In a disclosure released by Microsoft, the company announced that it will reserve $425 million to pay a fine it anticipates receiving from the Irish Data Protection Commission (DPC) due to potential General Data Protection Regulation (GDPR) violations by its subsidiary social media site, LinkedIn.
In 2018, the Irish DPC began an investigation into LinkedIn after a complaint was made claiming that the company was allegedly using targeted advertising practices that were in violation of the GDPR. These targeted ads monitor consumer behavior and use unique attributes to classify these consumers into different categories to help display ads that align with interests and values of the end user.
After receiving a preliminary draft decision from the Irish DPC in April with the findings, Microsoft complied with the inquiry and set aside the monetary funds for the fourth quarter of 2023, though it ultimately intends to appeal the decision once it is finalized.
"The company intends to dispute the legal basis for, and the amount of, the proposed fine and will continue to defend its compliance with GDPR. There is no set timeline as to when the IDPC will issue a final decision," Microsoft said in a statement on the investor relations page. "However, after receiving a final decision, Microsoft will consider all legal options and intends to defend itself vigorously in this matter."