The White House has imposed a compliance order on Microsoft, prohibiting the company from sponsoring foreign workers for US residency. This decision follows an internal investigation that uncovered security lapses across several of its business segments, including Xbox, Surface, and the AI-powered Bing search engine.
As part of the settlement, Microsoft agreed to pay a $61 million fine and implement a three-year comprehensive overhaul of its cybersecurity protocols. The company will also be subject to independent audits and regular reporting requirements to ensure future adherence to security standards.
The order stems from a whistleblower complaint filed by John Goodwin, a former security engineer who raised alarms about systemic vulnerabilities in August 2024. These weaknesses included improper data handling, insufficient access restrictions, and inadequate oversight within the company’s global mobility program. Under this program, Microsoft had sponsored approximately 11,000 immigration-related visa petitions over a three-year period.
A former vice president at Microsoft acknowledged that the firm was aware of specific security concerns but failed to act adequately. This inaction led to significant privacy violations affecting hundreds of millions of individuals.
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