Business | Technology
BT tests technology targeting buyers' web browsing habits
Phorm system 'would be closely monitored by the authorities'.
- By Andrew Parker, Financial Times
- Published: 23:41 October 3, 2008
London: BT Thursday began extensive trials of a controversial technology that targets advertisements at consumers based on their web browsing habits.
The UK's leading fixed-line phone company is looking for 10,000 broadband customers who are willing to use the technology, which has been dogged by allegations of breaches of data protection laws.
BT stressed that trials of the technology developed by Phorm, an internet advertising company, would only be done with customers' consent.
It admitted it held trials of the technology in 2006 and 2007 without consent, which prompted the European Commission to raise the matter with the government in July.
The Department for Business said while future use of Phorm technology had raised "material concerns" about data protection, it could be introduced in a "lawful, appropriate and transparent fashion" if certain safeguards were in place. It added that use of the Phorm technology would be "closely scrutinised and monitored by the enforcement authorities".
The City of London police said following a complaint it had decided not to launch a criminal investigation into BT's past use of the Phorm technology. Shares in Phorm have fallen 60 per cent this year.
Data protection policies have risen up the agenda of internet companies such as Facebook and Google because of consumers' privacy concerns.
Revenue source
But BT could from next year gain a significant new revenue source by offering its 4.5 million broadband customers the option to use the Phorm technology.
BT is the largest broadband provider in the UK and Phorm has developed a platform, called the Open Internet Exchange, that enables companies to target relevant advertisements at consumers based on their web browsing behaviour.
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