Europe classifies ChatGPT as a very large online search engine

The European Commission has classified ChatGPT as a very large online search engine, while Reddit and Roblox enter the DSA’s enhanced regulatory framework.

ChatGPT’s legal status is changing in the European Union. The Commission has designated it as a Very Large Online Search Engine, or VLOSE, under the Digital Services Act. Reddit and Roblox have joined a separate category as Very Large Online Platforms, known as VLOPs.

All three services reported reaching at least 45 million average monthly users in the European Union. This threshold, equivalent to approximately 10% of the EU population, places a service under review by the Commission for designation. Companies must update their audience figures at least every six months.

The distinction between the three services comes from how they operate. Reddit and Roblox allow users to create and publicly distribute third-party content, which qualifies them as online platforms. ChatGPT receives a different status because it can answer queries while searching for information on the web.

The Commission therefore describes ChatGPT as a hybrid service capable of performing the functions of an online search engine. This legal classification does not mean that the service is identical to Google Search or Bing. It allows the EU to apply obligations designed for services that organize, select, and return information found online.

The designation is neither a penalty nor a finding of wrongdoing. ChatGPT, Reddit, and Roblox were already subject to the DSA’s general rules for their respective categories. Their audience size now places them under an enhanced framework designed for services capable of having a greater impact on society, fundamental rights, and the circulation of information.

The three companies have four months to comply with these additional obligations. They will be required to identify and assess systemic risks connected to their services, then introduce proportionate measures to reduce them.

These assessments must cover the spread of illegal content, the protection of minors, effects on physical and mental health, potential violations of fundamental rights, public safety, and risks to electoral processes. For ChatGPT, this oversight may include generated responses, web search, and other features that organize or return information.

The DSA does not require the designated services to eliminate every risk or prevent every problematic response. It does require a documented process: identifying risks, measuring their significance, explaining the decisions made, and demonstrating the effectiveness of the measures introduced.

VLOPs and VLOSEs must also establish an internal compliance function, undergo an independent audit at least once a year, and respond to the auditor’s recommendations. The Commission and national authorities may request access to certain data to monitor compliance with the regulation.

Vetted researchers may also receive access to data needed to study systemic risks. The designated services must provide greater transparency around moderation, advertising, and recommendation systems, including an option that is not based on user profiling when such recommendations are offered.

Some obligations will be adapted to the features actually available within each service. The Commission’s statement does not yet explain how the rules will be divided between ChatGPT’s web search, conversations without browsing, memory, voice features, and connected applications. The designation nevertheless covers ChatGPT as a service and is not explicitly limited to search mode.

The Commission now gains enhanced investigative powers to examine the features of all three services and their related systems. It will supervise ChatGPT and Reddit in cooperation with Coimisiún na Meán, Ireland’s Digital Services Coordinator. Roblox will be monitored alongside the Netherlands Authority for Consumers and Markets.

This division reflects the European country in which each service is established. The Commission remains primarily responsible for the obligations applying specifically to very large services, while national Digital Services Coordinators participate in DSA supervision and enforcement.

If a company fails to comply, the regulation allows fines of up to 6% of its annual worldwide revenue. This maximum penalty does not result from designation alone. It can only follow an investigation and a confirmed violation.

ChatGPT, Reddit, and Roblox bring the number of very large platforms and search engines under enhanced DSA supervision to 28. The list already includes several services operated by Google, Meta, Microsoft, Apple, Amazon, TikTok, LinkedIn, Pinterest, Wikipedia, 𝕏, and WhatsApp Channels.