European Commission labels ChatGPT a search engine under strict DSA rules
The European Commission has officially designated ChatGPT as a Very Large Online Search Engine (VLOSE) and Reddit and Roblox as Very Large Online Platforms (VLOPs) under the Digital Services Act. These services must now comply with strict systemic risk assessments, independent audits, and transparency requirements by January 2027.
Key Takeaways
- OpenAI reported 159 million monthly users for ChatGPT search functions, far exceeding the 45 million user threshold for VLOSE status.
- Reddit and Roblox designated as VLOPs with 57.2 million and 46.6 million average monthly EU users respectively.
- Designated entities face potential fines of up to 6% of global annual turnover for failing to meet transparency and risk mitigation standards.
- Compliance requirements include mandatory researcher data access and annual independent audits verified by accredited third parties.
Why It Matters
The Commission's classification of ChatGPT as a hybrid search engine signals that generative AI tools with web-retrieval features can no longer avoid the heavy compliance burdens typically reserved for Google or Bing. For the streaming and digital media ecosystem, this creates a dual-regulatory environment where the AI Act governs model safety while the DSA dictates content moderation and recommender transparency. This overlap forces engineering teams to reconcile potentially conflicting requirements for algorithmic discovery and data access. Industry observers should watch for the first round of systemic risk assessments in early 2027 to see how OpenAI mitigates harms related to electoral processes and minor safety.
Additional Context
The European Commission's designation of ChatGPT as a Very Large Online Search Engine places OpenAI in the same regulatory tier as Google Search and Bing, both of which have been subject to DSA obligations since 2023. The Commission designated ChatGPT, Reddit, and Roblox in a September 2026 decision announced by Executive Vice President Henna Virkkunen, marking the first time a generative AI product has been classified under the DSA's search engine category. This expands the VLOSE list beyond traditional web crawlers and signals that any AI service with web-retrieval capabilities and more than 45 million monthly active users in the EU can trigger the threshold.
OpenAI now faces a compressed compliance timeline. VLOSE designees must submit their first systemic risk assessment within four months of notification, meaning OpenAI's initial filing is expected by early January 2027. The DSA requires designated platforms to conduct independent audits annually, publish transparency reports every six months, and grant researchers access to data through vetted procedures, obligations that will require OpenAI to build internal compliance infrastructure that most AI startups have never needed. Reddit and Roblox, designated as VLOPs rather than VLOSEs, face similar but slightly less stringent requirements focused on content moderation, recommender system transparency, and protection of minors. The distinction matters because VLOSEs carry additional obligations around search result manipulation and advertising transparency that VLOPs do not.
The broader regulatory landscape for AI services in Europe is tightening from multiple directions simultaneously. The EU AI Act entered into force in August 2024, with high-risk AI system obligations becoming enforceable in August 2026, creating a dual-regulatory environment where OpenAI must satisfy both the AI Act's model safety requirements and the DSA's platform governance rules. For streaming and digital media companies integrating AI-powered discovery or recommendation features, the EU labels ChatGPT a VLOSE precedent suggests that any AI tool with web-search capabilities and sufficient EU user scale could face similar designation. The Commission has indicated it will continue monitoring emerging AI services for potential future designations, and industry observers expect the next wave of VLOP and VLOSE designations to target that blur the line between search and generation.
Read full article at burges-salmon.com
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