Microsoft's new device identifier would require users to give permission that it would be solely responsible for the user's data. Upon signing the ToS and user agreement on device setup, Microsoft would unless opting out prior to signing the agreements, confide all privacy concerns within itself rather than third parties that generally handle this sort of things. Microsoft would easily be able to see data that is generated from advertisers and other agencies that they often team with, essentially giving them a competitive edge. Microsoft could also benefit through this by being able to control which devices and operating systems would be able to access its web apps.
These changes come after the Federal Government had tried to decide on a new cookie standard among the data giants. A major flaw with cookies is who owns the data when it is being sent across multiple agencies. Proprietary tracking systems allows the owner to paint a picture of a user's browsing patterns across multiple devices within the confines of the company. These records are very valuable and having them owned by a single company scares me greatly. The NSA may very likely continue to gather these records and more comprehensive data will only improve their power. The change of ownership of the cookies, along with the HTML5 Encrypted Media Extensions that I blogged about last week will create boundaries on the web that can be abused by content owners and now advertisers. Power is given to the user when there is transparency on how their data is being used.
src: http://www.forbes.com/sites/kellyclay/2013/10/10/c-is-for-dead-cookies-microsoft-working-on-new-tracking-technology/
In your source article, they have a Microsoft representative quoted as saying that they'll try to "respect the interest of consumers." There's a general distaste for representatives that I feel can only grow, seeing as all these companies say that they're doing something to benefit consumers, when, in actuality, they're just trying to maximize profits. It seems like something a critic of cyberlibertarianism could have a field day with, and, personally, I'm very anxious about the path our new, open frontier is taking.
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