Microsoft faces a fine in the European Union of up to 1% of its annual revenue if…

Microsoft faces a fine in the European Union of up to 1% of its annual revenue if it does not respond to a request for information by May 27.

The threat stems from a request made under the EU Digital Services Act in relation to the company’s Bing search engine and associated artificial intelligence services.

source: @EU_Commission On

A post on compelling Microsoft to “provide information under the Digital Services Act regarding generative AI risks to Bing” was sent on May 17 to reveal the news to the public.

“Bing may pose risks associated with generative AI, such as so-called ‘hallucinations’, deepfakes, as well as automated manipulation of services that could mislead voters.”

In a blog entry linked from the European Commission’s official website titled “Daily News,” the Commission explained that the initial request was sent on May 14 “in relation to specific risks arising from Bing’s generative AI features, in particular “Copilot in Bing” and “Image Creator.” “. From the designer.”

The blog post went on to explain that Microsoft “now has until May 27 to submit the requested information to the Commission.”

This warning comes with a notice that the Commission “may impose fines of up to 1% of the service provider’s gross annual income” as well as “periodic penalties of up to 5% of the service provider’s average daily income” if the EU request is not met by final date.

While a 1% revenue penalty may not seem like a crushing blow, in Microsoft’s case it could amount to more than $2 billion. Its self-reported revenue for 2023 was $211 billion, and if the current market trend holds, Microsoft could conceivably exceed that in 2024. According to these numbers, the least the Redmond company would pay, if fined, would be about $2.1. one billion.

It should be noted that these fines have not yet been imposed, and that to date, Microsoft has not been found guilty of violating any EU laws – at least not related to this notice specifically. Instead, this appears to be just a courtesy notice to the public that the company has actually received a request for more information which carries consequences if ignored.

Cointelegraph reached out to Microsoft for comment but did not receive an immediate response.

Related: The ‘Godfather of AI’ advises the UK government to start universal basic income

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