The News That Matters
The European Commission designated ChatGPT as a Very Large Online Search Engine (VLOSE) under the Digital Services Act on September 1, 2026. The designation makes ChatGPT the first standalone AI service brought under direct Commission supervision, as opposed to traditional search engines and social media platforms that have been regulated under the DSA since its inception.
What the Numbers Show
OpenAI reported approximately 159.1 million average monthly active users in the EU — more than triple the 45 million threshold that triggers VLOSE status. At the same time, the Commission designated Reddit (57.2 million MAU) and Roblox (48 million MAU) as Very Large Online Platforms (VLOPs). All three services have until the end of November to complete systemic-risk assessments, submit to independent audits, and share data with regulators.
Non-compliance carries fines of up to 6% of global revenue — a significant financial lever for a company of OpenAI's size.
Why ChatGPT Is a 'Search Engine'
The Commission classifies ChatGPT as a hybrid service: an AI system that engages with and responds to user prompts, including by searching the web. It's precisely this web search capability that led the Commission to treat it as a search engine rather than a general-purpose AI system. ChatGPT was already subject to general DSA obligations that apply to search engines, but VLOSE status adds a further layer of scrutiny on top of that baseline.
The designation requires OpenAI to:
- Assess and mitigate systemic risks the service creates - Address risks related to illegal content, effects on minors, and users' physical and mental wellbeing - Protect individual rights under EU law - Safeguard electoral processes and public security
The Commission gains new investigative powers over the functionality behind ChatGPT and any related systems. Supervision sits with the Commission working alongside Coimisiún na Meán, Ireland's Digital Services Coordinator, since OpenAI's EU operations are established there.
Why It Matters
This is a landmark moment for AI regulation. For the first time, an AI chatbot is being regulated as a search engine rather than a general-purpose tool. The precedent could reshape how AI services are classified and regulated globally. If ChatGPT's conversational interface and web search capabilities make it a search engine, then every AI service that searches the web while generating responses could face similar scrutiny.
The timing is particularly significant given that OpenAI is simultaneously expanding ChatGPT Ads into Europe. The VLOSE designation means the company must now navigate both commercial expansion and regulatory compliance in a market where it has become a major player.
For the broader AI industry, the message is clear: the era of unregulated AI services in Europe is ending. Companies that offer AI-powered search functionality will need to invest in compliance infrastructure, risk assessments, and transparency measures. The 6% revenue fine is substantial enough to make this a boardroom priority.
