ChatGPT faces tougher rules under EU online safety regime

ChatGPT will now be required to adhere to stricter regulations under the EU’s Digital Services Act (DSA), according to the European Commission. The decision, announced on Monday, classifies the AI-powered chatbot as a "very large online search engine," placing it under increased legal scrutiny. This marks the first time an AI chatbot has been subjected to such measures. Alongside ChatGPT, the platforms Reddit and Roblox were also designated as "very large online platforms," triggering similar regulatory obligations. These classifications mean the services must remove illegal content, protect the privacy and security of minors, and ensure overall compliance with EU digital safety standards. Failure to meet these requirements could result in fines of up to 6 percent of their global revenue. The classification of ChatGPT as a search engine was necessary to bring it within the scope of the DSA, which governs the operations of large online platforms. The decision follows the revelation that all three services, ChatGPT, Reddit, and Roblox, have exceeded the 45 million monthly active user threshold in the EU, a key criterion for being labeled as "very large." As a result, they now have until the end of December to adjust their practices to align with the new rules. The DSA, introduced in late 2022, aims to hold major tech firms accountable for harmful content and data protection issues. It represents a significant step in the EU’s ongoing effort to regulate digital services, particularly in light of the rapid evolution of artificial intelligence. The EU’s approach reflects broader efforts to tighten control over digital platforms, especially those operating in the region. The DSA mandates that platforms assess and mitigate risks associated with their algorithms, including the spread of illegal content, negative impacts on minors, and threats to fundamental rights. The regulatory framework also extends to areas such as electoral processes and public security. For ChatGPT, this means ensuring that its responses do not promote hate speech, misinformation, or other prohibited material. The inclusion of AI chatbots in the DSA signals a shift toward applying traditional digital safety rules to emerging technologies, setting a precedent for future regulation. The move has drawn attention due to its implications for both the EU and international tech giants. While the DSA applies to all companies operating within the bloc, regardless of their origin, it has faced criticism from U.S. officials who argue that the EU is disproportionately targeting American firms. Washington has raised concerns over the fairness of the regulations, claiming that the EU’s approach violates free speech principles. However, the European Commission maintains that its digital laws are designed to create a level playing field for all businesses operating in the EU. Recent examples include a €550 million fine imposed on Chinese e-commerce platform AliExpress for failing to adequately monitor illegal product sales. In response to the new obligations, OpenAI, the developer of ChatGPT, stated that it is preparing to meet the additional compliance requirements. Similarly, Roblox expressed pride in becoming the first gaming platform to surpass the 45 million user mark in the EU and emphasized its commitment to safety. Reddit also confirmed its intention to comply with the DSA. These statements suggest that the affected companies are aware of the regulatory challenges and are working to adapt their policies accordingly. The EU’s continued enforcement of the DSA underscores its determination to maintain high standards for digital services, even as it navigates complex geopolitical tensions with major tech hubs around the world. As the EU expands its regulatory reach to cover AI-driven services, the implications extend beyond individual platforms. The DSA’s application to generative AI highlights the growing complexity of governing digital innovation. With the AI Act also entering enforcement phase, the EU is positioning itself as a leader in shaping global AI governance. The upcoming compliance period for ChatGPT, Reddit, and Roblox will serve as a test case for how effectively the bloc can balance innovation with responsibility. The outcome of this process could influence future regulatory frameworks not only within Europe but also globally.