The European Commission has officially brought ChatGPT and Reddit under the jurisdiction of the Digital Services Act (DSA), the European Union’s comprehensive framework for online safety. This designation as 'Very Large Online Platforms' (VLOPs) applies to services with more than 45 million monthly active users in the EU. By falling under this classification, both companies are now required to adhere to stringent rules designed to mitigate systemic risks, such as the spread of illegal content, disinformation, and threats to public security.

For OpenAI, the developer of ChatGPT, this move represents a significant shift in how generative AI tools are regulated. The company must now conduct annual risk assessments and provide regulators with greater transparency regarding its algorithms and data handling practices. Similarly, Reddit must implement more robust mechanisms for reporting illegal content and provide users with clearer explanations regarding content moderation decisions, such as post removals or account suspensions.

While the European Commission frames these measures as necessary to protect European citizens and ensure a safer digital environment, the industry response has been mixed. Supporters of the regulation argue that these platforms possess enough market power to influence public discourse and therefore require oversight. Conversely, some industry analysts suggest that the compliance burden could stifle innovation, particularly for companies that are still rapidly evolving their business models. The DSA grants the EU the power to impose significant fines—up to 6% of a company's global annual turnover—for non-compliance, marking a major escalation in the bloc's effort to exert control over global tech giants.