Brazilian Telecoms Leader Fined over Phorm 'Trials'

Brazil's Justice Ministry has rebuked the country's largest telecoms company Oi and fined it $1.6m for tracking and targeting-related privacy violations. It's apparently a 'first-of-its-kind' for the country, but it's eerily reminiscent of the first time we heard the name of Oi's partner company, Phorm.

The Ministry says that after entering an agreement with Phorm in 2010, the telecoms firm invaded the privacy of subscribers to its broadband Internet service by tracking their browsing without consent and selling the information to advertisers. Phorm said in a statement provided to Bloomberg last week that the partnership had been approved by Brazil's telecoms agency and antitrust agency, that 'no consumer data was ever sold' and that 'all of the regulations referring to privacy were strictly respected.' Oi has said that its testing process was overseen by government regulators and that it will appeal the fine.

More than six years ago, Phorm came to public attention when UK 'phone giant BT was charged with the abuse of users' privacy. The UK provider admitted using business customers' data without permission, in a trial run for Phorm's 'Webwise' software.

Since then the massively indebted ad personalisation company has tried its hand in Korea, Brazil, Romania, Turkey and now China, but its 2013 turnover of $280k represents a speck beside its accumulated deficit of $256.6 million. CEO Kent Ertugrul (pictured) continues to persuade investors and must have some very convincing arguments - one of them could be the MoU which makes Phorm China Telecom's 'preferred strategic partner' for big data technology and ad operations. DRNO awaits with interest, and will report, the outcome of the appeal and of developments in China.

Web site: www.phorm.com .