WhatsApp Set to Face Stricter Content Moderation Rules in the EU

Meta Platforms Inc.’s popular messaging app WhatsApp is set to encounter stricter regulations as the European Union intensifies its examination of social media platforms. The European Commission intends to classify WhatsApp's open channels as a 'Very Large Online Platform' under the Digital Services Act (DSA), which mandates rigorous content moderation and transparency standards. This classification applies to channels that are open feeds linked to news organizations or public figures, functioning similarly to social media platforms. Reports indicate that Meta has received formal notification regarding this impending designation, although a public announcement date has not yet been established. The designation is already in place for Meta’s other platforms, Facebook and Instagram, and it impacts any platform with over 45 million monthly users in Europe. This includes many of the major tech players. Notably, companies like Amazon have contested this classification in court. This regulatory shift may exacerbate existing tensions between the EU and the United States, particularly with former President Donald Trump, who has expressed concerns that such stringent regulations disproportionately affect American businesses. In the past, he has threatened to impose tariffs in response to fines levied against US tech companies by the EU. WhatsApp's new classification comes after the service reported an average of approximately 46.8 million channel users as of late 2024. It’s important to note that the DSA does not dictate private messaging regulations, meaning WhatsApp’s core communication features will remain unaffected. Platforms designated as very large online platforms are obligated to conduct risk assessments regarding illegal or harmful content and develop strategies for mitigation. They must also report user numbers biannually, a requirement that has previously compelled Apple Inc. to disclose European App Store data. Violations of the DSA can lead to penalties of up to 6% of a company’s annual global revenue. While a spokesperson for the European Commission declined to confirm a timeline for the designation, Meta has not responded to requests for comments regarding this matter.