Microsoft will take a charge of $425 million in the current quarter in anticipation of a fine from the Irish Data Protection Commission over alleged data privacy violations stemming from targeted advertising on LinkedIn.
The company informed investors of the plan in a note Thursday, saying it received a non-public draft decision from the Irish Data Protection Commission in April proposing a fine for the alleged violations of the European Union’s General Data Protection Regulation (GDPR).
Irish regulators have been investigating LinkedIn and other companies over the allegations since 2018, the company told investors in the note, without providing further details. Microsoft said it plans to dispute the legal basis for the decision, and the amount of the proposed fine.
“There is no set timeline as to when the IDPC will issue a final decision,” the company said. “However, after receiving a final decision, Microsoft will consider all legal options and intends to defend itself vigorously in this matter.”
Microsoft acquired LinkedIn for more than $26 billion in 2016. LinkedIn’s revenue rose 34% in Microsoft’s fiscal 2022, to more than $13.8 billion, representing nearly 7% of Microsoft’s overall revenue for the year.
