EU threatens action to defend Web users' privacy

BRUSSELS, BELGIUM: Some Internet companies are abusing consumers' personal data and this cannot be allowed to continue, a top European Union official will warn the industry on Tuesday.

Consumer Affairs Commissioner Meglena Kuneva, in a speech whose text was obtained by Reuters in advance, will threaten EU intervention to set tougher rules on how Internet users' personal data is collected, analysed and shared by search engines and service providers.

"The current situation with regard to privacy, profiling and targeting is not satisfactory. Basic consumer rights in terms of transparency, control and risk are being violated and this cannot continue," she will say in the speech.

Internet search giants and service providers have come under pressure from European data protection officials to do more to protect the privacy of Internet users.

Google, Yahoo, Microsoft and others have announced measures to protect users' data, cut the time they store personal data gathered from surfing habits and allow users to opt out of being targeted with Internet ads.

Internet advertising has grown rapidly in recent years, and brands hope to develop it further by providing consumers with more relevant advertisements based on their browsing habits.

Bill Echikson, a spokesman for Google, which recently launched an interest-based advertising service, said the search giant was taking action to protect users' data and allow them to opt out of targeted ads.

However, Kuneva will say such measures are not enough.

"The current opt-out systems are partial, sometimes nowhere to be found, they are difficult or cumbersome and most of all, they are unstable," she will say, adding that "avoiding tracking is currently technically difficult, if not impossible".

Kuneva warns that if the industry fails to offer adequate responses on data collection and profiling, the European Commission will not hesitate to intervene.

"We must establish the principles of transparency, clear language, opt-in or opt-out options that are meaningful and easy to use," she will say.