In a technical paper presented to the World Wide Web Consortium, Microsoft endorsed giving consumers a "do not track" option, which it will include in Internet Explorer 9, The Wall Street Journal reported Saturday.
The feature will allow consumers to create their own lists of which companies can and which cannot track their online activities.
Facebook also moved forward on protecting consumer privacy, although it did not change how it manages data it collects.
The draft policy includes headings on "your information and how it is used," and "how advertising works," the Journal said.
A spokesman for Google told the Journal it was not changing its policy of offering a privacy option on Chrome Web as add-on software. The spokesman said Google would "continue to be involved closely" with the topic of online privacy, however.
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