Norway Fines Microsoft's Advertising Business $9.6 Million
The Norwegian regulator fined Microsoft's Xandr $9.6 million — a record amount for sharing Grindr users' data with advertisers from 2018 to 2020.
The Norwegian Data Protection Authority has fined Xandr, an advertising company owned by Microsoft, $9.6 million for unlawfully sharing users' confidential data. The case concerns users of the Grindr dating app. This was reported by Reuters, citing the regulator's decision.
This is the largest fine in the history of the Norwegian watchdog. The amount exceeds any fine it has previously issued.
What exactly happened
According to the regulator, Xandr shared Grindr users' data with advertiser companies as part of advertising auctions. The violation period spans from July 2018 to April 2020. For almost two years, information about the dating service's users was passed to third parties without a legal basis.
Microsoft commented on the decision by saying that user privacy is a "top priority" for the company.
Why this matters for the market
The case shows that regulators are now fining not only the platforms themselves but also the advertising technologies behind them. Xandr operates in the programmatic advertising market — which means the entire chain of data transfer between auctions and advertisers is under threat.
Key facts in brief:
- Fine of $9.6 million, a record for Norway
- Violations lasted from July 2018 to April 2020
- Grindr users were affected
- The violator is Xandr, Microsoft's advertising division
How Microsoft got Xandr
Microsoft agreed to acquire the Xandr advertising platform in 2021. Before that, Xandr was part of telecom holding AT&T. The violations, however, occurred before the change of ownership — but the fine was issued to the new parent company, and this is a precedent worth considering in deals involving advertising assets.
The signal for advertisers and agencies is clear: data collection through RTB auctions is increasingly being checked for compliance with personal data laws. Acquiring an advertising asset now carries not only technological but also regulatory risks from past years.
Original: reuters.com
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