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.