The House of Lords refused to pass the governments Regulatory and Investigatory Powers (RIP) Bill this week.
The Lords also voted in favour of two major amendments to the Bill, one creating an advisory board to oversee the practical implementation of the Bill, the second giving ISPs compensation for the cost of installing the equipment the Internet police will need to gain access to emails.
At present, a large number of ISPs have condemned the Bill, announcing their intent to base core elements of their services overseas in order to take advantage of the more liberal laws in other European countries.
ISPs condemning the Bill include Poptel, Claranet, Direct Connection, Wellance, UUNet, Greennet and the Internet Service Providers Association (ISPA). Opposition also comes from civil liberties groups across the board, the London School of Economics, British Chamber of Commerce, Institute of Directors, ICL, and the Computer Software and Services Association. The TUC and Manufacturing Science and Finance Union have also condemned the Bill, as has the European Union.
Government and critics are now discussing the possibility of shelving the Bill for a short time in order to amend it.