European Commission Moving to Classify ChatGPT as ‘Very Large Online Search Engine’ Under Digital Services Act
ChatGPT's 120M EU users trigger strict DSA rules, bringing major compliance costs and oversight.
The European Commission is preparing to designate OpenAI's ChatGPT as a 'Very Large Online Search Engine' (VLOSE) under the EU's Digital Services Act (DSA), according to reports from German newspaper Handelsblatt. This classification applies to digital services with over 45 million monthly active users in the EU. OpenAI's own data shows ChatGPT reached 120.4 million monthly users in the EU as of September 2025, far surpassing the threshold and triggering the strictest tier of DSA regulation.
Once formally designated, OpenAI will have four months to comply with a host of new obligations. These include implementing user-friendly terms, reporting criminal content, conducting systemic risk assessments, and establishing internal compliance functions. The company must also undergo annual independent audits, share data with regulators and vetted researchers, and pay a supervisory fee of up to 0.05% of its annual global net income. Non-compliance can be costly, as evidenced by X's €120 million fine last December.
This move represents a significant regulatory escalation for generative AI in Europe. While an EC spokesperson stated that classifying large language models (LLMs) like ChatGPT would be decided on a 'case-by-case basis,' this action sets a precedent. It subjects a core AI product to the same rigorous online governance framework as major platforms like Google and Meta, signaling that user scale, not just service type, is a key trigger for EU oversight.
- ChatGPT's EU user base of 120.4M monthly users triggers the DSA's VLOSE threshold of 45M.
- OpenAI must comply within 4 months, facing mandates for risk audits, transparency reports, and data sharing with regulators.
- The classification could significantly raise operating costs and sets a precedent for case-by-case LLM regulation in the EU.
Why It Matters
This sets a major precedent, applying platform-scale regulation to generative AI and increasing compliance burdens for tech giants in Europe.