Microsoft has revealed that its jobs platform LinkedIn could be imposed with around a $425m fine from an Irish regulator over alleged violations of data privacy rules.
In a statement, the US tech major said the Irish Data Protection Commission (IDPC) launched an investigation against LinkedIn in 2018.
The investigation aimed to find out whether LinkedIn’s targeted advertising practices violated the European Union General Data Protection Regulation (GDPR).
LinkedIn was handed a preliminary draft decisionthat proposed a fine in April this year. This preliminary draft decision is not made public yet.
“After review and analysis, the company will increase its existing reserve for the matter and, based on current exchange rates take a charge of approximately $425m in the fourth quarter of fiscal year 2023,” Microsoft said in a statement.
The Windows maker said it will respond to the draft decision.
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“There is no set timeline as to when the IDPC will issue a final decision. However, after receiving a final decision, Microsoft will consider all legal options and intends to defend itself vigorously in this matter,” it added.
Early last month, Reuters reported that LinkedIn plans to cut 716 jobs across sales, operations and support operations due to weak demands.
At the same time. the job-focused social media platform said it will shutter InCareers, its China-focused platform.
If the IDPC imposes the fine, Microsoft will be the second US-based entity recently to face a major penalty in Europe over violations of data privacy rules.
On 22 May 2023, the IDPC imposed a record $1.3bn fine on Meta, the owner of Facebook and Instagram.
IDPC did not respond to Reuters’ request for comment on the latest development.