Children's charities welcomed the move as "momentous" and said they saw it as a big step towards protecting young web users, but some have criticised the decision.
"As a responsible leader we feel it necessary to make these changes because online chat services are increasingly being misused," it said.
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"We have been concerned about chatrooms for a while and reached a stage where we were no longer prepared to put up with inappropriate communication," he said.
The only chat service available to MSN users in the UK will be the free instant messaging service, MSN Messenger, which is not so open and gives people more control over who they talk to.