The EU May Fine Microsoft Billions of Dollars Over AI Information

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The European Commission requires Microsoft to provide information about Copilot in Bing and Image Creator by Designer. The information concerns the risks of Microsoft’s generative AI tools. Microsoft may face a billion-dollar fine if it doesn’t provide the information by May 27.

The European Commission issued a legally binding request for information. The commission requests that Bing present documentation and data it did not previously provide. The EU suspects that Bing may have breached the Digital Service Act (DSA) in terms of risks related to generative AI.

The EU Suspects Bing Might Have Violated the DSA

Bing may have breached the DSA due to risks related to AI hallucinations, deep fakes, and automated services that may deceive election voters. According to Articles 34 and 35 from the DSA, Bing must conduct a risk assessment and implement risk mitigation measures.  

Article 34, Risk Assessment, states that,

“Providers of very large online platforms and of very large online search engines shall diligently identify, analyze and assess any systemic risks in the Union stemming from the design or functioning of their service and its related systems, including algorithmic systems, or from the use made of their services.”

Article 35, Mitigation of Risks, states that “Providers of very large online platforms and of very large online search engines shall put in place reasonable, proportionate and effective mitigation measures, tailored to the specific systemic risks identified pursuant to Article 34, with particular consideration to the impacts of such measures on fundamental rights.” 

Also read: MAI-1 from Microsoft Competes with GPT4 and other LLM Models 

The Commission May Impose a Fine on Bing

The EU Commission stated that if Bing does not provide the required information on or before May 27, it will impose a 1% fine on the AI service provider’s annual income or global turnover. The fine will also include a 5% periodic penalty from Bing’s average daily income. The fine is applicable if Bing provides incorrect or incomplete information. According to its annual report, Microsoft’s annual revenue was $211 billion last year. 

Last March, the European Commission sent official requests of information (RFI) to tech giants, including Microsoft, Google, Meta, Snap, TikTok, and X. The purpose is to investigate how each company handles the risks of generative artificial intelligence. The requests addressed Bing, Google Search, YouTube, Facebook, Instagram, Snapchat, TikTok, and X. These platforms are labeled as very large online platforms (VLOPs), which means that they must have assessment and mitigation of risk according to Art 34 and 35. The EU Commission is assessing if AliExpress has breached the DSA in several areas.  

Also read: Microsoft Invests $3.3 Billion in New Wisconsin AI Data Center

Microsoft Has Not Issued an Official Response   

Microsoft did not comment yet. The tech giant may take some time to publish an official comment. Last year, Microsoft responded to the European Commission’s investigation about anti-competitive practices. The investigation was about bundling Teams with Microsoft 365 and Office 365 suites for business customers. Microsoft responded officially and said,

“We will unbundle Teams from our Microsoft 365 and Office 365 suites in the EEA and Switzerland … We will enhance our existing resources on interoperability with Microsoft 365 and Office 365.”

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