Amazon opts out of Phorm behavioral ad targeting system

Amazon.com is pulling back from a behavioral online advertising system called Phorm that is generating controversy in Europe. The online retailer says it has contacted Webwise, which markets Phorm, "requesting that we opt for all our domains," said spokesman Craig Berman. Amazon's move comes after the European Commission launched legal action against the U.K. over Phorm trials.

Phorm is a "deep packet" technology that "tracks people's browsing habits via cookies and relays the information to the Internet service provider," PC World reports. British telecom giant BT tested the system in 2006 and 2007, sparking complaints that it failed to get user consent for the trials, according to reports. The European Commission subsequently started proceedings against Britain over data-protection laws.

Amazon's Berman did not give a timeline for Amazon's opt-out from Phorm. The London-based Open Rights Group last month sent an open letter to many of the major technology companies, including Google, Yahoo, Microsoft, Amazon and eBay, encouraging them to opt out of Phorm.

READ MORE and COMMENT, more