Now Google’s YouTube is setting up shop in Europe’s fastest growing internet market with official sanction – but that may call up the same kind of ethical concerns its parent has seen elsewhere.

Turkey says it has successfully convinced YouTube to operate at youtube.com.tr – a fact that means the video site will have to comply with the country’s own domestic laws on such things as censorship.

Transport and communications minister Binali Yildirim (via Reuters):

“It will now be in a binding and critical position to implement court decisions and remove any objectionable publications. Further more it will also pay taxes on its operations.”

The issues is thrown in to relief by last week’s government edict that the controversial video, The Innocence of Muslims, be censored in Turkey.

Google, Twitter and Facebook last year said they would comply with the local laws of countries in which they operate.

Turkey is not considered a wildly oppressive state, but its stance of freedom of expression has been a sticking point in Turkey’s efforts to gain European Union membership.

On the other hand, Turkey represents a tremendous business opportunity. With a young population, its online penetration surged from 15 percent in 2005 to 45 percent by late in 2011. And its 35 million users spend so much time online that they make Turkey the number-three country for time spent online per user.

YouTube.com was already the number-five site in the country last year, according to comScore.

The outfit is repeating its trick of selling new shares to raise more money to fund its new effort there. This time, it is raising £7 million ($10.8 million) by selling 5.6 million new shares (seven percent of the company) to Mirabaud Securities and Liberium Capital.

I calculate Phorm has now raised around £131.56 million since 2005 through 11 rounds of various kinds, but has booked almost no revenue.

Successive share issues have diluted previous investments, but Phorm has also tried to ringfence previous investment by establishing new country-level offshoots through which to raise money. In June, it signed an agreement to raise £20 million to fund a distinct new Chinese spin-off, immediately valuing its fledgling unit alone at a giddy £100 million.

The focus on emerging markets, at least, is wise. Turkey is Europe’s fastest-growing market, displaying the highest page views per user, according to comScore…

Phorm’s technology uses ISPs’ data of their subscribers’ browsing habits to better target ads served through partner publishers. The idea promised to increase advertising rates for publishers and click-throughs for advertisers.

Although the idea was really a more granular version of web cookie-based ad targeting that already goes on, it was met with a privacy outcry. Despite Phorm softening the service offering, three UK ISPs who trialled it decided not to go deploy it. Phorm moved operations to South Korea but the same happened. So it moved to Brazil, where it has signed with ISP Oi. Now it has relocated its HQ from Delaware to Singapore along with the new Chinese focus.

If it can ever prove itself in overseas markets and shake off the initial UK privacy concerns, Phorm could be a very big deal for online advertising – a sector facing shrinking CPMs and in which ad tech like real-time bidding is desperately trying to wring remaining pennies out of digital nooks and crannies.

Phorm signed its fourth ever ISP deal in Turkey in July, with the country’s number-two operator TTNET. The outfit says it is now genuinely serving ads to over one million unique opted-in users.

“The scale of our operations in Turkey represents a significant revenue opportunity for Phorm,” CEO Kent Ertugrul said.

Brazilian user count has doubled since March and commercial activity in Romania will begin soon, Ertugrul said.

Turkcell is also pleased that people who join the program have a lower churn rate than other Turkcell customers. Advertisers get some detailed information of who listens to the ad, incuding exclusive brand reports based on caller demographics, socioeconomic status, total impressions and the total branded RBT (NYSE: BT) seconds listened to. Big names have signed up.

So it´s a win-win-win situation, unless you count the people making the calls and hearing the ads as losing out in this scenario…especially if people take longer than normal to pick up the phone so the caller can hear just how much life Coke adds.