Founded in 2002 and operating as a subsidiary of Microsoft, LinkedIn is currently going through a difficult period. The world-renowned professional social network has been ordered to pay a historic compensation of $356 million. So, what is the reason behind this penalty? Here’s what you need to know…
LinkedIn to pay $356 million!
The leading social network for professionals, LinkedIn, has faced a severe penalty in Europe due to privacy violations. The Data Protection Commission (DPC) in Ireland has imposed a record fine of €310 million (approximately $356 million) on the Microsoft-owned company.
The basis of the fine lies in LinkedIn’s processing of user data in its ad tracking system, which violated the EU’s General Data Protection Regulation (GDPR). The commission found that the platform had breached nearly all principles of legality, transparency, and fairness in its data processing practices.
The well-known platform claimed various legal grounds such as user consent, legitimate interest, and contractual necessity when processing data for behavioral advertising purposes. However, according to the DPC’s ruling, none of these justifications were deemed valid.
The investigation began in 2018 following a complaint from the France-based digital rights organization La Quadrature Du Net. The complaint was submitted to the DPC, the body responsible for overseeing Microsoft’s GDPR compliance, and the investigation concluded after nearly six years of scrutiny.
A spokesperson for the platform stated that they believe they are GDPR-compliant, but in line with the DPC’s ruling, they will review their advertising practices. In addition to the fine, the company has been given a 3-month period to bring its operations in Europe in line with GDPR requirements.
What do you think about this? Do you believe LinkedIn deserved this penalty? We would love to hear your thoughts in the comments.
