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Microsoft has recently stated that they will stop usage of Passport, for entities outside of Microsoft's operations. They have also said that they are going to stop development, in what appears to be a phasing-out of the technology.
Passport was criticised by EFF's staff attourney Deborah Pierce as a potential threat to privacy after it was revealed that Microsoft would have full access and usage to customer information. [1] These terms were quickly updated by Microsoft to allay customer's privacy fears.
Microsoft Identity management systems