IT Blog

(Reuters) – Microsoft Corp (MSFT.O) on Friday said it would sell its stake in AnyVision, an Israeli facial recognition startup, and said it no longer would make minority investments in companies that sell the controversial technology.

The decision marks a policy change for the Redmond, Washington-based software maker, which has aimed to shape how the technology industry approaches facial recognition. Microsoft has laid out principles to guide its own development of the technology, saying it should perform without bias and must not impinge on democratic freedoms.

Civil liberties groups have said police use of facial recognition could lead to unfair, arbitrary arrests and limit freedom of expression.

Microsoft came under scrutiny last summer for participating in a $74 million funding round for AnyVision, which critics said contradicted…