The rapid growth of WhatsApp's open channels has brought the platform closer to being classified as a Very Large Online Platform (VLOP) under the EU's Digital Services Act. With an average of 46.8 million users in the EU during the latter half of 2024, these channels now meet the criteria for increased regulation. This classification would subject WhatsApp to stricter rules regarding transparent advertising, content moderation, and annual audits. The European Commission must now decide whether to officially designate WhatsApp as a VLOP, joining other tech giants like Meta, ByteDance, Amazon, and Google.

Growth of WhatsApp's Open Channels Drives Regulatory Consideration

The expansion of WhatsApp's open channels has led to significant user growth within the European Union, averaging around 46.8 million users in the latter part of 2024. These channels function similarly to social networks, providing platforms for news sources, public figures, and more. The surge in users has placed WhatsApp at the threshold of qualifying as a Very Large Online Platform (VLOP) under the EU's Digital Services Act (DSA). As per the DSA, entities with over 45 million monthly users in the EU are labeled as VLOPs, which triggers heightened regulatory scrutiny.

This designation would bring about substantial changes for WhatsApp. The platform would be required to adhere to stringent regulations concerning transparent advertising practices, robust content moderation policies, and annual independent audits. Additionally, it would need to assess and mitigate risks associated with harmful or illegal content. Given that WhatsApp's parent company, Meta, is already designated as a VLOP—and not without resistance—this potential new status could have far-reaching implications for WhatsApp's operations within the EU. The European Commission will play a crucial role in determining whether WhatsApp meets all the necessary criteria for this classification.

Potential Impact of VLOP Classification on WhatsApp

If designated as a VLOP, WhatsApp would face a series of regulatory obligations designed to ensure greater transparency and accountability. The platform would need to implement comprehensive measures to manage advertising transparency, enhance content moderation efforts, and conduct annual independent audits. Furthermore, it would be required to share data with the EU authorities and take proactive steps to address risks related to harmful or illegal content. These requirements aim to protect users and maintain a safer online environment.

Beyond operational changes, this classification could also influence how WhatsApp operates within the competitive landscape of the EU. Joining the ranks of other tech giants like Meta, ByteDance, Amazon, and Google as a VLOP would place WhatsApp under similar regulatory scrutiny. The European Commission's decision will likely hinge on evaluating whether WhatsApp's current practices align with the stringent standards set by the DSA. If so, the platform may need to make significant adjustments to its policies and procedures to comply with these new regulations, potentially impacting its user experience and overall business strategy.