BBC article
The legal challenge has been brought by The French Association of Internet Community Services (ASIC) and relates to government plans to keep web users' personal data for a year.
The case will be heard by the State Council, France's highest judicial body.
More than 20 firms are involved, including eBay and Dailymotion.
The law obliges a range of e-commerce sites, video and music services and webmail providers to keep a host of data on customers.
This includes users' full names, postal addresses, telephone numbers and passwords. The data must be handed over to the authorities if demanded.
Police, the fraud office, customs, tax and social security bodies will all have the right of access.
Please explain this. They could just ask for the data that they wanted, no reason actually have peoples' password handed over. If it's just because they think that people will use the same password for their encrypted volumes... well, I hope no one actually uses the same password there, haha.
