Amazon opts out of Phorm system

Amazon has opted out of Phorm's controversial targeted-advertising technology, delivering a blow to the UK-listed company, which is already the subject of a European Commission legal action against the UK government. Phorm, which has yet to launch its service in the UK, gives website owners the opportunity to opt out of its technology, which lets internet service providers track where their customers are going on the net to gauge their interests and serve them more relevant adverts. Amazon.co.uk is the second most visited destination, after eBay.co.uk, among shopping and classified websites in the UK, according to data from Hitwise. Amazon's withdrawal from Phorm's Webwise system will deprive the company of crucial information about what online users are interested in, details that allow it to build its advertising system. The company has removed all its domain names – including Amazon.com – from Webwise, an Amazon spokesman confirmed today. A spokesman for Phorm, which is listed on AIM, said that it does not comment on individual cases. The company is understood to be planning a meeting with Amazon's management to explain the benefits of the Webwise system. However, this is another blow to a company whose online tracking technology has infuriated privacy campaigners and is now worrying European Union lawmakers.

Source: http://www.guardian.co.uk/business/2009/apr/15/phorm-amazon-opt-out-advertising-online-privacy