The EU General Court has upheld the European Commission’s decision to classify Stripchat as a very large online platform, establishing important limits on how technology companies can challenge the calculation of their European user numbers.

The European Union’s General Court has rejected a legal challenge to the European Commission’s classification of adult entertainment platform Stripchat under the Digital Services Act, strengthening Brussels’ authority to determine which online services must comply with the legislation’s most demanding obligations.

In its judgment delivered on 14th October, the Luxembourg-based court dismissed the action brought by Technius Ltd, the company operating Stripchat, against its designation as a very large online platform.

The dispute centred on how the Commission calculated the platform’s average monthly active users in the European Union, which determines whether additional regulatory obligations apply.

Under the Digital Services Act, platforms exceeding 45 million monthly active recipients in the EU are subject to enhanced supervision, including requirements concerning systemic risks, transparency, content moderation and independent auditing.

The judgment addresses a fundamental question for European digital regulation: whether companies can exclude particular categories of website visits when calculating the number of people using their services.

How Brussels challenged the platform’s figures

In February 2023, Technius reported that Stripchat had approximately 31.8 million average monthly active recipients in the EU, placing it below the threshold for very large online platforms.

The company relied on information provided by Similarweb, a commercial service measuring website traffic and user behaviour.

However, the Commission questioned the methodology used to reach that figure. Technius had discounted certain visits on the grounds that users entered the website but departed without engaging with its content.

Such visits are commonly described as bounced visits and frequently appear in commercial website analytics.

The Commission concluded that the company’s deductions had significantly underestimated its audience because the original Similarweb calculation of unique visitors already incorporated a filtering process excluding many bounced visits.

On that basis, Brussels calculated that Stripchat had more than 62 million monthly unique visitors in the EU, well above the statutory threshold.

The Commission consequently designated the platform as a very large online service on 20th December 2023. Technius challenged the decision, arguing that the figures were unreliable and that the absence of a prescribed calculation methodology undermined legal certainty.

The EU General Court rejected both arguments.

Court rejects challenge to calculation methodology

According to the court’s official explanation, the Commission had adequately explained its calculation and was entitled to rely on the data available when the designation decision was adopted.

The judges found that Technius had effectively applied deductions to figures from which relevant traffic had already been filtered, producing an artificially reduced estimate of active recipients.

The judgment also addressed a potentially significant complication.

After the Commission adopted its decision, Similarweb revised its methodology. Using the corrected method, Stripchat’s estimated monthly active audience for the relevant period was approximately 37.3 million.

That figure was below the threshold for classification as a very large online platform. Nevertheless, the court held that the subsequent correction did not invalidate the original designation.

The judges determined that the Commission’s decision had to be assessed according to the facts, applicable law and permissible evidence available when the decision was taken.

The ruling therefore does not establish that Stripchat currently exceeds 45 million monthly users. It confirms that the later recalculation was insufficient to annul the Commission’s December 2023 decision.

A significant precedent for digital regulation

The consequences extend beyond one adult entertainment website.

The Digital Services Act covers online intermediaries operating in the European market, including social networks, marketplaces, hosting services and other platforms.

Its obligations increase according to the size and nature of a company’s operations. Very large online platforms must assess systemic risks associated with their services, introduce appropriate mitigation measures and submit to independent audits.

The Commission is responsible for supervising their additional obligations and can impose substantial financial penalties for established infringements.

The distinction between the two categories can therefore have considerable financial and operational consequences.

Companies falling below the 45 million threshold remain subject to relevant DSA obligations but do not face the same additional requirements imposed on the largest platforms.

The General Court’s ruling confirms that companies cannot escape designation by applying an unreliable interpretation of website traffic data.

At the same time, the Commission’s published supervisory framework allows a designation to be revoked when a platform remains below the threshold for a full year.

European technology enforcement faces growing scrutiny

The judgment comes as the Commission faces multiple legal challenges to its enforcement of Europe’s digital legislation.

As EU Today previously reported, Washington has sought to intervene in proceedings concerning the Commission’s €120 million Digital Services Act fine against X, introducing an additional diplomatic dimension to European regulatory disputes.

The Commission is also pursuing separate investigations into whether major platforms comply with obligations concerning the protection of minors, advertising transparency and the management of illegal content.

In another case examined by EU Today, Brussels reached preliminary findings concerning TikTok’s default privacy settings for children, illustrating the practical consequences of the stricter duties imposed on very large online platforms.

The Stripchat judgment concerns designation rather than a finding that the company breached any substantive safety obligation. Its immediate consequence is to preserve the Commission’s original classification decision.

Technius may still appeal to the Court of Justice of the European Union on points of law within two months and ten days of notification of the judgment.

For European regulators, the decision provides judicial support for using established commercial analytics when assessing the reach of online platforms, provided that the methodology is adequately explained and the underlying evidence is reliable.

For technology companies, it confirms that the legal assessment of user numbers extends beyond the figures they choose to report to Brussels. The Commission can scrutinise those calculations and reject methods that fail to provide a reliable estimate of an online service’s European audience.

The European Commission is assessing changes to Google’s search engine and app-store practices after imposing two substantial fines in July. Regulators must now decide whether the company’s response satisfies EU competition requirements or leaves it exposed to further enforcement.

The European Commission is continuing discussions with Google over the company’s response to €890 million in penalties imposed under the Digital Markets Act, as Brussels examines whether changes to its search engine and app-store practices are sufficient to address infringements of European competition rules.

Commission spokesman Thomas Regnier confirmed on Wednesday, 14 October, that officials remained in dialogue with the American technology company. The Commission is assessing the measures Google has introduced, taking account of feedback from businesses affected by its services before reaching a conclusion on compliance.

The review follows two decisions adopted on 23 July, when the European Commission found Google in breach of the Digital Markets Act. A €460 million fine concerned preferential treatment for Google’s own services in search results, while a separate €430 million penalty addressed restrictions preventing app developers from freely directing customers towards alternative purchasing channels.

Search rankings remain under examination

The first infringement concerns Google’s treatment of competing online services offering hotel reservations, shopping comparisons, transport information and sports results.

Regulators concluded that Google had placed its own services in more prominent positions, sometimes providing them with enhanced visual features and search functions unavailable to competing businesses.

The Digital Markets Act prohibits designated gatekeepers from giving their own products preferential treatment when ranking services that compete with those offered by other companies.

Google has already modified its European search results in response to the Commission’s decision. The changes include revised presentations of commercial information and greater prominence for independent comparison services.

As EU Today reported following the introduction of the revised search format, Google has argued that the measures could make searches less convenient and increase dependence on intermediary websites.

The company maintains that direct information previously available through its search engine may become harder for consumers to obtain.

For competitors, however, the question is whether Google’s adjustments provide genuine commercial opportunities or merely alter the appearance of search results without changing the underlying distribution of traffic.

Google Play fees face scrutiny

The second case concerns the Google Play application marketplace, where developers have historically depended on Google’s infrastructure to distribute software and sell subscriptions.

Under the DMA, developers must be able to inform customers about alternative offers and direct them towards purchasing arrangements outside the platform, including their own websites.

The Commission found that Google’s restrictions and fees had limited that freedom.

Although the company may charge for certain services associated with acquiring customers, the Commission concluded that the level and duration of its steering-related charges exceeded what the legislation permits.

Google has since adjusted its external-offers arrangements. European officials are examining whether those changes provide developers with a commercially workable alternative to transactions processed through Google Play.

The issue has consequences for subscription services, digital publishers and software companies seeking to maintain direct relationships with their customers.

A formal ability to direct consumers elsewhere is of limited benefit if the financial conditions make such transactions uneconomic.

Enforcement enters a more demanding phase

The Digital Markets Act was designed to address market practices that conventional competition investigations often took years to resolve.

Rather than requiring regulators to establish a new infringement through lengthy proceedings in every instance, the legislation imposes specific obligations on companies designated as gatekeepers.

The Commission’s DMA enforcement framework allows regulators to examine whether those obligations are being followed and to impose financial penalties when they are breached.

Google’s July fines represented an important enforcement decision. The current review concerns the company’s subsequent conduct and the practical effects of its compliance measures.

The continuation of discussions does not itself establish a fresh infringement. Further penalties would require an additional regulatory determination.

Google also faces broader obligations concerning the sharing of search data with competing providers, an issue addressed in a separate Commission decision issued in July.

These obligations concern access to anonymised information about searches, rankings and user interactions that competing search engines may need to improve their own services.

Taken together, the measures represent a substantial intervention in how Google’s European business operates.

Transatlantic tensions complicate the dispute

The proceedings have acquired a political dimension because most of the largest companies affected by the DMA are American.

President Donald Trump has criticised European penalties against US technology companies and threatened trade measures in response to what his administration regards as discriminatory regulation.

Brussels maintains that the legislation applies according to market position and commercial conduct, regardless of nationality.

European regulators must nevertheless enforce their decisions in an environment where competition policy has become entangled with wider trade relations between the United States and the European Union.

Google’s financial exposure extends beyond the €890 million imposed in July. Continued non-compliance could lead to further regulatory proceedings, while changes to the company’s services may also affect advertising revenue and its relationships with commercial partners.

The immediate assessment will concentrate on whether competing search services receive fair treatment and whether application developers can direct customers towards alternative transactions without unjustified restrictions.

The Commission has not announced a date for its final assessment. Its decision will help establish how far Europe’s digital competition legislation can change the conduct of companies whose platforms occupy central positions in online commerce.