The most vehement arguments about WGA stem from reports that it acts like malware, in that, after installation, it keeps track of a user's actions, sending periodic updates back to Microsoft HQ. Even after software has been validated, Microsoft can keep tabs on the user in the future, at any time holding the option to "revoke" such validation. (Source: p2pnet.net)
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With anger over WGA rising, consumers may soon demand a security device that protects their system from Microsoft itself, a market direction that will only build the momentum of Microsoft's growing list of competition.
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The updated version of the WGA tool included two separate components, WGA Validation and WGA Notifications, which, respectively, promised to determine whether a copy of Windows is pirated or not and alert users who Microsoft believes are running illegal copies of its software. However, WGA's notification aspect was discovered to have been "phoning home" to Microsoft's servers on a daily basis, touching off a wave of controversy among those who believe the feature could be used by Microsoft to keep tabs on people using its software.
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