Microsoft facing legal action over alleged data misuse for ad revenue

Microsoft Ireland Operations is facing a lawsuit in the High Court over its alleged unlawful processing of personal data for advertising revenue. The Irish Council for Civil Liberties (ICCL) claims that Microsoft's 'Xandr' platform allows it to sell advertising slots to individual advertisers, generating billions in revenue. It is alleged that Microsoft's 'search and news advertising' business made $10.2 billion in the nine months ending March 2025. The ICCL seeks declarations and orders against Microsoft to comply with GDPR and Irish law.

The ICCL's action was approved as a representative action under the 2023 Protection of the Collective Interests of Consumers Act. The case has been admitted to the Commercial Court list. Microsoft's counsel did not object but raised concerns about the defendant being Xandr. The court adjourned the case for further correspondence on funding and the defendant.

Johnny Ryan, from the ICCL, stated that Microsoft's revenue figures were disclosed in the company's submission to the US Securities and Exchange Commission. He believes Microsoft is delaying the proceedings by disputing its role as the defendant.