ChatGPT Designated EU Very Large Online Search Engine

OpenAI's ChatGPT has been officially designated as a "very large online search engine" by the European Union, a classification that triggers significant regulatory obligations under the EU's Digital Services Act (DSA). This designation was confirmed following OpenAI's self-reporting of its user base, which indicated an average of 159.1 million monthly active recipients of its services within the EU. The DSA aims to create a safer digital space by imposing stricter rules on online platforms, particularly those with a substantial reach across the bloc. The classification as a "very large online search engine" subjects OpenAI to a more rigorous set of compliance requirements than smaller platforms. These requirements are designed to enhance transparency, accountability, and user safety. Specifically, platforms falling under this designation must conduct regular risk assessments to identify and mitigate systemic risks, such as the dissemination of illegal content, negative effects on fundamental rights, and risks to public health and civic discourse. They are also mandated to implement robust content moderation systems, provide clear and accessible terms of service, and cooperate with EU authorities. Furthermore, these large platforms are required to allow external auditors to assess their compliance with the DSA and to share data with researchers to facilitate a better understanding of the risks associated with their services. The designation means OpenAI must now adhere to specific transparency obligations related to advertising, including disclosing who paid for an advertisement and why a particular user is seeing it. The Digital Services Act, which came into full effect in February 2024, categorizes online platforms based on their size and impact. The "very large" threshold is defined as serving at least 45 million users per month, which is approximately 10% of the EU population. OpenAI's reported figure of 159.1 million monthly average recipients clearly surpasses this threshold, necessitating the new classification. This move by the EU signifies a proactive approach to regulating the rapidly evolving landscape of artificial intelligence and its integration into widely used online services. The DSA's framework is intended to ensure that powerful online platforms operate responsibly and do not undermine democratic processes or user safety. The implications for OpenAI are substantial, requiring significant investment in compliance infrastructure and personnel to meet the stringent demands of the DSA. Failure to comply with these regulations can result in substantial fines, potentially up to 6% of a company's global annual turnover. The designation of ChatGPT as a very large online search engine underscores the growing influence of AI-powered tools and the EU's commitment to governing their societal impact.