Microsoft Shutters Free MSN Chat

Citing privacy and child safety concerns, Microsoft will shut down its MSN chat rooms in 34 countries and bring its US chat under the umbrella of Redmond's other subscription-based MSN services.

Microsoft claims chat rooms have become a haven for inappropriate communication and pedophiles targeting children. To curb such behavior, MSN chat will now be strictly monitored and require those in the United States to disclose their credit card information before entering. Microsoft will then be able track down anyone violating its policies.

But the move is sure to provoke a harsh response from chat enthusiasts who fear big brother watching their every keystroke.

"The whole point of chat is anonymity, and this is a longstanding Internet tradition," wrote Joe Wilcox, senior analyst for Jupiter Research, in his Web log. "More importantly, even the suggestion that the company might identify chatters through credit card information carries HUGE privacy implications for which the company could get rapped by customers, competitors, privacy groups and even federal regulators."

Starting October 14, only MSN chat rooms in New Zealand, Australia, Brazil, Canada and Japan will remain free, but moderated. Microsoft has not yet said how much it will charge chatters in the US.