Introduction to WhatsApp’s Regulatory Challenge

WhatsApp is likely to face increased regulation in the European Union due to a significant surge in user numbers on its open channels. On Friday, the platform announced Friday that these channels, which include news sources, public figures, and more, averaged approximately 46.8 million users in the EU during the second half of 2024. This rise in user numbers means that WhatsApp’s open channels, similar to a social network, now meet the criteria for a Very Large Online Platform (VLOP) under the EU’s Digital Services Act (DSA).

Regulatory Implications

The DSA categorizes online platforms as very large when they exceed 45 million monthly users in the EU. This designation grants the European Commission enhanced regulatory powers, including requirements for transparent advertising, content moderation, annual independent audits, data sharing with the EU, and more. Additionally, designated platforms must assess and mitigate the risks associated with harmful and illegal content.

Meta and Regulatory Designation

WhatsApp’s parent company, Meta, is already classified as a VLOP, albeit not without resistance. Other companies, including ByteDance, Amazon, and Google, also hold this designation. The European Commission will now need to determine whether to officially designate WhatsApp as a VLOP, potentially subjecting it to stricter regulatory oversight.