The adult content platform, with an average of 45 million monthly users in the EU, surpasses the Digital Services Act’s threshold for Very Large Online Platforms.

The European Union has officially designated the adult content website XNXX as a Very Large Online Platform (VLOP) under the Digital Services Act (DSA). This decision, announced on Wednesday, reflects the platform’s substantial reach, with an average of 45 million monthly users within the 27-member bloc. This figure exceeds the threshold set by the DSA for VLOP status.

Stringent Compliance Requirements for XNXX

As a newly designated VLOP, XNXX must adhere to rigorous regulations aimed at increasing transparency and accountability. These requirements include sharing data with EU authorities and undergoing external, independent audits. The European Commission emphasized that this designation allows the executive branch to impose fines for any incorrect, incomplete, or misleading information provided by the platform.

By mid-November 2024, XNXX must comply with several critical obligations. These include implementing measures to empower and protect users, preventing minors from accessing pornographic content through age-verification tools, providing researchers with access to publicly available data, and publishing a repository of advertisements.

Additionally, XNXX must assess and mitigate systemic risks associated with its services. This includes addressing the dissemination of illegal content and the potential negative impacts on users’ mental and physical well-being. The platform is required to submit its first risk assessment report by the same November deadline.

Expansion of VLOP Designations

With XNXX’s designation, the number of adult platforms identified as VLOPs under the DSA grows to four, joining Pornhub, Stripchat, and XVideos. Overall, this brings the total number of designated VLOPs across various sectors to 25.

Market Impact and Profit Opportunity

The designation of XNXX as a VLOP under the DSA presents a unique investment opportunity. This regulatory shift indicates a move towards greater oversight and could lead to increased consumer confidence in the platform. Investors should note the potential for improved user engagement and the corresponding rise in advertising revenue. Furthermore, adherence to these stringent guidelines may enhance the platform’s reputation, attracting more users and advertisers. The market could see significant growth, with a potential profit increase driven by higher user engagement and compliance with EU regulations.

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