Microsoft Faces Possible Fine in EU Over AI Risks on Bing
Microsoft could face a fine of up to 1% of its annual revenue in the European Union if it fails to respond to a request for information by May 27. The request was made under the EU’s Digital Services Act regarding the risks associated with Microsoft’s Bing search engine and its generative artificial intelligence (AI) services.
According to a post by the European Commission on May 17, Microsoft has been asked to provide information on the generative AI risks on Bing. The initial request, sent on May 14, focused on specific risks related to Bing’s generative AI features, such as “Copilot in Bing” and “Image Creator by Designer.”
The European Commission’s blog post explained that Microsoft has until May 27 to provide the requested information. Failure to do so may 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.
Although a 1% revenue fine may not seem significant, for Microsoft, it could amount to over $2 billion. With a reported revenue of $211 billion in 2023 and the potential for even higher figures in 2024, the fine could reach approximately $2.1 billion.
It is important to note that Microsoft has not been found guilty of any EU law violations related to this notice. Instead, it appears to be a courtesy notice to inform the company that it has been served with a request for information that carries consequences if ignored.
Cointelegraph contacted Microsoft for comment but did not receive a response.
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