Microsoft wins EU stamp of approval for .NET passport
Andrew Osborn in Brussels
Friday January 31, 2003
The Guardian
http://www.guardian.co.uk/business/story/0,3604,885971,00.html
Microsoft's protracted regulatory problems in Europe eased yesterday after
the firm struck a deal with privacy watchdogs which should quell concerns
about its .NET passport online authentication system.
The firm agreed to make "radical" changes to the system, to give internet
users more control over what information they provide and how it is used.
The .NET system has been under the European Union's regulatory microscope
for the past six months but officials said yesterday that they now
considered the matter closed.
A separate and more serious European commission investigation into
Microsoft's alleged abuse of its dominant position remains live, and is
expected to reach its climax within the next few months.
Although Microsoft chairman Bill Gates was in Brussels yesterday and
pointedly refused to comment on the resolution of the .NET issue, he will be
relieved.
The system issues web surfers with an electronic "passport" so that they can
access a network of affiliated websites without having to enter all their
personal data and create a new password each time.
But the wide scope and commercial use of the personal data demanded to
obtain the "one-stop shop" passport alarmed EU watchdogs, who felt it
breached strict data protection laws.
The commission signalled yesterday that Microsoft had done enough to allay
those concerns.
"The bottom line is that users' data will now be better protected," said
Frits Bolkestein, EU internal market commissioner. "Microsoft has agreed to
implement a comprehensive package of data protection measures, which will
mean making substantial changes to the existing .NET passport system."
Officials said the changes would bring .NET into line with EU law. "There
would not seem to be any reason to take any form of sanctions against the
company," said Jonathan Todd, an EC spokesman.
A similar authentication system which is operated by the Liberty Alliance, a
group that includes 150 companies such as Microsoft rival Sun Microsystems
and Citigroup, was also given the all-clear yesterday.
EU regulators will keep a close eye on the development of online
authentication systems, a move welcomed yesterday by privacy campaigners.
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