The BBC have the story here.
It's unsuprising that the Home Office would be interested in giving Phorm a go, as it seems theres a culture in government that thinks its fine and dandy to go snooping around people without explicit permission.
No doubt (as the report alludes to) the Home Office had a vested interest in the Phorm technology, either to use for themselves, to cover up their own activity, or to justify the regime where its ok to snoop.
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