Microsoft Faces Potential Fine of 1% of Annual Revenue in the EU if it Fails to Respond to Request for Information by May 27
Microsoft may be subject to a fine of up to 1% of its annual revenue in the European Union if it does not comply with a request for information by May 27. The request was made under the EU’s Digital Services Act, specifically regarding Microsoft’s Bing search engine and its associated generative artificial intelligence (AI) services.
The European Commission, in a post on May 17, stated that it wants Microsoft to provide information on generative AI risks on Bing under the Digital Services Act. A blog post on the European Commission’s official website, titled “Daily News,” explained that the initial request was sent on May 14, specifically addressing risks related to Bing’s generative AI features, such as “Copilot in Bing” and “Image Creator by Designer.” Microsoft has until May 27 to provide the requested information to the Commission.
Failure to comply with the EU’s request by the deadline could result in fines of up to 1% of Microsoft’s total annual income, as well as periodic penalties of up to 5% of its average daily income. While a 1% revenue fine may not seem significant, in Microsoft’s case, it could amount to over $2 billion. Microsoft reported a revenue of $211 billion in 2023, and if the current market trend continues, it is possible that it could exceed that in 2024. Therefore, the potential fine would be around $2.1 billion.
It is important to note that Microsoft has not been found guilty of any violations of EU laws related to this notice. Instead, it appears to be a public-facing courtesy notice, indicating that the company has been served with a request for further information that carries consequences if ignored.
Cointelegraph reached out to Microsoft for comment but did not receive a response.
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