Global regulations

Microsoft gets $2B EU fine?

The EU has issued Microsoft with a warning after it failed to reply to its Request for Information in March, ahead of the European elections, next month

Martin Crowley
May 20, 2024

In March, the EU sent a Request for Information (RFI) to Microsoft–and several other big tech giants–asking them to supply information relating to potential electoral risks posed by their generative AI models.

They were particularly interested in the risks stemming from its search engine–Bing’s–gen AI features, which include “Copilot” and “image creator by design”, raising concerns that the features could be risky to voters and democratic processes in the upcoming European Parliament elections.

“The request for information is based on the suspicion that Bing may have breached the DSA for risks linked to generative AI, such as so-called ‘hallucinations,’ the viral dissemination of deep fakes, as well as the automated manipulation of services that can mislead voters” – the EU Commission

According to the EU’s Digital Services Act (DSA), search engines–like Bing–have a duty of care, requiring them to assess and mitigate any potential harm associated with their services, which includes the spread of misinformation, deepfakes, and manipulation tactics that could mislead voters.

The EU has given Microsoft another chance and has extended the RFI deadline until the 27th of May. If they fail to respond or provide incomplete or misleading information, the EU could slap Microsoft with a fine of up to 6% of its annual revenue, which was last reported as $211B.

In response to this warning from the EU, Microsoft claims that they are “deeply committed to creating safe experiences online and working with regulators on this important topic” and has “been fully cooperating with the European Commission as part of the voluntary request for information.”