Brussels opens probe of LinkedIn online ad targeting

LinkedIn’s data-driven advertising practices are facing a major investigation by the European Commission under the new Digital Services Act, designed to ensure larger platforms’ compliance with transparency and algorithm accountability, among other measures.

Although the Act came into force on January 1 this year, in April 2023, Brussels named a first list of 19 online platforms that had to comply by August 25 2023, including Amazon, Facebook, Instagram, LinkedIn, Pinterest, Snapchat, TikTok, X and YouTube.

Now LinkedIn is joining a list of 13 businesses that have already received a so-called “request for information” (RFI) – including Meta, X, TikTok and Alibaba AliExpress – which is the first step to ensure compliance with the DSA.

Companies that do not comply with the new obligations – which also cover illegal content/hate speech, child protection, election security and marketplace safety – risk fines of up to 6% of their global annual turnover.

In addition, the Commission can apply periodic penalties up to 5% of the average daily worldwide turnover for each day of delay in complying with remedies, interim measures, and commitments. As a last resort, the Commission can also request the temporary suspension of the service.

LinkedIn’s RFI is asking questions about the use of user data for ad targeting, with specific concerns that Microsoft-owned professional social network could be breaching the DSA’s ban on larger platforms’ use of sensitive data for ad targeting.

Sensitive data under EU law refers to categories of personal data such as health information, political, religious or philosophical views, racial or ethnic origin, sexual orientation and trade union membership. Profiling based on such data to target ads is banned under the law.

The regulation also requires larger platforms to provide users with basic information about the nature and origins of an ad. They must also make an ads archive publicly available and searchable – in a further measure aimed at driving accountability around paid messaging on popular platforms.

The Commission said its RFI to LinkedIn follows a complaint lodged last month by civil society organisations EDRi, Global Witness, Gesellschaft für Freiheitsrechte and Bits of Freedom.

It revealed it is asking for “more details on how [LinkedIn’s] service complies with the prohibition of presenting advertisements based on profiling using special categories of personal data” as well the requirement to provide users with ad targeting info.

LinkedIn, which has been given until April 5 to reply to the RFI, said: in a statement: “LinkedIn complies with the DSA, including its provisions regarding ad targeting. We look forward to cooperating with the Commission on this matter.”