Microsoft faces multi-billion dollar EU fine against Bing AI
Microsoft faces a fine of up to 1% of its annual revenue in the EU if it does not respond to the request for information by May 27.
The threat stems from a request under the EU's Digital Services Act regarding the company's Bing search engine and related artificial intelligence service.
A May 17 post on X.com that required Microsoft to “provide information on Bing's Generative AI threats under the Digital Services Act” made the news public.
“Bing may pose risks associated with generative AI, such as so-called ‘hallucinations,' deep-fakes and the automated use of services that may mislead voters.”
In a blog entry from the European Commission's official website, titled “Daily News”, the Commission stated that its first request was sent on May 14 “to address specific risks arising from Bing's generative AI features, specifically the ‘Copilot in Bing' and ‘Image Creator by Designer'”.
The blog post goes on to explain that Microsoft “now has until May 27 to provide the requested information to the Commission.”
This warning comes with a warning that the Commission may impose “fines of up to 1% of the supplier's gross annual revenue” as well as “periodic fines of up to 5% of the supplier's average daily revenue” if the EU demand is not met. The last day.
While a 1% revenue penalty may not seem like a huge hit, in Microsoft's case it could amount to more than two billion dollars. In the year In 2023, its self-reported revenue was $211 billion, and if current market trends remain stable, it can be predicted that Microsoft will surpass it in 2024. With these numbers, the Redmond company will pay a minimum, if fined, amounting to $2.1 million. billion.
He notes that these fines have not yet been imposed and that Microsoft has not yet been found guilty of breaking any EU laws – at least as far as this announcement is concerned. Rather, this appears to be a public-facing courtesy notice that the company has been effectively served by requesting additional information with consequences for failure to do so.
Cointelegraph reached out to Microsoft for comment and did not receive an immediate response.
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