According to this latest update, users now have no choice to decide how their data is used for each service.
This latest change by Microsoft is somewhat same as Google+, which treats all Google services as one.
The agreement is quite easy to read. See and read what Microsoft has upgraded and written here: http://windows.microsoft.com/en-US/windows-live/microsoft-services-agreement
So will this change impact user’s privacy rights? Yes, quite possibly.
This revamped service agreement means that Microsoft can now apply data from user’s Outlook or Hotmail, SkyDrive, or Office account and use it in combination with other online service such as the Bing search engine.
It seems that this change can offer a better and improved usage experience to users as it takes the guess-work away from trying to figure out user’s behavior within each individual service.
As per the service agreement, Microsoft states that the change will “provide, protect and improve Microsoft products and services.”
It seems like Microsoft can now share user’s data across services legally. The new updates would go in effect, starting 27th September.