Microsoft Faces Potential  Billion Fine in EU Over Bing AI Risks

Microsoft could be fined up to 1% of its annual revenue in the European Union if it fails to respond to an information request by May 27. This threat stems from a request under the EU’s Digital Services Act concerning the company’s Bing search engine and its associated generative artificial intelligence (AI) services.

The European Commission, in a May 17 post on X, stated that it wants Microsoft to “provide information under the Digital Services Act on generative AI risks on Bing.” The commission highlighted that Bing could pose risks linked to generative AI, such as “hallucinations,” deepfakes, and the automated manipulation of services that can mislead voters.

In a blog entry on the European Commission’s official website, labeled “Daily News,” it was explained that the initial request was sent on May 14. This request pertains to specific risks stemming from Bing’s generative AI features, notably “Copilot in Bing” and “Image Creator by Designer.” Microsoft has until May 27 to provide the requested information to the Commission.

The Commission warned that it could impose fines up to 1% of the provider’s total annual income and periodic penalties up to 5% of the provider’s average daily income if the EU’s request isn’t met by the deadline. Given Microsoft’s self-reported revenue for 2023 was $211 billion, a 1% fine could exceed $2 billion.

Although Microsoft hasn’t been found guilty of violating any EU laws specifically related to this notice, the request serves as a public-facing courtesy notice. The company has been formally requested to provide further information, with significant financial consequences if ignored.