Microsoft (NASDAQ:MSFT) was recently fined $64 million by the French privacy regulator, the CNIL, for not enabling a quick and easy option for users to reject cookies on its Bing search engine. Investigators in France found that cookies were being deposited on users’ terminals without their consent when they visited the Bing site. Also, there was no prominent button for them to reject cookies.
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Cookies not only help digital platforms track user search trends for targeted ads but also identify fraudulent or suspicious views of ads. Microsoft argued that those intending to defraud others shouldn’t require consent. Nonetheless, many regulators in the European Union do not consider targeted ads to be necessary for a website to function optimally.
Apart from the fine, Microsoft is also required to incorporate a prominent reject option for users who do not wish to add cookies to their servers and browsers. The company has up to three months to comply, after which additional fines of 60,000 euros a day will be added.
The fine comes on the heels of Alphabet’s (NASDAQ:GOOGL) 150 million euros and Meta Platforms’ (NASDAQ:META) 60 million euros in penalties for similar issues with their targeted ad strategies. The fines come as part of the EU’s crackdown on big tech companies that display targeted ads to users without their consent.
Shares of the company declined 3% by market close, Thursday.
Is MSFT a Buy?
Wall Street is bullish on MSFT stock, with a Strong Buy rating based on 25 Buys and two Holds. The average price target for the stock stands at $291.34, which indicates a 22.3% upside to the current price level.
