Microsoft is facing the possibility of a substantial fine from European privacy regulators due to targeted advertising on its LinkedIn platform. The company, which acquired LinkedIn in 2016 for $26 billion, received a notification from the Irish Data Protection Commission indicating its intention to impose a fine following an investigation into a 2018 complaint alleging GDPR violations.
Microsoft has disclosed that it will increase its reserve fund and expects to incur a charge of approximately $425 million in the fourth quarter of this year.
The Irish Data Protection Commission previously fined Facebook’s parent company, Meta, 390 million euros in January for similar targeted advertising practices. Targeted advertising involves tailoring ads based on users’ online behavior, with Facebook utilizing over 52,000 unique attributes to categorize its users.
The Irish agency’s decision was influenced by the European Data Protection Board, which instructed the Irish Data Protection Commissioner to find that Meta unlawfully processed personal data for behavioral advertising.
Although Meta has appealed the decision and introduced a new legal justification for targeted advertising in Europe, experts suggest that this change may only offer a temporary reprieve from GDPR-related crackdowns.
The GDPR grants consumers the absolute right to object to direct marketing, which takes precedence over business interests.
As data privacy concerns continue to gain prominence, technology companies face increasing scrutiny and potential fines for their advertising practices, emphasizing the importance of compliance with privacy regulations.
