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Microsoft's New AdLab in China Could Spell Trouble for Web Users

Laptop Battery By Randy Chen

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Thinkpad (AXcess News) Hong Kong - Microsoft Corp. (Nasdaq: MSFT) said Friday that it was establishing a research lab in China to study new ways of developing online advertising mediums, yet the software-maker's own Windows XP operating system blocks nearly 30 percent of all Internet advertising from displaying on computers, which could mean new advertising technology aimed at controlling what Microsoft Windows users see.

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Microsoft The AdLab is a joint project of Microsoft adCenter,Microsoft's ad management and placement software, and Microsoft Research. It was set up in Beijing and employs approximately 20 scientists there that coordinate with an equal number of scientists at the company's headquarters in Redmond, Washington.

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Laptop Computers Microsoft's AdLabscientists are working in fields like data mining, information retrieval, statistical analysis, artificial intelligence, auction theory, visual computing and digital media, the company said.

This numerical data is sent to the user's browser from a Web server and then stored onto the user's computer hard drive.

Laptop Computer Scientists at Microsoft's AdLab are supposedly working on advanced targeting and reporting capabilities for adCenter. But sources in Beijing said there may be other considerations Internet users should consider that lay in Windows OS default settings.

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Desktop Computer Most computer users are not that sophisticated when it comes to setting up Windows OS and rely on the configurations offered to them when installing a new Windows operating system. Consumers are already aware of the legal battles Microsoft has fought over its Windows Media Player, Java and other programs that require the user to change from Windows default settings if they want to use an alternative program.

Notebooks Microsoft has argued that many objects are harmful to computers and so its OS automatically prevents many online advertisements from displaying. In order for a user to fix it they have to change their OS settings to permit those objects to display, which most users are reluctant to do, or are unaware that they can even change it.

Lenovo If Microsoft's Chinese AdLab designs a new type of advertising object, Windows OS is most likely going to treat that object like it does its own default programs and permit it to be displayed while Microsoft itself will argue that what's developed in China is outside of the Redmond, Washington software maker's control.

Hard Drive The disadvantage may be consideredunfair business practicebut US-based ad agencies will not be able to do anything about it in court. They would have to seek legal recourse in China, where the Internet is controlled by the Chinese government.

Travelstar AdLabs may also be cooperating with the Chinese government in its development work by using new technologies created at AdLab to monitor Internet users surfing habits, even to the extent that they could block certain ads by keywords or subject categories, like adult content, political advertisements and even employment.

Gateway Tarek Najm, Microsoft's general manager of AdCenter said in a statement, "The Microsoft team of top researchers in this field is unsurpassed and certain to produce compelling advances that will impact and ultimately change the game in online advertising."

Friday, AXcess News reported that Rep. Christopher H. Smith (R-NJ), chairman of a House subcommittee on human rights, is scheduling a committee to probe into Microsoft's dealing's in China and its cooperation with the Chinese government in curbing free speech.

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