Microsoft-Owned Ad Firm Fined $9.6M for Sharing LGBTQ+ Users' Data
Key Summary
Microsoft-owned Xandr fined $9.6 million for processing and sharing Grindr users' sensitive data without a legal basis, highlighting the importance of data protection and transparency in the tech industry
Background
Xandr, an advertising company now owned by Microsoft, has been hit with Norway's largest-ever privacy fine for passing along sensitive data from users of a dating app built for the LGBTQ+ community.
Impact
The Norwegian Data Protection Authority says it has fined Xandr about $9.6 million for processing and sharing the personal data of Grindr users without a legal basis. This case highlights the need for companies to prioritize data protection and transparency in their operations.
Context
Grindr is a location-based dating app aimed at gay, bi, trans, and queer people. Xandr took part in real-time ad bidding on both the buyer and seller side, relaying Grindr users' data, including details revealing their sexual orientation, to potentially thousands of companies. The regulator rejected Xandr's defense that it believed Grindr had already collected consent, finding the two companies were joint controllers of the data.
Analysis
The case is a significant reminder of the importance of data protection and transparency in the tech industry. Companies must ensure that they have a legal basis for processing personal data and take steps to verify the validity of consents. The fine is based on Xandr's own annual turnover rather than Microsoft's, and the company has three weeks to appeal.
Conclusion
This case underscores the need for companies to prioritize data protection and transparency in their operations. It also highlights the importance of regulatory bodies in enforcing data protection laws and holding companies accountable for their actions.