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UK goes to bottom of the Phorm as EU prepares to take it to court over privacy fears

14 Apr 2009 | 17.53 Europe/London
The European Commission has said it is going to take the UK to court over its failure to enforce european privacy and data protection laws — and it's all because of Phorm. Telecoms Commissioner Viviane Reding has for the past few months been conversing with the Information Commissioner's Office about the online advertiser's controversial methods of analysing individual internet users' browsing habits and has said that the UK will have to change its laws in order to conform with those of the EU. The fear is, according to a spokesperson for the EC, that the UK is not making sure that there is "clear consent from the user that his or her private data is being used."

Phorm has put out a statement that effectively says that the company is adhering to both UK and EU law, and that the legal action will not make any difference to its plans. Between 2006 and 2007, its technology was used by BT to monitor its users' online behaviour, but the telecoms company and ISP had failed to inform customers what it was doing. Following several complaints from individuals and privacy campaigners, the ICO forced Phorm to make its customers opt in rather than opt out, as they had previously done.

"Technologies like internet behavioural advertising can be useful for businesses and consumers but they must be used in a way that complies with EU rules," Ms Reding said in a statement. "We have been following the Phorm case for some time and have concluded that there are problems in the way the UK has implemented parts of the EU rules on the confidentiality of communications."

Under european law, the UK has two months in which to reply to the Telecoms Commission; failing that, Ms Reding has the power to force Blighty before the European court of justice and make it change its legislature.

[Guardian and BBC News]