The Government is committed to ensuring that people's privacy is fully protected. Legislation is in place for this purpose and is enforced by the Information Commissioner's Office (ICO). ICO looked at this technology, to ensure that any use of Phorm or similar technology is compatible with the relevant privacy legislation. ICO has published its view on Phorm on its website:
ICO is an independent body, and it would not be appropriate for the Government to second guess its decisions
So they've decided to make no decision. Looks like the EU are going to have to do it for them."