The European Commission has started legal action against Britain over the online advertising technology Phorm.It follows complaints to the EC over how the behavioural advertising service was tested on BT's broadband network without the consent of users.
Last year Britain had said it was happy Phorm conformed to European data laws.
But the commission has said Phorm "intercepted" user data without cleasr consent and the UK need to look again at its online privacy laws.
"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."
It will in effect apply pressure to the information commissioner and the Home Office
Nicholas Bohm, FIPR
At the heart of the legal action by the EC is whether users have given their consent to have their data intercepted by the advertising system.
