In response to a European Union inquiry into their data retention practices, Microsoft and Yahoo are getting ready to announce that they've made concessions to their privacy policies. The move follows mounting pressure in the EU over the length of time search companies retain personal data. Last month, the EU said it would investigate how long companies like Google and Yahoo keep individuals' search data. Meanwhile, the EU's so-called Article 29 Working Party has also been in discussions with Google over its policies for keeping data, notably in regard to its proposed acquisition of DoubleClick. Google recently won …

As Google shares hit yet another all-time high, Oxford Analytica, a strategic-marketing firm, warns the Web giant may lose the most important source of its momentum: trust. It's not just about retaining users' trust in Google's ability to handle sensitive personal information; it's also about maintaining that image, which Oxford says might be slipping. Success on Google's scale brings greater scrutiny from the media, the public and the government. The company has received poor marks from privacy groups for its data retention policies. It's denied U.S. government requests for its search data, and Google has yet to respond …

Microsoft is launching the advanced version of its Xbox 360 game console, Xbox 360 Elite, on October 11 in Japan, a country where sales of its game gear trail far behind rival machines from Nintendo and Sony. The Elite's 120-gigabyte hard drive, six times bigger than the regular Xbox 360's hard drive and twice as big as that of Sony's PlayStation 3 console, can store a library of high-definition TV shows. It is set to sell for ($390), compared with $243 for the most basic version of the Xbox 360. Although popular in the United States, …

Henry Blodget thinks eBay's purchase of Kijiji's classified ads business makes strategic sense because the ads complement eBay's core buying and selling business. But with the free Craigslist as the dominant player in general classifieds, much as eBay is in auctions, the competition may be unbeatable. If eBay/Kijiji were emphasizing listing quality, seller reputations or some element missing from Craigslist, he says, the competitive story might make some sense, but Kijiji's problem is its dearth of listings. So it's hard to see how "Just like Craigslist--except no listings!" is going to carry the day.

The iPhone is a lovely device with a sleek interface, top-notch music and video features and innovative design touches. The touch screen is easier to use than expected, and the multimedia performs well. But a host of missing features, a dependency on a sluggish EDGE network, and variable call quality leaves one wanting more. The iPhone boasts a brilliant display, trim profile, and clean lines. In true Apple style, the iPhone's menu interface is attractive, intuitive, and easy to use. In the main menu, a series of colored icons call out the main functions. Still, the interface …

The Federal Trade Commission issued a notice this week saying it has approved plans by MySpace owner Fox Interactive Media, a unit of News Corp., to buy photo-sharing site Photobucket, which lets its more than 42 million users upload photos and videos to their own Web sites, blogs and social networks. The purchase is part of News Corp.'s. plan to bolster its Internet businesses. Photobucket has more than 42 million users, who can upload photos and videos to their own Web sites.

BEUC, a major consumer group in Europe, has a major problem with the intended Google/DoubleClick merger. Both companies are privy to a wealth of users' online search habits. The consumer group is concerned that combined data would mean to unmatched user profiles. "They have so far complementary databases with private data," said Cornelia Kutterer, BEUC's senior legal adviser. "If they merge them, this could lead to unmatched databases of profiles. If they can combine them, this could lead to a violation of user privacy rights."

"Sicko," Michael Moore's documentary about the U.S. healthcare system, had a "glittering debut" at the box office over the weekend, but the controversial film has also made headlines for being widely and illegally distributed on the Web. That raises an interesting issue for Hollywood: To what extent does peer-to-peer file-sharing help build buzz for a film? Or depress box office sales? Says Hollywood attorney Nancy Prager: "These guys aren't just spreading their opinions. They're spreading the actual movies." We don't need thieves marketing our films, she says. File-sharing advocates disagree. They think most people would rather see a movie …

The iPhone makes its way to Asia sometime in early 2008. Big deal, right? Smart phones in technology-saturated countries live on third-generation wireless networks and can already play digital video, music and even satellite TV at faster speeds than Apple's new iPhone. Steve Jobs' new gizmo doesn't look so special compared to what's on offer overseas. Now, touch screen functionality is revolutionary everywhere, and if you're lucky enough to own an iPhone or have had the chance to play around with one, it's special. Even in South Korea, the leader in the wireless handset market, next-generation phones don't …

At $500 an iPhone, how much does Apple make per model? Analyst firm Portelligent said a quick study of the smart phone reveals that its parts cost $200 for the $500 iPhone and $220 for the $600 - which makes it an expensive device, because those prices are for parts only, not labor. Those are also initial estimates, says Howard Curtis, Portelligent's vice president of global services says. "When we finish, we will have less of a guesstimate and more of a solid estimate." The Portelligent exec echoed most reviewers in praising the device, which …