The BBC is reporting that the European Commission have launched an action against Britain over the Phorm phiasco (EC starts legal action on Phorm):
Last year Britain had said it was happy Phorm conformed to European data laws.
But the commission has said Phorm "intercepted" user data without consent and failed to keep people's online details confidential.
"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," the EU's Telecoms Commissioner Viviane Reding said in a statement.
She added: "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."
There will probably be many privacy campaigners rejoicing at this news: at least the European Commission is willing to look after the rights to privacy of UK citizens, something the present Government has thus far signally failed to do.
This news appears to be flying round the internet. Here's The Register's take - Brussels to sue UK over Phorm failures. There is a thread over at the nodpi.org forum.