I’m fairly confident this is untrue. At Microsoft at least, it’s a big deal when there is a privacy issue, even a small localized one on a single product - and creates a small firestorm.
We’ll get engineers working long hours focused on it, consulting closely with our legal and trust teams. One of the first questions we ask legal when we suspect a privacy issue is “Is this a notifiable event?”
It’s not really about getting slapped by regulators - it’s the fact that much of Microsoft’s business is built by earning the trust of large companies and small ones. Many of them are in the EU of course, but we have strict compliance we apply broadly. It’s just not worth damaging our reputation (and hurting our business) for some shortcut somewhere, as trust takes a long time to build and is easily broken.