Microsoft Faces Privacy Wrath Over Education Suite: Report

Tech behemoth Microsoft Inc. MSFT is reportedly targeted in two complaints filed by privacy advocacy group NOYB to the Austrian privacy watchdog, targeting the tech giant’s online education software.

Online educational programs surged during the COVID-19 pandemic, with schools transitioning to remote learning.

NOYB alleges Microsoft’s 365 Education suite, encompassing Word, Excel, Teams, PowerPoint, and Outlook, violates EU privacy regulations, reported Reuters.

The first complaint accuses Microsoft of evading its data controller responsibilities, shifting them to schools, which lack requisite data access.

“Under the current system that Microsoft is imposing on schools, your school would have to audit Microsoft or give them instructions on how to process pupils’ data. Everyone knows that such contractual arrangements are out of touch with reality,” the report quoted NOYB lawyer Maartje de Graaf.

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NOYB’s second complaint targets cookies in Microsoft’s 365 Education, expressing concerns over user tracking.

“Our analysis of the data flows is very worrying. Microsoft 365 Education appears to track users regardless of their age. This practice is likely to affect hundreds of thousands of pupils and students in the EU and EEA (European Economic Area),” voiced NOYB lawyer Felix Mikolasch, per the report.

NOYB has called for an investigation by the Austrian Data Protection Authority and seeks penalties against Microsoft.

Microsoft stock has gained 23% in the last 12 months. Investors can gain exposure to the stock via Technology Select Sector SPDR Fund XLK and IShares U.S. Technology ETF IYW.

Price Action: MSFT shares closed lower by 0.39% at $413.52 on Monday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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