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First mass action under Ireland’s Representative Actions Act could impact all tech companies


A mass action lawsuit in Ireland against Microsoft for alleged breaches of the General Data Protection Regulation (GDPR) – the first to be filed under its new representative actions regime – could have ramifications for other tech platforms who use ‘real time bidding’ in online advertising, according to experts.

The Irish Council of Civil Liberties (ICCL) successfully applied to the High Court to launch the lawsuit against Microsoft, with the case centred on the allegation that Microsoft has no way to monitor or control what happens to personal data once it has been broadcast to potential advertisers.

The ‘real time bidding’ process allows advertisers to bid for online ads based on personal information gathered from users of a webpage.

The ICCL launched the lawsuit by evoking the Representative Actions for the Protection of the Collective Interests of Consumers Act 2023 (Representative Actions Act), which was legislated into effect on 30 April 2024. ICCL is one of two recognised qualified entities registered in Ireland.

Under the Act, a group of consumers can bring a ‘representatives’ claim against ‘traders’ in the High Court of Ireland through qualified entities like the ICCL. This is the first representative action that has been launched in the Irish courts under the Representative Actions Act, which implemented the requirements of the EU Representative Actions Directive (RAD) in Ireland.

Zara West, a Dublin-based commercial litigation expert at Pinsent Masons, said: “This litigation should be monitored closely as it is likely to provide a blueprint for future mass actions in Ireland. This case will also provide clarity on how qualified entities intend to fund representative actions in light of current limitations on the rules concerning litigation funding.”

“Given that many technology businesses are headquartered in Ireland, we anticipate that this litigation will be watched with great interest by firms across Europe, the US and beyond,” she said.

“The outcome of this litigation will impact not just Microsoft, but other tech platforms who also use ‘real time bidding’ in online advertising.”

Orla Hubbard, an expert in financial regulation, said: “The outcome of this litigation has the potential to impact Microsoft’s operations across Europe.”

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