ChatGPT, Roblox prepares for the European Union's most stringent platform regulations.

      ChatGPT is set to become the first AI chatbot to navigate Europe’s stringent platform regulations. The European Commission intends to classify OpenAI’s chatbot and the gaming platform Roblox under the highest tier of the Digital Services Act (DSA). This classification could be announced as early as August.

      Bloomberg first reported this development, citing a source familiar with the initiative. ChatGPT's search feature would be categorized as a "very large online search engine," while Roblox would be labeled a "very large online platform." Both platforms surpass the DSA threshold of 45 million monthly users within the European Union.

      The Commission has been more reserved in its public statements. Spokesperson Thomas Regnier informed Reuters that such a designation is "definitely possible" and that it could occur "sooner or later." OpenAI mentioned that it remains positively engaged with Brussels, while Roblox has not provided any comments.

      Understanding the implications of the label

      This designation does not come with accolades; rather, it places ChatGPT and Roblox among about twenty platforms facing the DSA's most stringent obligations. This group includes well-known names like Meta, X, Amazon, and TikTok. They will have four months from the designation to comply.

      Compliance entails conducting annual risk assessments and independent audits, issuing transparency reports, adhering to ad-transparency regulations, and ensuring that recommendation feeds are not influenced by user profiling. These platforms must also share data with regulators and approved researchers and report any criminal activities. Additionally, they will incur a supervisory fee. Failure to abide by these regulations could result in fines up to 6 percent of their global annual revenue.

      The focus here is on systemic risk. Services designated under this regulation must recognize and address harms related to illegal content, elections, discrimination, gender-based violence, and the mental and physical health of users. For a chatbot and a children’s gaming platform, these are very real issues.

      Reasons for the selection of these two platforms

      Roblox is a clear target due to ongoing lawsuits and backlash concerning child safety issues. The platform has been implementing age verification and separate chat features in response to these concerns. A primary goal of the DSA is to safeguard children online, and Roblox is a space where millions of young users congregate.

      ChatGPT presents a more unique case. OpenAI is currently dealing with wrongful-death lawsuits from families claiming the chatbot failed individuals in crisis, and the company, along with Sam Altman, is facing a lawsuit in Florida. Elevating a generative-AI product to the highest tier indicates that Brussels views chatbots as platforms needing regulation rather than simply tools to be overlooked.

      A familiar pattern of scrutiny

      This situation reflects a recurring trend. The Commission has initiated over a dozen investigations since the DSA came into effect. For example, it imposed a €550 million fine on AliExpress, penalized Temu, and charged X €120 million, which is currently being appealed. Investigations into Meta’s addictive design have been intensified, and TikTok has been charged regarding child safety issues.

      This approach is part of a broader European initiative that includes measures like France’s ban on social media for those under 15 and an expanding regulatory framework for AI. The Trump administration has labeled the DSA as a form of “economic extortion” aimed at American companies. Critics pose a pointed question: why does Europe regulate platforms it seems unable to create?

      The counterargument is straightforward. As evidenced by X, a designation signals a requirement rather than a solution, and the platform is hardly a benchmark for online safety despite the penalties it faces. However, compelling two of the most scrutinized services on the internet to allow audits of their systems is more effective than relying solely on their assurances that everything is fine.