Microsoft expects Ireland's Data Protection Commission to fine Linkedin €425m

The software giant said on Thusday it expects to be hit with the charge in the current quarter over alleged privacy violations 

Ireland's Data Protection Commission launched the probe into Linkedin in 2018 over whether its targeted advertising practices violated European data protection law. File picture

Software giant Microsoft said on Thursday that it expected to take a charge of about $425m (€394m) in the current quarter for a potential fine from the Irish regulator over alleged privacy violations at its unit LinkedIn.

The Data Protection Commission launched an investigation into the professional networking platform in 2018 over whether its targeted advertising practices violated European data protection law.

The regulator's order is not public and Microsoft said that Linkedin was informed about the preliminary decision in April.

Microsoft added it would dispute the proposed fine after receiving a final order.

"After review and analysis, the company would 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 DPC did not immediately respond to a Reuters request for comment.

Shares of Microsoft were trading slightly lower on Thursday amid broader market weakness.

• Reuters