AI Law Crisis ๐จ: Will ChatGPT Survive? ๐ค
September 01, 2026 | Author ABR-INSIGHTS Tech Hub
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The European Commission announced Monday that OpenAIโs ChatGPT, along with Reddit and Roblox, would be subject to stricter regulations under the EUโs Digital Services Act. These platforms, now serving over 45 million monthly users within the EU, are classified as very large online platforms. They will face obligations including removing illegal content and safeguarding minorโs privacy and security. Failure to comply could result in fines up to 6 percent of their global revenue. The move expands the DSAโs scope to encompass generative AI, following an investigation into Xโs Grok chatbot. OpenAI stated it was preparing for compliance, while Roblox emphasized its commitment to safety. Reddit awaits comment, signifying a new era of scrutiny for major online services within the EU.
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GENERATEIVE AI UNDER THE DIGITAL SERVICES ACT
OpenAIโs ChatGPT, alongside Reddit and Roblox, is now subject to the European Unionโs Digital Services Act (DSA) following classification as Very Large Online Platforms (VLOPs). This significant development reflects the EUโs proactive approach to regulating rapidly evolving AI services and addresses concerns about illegal content, user privacy, and platform accountability. The DSA, a landmark online safety regime, imposes stringent obligations on VLOPs, including the removal of illegal content and robust protections for minors, with potential financial penalties of up to 6% of global revenue for non-compliance. This marks a critical step in applying existing digital regulations to generative AI, building upon investigations into services like Xโs Grok.
DSA IMPLEMENTATION AND KEY PLATFORMS
The decision to classify ChatGPT, Reddit, and Roblox as VLOPs stems from their substantial user base within the EU โ surpassing 45 million monthly users. This threshold triggers enhanced scrutiny under the DSA, requiring immediate compliance with the new regulations. OpenAI has confirmed preparations to meet these requirements, while Roblox emphasized its commitment to safety and constructive engagement with the European Commission. Reddit, however, has not yet issued a statement. This expansion of the DSA highlights the EUโs broader strategy to hold large online platforms accountable for the content hosted on their services, mirroring enforcement actions against companies like AliExpress, which faced a โฌ550 million fine for failing to adequately address illegal product sales on its platform.
EU REGULATION VS. US CRITICISM
The implementation of the DSA is occurring amidst ongoing tensions between the EU and the United States regarding the regulation of tech companies. Washington has voiced concerns that the EUโs digital laws unfairly target US-based groups, alleging infringement on freedom of speech principles championed by the MAGA movement. Despite these criticisms, the European Commission maintains that the DSAโs application is impartial, extending to companies regardless of their location. This divergence in regulatory approaches underscores a fundamental difference in philosophies regarding online content moderation and platform responsibility, with the EU prioritizing user safety and the US emphasizing freedom of expression.
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