• The European Commission has formally designated OpenAI's ChatGPT as a "Very Large Online Search Engine" and Reddit and Roblox as "Very Large Online Platforms" under the Digital Services Act (DSA).
  • These platforms now have four months to comply with additional obligations, including enhanced transparency, stricter content moderation, and mandatory risk assessments.
  • Non-compliance could result in fines up to 6% of global annual turnover, signaling a tougher regulatory stance on US tech giants in Europe.

The New DSA Designations

The European Commission announced on Wednesday that ChatGPT, Reddit, and Roblox have crossed the EU's threshold of 45 million monthly active users, triggering their designation under the DSA. This move extends the bloc's regulatory reach into generative AI and expanding online communities, following earlier designations of major platforms like TikTok and Meta. The formal announcements were anticipated as early as August 2026, according to officials familiar with the timeline.

"We are committed to ensuring that all platforms, regardless of their size, adhere to the highest standards of transparency and accountability," said a Commission spokesperson. The new obligations will require these services to conduct annual risk assessments, implement measures to mitigate systemic risks, and provide clear disclosures on advertising and recommendation algorithms. Additionally, they must establish points of contact for EU users and authorities, and, for Reddit, ensure stronger content moderation to curb illegal content and disinformation.

Implications for Tech Giants and Users

For OpenAI, being classified as a search engine under the DSA is a significant shift, as it had previously argued that ChatGPT was not a traditional search service. The company must now ensure its AI model provides transparent and explainable outputs, particularly concerning biased or harmful content. Roblox, a platform popular with younger users, will face heightened scrutiny over child safety and data protection. "These designations highlight the EU's determination to hold digital platforms accountable," said digital rights advocate Maria Andersson. "But we must balance innovation with safety."

The move has sparked debate among stakeholders. Developers relying on Reddit's API for AI training may face additional compliance burdens, while advertisers will see more stringent disclosure requirements. Some critics argue that the DSA's rigid categories may not fit emerging technologies like chatbots, potentially stifling innovation. However, EU officials insist the rules are necessary to protect users and maintain fair competition. "The DSA is designed to be future-proof," noted a Commission official. "We adapt to new realities."

Broader Regulatory Trends

The designations signal the EU's expanding use of the DSA to cover generative AI and immersive platforms. This is part of a broader regulatory push that includes the AI Act and ongoing negotiations over digital fairness. For US-based tech companies, the move adds pressure to comply with increasingly stringent European rules. Short-term, companies will face compliance costs and operational adjustments; long-term, this could set a global precedent for how AI and online communities are regulated.

As the four-month compliance deadline approaches, all eyes will be on these platforms to see how they adapt. Without adequate compliance, they risk substantial fines, as the Commission has already demonstrated with other platforms. For now, the EU is making it clear: no platform is above scrutiny.