Microsoft’s LinkedIn Fined €310 Million by EU Regulator Over Advertising Practices

The European Union’s leading privacy watchdog has imposed a hefty €310 million ($335 million) fine on Microsoft’s professional networking platform LinkedIn for violations related to its targeted advertising practices. This penalty, announced on Thursday, is part of a wider regulatory push to ensure compliance with the EU’s stringent data privacy laws.

The Irish Data Protection Commissioner (DPC), which acts as the primary EU privacy regulator for many U.S. tech companies due to their EU headquarters being located in Ireland, spearheaded the investigation into LinkedIn’s activities. According to Reuters, the fine was levied after LinkedIn was found to have processed users’ personal data without a valid legal basis, a breach of the General Data Protection Regulation (GDPR).

“The processing of personal data without an appropriate legal basis is a clear and serious violation of a data subject’s fundamental right to data protection,” DPC Deputy Commissioner Graham Doyle remarked in a statement, underscoring the significance of safeguarding individuals’ data under European law.

Microsoft had already anticipated a significant penalty, having indicated last year that it expected to incur a charge of approximately $425 million related to the ongoing investigation by the Irish regulator. This foresight reflected the scale of potential violations linked to LinkedIn’s advertising strategies, which rely on users’ personal information.

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In response to the ruling, LinkedIn issued a statement expressing its commitment to aligning with the regulator’s demands. “While we believe we have been in compliance with the General Data Protection Regulation (GDPR), we are working to ensure our ad practices meet this decision by the IDPC’s deadline,” the company stated.

This fine is the latest in a series of penalties imposed by EU authorities on tech giants as they face increased scrutiny over their data handling practices. Per Reuters, this ruling highlights the ongoing clash between the tech industry’s business models, which often rely on personal data for targeted ads, and Europe’s robust privacy laws aimed at protecting citizens’ rights.

As the enforcement of the GDPR continues to evolve, major platforms like LinkedIn will need to remain vigilant in adapting their practices to meet the increasingly stringent regulatory landscape in the EU.

Source: Reuters