But it is not like Bind crawled Google or anything like that, which Google would like everyone to believe.
But they did. Instead of using a program to do the clicking, they used humans.
Microsoft does disclose that Suggested Sites collects information about sites you visit. From the privacy policy: When Suggested Sites is turned on, the addresses of websites you visit are sent to Microsoft, together with standard computer information. To help protect your privacy, the information is encrypted when sent to Microsoft. Information associated with the web address, such as search terms or data you entered in forms might be included. For example, if you visited the Microsoft.com search website at http://search.microsoft.com/ and entered "Seattle" as the search term, the full address http://search.microsoft.com/results.aspx?q=Seattle&qsc0=0&FORM=QBMH1&mkt=en-US will be sent. I've bolded the key parts. What you're searching on gets sent to Microsoft. Even though the example provided involves a search on Microsoft.com, the policy doesn't prevent any search -- including those at Google -- from being sent back.
It's worth reading the IE privacy policy to see what all they reserve the right to do with what you do in IE. I don't see the limitations regarding which components specifically will spy on you; some mention it specifically and then there's a broad statement about recording what you do and sending it to Redmond.
IMHO, that's the real story here. That, and the fact that people apparently still need reminding that MSFT is an advertiser just like GOOG, just less successful at it to date.
It's not in the EULA.
You're right; it's perhaps in the privacy policy (arguably, this is part of the EULA, but it's also a separate document):
Microsoft does disclose that Suggested Sites collects information about sites you visit. From the privacy policy: When Suggested Sites is turned on, the addresses of websites you visit are sent to Microsoft, together with standard computer information. To help protect your privacy, the information is encrypted when sent to Microsoft. Information associated with the web address, such as search terms or data you entered in forms might be included. For example, if you visited the Microsoft.com search website at http://search.microsoft.com/ and entered âoeSeattleâ as the search term, the full address http://search.microsoft.com/results.aspx?q=Seattle&qsc0=0&FORM=QBMH1&mkt=en-US will be sent. Iâ(TM)ve bolded the key parts. What youâ(TM)re searching on gets sent to Microsoft. Even though the example provided involves a search on Microsoft.com, the policy doesnâ(TM)t prevent any search â" including those at Google â" from being sent back.
(source: TOFA: http://searchengineland.com/google-bing-is-cheating-copying-our-search-results-62914) It's worth reading the rest of the privacy policy; apparently other bits of IE can and will send your information to Microsoft. http://www.microsoft.com/windows/internet-explorer/privacy.aspx
They do spy on (sorry, gather 'click stream' data from) IE users (through IE itself, or one of its add-ons). Read those EULAs veeery carefully, folks!
Somehow this extremely relevant part of the story keeps getting skipped over whenever it's being told.
The 'click fraud' accusation is hilarious and quite arguably libelous as fraud (and click fraud) is a real criminal act.
http://en.wikipedia.org/wiki/Click_fraud
"Click fraud is a type of Internet crime that occurs in pay per click online advertising when a person, automated script or computer program imitates a legitimate user of a web browser clicking on an ad, for the purpose of generating a charge per click without having actual interest in the target of the ad's link. Click fraud is the subject of some controversy and increasing litigation due to the advertising networks being a key beneficiary of the fraud.
Use of a computer to commit this type of Internet fraud is a felony in many jurisdictions, for example, as covered by Penal code 502 in California, USA."
(also claimed to be a felony at http://www.legalmatch.com/law-library/article/click-fraud.html with claims of arrests.)
One man's constant is another man's variable. -- A.J. Perlis