On August 31, the European Commission designated ChatGPT as a “Very Large Online Search Engine” under the Digital Services Act—classifying an AI chatbot as a search engine for regulatory purposes. Reddit and Roblox were designated as “Very Large Online Platforms” at the same time. All three have until the end of 2026 to comply with additional obligations. ChatGPT is the first AI chatbot to be regulated under DSA. It won‘t be the last.
The decision is a legal one, not a technical one. ChatGPT does not primarily index the web or return search results. But the Commission determined that because it can respond to queries, including by searching the web, it qualifies as a “hybrid service” that meets the definition of an online search engine under DSA. All three services declared average monthly users in the EU exceeding 45 million—the threshold for “very large” status.
It’s Not a Search Engine. It’s Regulated Like One.
To bring ChatGPT under DSA, the Commission reclassified it. EU technology commissioner Henna Virkkunen said the designations mean the three services “will now be held to a higher standard of scrutiny and accountability.” But the classification is not about what ChatGPT actually does—it‘s about fitting the service into an existing regulatory category that gives the Commission investigative and enforcement powers.
The decision is significant precisely because the EU‘s DSA was written for platforms and search engines, not AI chatbots. The “hybrid service” framing allows the Commission to apply DSA rules to a new type of service without waiting for new legislation.
Four Months to Comply. 6% Revenue Penalty.
The timeline is tight. The three services have four months—by the end of December 2026—to implement additional DSA obligations. These include assessing and mitigating systemic risks related to illegal content, negative effects on minors, user well-being, fundamental rights, electoral processes, and public security.
The penalty for non-compliance is up to 6% of annual global turnover. For OpenAI, whose annualized revenue is estimated at over $400 billion, the stake is not trivial.
Two EU Laws. One Company. No Clear Rules.
OpenAI now faces dual regulatory oversight. The EU AI Act already imposes risk management obligations on OpenAI’s foundation models. DSA adds obligations at the application layer—how ChatGPT behaves as a service. The two frameworks demand different things, and they now apply to the same company.
The precedent is also significant. Lena-Maria Boswald of the German tech policy institute Interface told media the decision “will set a precedent for EU oversight of large generative AI systems.” ChatGPT is the first AI chatbot regulated under DSA, but the classification is now established. Other generative AI services that exceed the 45 million user threshold could be designated the same way.
ChatGPT just became the first AI chatbot to be treated like a search engine by a major regulator. The legal fiction is creative: a chatbot is now a search engine because the EU needs a category to regulate it. The 45 million user threshold is the trigger. The four-month compliance window is the timeline. The 6% global revenue fine is the enforcement mechanism.
The precedent matters more than the specific case. When regulators need to extend old laws to new technologies, they don’t wait for new laws—they reinterpret old ones. ChatGPT is the first. It won’t be the last.
P.S. The EU Commission also designated Reddit and Roblox as “Very Large Online Platforms.” Compliance for ChatGPT and Reddit will be supervised in cooperation with Ireland’s media regulator. Roblox falls under Dutch supervision. The regulatory machinery is already in place.
Frequently Asked Questions
Q: What did the EU do to ChatGPT on August 31?
A: The European Commission designated ChatGPT as a "Very Large Online Search Engine" under the Digital Services Act (DSA). Reddit was designated as a "Very Large Online Platform" and Roblox as a "Very Large Online Platform." All three services have until the end of December 2026 to comply with additional DSA obligations.
Q: Is ChatGPT actually a search engine?
A: No. ChatGPT is not primarily a search engine—it doesn't index the web or return search results. The Commission determined that because ChatGPT can respond to queries, including by searching the web, it qualifies as a "hybrid service" that meets the definition of an online search engine under DSA. The classification is a legal one, not a technical one.
Q: Why did the EU classify ChatGPT this way?
A: The EU's DSA was written for platforms and search engines, not AI chatbots. By classifying ChatGPT as a "hybrid service" that falls under the search engine definition, the Commission gains investigative and enforcement powers over the service without needing to pass new legislation.
Q: What obligations does ChatGPT now have?
A: Under DSA, ChatGPT must assess and mitigate systemic risks related to illegal content, negative effects on minors, user well-being, fundamental rights, electoral processes, and public security. The service must also improve transparency around its recommendation algorithms.
Q: What is the penalty for non-compliance?
A: The penalty is up to 6% of annual global turnover. For a company with OpenAI's scale—estimated annualized revenue exceeding $400 billion—the financial exposure is substantial.
Q: How does this relate to the EU AI Act?
A: OpenAI now faces dual regulatory oversight. The EU AI Act already imposes risk management obligations on OpenAI's foundation models. DSA adds obligations at the application layer—how ChatGPT behaves as a service. The two frameworks require different compliance measures and now both apply to the same company.
Q: How much time does OpenAI have to comply?
A: The compliance deadline is the end of December 2026—approximately four months from the designation date.
Q: Which regulators will supervise compliance?
A: Compliance for ChatGPT will be supervised in cooperation with Ireland's media regulator, given OpenAI's European headquarters is in Ireland. Reddit also falls under Irish supervision, while Roblox falls under Dutch supervision.
Q: What is the 45 million user threshold?
A: Services with more than 45 million average monthly active users in the EU are classified as "very large" under DSA, triggering stricter obligations. ChatGPT, Reddit, and Roblox all exceed this threshold.
Q: Will other AI chatbots face similar regulation?
A: Yes. EU tech policy experts have said the designation "will set a precedent for EU oversight of large generative AI systems." Other generative AI services that exceed the 45 million user threshold in the EU could be designated the same way. ChatGPT is the first—it won't be the last.
