Microsoft is facing a potential multi-billion dollar fine from the European Union if it doesn’t respond to a request for information regarding the risks associated with its Bing search engine and generative artificial intelligence services by May 27. The threat stems from a request made under the E.U.’s Digital Services Act.
In a post on X.com (formerly Twitter), the European Commission disclosed that it had compelled Microsoft to “provide information under the Digital Services Act on generative AI risks on Bing.” The post, made on May 17, stated that “Bing may pose risks linked to generative AI, such as so-called ‘hallucinations’, deepfakes, as well as the automated manipulation of services that can mislead voters.”
According to a blog entry from the European Commission’s official website, the initial request was sent on May 14 “regarding specific risks stemming from Bing’s generative AI features, notably “Copilot in Bing” and “Image Creator by Designer.” The blog post further explained that Microsoft “now has until 27 May to provide the requested information to the Commission.”
The warning comes with a notice that the Commission “may impose fines up to 1% of the provider’s total annual income” as well as “periodic penalties up to 5% of the provider’s average daily income” if the E.U.’s request isn’t met by the deadline.
While a 1% revenue fine might not sound like a crushing blow, in Microsoft’s case, it could amount to well over two billion dollars. The company’s self-reported revenue for 2023 was $211 billion, and if the current market trend remains steady, it’s conceivable that Microsoft could surpass that figure in 2024. At these numbers, the least the Redmond company would pay, if fined, would be around $2.1 billion.
It’s important to note that these fines haven’t yet been levied, and Microsoft hasn’t been found guilty of violating any E.U. laws regarding this notice. Instead, this appears to be a public-facing courtesy notice that the company has effectively been served with a request for further information that bears consequences if ignored.
