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Zuckerberg argues that Facebook provides something the larger web doesn’t — an undo button — which he feels is more important than data portability.

The example he offers is the Facebook news feed. As it stands if you publish something to your news feed and then decide that you want to limit who can see it by changing the privacy settings, that information is removed from your friend’s updates (assuming they no longer have the privileges necessary to access it). However, were the Facebook news feed offered as an RSS feed available outside Facebook (as we’ve often argued it should be), it would, because of the nature of RSS, no longer be retractable. Even if you changed the privacy settings and removed it from the feed, many RSS readers would already have cached or otherwise stored the post you’d like to retract.

Who really owns your address book? Many Internet companies - like Google (GOOG, Fortune 500) and Yahoo (YHOO, Fortune 500) - say unequivocally that you do. If you sign up for free e-mail accounts on their services, you're free to take your friends with you and export your contact lists to any service that you like.

But Microsoft (MSFT, Fortune 500), while publicly embracing the idea of openness, has been saying something different behind the scenes. Since last summer, lawyers representing the company have been sending cease-and-desist letters to startups that offer new users the ability to import their Microsoft Hotmail contacts. In a move that Valley guys are deriding as ham-handed, Microsoft is offering a quid pro quo: Third-party sites can access Hotmail contacts if they make Microsoft's instant-messaging client available to their users - for 25 cents per user per year. Then the company says it will waive the fee if the sites make Messenger the exclusive in-network messaging client. Such a deal.

There is a better way, of course - though it remains to be seen whether it will work. A group of companies, aligned under the banner of the DataPortability Workgroup, is trying to craft standards that would make it easy for the data we collect online to move as freely and securely from one website to another as we do. As long as two sites abide by the DataPortability rules, they can effortlessly send anything back and forth between them - data, photos, address books. "It's safe, secure, painless," says Chris Saad, the Aussie who co-founded and chairs the DPW. Hundreds of individuals and several leading companies - including Yahoo, Facebook, Google, and even Microsoft - have signed on to the workgroup, and Saad says he's optimistic that we'll see a system in place later this year.