Although that may seem alarming, experts say the controversy in this case lies not in what Phorm actually does, but in the interpretation of the law. Put simply, EU regulations state participants must actively “opt in” to having their internet usage monitored, where the UK says you may be monitored if your provider has a reasonable belief that you wouldn’t mind.

The Open Rights Group, a UK-based lobby organisation that deals with internet privacy, says it’s not just individuals who are affected by Phorm.

“If you look at a website, that’s perhaps selling specialist books, they are showing information about which books a customer likes, by trading that information with that customer. They may not want that info stored by a company like BT and Phorm because that can be used to advertise against them,” said Jim Killock, Executive Director at the Open Rights Group.

All this has prompted the EU to take its first ever action against the UK regulator for invasion of privacy. The organisation has already issued a warning notice, but says it could go further.

“Ultimately, if things don’t get moved, if the national law in question isn’t brought in line with EU law, we can refer them to the European Court of Justice,” warned Antonia Mockan, Head of Media at the European Commission.

As well as being a first in the UK’s relationship with the EU, analysts say the Phorm case marks a turning point in the development of the internet, where privacy online will either be maintained, or trust in the web will be dealt a fatal blow.