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EU warns Microsoft it could be fined billions over missing GenAI risk info | TechCrunch

May 17, 2024 - techcrunch.com
The European Union (EU) has threatened to fine Microsoft up to 1% of its global annual turnover under the Digital Services Act (DSA) after the company failed to respond to a request for information about its generative AI tools. The EU is concerned about the systemic risks posed by these tools, particularly in relation to civic discourse and electoral processes. If Microsoft does not provide the requested data by May 27, it could face further penalties, potentially amounting to billions of dollars.

The EU's request is based on suspicions that Bing, Microsoft's search engine, may have violated the DSA due to risks associated with generative AI, such as the spread of deepfakes and the automated manipulation of services that could mislead voters. Bing was designated as a very large online search engine (VLOSE) under the DSA in April 2023, making it subject to additional obligations to mitigate systemic risks like disinformation. Microsoft has yet to comment on the EU's allegations.

Key takeaways:

  • The European Union has warned Microsoft that it could be fined up to 1% of its global annual turnover under the Digital Services Act (DSA) for failing to respond to a legally binding request for information about its generative AI tools.
  • The Commission has given Microsoft until May 27 to provide the requested data or risk enforcement, which could result in a penalty of up to a couple of billion dollars.
  • The EU is particularly concerned about risks the AI tools may pose to civic discourse and electoral processes, and if Microsoft fails to produce the data by the deadline, the Commission may impose “periodic penalties” of up to 5% of its average daily income or worldwide annual turnover.
  • Microsoft's search engine Bing was designated as a very large online search engine (VLOSE) under the EU’s DSA in April 2023, subjecting it to extra obligations related to mitigating systemic risks like disinformation.
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