ChatGPT and video game developer Roblox Corporation are expected to face heightened scrutiny and compliance requirements under EU content rules, as their monthly active users in the region surpass 45 million, according to sources.
A person familiar with the matter disclosed that the European Union's executive body is set to classify both U.S. tech companies as "Very Large Online Platforms" (VLOPs) under the Digital Services Act (DSA). The classification could be announced as early as August, the source said. The DSA mandates all social networks and search engines to combat illegal and harmful content on their platforms. Companies designated as VLOPs—including Meta Platforms and X, owned by Elon Musk—must also submit transparency reports detailing risk mitigation plans and pay annual fees to the European Commission. Non-compliance can result in fines of up to 6% of a company's global annual sales.
One of the DSA's goals is to ensure user safety, particularly for children online. Roblox Corporation has faced criticism for its child safety measures but has recently strengthened controls, including limiting who children can interact with and which games they can play. Meanwhile, Roblox Corporation is expanding its advertising business, and the DSA seeks greater transparency in marketing to children.
Since the DSA took effect in 2022, the European Commission has launched over a dozen investigations into online platforms. These rules have drawn criticism from U.S. President Donald Trump, who accuses the EU of censoring and restricting American companies. In December, X was fined €120 million (approximately $137 million) for misleading design and lack of transparency.
Beyond the DSA, the EU has also targeted major U.S. tech firms with the Digital Markets Act (DMA) and antitrust laws. Since early 2024, Google, Apple, and Meta have collectively faced over €6 billion (about $7 billion) in fines from the EU for antitrust and competition law violations. Trump has elevated the issue to trade policy, signing a memorandum in February that considers using tariffs to respond to foreign digital services taxes and fines on U.S. firms.
The European Commission, however, insists its regulatory framework aims to protect consumers, not stifle innovation. A Commission spokesperson stated that fines are a "last resort," used only after failed attempts at amicable solutions. The Commission highlighted regulatory successes: Apple, after the EU initiated formal proceedings under the DMA in March 2025, allowed competitors' smartwatches and other connected devices to work more seamlessly with iPhones, achieving this without fines. Meta, after receiving a €2 million DMA non-compliance fine in 2025, revised its "pay or consent" model on Facebook and Instagram and plans to roll out a new service to users by early 2026. Apple, however, maintains that the DMA "hinders innovation, weakens privacy, delays or reduces product quality, and increases security risks."
Comments