EU's Digital Services Act Sparks US Sanctions Threat, OpenAI in Crosshairs
The EU's Digital Services Act (DSA) faces criticism from the US, with the Trump administration threatening sanctions. Meanwhile, the EU defends the DSA, stating it aims to enhance online safety, and companies like OpenAI may soon be affected due to growing user numbers.
The DSA, set to come into force in mid-2024, could significantly impact AI providers. OpenAI's ChatGPT Search, with around 41.3 million monthly active EU users, nears the threshold for classification as a 'very large online search engine' (VLOSE) or 'very large online platform' (VLOP). If classified, OpenAI would need to implement significant obligations within four months.
The EU rejects US allegations of censorship, insisting the DSA aims to make the online environment safer. However, the US government sees the DSA as unreasonable restrictions on free speech and a burden on US companies. Penalties for violations could reach up to 6% of global annual turnover.
The US is considering sanctions on EU officials or member states implementing the DSA. The Trump administration's threat comes amidst ongoing tensions between the US and EU over digital regulations. The DSA obligations run parallel to the EU AI Act, which regulates AI models themselves.
The DSA's impact on AI providers like OpenAI is imminent, with ChatGPT Search's user numbers nearing classification thresholds. The EU maintains the DSA's focus on online safety, while the US criticizes it as censorship and threatens sanctions. The future of digital regulations between the US and EU remains uncertain.
