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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.”

Microsoft's new plan to keep the US government's hands off its customers' data: Germany will be a safe harbor in the digital privacy storm. Microsoft on Wednesday announced that beginning in the second half of 2016, it will give foreign customers the option of keeping data in new European facilities that, at least in theory, should shield customers from US government surveillance. It will cost more, according to the Financial Times, though pricing details weren't forthcoming. Microsoft Cloud - including Azure, Office 365 and Dynamics CRM Online - will be hosted from new datacenters in the German regions of Magdeburg and Frankfurt am Main. Access to data will be controlled by what the company called a German data trustee: T-Systems, a subsidiary of the independent German company Deutsche Telekom. Without the permission of Deutsche Telekom or customers, Microsoft won't be able to get its hands on the data. If it does get permission, the trustee will still control and oversee Microsoft's access.

Microsoft CEO Satya Nadella dropped the word "trust" into the company's statement: Microsoft’s mission is to empower every person and every individual on the planet to achieve more. Our new datacenter regions in Germany, operated in partnership with Deutsche Telekom, will not only spur local innovation and growth, but offer customers choice and trust in how their data is handled and where it is stored.

On Tuesday, at the Future Decoded conference in London, Nadella also announced that Microsoft would, for the first time, be opening two UK datacenters next year. The company's also expanding its existing operations in Ireland and the Netherlands. Officially, none of this has anything to do with the long-drawn-out squabbling over the transatlantic Safe Harbor agreement, which the EU's highest court struck down last month, calling the agreement "invalid" because it didn't protect data from US surveillance. No, Nadella said, the new datacenters and expansions are all about giving local businesses and organizations "transformative technology they need to seize new global growth." But as Diginomica reports, Microsoft EVP of Cloud and Enterprise Scott Guthrie followed up his boss’s comments by saying that yes, the driver behind the new datacenters is to let customers keep data close: We can guarantee customers that their data will always stay in the UK. Being able to very concretely tell that story is something that I think will accelerate cloud adoption further in the UK.

As fast as it can, Google is sealing up cracks in its systems that Edward J. Snowden revealed the N.S.A. had brilliantly exploited. It is encrypting more data as it moves among its servers and helping customers encode their own emails. Facebook, Microsoft and Yahoo are taking similar steps.

After years of cooperating with the government, the immediate goal now is to thwart Washington — as well as Beijing and Moscow. The strategy is also intended to preserve business overseas in places like Brazil and Germany that have threatened to entrust data only to local providers. Google, for example, is laying its own fiber optic cable under the world’s oceans, a project that began as an effort to cut costs and extend its influence, but now has an added purpose: to assure that the company will have more control over the movement of its customer data.

A year after Mr. Snowden’s revelations, the era of quiet cooperation is over. Telecommunications companies say they are denying requests to volunteer data not covered by existing law. A.T.&T., Verizon and others say that compared with a year ago, they are far more reluctant to cooperate with the United States government in “gray areas” where there is no explicit requirement for a legal warrant.

India is the world’s largest democracy and is home to 13.5 percent of the world’s internet users. So the Indian Supreme Court’s August ruling that privacy is a fundamental, constitutional right for all of the country’s 1.32 billion citizens was momentous. But now, close to three months later, it’s still unclear exactly how the decision will be implemented. Will it change everything for internet users? Or will the status quo remain? The most immediate consequence of the ruling is that tech companies such as Facebook, Twitter, Google, and Alibaba will be required to rein in their collection, utilization, and sharing of Indian user data. But the changes could go well beyond technology. If implemented properly, the decision could affect national politics, business, free speech, and society. It could encourage the country to continue to make large strides toward increased corporate and governmental transparency, stronger consumer confidence, and the establishment and growth of the Indian “individual” as opposed to the Indian collective identity. But that’s a pretty big if. Advertisement The privacy debate in India was in many ways sparked by a controversy that has shaken up the landscape of national politics for several months. It began in 2016 as a debate around a social security program that requires participating citizens to obtain biometric, or Aadhaar, cards. Each card has a unique 12-digit number and records an individual’s fingerprints and irises in order to confirm his or her identity. The program was devised to increase the ease with which citizens could receive social benefits and avoid instances of fraud. Over time, Aadhaar cards have become mandatory for integral tasks such as opening bank accounts, buying and selling property, and filing tax returns, much to the chagrin of citizens who are uncomfortable about handing over their personal data. Before the ruling, India had weak privacy protections in place, enabling unchecked data collection on citizens by private companies and the government. Over the past year, a number of large-scale data leaks and breaches that have impacted major Indian corporations, as well as the Aadhaar program itself, have prompted users to start asking questions about the security and uses of their personal data.

n order to bolster the ruling the government will also be introducing a set of data protection laws that are to be developed by a committee led by retired Supreme Court judge B.N. Srikrishna. The committee will study the data protection landscape, develop a draft Data Protection Bill, and identify how, and whether, the Aadhaar Act should be amended based on the privacy ruling.

Should the data protection laws be implemented in an enforceable manner, the ruling will significantly impact the business landscape in India. Since the election of Prime Minister Narendra Modi in May 2014, the government has made fostering and expanding the technology and startup sector a top priority. The startup scene has grown, giving rise to several promising e-commerce companies, but in 2014, only 12 percent of India’s internet users were online consumers. If the new data protection laws are truly impactful, companies will have to accept responsibility for collecting, utilizing, and protecting user data safely and fairly. Users would also have a stronger form of redress when their newly recognized rights are violated, which could transform how they engage with technology. This has the potential to not only increase consumer confidence but revitalize the Indian business sector, as it makes it more amenable and friendly to outside investors, users, and collaborators.

HERE WAS A SIMPLE AIM at the heart of the top-secret program: Record the website browsing habits of “every visible user on the Internet.” Before long, billions of digital records about ordinary people’s online activities were being stored every day. Among them were details cataloging visits to porn, social media and news websites, search engines, chat forums, and blogs. The mass surveillance operation — code-named KARMA POLICE — was launched by British spies about seven years ago without any public debate or scrutiny. It was just one part of a giant global Internet spying apparatus built by the United Kingdom’s electronic eavesdropping agency, Government Communications Headquarters, or GCHQ. The revelations about the scope of the British agency’s surveillance are contained in documents obtained by The Intercept from National Security Agency whistleblower Edward Snowden. Previous reports based on the leaked files have exposed how GCHQ taps into Internet cables to monitor communications on a vast scale, but many details about what happens to the data after it has been vacuumed up have remained unclear.

Amid a renewed push from the U.K. government for more surveillance powers, more than two dozen documents being disclosed today by The Intercept reveal for the first time several major strands of GCHQ’s existing electronic eavesdropping capabilities.

The surveillance is underpinned by an opaque legal regime that has authorized GCHQ to sift through huge archives of metadata about the private phone calls, emails and Internet browsing logs of Brits, Americans, and any other citizens — all without a court order or judicial warrant

Meta Platforms Inc (META.O) reached a $37.5 million settlement of a lawsuit accusing the parent of Facebook of violating users' privacy by tracking their movements through their smartphones without permission.A preliminary settlement of the proposed class action was filed on Monday in San Francisco federal court, and requires a judge's approval.It resolved claims that Facebook violated California law and its own privacy policy by gathering data from users who turned off Location Services on their mobile devices.Register now for FREE unlimited access to Reuters.comRegisterAdvertisement · Scroll to continueThe users said that while they did not want to share their locations with Facebook, the company nevertheless inferred where they were from their IP (internet protocol) addresses, and used that information to send them targeted advertising.Monday's settlement covers people in the United States who used Facebook after Jan. 30, 2015.Meta denied wrongdoing in agreeing to settle. It did not immediately respond on Tuesday to requests for comment.Advertisement · Scroll to continueIn June 2018, Facebook and Chief Executive Mark Zuckerberg told the U.S. Congress that the Menlo Park, California-based company uses location data "to help advertisers reach people in particular areas."As an example, it said users who dined at particular restaurants might receive posts from friends who also ate there, or ads from businesses that wanted to provide services nearby.The lawsuit began in November 2018. Lawyers for the plaintiffs may seek up to 30% of Monday's settlement for legal fees, settlement papers show.Advertisement · Scroll to continueThe cases is Lundy et al v Facebook Inc, U.S. District Court, Northern District of California, No. 18-06793.

WASHINGTON (AP) -- The Obama administration has been quietly advising local police not to disclose details about surveillance technology they are using to sweep up basic cellphone data from entire neighborhoods, The Associated Press has learned. Citing security reasons, the U.S. has intervened in routine state public records cases and criminal trials regarding use of the technology. This has resulted in police departments withholding materials or heavily censoring documents in rare instances when they disclose any about the purchase and use of such powerful surveillance equipment. Federal involvement in local open records proceedings is unusual. It comes at a time when President Barack Obama has said he welcomes a debate on government surveillance and called for more transparency about spying in the wake of disclosures about classified federal surveillance programs.

One well-known type of this surveillance equipment is known as a Stingray, an innovative way for law enforcement to track cellphones used by suspects and gather evidence. The equipment tricks cellphones into identifying some of their owners' account information, like a unique subscriber number, and transmitting data to police as if it were a phone company's tower. That allows police to obtain cellphone information without having to ask for help from service providers, such as Verizon or AT&T, and can locate a phone without the user even making a call or sending a text message. But without more details about how the technology works and under what circumstances it's used, it's unclear whether the technology might violate a person's constitutional rights or whether it's a good investment of taxpayer dollars. Interviews, court records and public-records requests show the Obama administration is asking agencies to withhold common information about the equipment, such as how the technology is used and how to turn it on. That pushback has come in the form of FBI affidavits and consultation in local criminal cases.

"These extreme secrecy efforts are in relation to very controversial, local government surveillance practices using highly invasive technology," said Nathan Freed Wessler, a staff attorney with the American Civil Liberties Union, which has fought for the release of these types of records. "If public participation means anything, people should have the facts about what the government is doing to them." Harris Corp., a key manufacturer of this equipment, built a secrecy element into its authorization agreement with the Federal Communications Commission in 2011. That authorization has an unusual requirement: that local law enforcement "coordinate with the FBI the acquisition and use of the equipment." Companies like Harris need FCC authorization in order to sell wireless equipment that could interfere with radio frequencies. A spokesman from Harris Corp. said the company will not discuss its products for the Defense Department and law enforcement agencies, although public filings showed government sales of communications systems such as the Stingray accounted for nearly one-third of its $5 billion in revenue. "As a government contractor, our solutions are regulated and their use is restricted," spokesman Jim Burke said.

Less than a week after the attacks in Paris — while the public and policymakers were still reeling, and the investigation had barely gotten off the ground — Cy Vance, Manhattan’s District Attorney, released a policy paper calling for legislation requiring companies to provide the government with backdoor access to their smartphones and other mobile devices. This is the first concrete proposal of this type since September 2014, when FBI Director James Comey reignited the “Crypto Wars” in response to Apple’s and Google’s decisions to use default encryption on their smartphones. Though Comey seized on Apple’s and Google’s decisions to encrypt their devices by default, his concerns are primarily related to end-to-end encryption, which protects communications that are in transit. Vance’s proposal, on the other hand, is only concerned with device encryption, which protects data stored on phones. It is still unclear whether encryption played any role in the Paris attacks, though we do know that the attackers were using unencrypted SMS text messages on the night of the attack, and that some of them were even known to intelligence agencies and had previously been under surveillance. But regardless of whether encryption was used at some point during the planning of the attacks, as I lay out below, prohibiting companies from selling encrypted devices would not prevent criminals or terrorists from being able to access unbreakable encryption. Vance’s primary complaint is that Apple’s and Google’s decisions to provide their customers with more secure devices through encryption interferes with criminal investigations. He claims encryption prevents law enforcement from accessing stored data like iMessages, photos and videos, Internet search histories, and third party app data. He makes several arguments to justify his proposal to build backdoors into encrypted smartphones, but none of them hold water.

Before addressing the major privacy, security, and implementation concerns that his proposal raises, it is worth noting that while an increase in use of fully encrypted devices could interfere with some law enforcement investigations, it will help prevent far more crimes — especially smartphone theft, and the consequent potential for identity theft. According to Consumer Reports, in 2014 there were more than two million victims of smartphone theft, and nearly two-thirds of all smartphone users either took no steps to secure their phones or their data or failed to implement passcode access for their phones. Default encryption could reduce instances of theft because perpetrators would no longer be able to break into the phone to steal the data.

Vance argues that creating a weakness in encryption to allow law enforcement to access data stored on devices does not raise serious concerns for security and privacy, since in order to exploit the vulnerability one would need access to the actual device. He considers this an acceptable risk, claiming it would not be the same as creating a widespread vulnerability in encryption protecting communications in transit (like emails), and that it would be cheap and easy for companies to implement. But Vance seems to be underestimating the risks involved with his plan. It is increasingly important that smartphones and other devices are protected by the strongest encryption possible. Our devices and the apps on them contain astonishing amounts of personal information, so much that an unprecedented level of harm could be caused if a smartphone or device with an exploitable vulnerability is stolen, not least in the forms of identity fraud and credit card theft. We bank on our phones, and have access to credit card payments with services like Apple Pay. Our contact lists are stored on our phones, including phone numbers, emails, social media accounts, and addresses. Passwords are often stored on people’s phones. And phones and apps are often full of personal details about their lives, from food diaries to logs of favorite places to personal photographs. Symantec conducted a study, where the company spread 50 “lost” phones in public to see what people who picked up the phones would do with them. The company found that 95 percent of those people tried to access the phone, and while nearly 90 percent tried to access private information stored on the phone or in other private accounts such as banking services and email, only 50 percent attempted contacting the owner.

Theresa May summoned the internet giant Yahoo for an urgent meeting on Thursday to raise security concerns after the company announced plans to move to Dublin where it is beyond the reach of Britain's surveillance laws.By making the Irish capital rather than London the centre of its European, Middle East and Africa operations, Yahoo cannot be forced to hand over information demanded by Scotland Yard and the intelligence agencies through "warrants" issued under Britain's controversial anti-terror laws.Yahoo has had longstanding concerns about securing the privacy of its hundreds of millions of users – anxieties that have been heightened in recent months by revelations from the whistleblower Edward Snowden.

In February, the Guardian revealed that Britain's eavesdropping centre GCHQ intercepted and stored the images of millions of people using Yahoo webcams, regardless of whether they were suspects. The data included a large quantity of sexually explicit pictures.The company said this represented "a whole new level of violation of our users' privacy".The home secretary called the meeting with Yahoo to express the fears of Britain's counter-terrorism investigators. They can force companies based in the UK to provide information on their servers by seeking warrants under the Regulation of Investigatory Powers Act, 2000 (Ripa).

the Guardian has been told that Charles Farr, the head of the office for security and counter-terrorism (OSCT) within the Home Office, has been pressing May to talk to Yahoo because of anxiety in Scotland Yard's counter-terrorism command about the effect the move to Dublin could have on their inquiries.Farr, a former senior intelligence officer, coordinates the work of Scotland Yard and the security service MI5, to prevent terrorist attacks in the UK."There are concerns in the Home Office about how Ripa will apply to Yahoo once it has moved its headquarters to Dublin," said a Whitehall source. "The home secretary asked to see officials from Yahoo because in Dublin they don't have equivalent laws to Ripa. This could particularly affect investigations led by Scotland Yard and the national crime agency. They regard this as a very serious issue."

Pending before federal magistrate judge James Orenstein is the government’s request for an order obligating Apple, Inc. to unlock an iPhone and thereby assist prosecutors in decrypting data the government has seized and is authorized to search pursuant to a warrant. In an order questioning the government’s purported legal basis for this request, the All Writs Act of 1789 (AWA), Judge Orenstein asked Apple for a brief informing the court whether the request would be technically feasible and/or burdensome. After Apple filed, the court asked it to file a brief discussing whether the government had legal grounds under the AWA to compel Apple’s assistance. Apple filed that brief and the government filed a reply brief last week in the lead-up to a hearing this morning.

We’ve long been concerned about whether end users own software under the law. Software owners have rights of adaptation and first sale enshrined in copyright law. But software publishers have claimed that end users are merely licensees, and our rights under copyright law can be waived by mass-market end user license agreements, or EULAs. Over the years, Granick has argued that users should retain their rights even if mass-market licenses purport to take them away. The government’s brief takes advantage of Apple’s EULA for iOS to argue that Apple, the software publisher, is responsible for iPhones around the world. Apple’s EULA states that when you buy an iPhone, you’re not buying the iOS software it runs, you’re just licensing it from Apple. The government argues that having designed a passcode feature into a copy of software which it owns and licenses rather than sells, Apple can be compelled under the All Writs Act to bypass the passcode on a defendant’s iPhone pursuant to a search warrant and thereby access the software owned by Apple. Apple’s supplemental brief argues that in defining its users’ contractual rights vis-à-vis Apple with regard to Apple’s intellectual property, Apple in no way waived its own due process rights vis-à-vis the government with regard to users’ devices. Apple’s brief compares this argument to forcing a car manufacturer to “provide law enforcement with access to the vehicle or to alter its functionality at the government’s request” merely because the car contains licensed software. 

This is an interesting twist on the decades-long EULA versus users’ rights fight. As far as we know, this is the first time that the government has piggybacked on EULAs to try to compel software companies to provide assistance to law enforcement. Under the government’s interpretation of the All Writs Act, anyone who makes software could be dragooned into assisting the government in investigating users of the software. If the court adopts this view, it would give investigators immense power. The quotidian aspects of our lives increasingly involve software (from our cars to our TVs to our health to our home appliances), and most of that software is arguably licensed, not bought. Conscripting software makers to collect information on us would afford the government access to the most intimate information about us, on the strength of some words in some license agreements that people never read. (And no wonder: The iPhone’s EULA came to over 300 pages when the government filed it as an exhibit to its brief.)

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.

National plaintiffs’ law firm Keller Lenkner LLC and global business litigation firm Quinn Emanuel Urquhart & Sullivan, LLP filed a class-action lawsuit against Facebook, Inc. alleging violations of federal antitrust laws and California law on behalf of Facebook users.ADVERTISEMENTFiled in the U.S. District Court for the Northern District of California, the complaint alleges that Facebook obtained and maintained a social network and social media monopoly by consistently deceiving consumers about the data-privacy protections it provided to users, and by exploiting the data it extracted from users to target smaller startup companies for destruction or acquisition.The lawsuit seeks to put an end to Facebook’s misrepresentations about its privacy practices and its anticompetitive acquisition conduct; to require Facebook to engage in third-party auditing of its conduct; and to require Facebook to divest assets, such as Instagram and WhatsApp, that entrench its market power.

According to the complaint, which was filed on behalf of named plaintiffs Sarah Grabert and Maximilian Klein, Facebook did not achieve its Big Tech monopoly through innovation or vigorous competition. Despite its public pledge to protect user privacy, Facebook lied to users and violated their trust in a scheme to build a technology empire. Facebook also acquired technology from smaller firms that it used to track consumer activity across the internet so that it could identify and target competitors.ADVERTISEMENTThe complaint further alleges that in a strategic, intentional ploy for market domination, Facebook engaged in its scheme to destroy all competition without a care for the ultimate harm it would inflict on consumers. By the time Facebook’s deception about its lackluster privacy protections became public knowledge, Facebook had already achieved dominance, making it difficult for any firm to challenge its social media and social network monopoly.

The complaint notes that Facebook derives enormous economic value from the data it harvests from consumers on its platform. In fact, Facebook itself has described how it generates massive earnings per user from the data it collects. The complaint details how Facebook’s destruction of competition has caused consumers substantial economic injury. Consumers who sign up for Facebook agree to give up their valuable data and attention in exchange for using Facebook’s platform. That information and attention is then sold in measurable units to advertisers in exchange for money. The complaint alleges that consumers were harmed by Facebook’s anticompetitive conduct, as they did not receive the benefit of their bargain with Facebook.The lawsuit includes claims for violations of federal antitrust laws and California common law. It also seeks an order enjoining Facebook from continuing to engage in the alleged wrongful acts, requiring Facebook to engage third-party auditors to evaluate and correct problems with Facebook’s conduct, and requiring Facebook to divest assets like Instagram and WhatsApp. The lawsuit also seeks monetary damages, restitution and/or disgorgement of Facebook’s wrongful gains, attorneys’ fees, and costs.

When the Senate Intelligence Committee passed the Cybersecurity Information Sharing Act by a vote of 14 to 1, committee chairman Senator Richard Burr argued that it successfully balanced security and privacy. Fifteen new amendments to the bill, he said, were designed to protect internet users’ personal information while enabling new ways for companies and federal agencies to coordinate responses to cyberattacks. But critics within the security and privacy communities still have two fundamental problems with the legislation: First, they say, the proposed cybersecurity act won’t actually boost security. And second, the “information sharing” it describes sounds more than ever like a backchannel for surveillance.

On Tuesday the bill’s authors released the full, updated text of the CISA legislation passed last week, and critics say the changes have done little to assuage their fears about wanton sharing of Americans’ private data. In fact, legal analysts say the changes actually widen the backdoor leading from private firms to intelligence agencies. “It’s a complete failure to strengthen the privacy protections of the bill,” says Robyn Greene, a policy lawyer for the Open Technology Institute, which joined a coalition of dozens of non-profits and cybersecurity experts criticizing the bill in an open letter earlier this month. “None of the [privacy-related] points we raised in our coalition letter to the committee was effectively addressed.” The central concern of that letter was how the same data sharing meant to bolster cybersecurity for companies and the government opens massive surveillance loopholes. The bill, as worded, lets a private company share with the Department of Homeland Security any information construed as a cybersecurity threat “notwithstanding any other provision of law.” That means CISA trumps privacy laws like the Electronic Communication Privacy Act of 1986 and the Privacy Act of 1974, which restrict eavesdropping and sharing of users’ communications. And once the DHS obtains the information, it would automatically be shared with the NSA, the Department of Defense (including Cyber Command), and the Office of the Director of National Intelligence.

In a statement posted to his website yesterday, Senator Burr wrote that “Information sharing is purely voluntary and companies can only share cyber-threat information and the government may only use shared data for cybersecurity purposes.” But in fact, the bill’s data sharing isn’t limited to cybersecurity “threat indicators”—warnings of incoming hacker attacks, which is the central data CISA is meant to disseminate among companies and three-letter agencies. OTI’s Greene says it also gives companies a mandate to share with the government any data related to imminent terrorist attacks, weapons of mass destruction, or even other information related to violent crimes like robbery and carjacking. 

Google said Thursday it will by default encrypt data warehoused in its Cloud Storage service. The server-side encryption is now active for all new data written to Cloud Storage, and older data will be encrypted in the coming months, wrote Dave Barth, a Google product manager, in a blog post.

The data and metadata around an object stored in Cloud Storage is encrypted with a unique key using 128-bit Advanced Encryption Standard algorithm, and the "per-object key itself is encrypted with a unique key associated with the object owner," Barth wrote. "These keys are additionally encrypted by one of a regularly rotated set of master keys," he wrote. "Of course, if you prefer to manage your own keys then you can still encrypt data yourself prior to writing it to Cloud Storage."

A Google spokeswoman said via email the company does not provide encryption keys to any government and provides user data only in accordance with the law.

A company by the name of LocationSmart isn't having a particularly good month. The company recently received all the wrong kind of attention when it was caught up in a privacy scandal involving the nation's wireless carriers and our biggest prison phone monopoly. Like countless other companies and governments, LocationSmart buys your wireless location data from cell carriers. It then sells access to that data via a portal that can provide real-time access to a user's location via a tailored graphical interface using just the target's phone number.

Theoretically, this functionality is sold under the pretense that the tool can be used to track things like drug offenders who have skipped out of rehab. And ideally, all the companies involved were supposed to ensure that data lookup requests were accompanied by something vaguely resembling official documentation. But a recent deep dive by the New York Times noted how the system was open to routine abuse by law enforcement, after a Missouri Sherrif used the system to routinely spy on Judges and fellow law enforcement officers without much legitimate justification (or pesky warrants): "The service can find the whereabouts of almost any cellphone in the country within seconds. It does this by going through a system typically used by marketers and other companies to get location data from major cellphone carriers, including AT&T, Sprint, T-Mobile and Verizon, documents show. Between 2014 and 2017, the sheriff, Cory Hutcheson, used the service at least 11 times, prosecutors said. His alleged targets included a judge and members of the State Highway Patrol. Mr. Hutcheson, who was dismissed last year in an unrelated matter, has pleaded not guilty in the surveillance cases." It was yet another example of the way nonexistent to lax consumer privacy laws in the States (especially for wireless carriers) routinely come back to bite us. But then things got worse.

Driven by curiousity in the wake of the Times report, a PhD student at Carnegie Mellon University by the name of Robert Xiao discovered that the "try before you buy" system used by LocationSmart to advertise the cell location tracking system contained a bug, A bug so bad that it exposed the data of roughly 200 million wireless subscribers across the United States and Canada (read: nearly everybody). As we see all too often, the researcher highlighted how the security standards in place to safeguard this data were virtually nonexistent: "Due to a very elementary bug in the website, you can just skip that consent part and go straight to the location," said Robert Xiao, a PhD student at the Human-Computer Interaction Institute at Carnegie Mellon University, in a phone call. "The implication of this is that LocationSmart never required consent in the first place," he said. "There seems to be no security oversight here."

The U.S. Department of Homeland Security (DHS) is quietly building what will likely become the largest database of biometric and biographic data on citizens and foreigners in the United States. The agency’s new Homeland Advanced Recognition Technology (HART) database will include multiple forms of biometrics—from face recognition to DNA, data from questionable sources, and highly personal data on innocent people. It will be shared with federal agencies outside of DHS as well as state and local law enforcement and foreign governments. And yet, we still know very little about it.The records DHS plans to include in HART will chill and deter people from exercising their First Amendment protected rights to speak, assemble, and associate. Data like face recognition makes it possible to identify and track people in real time, including at lawful political protests and other gatherings. Other data DHS is planning to collect—including information about people’s “relationship patterns” and from officer “encounters” with the public—can be used to identify political affiliations, religious activities, and familial and friendly relationships. These data points are also frequently colored by conjecture and bias.

DHS currently collects a lot of data. Its legacy IDENT fingerprint database contains information on 220-million unique individuals and processes 350,000 fingerprint transactions every day. This is an exponential increase from 20 years ago when IDENT only contained information on 1.8-million people. Between IDENT and other DHS-managed databases, the agency manages over 10-billion biographic records and adds 10-15 million more each week.

DHS’s new HART database will allow the agency to vastly expand the types of records it can collect and store. HART will support at least seven types of biometric identifiers, including face and voice data, DNA, scars and tattoos, and a blanket category for “other modalities.” It will also include biographic information, like name, date of birth, physical descriptors, country of origin, and government ID numbers. And it will include data we know to by highly subjective, including information collected from officer “encounters” with the public and information about people’s “relationship patterns.”

Privacy Shield is the proposed new deal between the EU and the US that is supposed to safeguard all personal data on EU citizens held on computer systems in the US from being subject to mass surveillance by the US National Security Agency. The data can refer to any transaction — web purchases, cars or clothing — involving an EU citizen whose data is held on US servers. Privacy groups say Privacy Shield — which replaces the Safe Harbor agreement ruled unlawful in October 2015 — does not meet strict EU standard on the use of personal data. Monique Goyens, Director General of the European Consumer Organization (BEUC) told Sputnik: “We consider that the shield is cracked beyond repair and is unlikely to stand scrutiny by the European Court of Justice. A fundamental problem remains that the US side of the shield is made of clay, not iron.”

The agreement has been under negotiation for months ever since the because the European Court of Justice ruled in October 2015 that the previous EU-US data agreement — Safe Harbor — was invalid. The issue arises from the strict EU laws — enshrined in the Charter of Fundamental Rights of the European Union — to the privacy of their personal data.

The Safe Harbor agreement was a quasi-judicial understanding that the US undertook to agree that it would ensure that EU citizens’ data on US servers would be held and protected under the same restrictions as it would be under EU law and directives. The data covers a huge array of information — from Internet and communications usage, to sales transactions, import and exports.

All existing data sharing agreements between Europe and the US should be revoked, and US web site providers should prominently inform European citizens that their data may be subject to government surveillance, according to the recommendations of a briefing report for the European Parliament. The report was produced in response to revelations about the US National Security Agency (NSA) snooping on internet traffic, and aims to highlight the subsequent effect on European Union (EU) citizens' rights.

The report warns that EU data protection authorities have failed to understand the “structural shift of data sovereignty implied by cloud computing”, and the associated risks to the rights of EU citizens. It suggests “a full industrial policy for development of an autonomous European cloud computing capacity” should be set up to reduce exposure of EU data to NSA surveillance that is undertaken by the use of US legislation that forces US-based cloud providers to provide access to data they hold.

To put pressure on the US government, the report recommends that US websites should ask EU citizens for their consent before gathering data that could be used by the NSA. “Prominent notices should be displayed by every US web site offering services in the EU to inform consent to collect data from EU citizens. The users should be made aware that the data may be subject to surveillance by the US government for any purpose which furthers US foreign policy,” it said. “A consent requirement will raise EU citizen awareness and favour growth of services solely within EU jurisdiction. This will thus have economic impact on US business and increase pressure on the US government to reach a settlement.”

Moscow has warned Twitter that it must store Russian users' personal data in Russia, under a new law, the national communications watchdog told AFP on Wednesday. Legislation that came into force on September 1 requires both Russian and foreign social media sites, messenger services and search engines to store the data held on Russian users on servers located inside the country. The controversial law was adopted amid Internet users' growing concerns about the storage of their data, but also as Russia has moved to tighten security on social media and online news sites that are crucial outlets for the political opposition. Non-compliance could lead Russia's communications watchdog Roskomnadzor to block the sites and services. Roskomnadzor spokesman Vadim Ampelonsky confirmed to AFP that Russia had changed its initial position on US-based Twitter, which it had previously said did not fall under the law. Twitter must comply because it now asks users to supply their personal data, Ampelonsky said, confirming earlier comments by the head of Roskomnadzor Alexander Zharov to Russian media.

Vodafone, one of the world's largest mobile phone groups, has revealed the existence of secret wires that allow government agencies to listen to all conversations on its networks, saying they are widely used in some of the 29 countries in which it operates in Europe and beyond.The company has broken its silence on government surveillance in order to push back against the increasingly widespread use of phone and broadband networks to spy on citizens, and will publish its first Law Enforcement Disclosure Report on Friday. At 40,000 words, it is the most comprehensive survey yet of how governments monitor the conversations and whereabouts of their people.The company said wires had been connected directly to its network and those of other telecoms groups, allowing agencies to listen to or record live conversations and, in certain cases, track the whereabouts of a customer. Privacy campaigners said the revelations were a "nightmare scenario" that confirmed their worst fears on the extent of snooping.

Vodafone's group privacy officer, Stephen Deadman, said: "These pipes exist, the direct access model exists."We are making a call to end direct access as a means of government agencies obtaining people's communication data. Without an official warrant, there is no external visibility. If we receive a demand we can push back against the agency. The fact that a government has to issue a piece of paper is an important constraint on how powers are used."Vodafone is calling for all direct-access pipes to be disconnected, and for the laws that make them legal to be amended. It says governments should "discourage agencies and authorities from seeking direct access to an operator's communications infrastructure without a lawful mandate".

In America, Verizon and AT&T have published data, but only on their domestic operations. Deutsche Telekom in Germany and Telstra in Australia have also broken ground at home. Vodafone is the first to produce a global survey.