Yahoo cuts data retention to three months

By Kim Dixon

WASHINGTON (Reuters) - Search engine Yahoo! Inc will cut to three months the time it stores personal data gathered from Web surfing, making its retention policy the shortest among peers, the company said on Wednesday.

The company will "anonymize" the computer addresses of its users within three months in most cases, from a prior standard of 13 months. It is reserving the right to keep data for up to six months if fraud or system security are involved.

Internet search companies have come under pressure from European and other data protection officials to do more to protect the privacy of users.

Earlier this year, industry leader Google Inc halved the amount of time it stores personal data to nine months. Microsoft Corp has said it will cut the time to six months if its rivals did the same.

"Google first went to 18 months and started this competition," said Ari Schwartz, vice president at the Center for Democracy and Technology, a privacy advocacy group.

Yahoo's pledge is "significant because they are getting rid of some data after 90 days and they actually have an implementation plan to get this done," he added.

The company is also expanding the scope of the data it is making anonymous, to include page and advertisement clicks and views, from just search log data alone.

The European Union has recommended that companies keep data no more than six months and urged the sector to adopt an industry-wide standard.