Service provider Tele2 said that it would no longer be logging IP addresses in order to preserve user privacy and anonymity.
The move comes in the wake of new antipiracy directives which allow copyright owners to request that service providers hand over IP addresses of user while investigating possible software piracy and copyright infringement cases.
Following enaction of the law, web traffic in Sweden plummeted.
According to reports, Tele2 made the decision after receiving a considerable outcry from its users over privacy implications.
When it does begin the practice of deleting IP data, Tele2 will hardly be alone. Fellow Swedish telcos AllTele and Bahnhof both vowed to take up similar policies earlier this month, also citing outcry from customers.
Software piracy and copyright violation has become a top issue in Sweden, which recently played host to the high-profile case against the owners of the controversial Pirate Bay website.
The four owners of the site were sentenced to one year of jail time for operating the Pirate Bay service, which allowed users to find and exchange pirated materials. Attorneys in the case have called for a retrial due to a possible conflict of interest from the judge.
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