OpenAI Faces Dual Regulatory Burden as ChatGPT Named EU 'Very Large Online Platform'
The designation under the Digital Services Act, combined with the EU AI Act, forces OpenAI to navigate overlapping safety and transparency mandates.
OpenAI is now navigating a complex dual regulatory landscape in Europe after ChatGPT was officially designated as a 'Very Large Online Platform' (VLOP). This new status subjects the chatbot to a rigorous set of oversight mechanisms that overlap with existing AI-specific laws.
Under the EU's Digital Services Act (DSA), the VLOP designation requires ChatGPT to implement tougher safety rules and conduct comprehensive systemic risk assessments. These platform-level obligations focus on how the service is delivered to users, including transparency requirements regarding content moderation and the mitigation of societal risks. Simultaneously, OpenAI must comply with the EU AI Act, which governs the safety and risk management of the underlying models, such as GPT-4o, focusing on the technical integrity and systemic risks of the AI itself.
The Regulatory Overlap
This shift marks a transition from treating ChatGPT solely as a piece of software to treating it as a systemic digital gateway. While the AI Act targets the 'engine'—the general-purpose AI model—the DSA targets the 'vehicle'—the platform through which millions of Europeans access that model. By applying both, the European Union is ensuring that neither the technical development of the AI nor its public distribution escapes scrutiny.
Industry Implications
For OpenAI, this dual regime creates a significant compliance burden. The company must now maintain two distinct but intersecting reporting pipelines: one for model-level safety and another for platform-level systemic risk. This overlap is likely to increase operational costs and could potentially slow the rollout of new features within the European market, as every update must be vetted against both the DSA's platform safety standards and the AI Act's model risk requirements.
Future Outlook
Industry observers are now watching how the European Commission will coordinate the enforcement of these two separate acts to avoid contradictory mandates. While the VLOP designation is now official, the full extent of the transparency obligations—specifically regarding how OpenAI must disclose its algorithmic processes to regulators—remains a key point of contention and a primary area for future legal scrutiny.