The company could be fined as much as 1% of its annual revenue if it doesn’t respond by May 27
Microsoft could be fined up to 1% of its annual revenue in the European Union if it doesn’t respond to a request for information by May 27.
The threat stems from a request made under the EU’s Digital Services Act concerning the company’s Bing search engine and its associated generative artificial intelligence (AI) services.
In a May 17 X post, the European Commission stated it wants Microsoft to “provide information under the Digital Services Act on generative AI risks on Bing.”
“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.”
In a linked blog entry from the European Commission’s official website labeled “Daily News,” the commission explained that 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 went on to explain that Microsoft “now has until 27 May to provide the requested information to the Commission.”
This 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 EU’s request isn’t met by the deadline.
While a 1% revenue fine might not sound like a crushing blow, in Microsoft’s case, that could amount to well over $2 billion. Its self-reported revenue for 2023 was $211 billion, and if the current market trend remains steady, it’s conceivable that Microsoft could blow past that in 2024. At these numbers, if fined, it would be around $2.1 billion.
However, Microsoft hasn’t been found guilty of violating any EU laws — at least not specifically pertaining to this notice. Instead, this appears to be more of a public-facing courtesy notice that the company has effectively been serviced with a request for further information that bears consequences if ignored.
Source: Cointelegraph
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