Microsoft says it may pay $425 million in fines over alleged LinkedIn privacy violations.


LinkedIn Office Toronto

Microsoft may have to pay a hefty fine to settle a case involving its Linkedin subsidiary. The company said this week that the penalty could be up to $425 million, which will be noted in the current second quarter of 2023.

Reuters In a statement, a Microsoft spokesperson said the allegation was due to an investigation by the Irish Data Protection Commission (IDPC). The inquiry was launched back in 2018, as the Ireland-based regulator looked into reports that business social network Linkedin had breached Europe’s General Data Protection Regulation (GDPR) with targeted advertising.

Microsoft says the IDPC sent its initial decision on fines to the company in April. As of now, IDPC is yet to make this final decision public. He added:

After review and analysis, the Company will increase its existing reserves for the matter and receive approximately $425 million in the fourth quarter of fiscal 2023 based on current exchange rates.

Microsoft said that once the IDPC issues a final order, it will first dispute the penalty.

IDPC has been quite busy lately. In late May, an investigation by regulatory group Meta claimed that the company’s Facebook servers did not have enough privacy safeguards to transfer personal data from European servers to the United States.

The group claims that these actions violate the GDPR. This led to a €1.2 billion ($1.3 billion) fine from the European Union’s Data Protection Board. Metta was also told that it has until October 12, 2023 to suspend its data transfer. Metta says he will appeal the decision.

Linkedin has faced several layoffs earlier this year. These include some of the cuts that were due to Microsoft’s plans to lay off 10,000 of its workers. Another round of layoffs was due to Linkedin shutting down its China-focused jobs app InCareer.


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