EU fines LinkedIn €310M for GDPR, AI data privacy violations

Serge Bulaev

Serge Bulaev

LinkedIn was hit with a huge €310 million fine by EU regulators because it used people's data for ads and AI without getting clear permission. The company didn't explain well how it used user information to make recommendations, which raised fears about unfair treatment and bias. Now, LinkedIn must change its privacy rules, be more open, and avoid using sensitive or children's data. This fine warns other tech companies to be careful with how they collect and use personal data, especially when using AI. The case shows the EU is getting tougher about protecting people's privacy online.

EU fines LinkedIn €310M for GDPR, AI data privacy violations

The EU fines LinkedIn €310M for GDPR and AI data privacy violations, a landmark case that has dominated privacy headlines. In late 2024, the Irish Data Protection Commission (DPC) penalized the Microsoft-owned network for unlawful behavioral analysis, opaque ad targeting, and failing to provide a clear legal basis for large-scale user profiling. The ruling highlights growing regulatory concerns about potential discrimination within its powerful recommendation engine.

This penalty, coupled with intense scrutiny of LinkedIn's plans to use two decades of user posts for generative AI training, signals a broader GDPR enforcement clampdown. Regulators are increasingly targeting opaque ranking systems that influence careers and economic opportunities across Europe.

Compliance lessons from EU Regulators Probe LinkedIn Over Data Privacy in Networking Algorithms

The €310 million fine was issued because LinkedIn processed user data for ad targeting and behavioral analysis without a valid legal basis. Regulators found the company relied on improper consent and failed to be transparent about how its algorithms profile users, violating core GDPR principles of fairness and lawfulness.

Regulators are watching four pressure points:

  • Legal Basis for Data Processing: The DPC ruled that LinkedIn's "legitimate interest" claim was a "clear and serious violation" when using personal data for targeted ads, a key finding highlighted by Hunton Andrews Kurth.
  • Lack of Transparency: LinkedIn failed to clearly explain how user data - including profiles, comments, and reactions - is used to power its ranking models. The 2024 reprimand mandated a complete rewrite of its privacy notices within three months.
  • Improper Use of Sensitive Data: Regulators objected to LinkedIn training AI models on inferred sensitive data like health or political views. Following intervention from the DPC and Dutch authorities, LinkedIn agreed to exclude data from minors and limit the data-training window, as reported by Pinsent Masons.
  • Future AI Act Compliance: Starting in August 2026, LinkedIn's recommendation systems will be classified as "high-risk" under the EU AI Act. This designation requires stringent risk assessments and mandatory human oversight because they can significantly impact users' economic opportunities.

Timeline since 2024

Date Regulator action Key requirement
Oct 24 2024 €310m DPC fine Valid consent or compatible legal basis for profiling
Nov 2024-Jan 2025 Three-month remediation order Rewrite privacy notices and limit data scope
Oct 7 2025 DPC intervention on AI training plan Remove minors' data, add opt-out, publish DPIA
2026 AI Act high-risk obligations start Bias testing, documented human oversight

What companies should do next

LinkedIn's case serves as a warning for any platform using predictive algorithms. Similar obligations under GDPR Articles 5, 6, and 22, along with the forthcoming AI Act, apply to any service that recommends professional connections. To ensure compliance, companies should follow guidance from bodies like France's CNIL on embedding privacy-by-design, using techniques like federated learning, and conducting regular Data Protection Impact Assessments (DPIAs).

A short checklist to satisfy regulators:

  1. Provide clear, layered explanations of data flows, algorithmic ranking factors, and user opt-out mechanisms.
  2. Conduct and document a legitimate interest assessment (LIA) for all processing activities and maintain it in your Record of Processing Activities (ROPA).
  3. Anonymize or pseudonymize sensitive data fields before AI model training and validate that re-identification risks are minimized.
  4. Audit for algorithmic bias by measuring the disparate impact of recommendations and implement human review for high-stakes decisions.
  5. Update privacy notices with each AI model retraining cycle and ensure timely responses to data erasure requests within the 30-day statutory limit.

Market impact

While the €310 million penalty represents about 2% of LinkedIn's US$15 billion global revenue in 2024 - well below the 4% maximum fine under GDPR - the reputational damage is significant. Analysts highlight lingering concerns among both job seekers, who depend on the platform for fair opportunities, and employers, who are wary of hidden biases in recruitment tools.

Industry observers anticipate further investigations in 2025 as EU data protection authorities increase coordination via the European Data Protection Board (EDPB). The DPC's statement that it "will continue to monitor LinkedIn's compliance" serves as a stark warning: for platforms leveraging AI, this fine should be seen as a baseline for future enforcement, not a cap.


Why did the Irish Data Protection Commission fine LinkedIn €310 million?

In October 2024 the Irish DPC, acting as LinkedIn's lead EU supervisor, imposed the third-largest GDPR penalty on record after finding that the platform had processed personal data for behavioral advertising and targeted content without a valid legal basis.
Key breaches included:
- No valid consent for third-party tracking pixels
- Unlawful reliance on "legitimate interests" to analyze first-party data for ad targeting
- Lack of transparency in privacy notices
- Violation of the fairness principle under Article 5(1)(a)

The decision followed a 2018 complaint by digital-rights group La Quadrature du Net and forced LinkedIn to restructure its ad-tech stack within three months.

How does the EU AI Act change the rules for LinkedIn's recommendation engine?

From 2 August 2026 LinkedIn's connection-recommendation and feed-ranking systems will be classified as "high-risk AI" because they profile users and may affect access to job opportunities.
New obligations include:
- Mandatory Data-Protection Impact Assessment (DPIA) before every model update
- Human oversight for any recommendation that significantly shapes labor-market visibility
- Bias testing to prevent indirect discrimination on inferred sensitive attributes such as health or political views
- Public registration of the system in the EU AI database

Failure to comply can add an extra 7 % of global turnover on top of GDPR fines.

What exactly did LinkedIn agree to do after regulators questioned its 2025 generative-AI plans?

After the Dutch Autoriteit Persoonsgegevens and the Irish DPC raised alarms, LinkedIn paused its November 2025 plan to train generative-AI models on all public posts since 2003 and instead signed a legally-binding commitment to:
- Exclude EU children's data and any content from minors
- Filter out sensitive categories (health, religion, union membership)
- Shrink the training window from 22 years to posts no older than 24 months
- Deliver a detailed DPIA to regulators before any future rollout
- Offer a one-click opt-out that works retroactively

The DPC has not approved the revised plan but says the concessions are "sufficient for now" and continues to monitor every data shipment to LinkedIn's AI pipeline.

Can LinkedIn's algorithm still discriminate even without using "sensitive" fields?

Yes. The CNIL and EDPB warn that neutral-looking signals - job titles, group memberships, or even emoji patterns - can act as proxies for protected attributes.
For example:
- A model that learns "long career break" correlates with lower ranking can penalize women returning from maternity leave
- Down-ranking posts without a university email domain may disadvantage migrants or older workers
- Favoring "predicted engagement" can amplify political echo chambers and exclude minority viewpoints

To counter this, LinkedIn must now run bias audits that test outcome parity across gender, age, and nationality slices and document the results in its annual DPIA.

What practical rights do LinkedIn members have starting in 2025?

Every user inside the European Economic Area can:
- Object to AI ranking of their feed or connection suggestions - LinkedIn must offer a "non-profiled" chronological feed within 30 days of the request
- Demand erasure of personal data used to train any generative model; the company has committed to machine-unlearning pipelines that remove individual traces without a full retrain
- Export inferred data - the hidden tags LinkedIn attaches to profiles (e.g., "likely job seeker", "senior decision maker") - under the right to data portability
- Opt out of future AI training through a dashboard setting introduced in December 2025; the toggle is off by default for EU users and cannot be overridden by employer contracts

Irish DPC guidance reminds users that consent is not the only path - they can also sue for material or moral damage if the AI system causes demonstrable career harm, with precedent damages already awarded in the €300-€1 500 range in Dutch and German courts.