The European Union (EU) is likely to approve Microsoft's .Net Passport user ID system if the company makes some minor changes.
Contrasting with their position in July, national privacy controllers, who monitor compliance with the EU's tough rules on personal data privacy, have concluded that their earlier fears were exaggerated, according to news agency Reuters.
A committee ordered that the ID system, a central repository of user information which allows surfers to log in to multiple websites, can be operated within the EU data protection rules provided some adjustments are made.
In July, data controllers wanted to examine more closely whether .Net Passport users were fully aware that some of their data would sometimes be transferred to a party other than Microsoft, possibly located in a third country.
Under the EU's data privacy rules, customers' personal data can only be used by a firm or passed on to others with the prior consent of the individual.
Separately, there are rumours in Brussels that officials for the European Competition Commission are to review a draft decision thought to call for tough action against Microsoft in its antitrust investigation.
The measures in the draft ruling are thought to be far tougher than those imposed by US authorities in a separate antitrust case, although neither the Commission or Microsoft have made any official comment.
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