The European Commission is classifying ChatGPT as a Very Large Online Search Engine (VLOSE) under the Digital Services Act with over 159 million EU users, triggering mandatory compliance obligations including risk assessments, algorithmic transparency reports, and independent audits within four months of official designation.
What You Will Learn
- What VLOSE classification means and how the 45 million user threshold works
- New compliance obligations ChatGPT will face under the Digital Services Act
- How this designation impacts EU users versus global users
- Timeline for implementation and potential global regulatory ripple effects
Understanding VLOSE Classification
The Digital Services Act establishes two key regulatory categories: Very Large Online Platforms (VLOPs) and Very Large Online Search Engines (VLOSEs). A VLOSE designation applies to services that enable users to search and retrieve information through structured query interfaces. The critical threshold for both categories is 45 million monthly active users in the European Union. Once a service crosses this threshold, the European Commission can designate it as a VLOP or VLOSE, triggering the most stringent obligations under the DSA.
ChatGPT's classification path is notable because large language models were not explicitly contemplated when the DSA was drafted. The European Commission is now interpreting whether ChatGPT's query-response interface qualifies as search functionality under the act. According to Commission spokesman Thomas Regnier, OpenAI has published user numbers for ChatGPT above the 45 million DSA threshold, making designation likely. The key question is whether ChatGPT should be treated as a search engine, a platform, or both—a hybrid scenario that experts at The Future Society argue creates a regulatory gap that needs addressing.
ChatGPT's 159.1 Million EU User Milestone
OpenAI reported that ChatGPT reached approximately 159.1 million monthly active users in the European Union, significantly exceeding the 45 million threshold that triggers VLOSE designation. This figure comes from user data submitted to the European Commission as part of the DSA's transparency requirements. The rapid adoption of ChatGPT since its launch has brought it well beyond the threshold that applies to established tech giants like Google Search and other popular online services.
The designation process involves several steps. First, platforms must publish their user numbers by February 17, 2023. The Commission then reviews these figures and issues a formal designation. Once designated, the service has four months to comply with all VLOSE obligations. This compliance timeline is critical because it gives ChatGPT a limited window to implement systemic risk assessments, transparency reporting, and other requirements that established platforms have been working toward for months.
Who Else is Classified as VLOSE?
The current roster of VLOSEs includes traditional search providers and platforms that offer search functionality. Google Search and Bing are the primary VLOSE designations, representing the search engine category. However, the European Commission has also designated platforms that offer search as part of their core services. This includes platforms like Amazon (for product search) and some social media platforms that offer content discovery features. If ChatGPT is classified as a VLOSE, it would join an exclusive group of services facing the most rigorous DSA obligations.
The distinction between VLOPs and VLOSEs matters because VLOSEs have additional obligations related to how they present search results and ranking parameters. VLOSEs must provide more detailed information about their search algorithms and offer users opportunities to modify search result parameters. VLOPs, by contrast, have obligations primarily around content moderation and advertising transparency. ChatGPT's potential VLOSE designation suggests the Commission views its query-response interface as fundamentally similar to traditional search functionality.
New Compliance Requirements for ChatGPT
Once officially designated, ChatGPT must comply with four major categories of obligations under the DSA. These requirements are designed to address the systemic risks that very large services can pose to democracy, fundamental rights, and public security. The obligations are comprehensive and require significant operational changes for OpenAI.
First, ChatGPT must conduct a systemic risk assessment within four months of designation. This assessment must evaluate how ChatGPT could be used to manipulate information, spread illegal content, or infringe on fundamental rights. The assessment covers risks related to the intentional manipulation of information, potential impacts on electoral processes, risks to fundamental rights like freedom of speech and privacy, and gender-based violence risks. The assessment requires OpenAI to identify specific risks and develop mitigation strategies.
Second, ChatGPT must provide algorithmic transparency. This includes publishing a statement explaining how its ranking systems work, what parameters influence response generation, and how users can access and influence these parameters. For a large language model, this requirement is particularly challenging because of the complexity of transformer architecture and training data dependencies. However, the DSA demands that VLOSEs make significant improvements to algorithmic transparency beyond what exists today.
Third, ChatGPT must submit to independent audits. The DSA requires annual audits of systemic risk assessments and biennial compliance audits. These audits must assess whether measures are effective in mitigating identified risks. The audit requirements also extend to advertising transparency and user protection measures. For ChatGPT, this means third-party verification that its content safety filters, bias mitigation systems, and other protective measures are functioning as intended.
Fourth, ChatGPT must provide data access for researchers. The DSA requires VLOSEs to give qualified researchers access to non-personal data to study systemic risks. This access includes aggregated datasets that can help researchers understand how ChatGPT shapes information ecosystems, whether it amplifies harmful content, and how it affects democratic processes. Research access is a critical component of the DSA's transparency framework because it enables ongoing study of large-scale platform impacts beyond what regulators can accomplish alone.
Systemic Risk Assessment Protocols
Information Manipulation Analysis
Evaluate how ChatGPT could be used to generate misleading information, deepfakes, or manipulative content that influences public opinion or behavior.
Electoral Process Impact Study
Assess risks to elections, including potential for campaign interference, voter misinformation, and undermining of democratic discourse through automated content generation.
Fundamental Rights Evaluation
Analyze impacts on freedom of speech, privacy, non-discrimination, and other fundamental rights protected under EU law, particularly for vulnerable populations.
Gender-Based Violence Prevention
Identify risks of ChatGPT being used to generate gender-based violence content, harassment, or harmful stereotypes, and develop specific mitigation measures.
The systemic risk assessment process requires OpenAI to document its analysis clearly for regulator review. The assessment must be updated annually and made available to the public. This ongoing assessment cycle ensures that ChatGPT continuously monitors and adapts to emerging risks. The European Commission provides guidance on risk assessment criteria, but platforms have flexibility in how they conduct analyses and develop mitigation strategies. For ChatGPT, the key challenge will be translating complex model behaviors into clear risk categories and actionable mitigation plans.
Algorithmic Transparency Changes
The DSA requires VLOSEs to publish a recommendation algorithm statement explaining how their ranking systems function. For ChatGPT, this means describing how responses are prioritized, what factors influence response generation, and how users can access information about these processes. The statement must be clear, accessible, and updated whenever significant changes occur to the system.
The transparency requirements extend beyond algorithmic statements. VLOSEs must also offer users opportunities to modify search result parameters. For a traditional search engine, this might include filters for source credibility, recency, or geographic location. For ChatGPT, this requirement is challenging to implement because of the nature of large language model generation. However, the DSA mandate means OpenAI will need to develop user-facing tools that allow meaningful influence over how responses are generated.
Additionally, VLOSEs must provide transparency repositories containing data on content moderation actions, advertising disclosures, and user complaint statistics. For ChatGPT, this repository would likely include information about policy violations, account suspensions, and the volume of content flagged as harmful. The transparency repository requirement is designed to enable public oversight of how very large services handle content moderation and enforcement.
Global Regulatory Ripple Effect
The European Commission's decision to classify ChatGPT as a VLOSE sets a precedent that will influence AI regulation globally. The DSA framework is being closely watched by regulators in the United Kingdom, United States, and Asia, who are developing their own approaches to AI governance. By establishing specific obligations for generative AI tools, the EU creates a regulatory model other jurisdictions may adopt or adapt.
The UK is developing its own Online Safety Act, which shares similarities with the DSA but takes a different approach to AI services. The United States is pursuing sector-specific regulation through agencies like the FTC and Congress, with the EU DSA serving as a reference point for risk-based AI regulation. In Asia, countries like Singapore and Japan are developing AI governance frameworks that balance innovation with safety, often drawing inspiration from European approaches.
For global tech companies, the EU DSA creates de facto international standards because companies implement EU-level protections globally rather than maintaining separate systems for different markets. ChatGPT's compliance with DSA obligations will likely extend beyond European borders, setting baseline standards for transparency, risk assessment, and user protection worldwide. This regulatory ripple effect means the EU's approach to AI governance will shape global best practices for years to come.
Timeline and Deadlines
ChatGPT has four months from official designation to complete systemic risk assessment, implement algorithmic transparency measures, and establish data access for researchers. Annual risk assessments and biennial compliance audits begin immediately thereafter.
The designation process involves several phases. First, the European Commission issues a formal designation notification. Then, ChatGPT has four months to complete compliance before potential enforcement actions. The first systemic risk assessment is due within this compliance window, followed by annual updates. Independent audits commence after the initial compliance deadline and continue on a regular schedule.
The timeline pressure is significant because OpenAI must implement comprehensive governance processes quickly. However, many established VLOPs and VLOSEs have already completed their initial compliance periods, providing templates for how to conduct risk assessments, implement transparency measures, and establish audit frameworks. OpenAI will likely borrow from these existing approaches while adapting them to the unique characteristics of generative AI systems.
Final Verdict
The EU's classification of ChatGPT as a Very Large Online Search Engine marks a significant milestone in AI regulation, establishing transparency, accountability, and user protection as baseline requirements for generative AI tools. While compliance challenges exist, these obligations will likely set global standards for how large AI systems should be governed, monitored, and made accountable to the public interest.
Key Takeaways
- ChatGPT's 159.1 million EU users exceeds the 45 million VLOSE threshold, triggering mandatory DSA compliance
- New obligations include systemic risk assessments, algorithmic transparency, independent audits, and research access
- ChatGPT has four months from designation to complete compliance before enforcement begins
- The EU's approach sets precedents for global AI regulation in the UK, US, and Asia
- Compliance will likely extend beyond Europe, setting global standards for generative AI governance
- The VLOSE designation bridges the gap between traditional search engines and emerging AI platforms
Frequently Asked Questions
Last Updated: May 01, 2026 | Source: TechRepublic, Reuters, The Future Society