Microsoft flags over $400 million charge for Irish privacy violation fine on LinkedIn

Microsoft said it expected to take a charge of about $425 million in the current quarter for a potential fine from an Irish regulator over alleged privacy violations at its unit LinkedIn

File photo of the LinkedIn logo | Photo Credit: REUTERS

Software major Microsoft Corp. said on Thursday it expected to take a charge of about $425 million in the current quarter for a potential fine from an Irish regulator over alleged privacy violations at its unit LinkedIn.

The Irish Data Protection Commission (IDPC) launched an investigation into the professional networking platform in 2018 over whether its targeted advertising practices violated the 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.

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"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 $425 million in the fourth quarter of fiscal year 2023," Microsoft said in a statement.

IDPC did not immediately respond to a Reuters request for comment.

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