British police are currently questioning the company in order to determine whether it's trials of Phorm (both past and planned) are actually illegal.
This is not the first time that BT have been caught short when it comes to Phorm - earlier on in the year, they simply "forgot to mention" the potentially illegal trials to the Home Office.
A police spokeswoman stated that "City of London Police has not launched a criminal investigation in connection with this matter. We are establishing if any criminal offence has been committed". She declined to comment on whether or not it was likely that BT face criminal proceedings over the trials. BT didn't see fit to comment on the case either, however, they appear to have stated their intentions to continue with future Phorm implementations, even if it has the potential to upset the EU.
Link: Forum Discussion