Microsoft could face a substantial fine in the European Union if it fails to respond to a request for information by May 27. The threat comes as a result of a request made under the EU’s Digital Services Act regarding Microsoft’s Bing search engine and its generative artificial intelligence (AI) services.
A post on X.com, a platform run by the European Commission, was published on May 17, publicly disclosing the request for information on the risks associated with Bing’s generative AI features. The post explained that the initial request was sent on May 14, specifically regarding the risks stemming from “Copilot in Bing” and “Image Creator by Designer.”
Microsoft has been given 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 annual revenue, as well as periodic penalties of up to 5% of its average daily income.
While a 1% revenue fine may not seem significant, for Microsoft, it could amount to over two billion dollars. In 2023, the company reported a revenue of $211 billion, and if the current market trend continues, it is possible that Microsoft’s revenue will exceed that in 2024. At these figures, the minimum fine Microsoft would pay, if imposed, would be approximately $2.1 billion.
It is important to note that these fines have not been imposed yet, and Microsoft has not been found guilty of any violations of EU laws related to this specific notice. Instead, this appears to be a courtesy notice to inform the company that it has been requested to provide further information, with potential consequences if ignored.
Cointelegraph reached out to Microsoft for comment but has not received an immediate response.
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