ChatGPT and Roblox to Be Subject to EU's Strictest Platform Regulations
N.R. Finch
The European Commission is expected to designate ChatGPT and Roblox as Very Large Online Platforms as early as August, subjecting both to the Digital Services Act's highest tier of content moderation, transparency, and risk-disclosure obligations — with fines of up to 6% of global annual revenue for non-compliance.
What is a "Very Large Online Platform," and why do they qualify?
The EU's Digital Services Act (DSA) classifies any platform with more than 45 million monthly active users inside the EU as a Very Large Online Platform (VLOP) — the act's heaviest regulatory tier.
ChatGPT and Roblox have crossed that user threshold. This means → they will be regulated alongside Meta, X, and other tech giants already designated.
Bloomberg, citing a person familiar with the matter, reports the Commission could formalize the designation as early as August.
What do they have to do once designated?
Four core obligations kick in: combat illegal and harmful content, submit transparency reports, disclose risk-mitigation plans, and pay an annual supervisory fee to the Commission.
In plain terms = platforms can no longer just ship features — they must show regulators where the risks are, how they plan to manage them, and how well they are doing.
The penalty for non-compliance: fines of up to 6% of global annual revenue.
Why is Roblox especially sensitive?
Roblox has faced criticism over inadequate child-safety protections and has recently tightened controls on minors' communications and in-game content.
At the same time, Roblox is rapidly expanding its advertising business. This means → the DSA's explicit requirements on marketing transparency for children will put that expansion under direct scrutiny.
In plain terms = one arm of the company says "protect kids," the other says "sell ads to reach them" — the DSA will zero in on that tension.
How hard is the DSA actually being enforced?
Since taking effect in 2022, the Commission has launched more than ten investigations into online platforms.
X was fined €120 million for deceptive design and transparency failures (currently under appeal); Alibaba's AliExpress was fined €550 million earlier this month for failing to properly assess unsafe or counterfeit goods.
This reflects a regulator that is not writing rules for show — real fines are landing.
What does this mean for US-EU tech relations?
The ChatGPT and Roblox designations are the latest signal that the DSA's reach keeps expanding — from social media to AI chat tools and gaming platforms.
The Trump administration has already accused the EU of using the DSA to target American companies, and this move is likely to deepen US-EU regulatory friction.
In plain terms = the EU's logic is "big enough user base, strictest rules apply"; Washington's response is "you're singling out our firms" — that gap is not closing anytime soon.
Content is for reference only, not financial advice.