Microsoft has agreed to make substantial changes to its “Passport” online identity software (as used by Hotmail and .NET among other MS services) to make it comply more effectively with EU privacy guidelines. As the BBC reports,
European data laws impose significant burdens on those that hold information about customers to try to ensure that it is not abused or stored for long periods without good reason.
The agreement reached with Microsoft means that when Europeans sign up for the service they will be asked to designate themselves as EU residents and then decide how much information they are happy to share with the software giant.