Microsoft could face a significant fine in the European Union if it fails to respond to a request for information by May 27. The threat comes from a request made under the EU’s Digital Services Act, which is related to the company’s Bing search engine and its associated generative artificial intelligence services.
A post on X.com, sent on May 17, informed the public about the request, compelling Microsoft to provide information on generative AI risks on Bing. According to a blog post on the European Commission’s official website, the initial request was made on May 14, specifically regarding the risks associated with Bing’s generative AI features, such as “Copilot in Bing” and “Image Creator by Designer.” Microsoft has been given until May 27 to provide the requested information to the Commission.
The Commission has warned that it may impose fines of up to 1% of the provider’s annual revenue, as well as periodic penalties of up to 5% of the provider’s average daily income, if Microsoft fails to meet the EU’s request by the deadline. While a 1% revenue fine may not seem significant, it could amount to over two billion dollars for Microsoft. The company reported a revenue of $211 billion in 2023, and if the current market trend continues, it is possible for Microsoft to surpass that in 2024. Therefore, the minimum amount Microsoft would pay, if fined, would be around $2.1 billion.
It is important to note that these fines have not been imposed yet, and as of now, Microsoft has not been found guilty of violating any EU laws, specifically related to this notice. Instead, this seems to be a public courtesy notice indicating that the company has been served with a request for further information, which carries consequences if ignored.
Cointelegraph reached out to Microsoft for comment, but no immediate response was received.
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