Phorm's big problem is Deep Packet Inspection

The other ad networks are certainly sinister.

But where Phorm differs is using Deep Packet Inspection to spy on your communications.

Spying. Snooping. Industrial espionage, Communication profiling, Copyright theft, Surveillance, Trademark infringement.. Call it what you will.

But the fact remains - it is simply illegal, unethical, immoral, and utterly wrong.

The reason the UK Govt can't see that is because they are simply illegal, unethical, immoral, and utterly wrong.