There’s a very interesting report out on the fact that IP addresses are now potentially considered personally identifiable information in the EU. Whoah! I’m sure people can think of their own reasons this might be a big deal, but here is just a small smattering of stuff that I came up with:

Advertising: banner ads are almost always pulled from a third party. That third party gets things like referrers and, what else, IP addresses! Sorry, say goodbye to third party ad revenue! Yes, that means you, Adsense and Overture! People can no longer leak that information to you as it’s PII!

Tracking Pixels: tracking pixels are used by companies all over the world because it’s often easier than dealing with their own logs and buying and configuring their own log analysis software (especially if they get a lot of traffic). So Omniture and Google’s Urchin could be hard hit here.

Embedded content: There are tons of bulletin boards, message boards, blogs, etc… out there that allow images to be posted off host. People like it because it doesn’t force them to have to build upload scripts, and maintain them. Sorry, no more embedded content, and that includes things like Youtube because that would leak the people’s IP addresses to third parties. Also, things like Gmodules which often pull in content from other domains would be a big no no without some changes. Same with Google cache, translation services, etc… etc…!

There’s dozens of issues out there, but you’ll notice that this particular issue would wreak havoc on Google’s business model if it’s ever fully enforced. It’ll be interesting to see how this plays out and if there is any other tricky way people can use to get around this (like hashing the IP or stripping off the last bits - which is mentioned in the last part of the article but probably isn’t much actual protection since that only makes it 255 times harder to guess at best). This is one to watch folks!