Microsoft could face a significant penalty in the European Union if it fails to comply with a request for information by May 27. The potential fine, which could amount to 1% of the company’s annual revenue, is a consequence of a request made under the E.U.’s Digital Services Act regarding Microsoft’s Bing search engine and its associated generative artificial intelligence services.
The news of the request was made public through a post on X.com on May 17, urging Microsoft to provide information on the risks associated with generative AI in Bing. The European Commission’s official website, in a blog post titled “Daily News,” revealed that the initial request was sent on May 14 specifically focusing on the risks posed by Bing’s generative AI features, including “Copilot in Bing” and “Image Creator by Designer.”
According to the blog post, Microsoft has until May 27 to submit the requested information to the Commission. Failure to comply with the request could result in penalties of up to 1% of the company’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, it could amount to over two billion dollars for Microsoft. The company reported a revenue of $211 billion in 2023, and if its current market trend continues, it is possible for Microsoft to surpass that in 2024. In this scenario, the minimum amount Microsoft would have to pay, if fined, would be around $2.1 billion.
It is important to note that these fines have not been imposed yet, and Microsoft has not been found guilty of violating any E.U. laws specifically related to this notice. Instead, this appears to be a public notice informing the company of the consequences if it chooses to ignore the request for further information.
Cointelegraph reached out to Microsoft for comment but did not receive an immediate response.
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