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UK Government in legal battle over the Phorm and BT web privacy debacle
The European Commission (EC) is to take the UK Government to court for breaking EU rules regarding internet privacy.
The move comes after the Commission received numerous complaints from UK internet users whose web use was monitored without their consent.
The secret trials, carried out by BT using monitoring technology developed by Phorm, caused huge controversy when the news first broke. Concern centred on user privacy being compromised by the software, which constantly analysed customers’ web surfing habits.
The Commission first launched legal proceedings in April 2009 and today’s decision reflects the EC’s view that the UK is still failing to bring its laws in line with EU requirements on web privacy.
In its statement the Commission said it "considers that UK law does not comply with EU rules on consent to interception and on enforcement by supervisory authorities."
It also highlighted three key areas in which UK law fails to comply with EU requirements. The Commission stated that there is no independent UK national authority to supervise the interception of web traffic, even though this is essential under the EU’s Eprivacy and Data Protection Directives.
Current UK law also permits companies to intercept web communications w ithout user consent providing that there is "reasonable grounds for believing" that consent to do so has been given. Thirdly, the Commission stated that UK law only prohibited "international" interception, however under EU law it is required that penalties are imposed regardless of whether the interception is international or not.
Heavy losses
The legal proceedings come after Phorm, the company that developed the
advertising software, posted multi-million pound losses.
For the six-month period ending 30 June 2010, operating losses totalled $15.7m after tax with Phorm stating that it was cutting costs “by transferring a number of operational roles from the UK to Brazil.”
The company also reported it has a dwindling cash balance, which stood at $5.7m (£3.8m) on 30 June this year.
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At last a reason to be in Europe
At last a reason to be in Europe the EU doing our goverments job for it. While uk gov has rolled over for fat cats. Only problem is who will pay the fine? Yes the taxpayers . Double whammy traffic interfered with and then paying the fine for UK gov plc !!
Posted by micky, 01 Oct 2010