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The European Commission has “opened an infringement proceeding” against the UK over Phorm’s ad-serving technology. In a statement this morning, Commission Viviane Reding called out Phorm and the UK, saying, “European privacy rules are crystal clear: a person’s information can only be used with their prior consent. We cannot give up this basic principle, and have all our exchanges monitored, surveyed and stored in exchange for a promise of ‘more relevant’ advertising! I will not shy away from taking action where an EU country falls short of this duty.”

Phorm’s business model is much like that of NebuAd here in the US: partner with ISPs, slurp up all that delicious user surfing data, then use it to toss users into various content silos.

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