.NET password system violates EU laws.

Amongst others, Infoworld and ITworld.com report that Microsofts online identification system could be violating European Union privacy laws.

Officials from fifteen national data protection authorities met in Brussels this week. They agreed to the findings drawn up last week by their Internet task force subcommittee.

The .NET password system was targeted by the European Internet task force, because it is the most important online authentication system in operation today. A spokesman on internal market issues did not reveil if further investigations will follow.

links:
ITworld
infoworld.nl (in Dutch)

No big surprise really is it ??
the EITF is prolly partially funded by M$. What ever no doubt they wont be able to touch them