EU: ChatGPT EU Digital Services Act Designation Imposes New Rules

• OpenAI's ChatGPT has been designated a "Very Large Online Search Engine" under the EU Digital Services Act, marking the first AI chatbot to receive this classification.
• Reddit and Roblox also received the "very large online platform" designation, triggering enhanced obligations for all three within four months.
• The designation applies to platforms with over 45 million monthly active users in the EU, a threshold met by ChatGPT's 159 million users, Reddit's 57 million, and Roblox's 46.6 million.
• New compliance requirements include assessing and mitigating risks related to illegal content, minor protection, user well-being, fundamental rights, electoral processes, and public security.
• This move sets a significant precedent for the regulation of large generative AI systems in the EU, expanding compliance expectations beyond the separate EU AI Act.

This designation sets a significant precedent for the regulation of large generative AI systems in the EU, expanding compliance expectations beyond the separate EU AI Act.

The European Union has officially designated OpenAI's ChatGPT as a "Very Large Online Search Engine" (VLOSE) under its Digital Services Act (DSA), marking a significant first for an AI chatbot. This decision subjects the popular generative AI system to a heightened level of regulatory oversight and accountability within the 27-nation bloc. The designation was triggered by ChatGPT's substantial user base, which exceeded 159 million monthly active users in the EU by the end of March, representing over one-third of the region's population.

Alongside ChatGPT, the EU also applied the VLOP label to the discussion platform Reddit and the gaming platform Roblox. Reddit reported more than 57 million users in the EU, while Roblox, known for its immersive virtual worlds and appeal to younger audiences, registered 46.6 million active players in the region. The threshold for VLOP designation under the DSA is set at 45 million monthly active users, a benchmark all three platforms surpassed. Henna Virkkunen, the Executive Vice-President for Tech Sovereignty, Security and Democracy, emphasized that these platforms will now face a higher standard of scrutiny, reflecting their considerable impact on European citizens and society.

The designation as a very large online platform under the Digital Services Act imposes a stringent set of new obligations on ChatGPT, Reddit, and Roblox. These platforms now have a four-month window to implement comprehensive measures to comply with the DSA's requirements. Key among these obligations is the mandate to actively assess and mitigate systemic risks associated with their services. This includes addressing the dissemination of illegal content, safeguarding minors, protecting users' physical and mental well-being, upholding fundamental rights, and ensuring the integrity of electoral processes and public security.

To bring ChatGPT within the DSA's regulatory framework, the European Commission classified the AI chatbot as a search engine. This strategic classification underscores the EU's proactive approach to regulating emerging technologies. The DSA forms a cornerstone of the EU's broader efforts to rein in the power and influence of major technology companies, complementing other landmark legislation such as the EU AI Act. While the EU AI Act, which took effect in 2024 with phased obligations, specifically targets potentially dangerous uses of artificial intelligence, the DSA broadens the scope of regulatory expectations for large online platforms, including AI chatbots EU regulation.

This move by the European Union sets a crucial precedent for the regulation of large generative AI systems operating within the bloc. Lena-Maria Böswald of the German technology think tank Interface highlighted that this designation will significantly influence the regulatory expectations for every large generative AI system used in the EU. While OpenAI already faces risk-management obligations under the EU AI Act implications, the DSA designation is expected to widen the scope of its compliance responsibilities, demanding more extensive OpenAI EU compliance.

OpenAI has indicated it is actively preparing to meet these additional compliance requirements, while Roblox expressed pride in being the first gaming platform to receive the VLOP designation, reaffirming its commitment to safety and constructive engagement with the European Commission. The EU's increasing regulatory enforcement against the world's largest digital platforms, many of which are American companies, continues despite pushback from the United States. 28 services, including those owned by tech giants like Google, Apple, Microsoft, TikTok, X, Amazon, and Shein, as well as collaborative platforms like Wikipedia and several pornography sites, are now subject to enhanced scrutiny under the DSA very large online platform framework.

Lawyers and compliance officers advising large online platforms, particularly AI chatbots like ChatGPT, operating in the EU must immediately assess and update their compliance frameworks to meet the Digital Services Act's new obligations within the four-month deadline. This designation sets a precedent for generative AI, signaling increased regulatory scrutiny and the need for proactive risk mitigation strategies beyond the EU AI Act.

Source: Original reporting via AFP and AP.