Phorm has created a new type of technology that will essentially allow ISPs to track their users’ activity online. ISPs will then be able to take the information that has been generated by users and sell it to online advertisers. This will allow them to use advertisements that fit more appropriately with a user’s interests.

Many people have expressed outrage at the technology which could easily be seen as a gross invasion of privacy. Not too long ago, the Open Rights Group sent several large internet companies a letter that asked them to avoid Phorm’s technology. Those who received the letter included Bebo, Google, Facebook, and Yahoo.

Several companies are beginning to respond to the letter and it looks like Phorm might have a problem on their hands. A Bebo spokesperson said “We have received the letter and are giving it careful consideration from privacy and business perspectives.” Chris Kelly with Facebook added that “If [web browsers] are deeply unhappy with it we hope they express that as clearly as possible to the ISPs.”

It is also easy to assume that companies like Google will want nothing to do with Phorm. This is mainly because the technology that Phorm developed will be competing with their own. Although the technologies used by both companies may be different, the end result is more or less the same. Both will enable behavioral advertising to take place. The Open Rights Group is expecting a response from Google shortly.