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The EU has accepted a last-minute amendment from the IAB to a directive that would have forced online media owners to gain approval from users each time they launched a cookie, a file that allows companies to track users' behaviour.

Instead, the IAB amendment requires all web sites to carry a page explaining the function and purpose of cookies. The IAB itself has devised a generic explanation to which online media owners can carry a link.

"The amendment puts the onus on web site owners to make clear information readily available on how cookies are used,

said IAB chairman Danny Meadows Klue. "What will follow is furious lobbying of MEPs who will vote on the amendment."

The amendment has been approved by the same EU committee that drafted the original bill and will now go through a plenary session and then a vote of all MEPs in the European parliament at the end of next month.

Online media owners have warmly welcomed the committee's decision.

"Advertisers need to be able to track users' behaviour to make informed decisions and present them with more relevant and commercially rewarding information,

said Nicky Smith, marketing director at internet travel company Expedia. "If we had to seek permission to launch a new cookie every time it would have been very restrictive."

Jim Cruickshank, marketing director at property portal asserta home said: "I was fearing the decision would go the other way. It would make it hard and tedious for businesses such as ours to build and manage a database of customers."

Chrys Philalithes, UK marketing director at pay-for-performance search network Espotting, predicted that having a page explaining the concept of cookies would help demystify internet jargon to ordinary internet users.

But Freeserve advertising sales director Caroline Pathy sounded a note of caution. "This is important news for the internet media industry. But the campaign's not over yet and there are a couple of hurdles to overcome. We owe a massive thanks to the IAB."