon Musk's X and violates free speech principles championed by the MAGA movement. However, the European Commission emphasizes that digital laws apply regardless of companies' headquarters locations.
6Global impacts
The EU's decision could create a domino effect for tech giants' global operations. Both the Digital Services Act and AI Act will affect all companies operating in the EU market. Experts suggest these regulations may pioneer similar laws in other countries. Platforms are expected to make fundamental changes to their content moderation systems.
7Risks for companies
The new rules bring significant operational costs for platforms. They'll need to expand content moderation teams, strengthen age verification systems, and increase transparency of AI systems. User-generated content platforms like Reddit will face particularly increased moderation burdens. Non-compliance fines could seriously impact company balance sheets.
8Age of digital regulation
The EU's step signals the beginning of a new regulatory era in the tech sector. Platforms must now consider legal responsibilities alongside growth objectives. While consumer rights and digital security standards are expected to globalize, the power struggle between tech giants and regulators is predicted to intensify.