Millions of Europeans chat with ChatGPT, scroll Reddit and let their children loose on Roblox. Now all three face Brussels’ toughest digital rulebook, with regulators empowered to inspect their algorithms and order changes. Non-compliance could cost up to six per cent of global turnover.
The Commission designated ChatGPT a Very Large Online Search Engine, and Reddit and Roblox Very Large Online Platforms. All three now have until the end of November to comply with the tougher rules.
They will have to assess and reduce systemic risks associated with illegal content, harm to minors, physical and mental well-being, fundamental rights, elections and public security. The Commission can examine their risk assessments and audit reports. It can also request access to relevant data and algorithms, demand further information, interview staff and conduct inspections. It can then open formal proceedings if it suspects that a service is failing to comply.
Greater scrutiny for ChatGPT ads
The designation comes one week after ChatGPT introduced advertising in 31 European markets. Ads can appear to adult users of the free and lower-cost Go versions, while paid subscriptions remain advertising-free.
OpenAI says advertisements are clearly labelled, separated from ChatGPT’s answers and do not influence the responses users receive. It also says advertisers cannot access private conversations. However, the designation could bring closer scrutiny of how advertisements are selected, displayed and explained to users.
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Under the additional DSA obligations, very large services must maintain a publicly accessible advertising repository. It must identify the content and sponsor of each advert, how long it appeared, the principal targeting criteria and the number of users it reached. That means anyone will be able to check who is targeting them and why. ChatGPT will also have to undergo an independent audit at least once a year and provide data to regulators and vetted researchers.
Steep fines, closer oversight
The Commission will supervise ChatGPT and Reddit in cooperation with Ireland’s Coimisiún na Meán. It will work with the Dutch Authority for Consumers and Markets on Roblox. Failure to comply with the DSA can result in fines of up to six per cent of a company’s worldwide annual turnover. The additions bring the number of designated very large platforms and search engines to 28.
We continue to watch the digital landscape closely and will not hesitate to designate any platform that meets the threshold for enhanced supervision under the Digital Services Act. — Henna Virkkunen, Executive Vice-President for Tech Sovereignty, Security and Democracy
Henna Virkkunen is Executive Vice-President for Tech Sovereignty, Security and Democracy. She defended the move as consistent oversight rather than a one-off crackdown. “We continue to watch the digital landscape closely and will not hesitate to designate any platform that meets the threshold for enhanced supervision under the Digital Services Act,” she said. The list of designated services is expected to keep growing as more platforms cross the 45-million-user threshold in the months ahead.
