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The five-week court hearing in what is a complex case delving into detail on US surveillance operations took place in February. The court issued its ruling today. The 153-page ruling starts by noting “this is an unusual case”, before going into a detailed discussion of the arguments and concluding that the DPC’s concerns about the validity of SCCs should be referred to the European Court of Justice for a preliminary ruling. Schrems is also the man responsible for bringing, in 2013, a legal challenge that ultimately struck down Safe Harbor — the legal mechanism that had oiled the pipe for EU-US personal data flows for fifteen years before the ECJ ruled it to be invalid in October 2015. Schrems’ argument had centered on U.S. government mass surveillance programs, as disclosed via the Snowden leaks, being incompatible with fundamental European privacy rights. After the ECJ struck down Safe Harbor he then sought to apply the same arguments against Facebook’s use of SCCs — returning to Ireland to make the complaint as that’s where the company has its European HQ. It’s worth noting that the European Commission has since replaced Safe Harbor with a new (and it claims more robust) data transfer mechanism, called the EU-US Privacy Shield — which is now, as Safe Harbor was, used by thousands of businesses. Although that too is facing legal challenges as critics continue to argue there is a core problem of incompatibility between two distinct legal regimes where EU privacy rights collide with US mass surveillance.

In a written statement on the ruling Schrems added: “I welcome the judgement by the Irish High Court. It is important that a neutral Court outside of the US has summarized the facts on US surveillance in a judgement, after diving through more than 45,000 pages of documents in a five week hearing.

Making a video statement outside court in Dublin today, Schrems said the Irish court had dismissed Facebook’s argument that the US government does not undertake any surveillance.

“WE APPRECIATE THAT there are times when secrecy around a government warrant is needed,” Microsoft President Brad Smith wrote in a blog post on Thursday. “But based on the many secrecy orders we have received, we question whether these orders are grounded in specific facts that truly demand secrecy. To the contrary, it appears that the issuance of secrecy orders has become too routine.” With those words, Smith announced that Microsoft was suing the Department of Justice for the right to inform its customers when the government is reading their emails. The last big fight between the Justice Department and Silicon Valley was started by law enforcement, when the FBI demanded that Apple unlock a phone used by San Bernardino killer Syed Rizwan Farook. This time, Microsoft is going on the offensive. The move is welcomed by privacy activists as a step forward for transparency — though it’s also for business reasons.

Secret government searches are eroding people’s trust in the cloud, Smith wrote — including large and small businesses now keeping massive amounts of records online. “The transition to the cloud does not alter people’s expectations of privacy and should not alter the fundamental constitutional requirement that the government must — with few exceptions — give notice when it searches and seizes private information or communications,” he wrote. According to the complaint, Microsoft received 5,624 federal demands for customer information or data in the past 18 months. Almost half — 2,576 — came with gag orders, and almost half of those — 1,752 — had “no fixed end date” by which Microsoft would no longer be sworn to secrecy. These requests, though signed off on by a judge, qualify as unconstitutional searches, the attorneys argue. It “violates both the Fourth Amendment, which affords people and businesses the right to know if the government searches or seizes their property, and the First Amendment, which enshrines Microsoft’s rights to talk to its customers and to discuss how the government conducts its investigations — subject only to restraints narrowly tailored to serve compelling government interests,” they wrote.

On Tuesday, the European court of justice, Europe’s supreme court, lobbed a grenade into the cosy, quasi-monopolistic world of the giant American internet companies. It did so by declaring invalid a decision made by the European commission in 2000 that US companies complying with its “safe harbour privacy principles” would be allowed to transfer personal data from the EU to the US. This judgment may not strike you as a big deal. You may also think that it has nothing to do with you. Wrong on both counts, but to see why, some background might be useful. The key thing to understand is that European and American views about the protection of personal data are radically different. We Europeans are very hot on it, whereas our American friends are – how shall I put it? – more relaxed.

Given that personal data constitutes the fuel on which internet companies such as Google and Facebook run, this meant that their exponential growth in the US market was greatly facilitated by that country’s tolerant data-protection laws. Once these companies embarked on global expansion, however, things got stickier. It was clear that the exploitation of personal data that is the core business of these outfits would be more difficult in Europe, especially given that their cloud-computing architectures involved constantly shuttling their users’ data between server farms in different parts of the world. Since Europe is a big market and millions of its citizens wished to use Facebook et al, the European commission obligingly came up with the “safe harbour” idea, which allowed companies complying with its seven principles to process the personal data of European citizens. The circle having been thus neatly squared, Facebook and friends continued merrily on their progress towards world domination. But then in the summer of 2013, Edward Snowden broke cover and revealed what really goes on in the mysterious world of cloud computing. At which point, an Austrian Facebook user, one Maximilian Schrems, realising that some or all of the data he had entrusted to Facebook was being transferred from its Irish subsidiary to servers in the United States, lodged a complaint with the Irish data protection commissioner. Schrems argued that, in the light of the Snowden revelations, the law and practice of the United States did not offer sufficient protection against surveillance of the data transferred to that country by the government.

The Irish data commissioner rejected the complaint on the grounds that the European commission’s safe harbour decision meant that the US ensured an adequate level of protection of Schrems’s personal data. Schrems disagreed, the case went to the Irish high court and thence to the European court of justice. On Tuesday, the court decided that the safe harbour agreement was invalid. At which point the balloon went up. “This is,” writes Professor Lorna Woods, an expert on these matters, “a judgment with very far-reaching implications, not just for governments but for companies the business model of which is based on data flows. It reiterates the significance of data protection as a human right and underlines that protection must be at a high level.”

What does it look like when a society loses its sense of privacy? <div><a href="http://pubads.g.doubleclick.net/gampad/jump?iu=%2F4624%2FTheAtlanticOnline%2Fchannel_technology&t=src%3Dblog%26by%3Drobinson-meyer%26title%3Damerican-surveillance-now-threatens-american-business%26pos%3Din-article&sz=300x250&c=285899172&tile=1" title=""><img style="border:none;" src="http://pubads.g.doubleclick.net/gampad/ad?iu=%2F4624%2FTheAtlanticOnline%2Fchannel_technology&t=src%3Dblog%26by%3Drobinson-meyer%26title%3Damerican-surveillance-now-threatens-american-business%26pos%3Din-article&sz=300x250&c=285899172&tile=1" alt="" /></a></div>In the almost 18 months since the Snowden files first received coverage, writers and critics have had to guess at the answer. Does a certain trend, consumer complaint, or popular product epitomize some larger shift? Is trust in tech companies eroding—or is a subset just especially vocal about it? Polling would make those answers clear, but polling so far has been… confused. A new study, conducted by the Pew Internet Project last January and released last week, helps make the average American’s view of his or her privacy a little clearer. And their confidence in their own privacy is ... low. The study's findings—and the statistics it reports—stagger. Vast majorities of Americans are uncomfortable with how the government uses their data, how private companies use and distribute their data, and what the government does to regulate those companies. No summary can equal a recounting of the findings. Americans are displeased with government surveillance en masse:   

A new study finds that a vast majority of Americans trust neither the government nor tech companies with their personal data.

According to the study, 70 percent of Americans are “at least somewhat concerned” with the government secretly obtaining information they post to social networking sites. Eighty percent of respondents agreed that “Americans should be concerned” with government surveillance of telephones and the web. They are also uncomfortable with how private corporations use their data: Ninety-one percent of Americans believe that “consumers have lost control over how personal information is collected and used by companies,” according to the study. Eighty percent of Americans who use social networks “say they are concerned about third parties like advertisers or businesses accessing the data they share on these sites.” And even though they’re squeamish about the government’s use of data, they want it to regulate tech companies and data brokers more strictly: 64 percent wanted the government to do more to regulate private data collection. Since June 2013, American politicians and corporate leaders have fretted over how much the leaks would cost U.S. businesses abroad.

Man, at some point Congress is going to have to declare the FBI legally contemptuous and throw them in jail. They continue to refuse to cooperate with DOJ’s Inspector General, as they have been for basically 5 years. But in Michael Horowitz’ latest complaint to Congress, he adds a new spin: FBI is not only obstructing his investigation of the FBI’s management impaired surveillance, now FBI is obstructing his investigation of DEA’s management impaired surveillance. I first reported on DOJ IG’s investigation into DEA’s dragnet databases last April. At that point, the only dragnet we knew about was Hemisphere, which DEA uses to obtain years of phone records as well as location data and other details, before it them parallel constructs that data out of a defendant’s reach.

But since then, we’ve learned of what the government claims to be another database — that used to identify Shantia Hassanshahi in an Iranian sanctions case. After some delay, the government revealed that this was another dragnet, including just international calls. It claims that this database was suspended in September 2013 (around the time Hemisphere became public) and that it is no longer obtaining bulk records for it. According to the latest installment of Michael Horowitz’ complaints about FBI obstruction, he tried to obtain records on the DEA databases on November 20, 2014 (of note, during the period when the government was still refusing to tell even Judge Rudolph Contreras what the database implicating Hassanshahi was). FBI slow-walked production, but promised to provide everything to Horowitz by February 13, 2015. FBI has decided it has to keep reviewing the emails in question to see if there is grand jury, Title III electronic surveillance, and Fair Credit Reporting Act materials, which are the same categories of stuff FBI has refused in the past. So Horowitz is pointing to the language tied to DOJ’s appropriations for FY 2015 which (basically) defunded FBI obstruction. Only FBI continues to obstruct.

There’s one more question about this. As noted, this investigation is supposed to be about DEA’s databases. We’ve already seen that FBI uses Hemisphere (when I asked FBI for comment in advance of this February 4, 2014 article on FBI obstinance, Hemisphere was the one thing they refused all comment on). And obviously, FBI access another DEA database to go after Hassanshahi. So that may be the only reason why Horowitz needs the FBI’s cooperation to investigate the DEA’s dragnets. Plus, assuming FBI is parallel constructing these dragnets just like DEA is, I can understand why they’d want to withhold grand jury information, which would make that clear. Still, I can’t help but wonder — as I have in the past — whether these dragnets are all connected, a constantly moving shell game. That might explain why FBI is so intent on obstructing Horowitz again.

The licensing battle between Apple Inc. and Ericsson AB is escalating.Ericsson, a pioneer in mobile phones that transformed itself into the world's largest maker of wireless networks, said Friday it's filing seven new lawsuits in a U.S. court and is asking the U.S. International Trade Commission to block Apple products from the U.S. market.Together, the complaints accuse Apple of infringing as many as 41 patents for some of the fundamental ways mobile devices communicate and for related technology such as user interfaces, battery saving and the operating system.

Apple had been paying royalties to Stockholm-based Ericsson before a license expired in mid-January. When talks over renewal failed, the companies sued each other, seeking court rulings on whether Ericsson's royalty demands on fundamental technology were fair and reasonable.

The new complaints being filed by Ericsson at the International Trade Commission in Washington take the dispute to another level and are designed to put pressure on Apple. The trade commission, whose job is to protect U.S. markets from unfair trade practices, moves more swiftly than district courts and has the power to block products from crossing the border.Apple's iPhone, iPad and other devices are made in Asia.

Facebook will pay a record $5bn (£4bn) penalty in the US for “deceiving” users about their ability to keep personal information private, after a year-long investigation into the Cambridge Analytica data breach. The Federal Trade Commission (FTC), the US consumer regulator, also announced a lawsuit against Cambridge Analytica and proposed settlements with the data analysis firm’s former chief executive Alexander Nix and its app developer Aleksandr Kogan. The $5bn fine for Facebook dwarfs the previous record for the largest fine handed down by the FTC for violation of consumers’ privacy, which was a $275m penalty for consumer credit agency Equifax.