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Paul Merrell

Is Apple an Illegal Monopoly? | OneZero - 0 views

  • That’s not a bug. It’s a function of Apple policy. With some exceptions, the company doesn’t let users pay app makers directly for their apps or digital services. They can only pay Apple, which takes a 30% cut of all revenue and then passes 70% to the developer. (For subscription services, which account for the majority of App Store revenues, that 30% cut drops to 15% after the first year.) To tighten its grip, Apple prohibits the affected apps from even telling users how they can pay their creators directly.In 2018, unwilling to continue paying the “Apple tax,” Netflix followed Spotify and Amazon’s Kindle books app in pulling in-app purchases from its iOS app. Users must now sign up elsewhere, such as on the company’s website, in order for the app to become usable. Of course, these brands are big enough to expect that many users will seek them out anyway.
  • Smaller app developers, meanwhile, have little choice but to play by Apple’s rules. That’s true even when they’re competing with Apple’s own apps, which pay no such fees and often enjoy deeper access to users’ devices and information.Now, a handful of developers are speaking out about it — and government regulators are beginning to listen. David Heinemeier Hansson, the co-founder of the project management software company Basecamp, told members of the U.S. House antitrust subcommittee in January that navigating the App Store’s fees, rules, and review processes can feel like a “Kafka-esque nightmare.”One of the world’s most beloved companies, Apple has long enjoyed a reputation for user-friendly products, and it has cultivated an image as a high-minded protector of users’ privacy. The App Store, launched in 2008, stands as one of its most underrated inventions; it has powered the success of the iPhone—perhaps the most profitable product in human history. The concept was that Apple and developers could share in one another’s success with the iPhone user as the ultimate beneficiary.
  • But critics say that gauzy success tale belies the reality of a company that now wields its enormous market power to bully, extort, and sometimes even destroy rivals and business partners alike. The iOS App Store, in their telling, is a case study in anti-competitive corporate behavior. And they’re fighting to change that — by breaking its choke hold on the Apple ecosystem.
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  • Whether Apple customers have a real choice in mobile platforms, once they’ve bought into the company’s ecosystem, is another question. In theory, they could trade in their pricey hardware for devices that run Android, which offers equivalents of many iOS features and apps. In reality, Apple has built its empire on customer lock-in: making its own gadgets and services work seamlessly with one another, but not with those of rival companies. Tasks as simple as texting your friends can become a migraine-inducing mess when you switch from iOS to Android. The more Apple products you buy, the more onerous it becomes to abandon ship.
  • The case against Apple goes beyond iOS. At a time when Apple is trying to reinvent itself as a services company to offset plateauing hardware sales — pushing subscriptions to Apple Music, Apple TV+, Apple News+, and Apple Arcade, as well as its own credit card — the antitrust concerns are growing more urgent. Once a theoretical debate, the question of whether its App Store constitutes an illegal monopoly is now being actively litigated on multiple fronts.
  • The company faces an antitrust lawsuit from consumers; a separate antitrust lawsuit from developers; a formal antitrust complaint from Spotify in the European Union; investigations by the Federal Trade Commission and the Department of Justice; and an inquiry by the antitrust subcommittee of the U.S House of Representatives. At stake are not only Apple’s profits, but the future of mobile software.Apple insists that it isn’t a monopoly, and that it strives to make the app store a fair and level playing field even as its own apps compete on that field. But in the face of unprecedented scrutiny, there are signs that the famously stubborn company may be feeling the pressure to prove it.
  • Tile is hardly alone in its grievances. Apple’s penchant for copying key features of third-party apps and integrating them into its operating system is so well-known among developers that it has a name: “Sherlocking.” It’s a reference to the time—in the early 2000s—when Apple kneecapped a popular third-party web-search interface for Mac OS X, called Watson. Apple built virtually all of Watson’s functionality into its own feature, called Sherlock.In a 2006 blog post, Watson’s developer, Karelia Software, recalled how Apple’s then-CEO Steve Jobs responded when they complained about the company’s 2002 power play. “Here’s how I see it,” Jobs said, according to Karelia founder Dan Wood’s loose paraphrase. “You know those handcars, the little machines that people stand on and pump to move along on the train tracks? That’s Karelia. Apple is the steam train that owns the tracks.”From an antitrust standpoint, the metaphor is almost too perfect. It was the monopoly power of railroads in the late 19th century — and their ability to make or break the businesses that used their tracks — that spurred the first U.S. antitrust Apples.There’s another Jobs quote that’s relevant here. Referencing Picasso’s famous saying, “Good artists copy, great artists steal,” Jobs said of Apple in 2006. “We have always been shameless about stealing great ideas.” Company executives later tried to finesse the quote’s semantics, but there’s no denying that much of iOS today is built on ideas that were not originally Apple’s.
Paul Merrell

American Surveillance Now Threatens American Business - The Atlantic - 0 views

  • 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.
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  • 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:   
  • “It’s clear the global community of Internet users doesn’t like to be caught up in the American surveillance dragnet,” Senator Ron Wyden said last month. At the same event, Google chairman Eric Schmidt agreed with him. “What occurred was a loss of trust between America and other countries,” he said, according to the Los Angeles Times. “It's making it very difficult for American firms to do business.” But never mind the world. Americans don’t trust American social networks. More than half of the poll’s respondents said that social networks were “not at all secure. Only 40 percent of Americans believe email or texting is at least “somewhat” secure. Indeed, Americans trusted most of all communication technologies where some protections has been enshrined into the law (though the report didn’t ask about snail mail). That is: Talking on the telephone, whether on a landline or cell phone, is the only kind of communication that a majority of adults believe to be “very secure” or “somewhat secure.”
  • (That may seem a bit incongruous, because making a telephone call is one area where you can be almost sure you are being surveilled: The government has requisitioned mass call records from phone companies since 2001. But Americans appear, when discussing security, to differentiate between the contents of the call and data about it.) Last month, Ramsey Homsany, the general counsel of Dropbox, said that one big thing could take down the California tech scene. “We have built this incredible economic engine in this region of the country,” said Homsany in the Los Angeles Times, “and [mistrust] is the one thing that starts to rot it from the inside out.” According to this poll, the mistrust has already begun corroding—and is already, in fact, well advanced. We’ve always assumed that the great hurt to American business will come globally—that citizens of other nations will stop using tech companies’s services. But the new Pew data shows that Americans suspect American businesses just as much. And while, unlike citizens of other nations, they may not have other places to turn, they may stop putting sensitive or delicate information online.
Paul Merrell

Race to Introduce Fascist Internet Regulations in Russia Continues - Now under the Banner of Child Protection - nsnbc international | nsnbc international - 0 views

  • Russian lawmaker Vitaly Milonov, on Monday, proposed a bill aimed to ban children under the age of 14 from social media. Although the bill is touted under the banner of child protection, it also aims to introduce the mandatory submission of passport data. In January Russia introduced semi-fascist regulations to severely curb the rights of bloggers and independent media.
  • Vitaly Milnov, generally known for being ultra-conservative, introduced the controversial bill on Monday. Touting the bill under the banner of wanting to protect children and limit their access to social media the bill has far deeper implications. Parents could very well self-regulate their children’s access to social media. The bill, however, implies that it would become mandatory for social media users to submit their passport data. Moreover, the bill also proposes that the use of pseudonyms will be banned. The proposed legislation also aims to introducing strict rules, requiring two-party consent before the publication of screenshots of online correspondence. The bill reads, among others: “Social networks create a special virtual world where a person spends significant part of their life, contacting other people and essentially doing everything that they would do in real world. This world can’t be left unregulated by law. Especially now, when growing number of users are falling victim to different types of fraud.” Even though Milonov is generally viewed as ultra-conservative, there are about 62 percent of Russians who according to polls support the ban of social networks for children while 39 percent supported using passport data to create an online account, a poll by the state-funded pollster VTsIOM revealed Monday.
  • Social media has come under intense scrutiny in Russia in recent months. Disturbingly, there are very few Russians who have received independent information about the not so overtly advertised implications of this scrutiny, of the proposed bill, and of plans to create a “Russian internet” to filter “unwanted foreign content. Russia also cracks down on independent bloggers and journalists. On January 1, 2016 the Russian Federation implemented amendments to laws that further censor the internet and potentially independent media. These laws are being sold under the guise of empowering internet users and the right to protect personal information. The amendments follow legislation from 2014 that infringed on the rights of bloggers.
Paul Merrell

The De-Americanization of Internet Freedom - Lawfare - 0 views

  • Why did the internet freedom agenda fail? Goldsmith’s essay tees up, but does not fully explore, a range of explanatory hypotheses. The most straightforward have to do with unrealistic expectations and unintended consequences. The idea that a minimally regulated internet would usher in an era of global peace, prosperity, and mutual understanding, Goldsmith tells us, was always a fantasy. As a project of democracy and human rights promotion, the internet freedom agenda was premised on a wildly overoptimistic view about the capacity of information flows, on their own, to empower oppressed groups and effect social change. Embracing this market-utopian view led the United States to underinvest in cybersecurity, social media oversight, and any number of other regulatory tools. In suggesting this interpretation of where U.S. policymakers and their civil society partners went wrong, Goldsmith’s essay complements recent critiques of the neoliberal strains in the broader human rights and transparency movements. Perhaps, however, the internet freedom agenda has faltered not because it was so naïve and unrealistic, but because it was so effective at achieving its realist goals. The seeds of this alternative account can be found in Goldsmith’s concession that the commercial non-regulation principle helped companies like regulation, Google, Facebook, and Amazon grab “huge market share globally.” The internet became an increasingly valuable cash cow for U.S. firms and an increasingly potent instrument of U.S. soft power over the past two decades; foreign governments, in due course, felt compelled to fight back. If the internet freedom agenda is understood as fundamentally a national economic project, rather than an international political or moral crusade, then we might say that its remarkable early success created the conditions for its eventual failure. Goldsmith’s essay also points to a third set of possible explanations for the collapse of the internet freedom agenda, involving its internal contradictions. Magaziner’s notion of a completely deregulated marketplace, if taken seriously, is incoherent. As Goldsmith and Tim Wu have discussed elsewhere, it takes quite a bit of regulation for any market, including markets related to the internet, to exist and to work. And indeed, even as Magaziner proposed “complete deregulation” of the internet, he simultaneously called for new legal protections against computer fraud and copyright infringement, which were soon followed by extensive U.S. efforts to penetrate foreign networks and to militarize cyberspace. Such internal dissonance was bound to invite charges of opportunism, and to render the American agenda unstable.
Paul Merrell

The FCC is about to kill the free Internet | PandoDaily - 0 views

  • The Federal Communications Commission is poised to ruin the free Internet on a technicality. The group is expected to introduce new net neutrality laws that would allow companies to pay for better access to consumers through deals similar to the one struck by Netflix and Comcast earlier this year. The argument is that those deals don’t technically fall under the net neutrality umbrella, so these new rules won’t apply to them even though they directly affect the Internet. At least the commission is being upfront about its disinterest in protecting the free Internet.
  • The Verge notes that the proposed rules will offer some protections to consumers: The Federal Communication Commission’s proposal for new net neutrality rules will allow internet service providers to charge companies for preferential treatment, effectively undermining the concept of net neutrality, according to The Wall Street Journal. The rules will reportedly allow providers to charge for preferential treatment so long as they offer that treatment to all interested parties on “commercially reasonable” terms, with the FCC will deciding whether the terms are reasonable on a case-by-case basis. Providers will not be able to block individual websites, however. The goal of net neutrality rules is to prevent service providers from discriminating between different content, allowing all types of data and all companies’ data to be treated equally. While it appears that outright blocking of individual services won’t be allowed, the Journal reports that some forms of discrimination will be allowed, though that will apparently not include slowing down websites.
  • Re/code summarizes the discontent with these proposed rules: Consumer groups have complained about that plan because they’re worried that Wheeler’s rules may not hold up in court either. A federal appeals court rejected two previous versions of net neutrality rules after finding fault in the FCC’s legal reasoning. During the latest smackdown, however, the court suggested that the FCC had some authority to impose net neutrality rules under a section of the law that gives the agency the ability to regulate the deployment of broadband lines. Internet activists would prefer that the FCC just re-regulate Internet lines under old rules designed for telephone networks, which they say would give the agency clear authority to police Internet lines. Wheeler has rejected that approach for now. Phone and cable companies, including Comcast, AT&T and Verizon, have vociferously fought that idea over the past few years.
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  • The Chicago Tribune reports on the process directing these rules: The five-member regulatory commission may vote as soon as May to formally propose the rules and collect public comment on them. Virtually all large Internet service providers, such as Verizon Communications Inc. and Time Warner Cable Inc., have pledged to abide by the principles of open Internet reinforced by these rules. But critics have raised concerns that, without a formal rule, the voluntary pledges could be pulled back over time and also leave the door open for deals that would give unequal treatment to websites or services.
  • I wrote about the European Union’s attempts to defend the free Internet: The legislation is meant to provide access to online services ‘without discrimination, restriction or interference, independent of the sender, receiver, type, content, device, service or application.’ For example, ISPs would be barred from slowing down or ‘throttling’ the speed at which one service’s videos are delivered while allowing other services to stream at normal rates. To bastardize Gertrude Stein: a byte is a byte is a byte. Such restrictions would prevent deals like the one Comcast recently made with Netflix, which will allow the service’s videos to reach consumers faster than before. Comcast is also said to be in talks with Apple for a deal that would allow videos from its new streaming video service to reach consumers faster than videos from competitors. The Federal Communications Commission’s net neutrality laws don’t apply to those deals, according to FCC Chairman Tom Wheeler, so they are allowed to continue despite the threat they pose to the free Internet.
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    Cute. Deliberately not using the authority the court of appeals said it could use to impose net neutrality. So Europe can have net neutrality but not in the U.S.
Paul Merrell

Explainer: What Google, Facebook could face in U.S. antitrust probe - Reuters - 0 views

  • The U.S. Department of Justice is investigating whether big technology companies are engaged in anticompetitive behavior, addressing a rising tide of criticism they have become too powerful to the detriment of consumers.
  • The Justice Department has said it will investigate “whether and how” online platforms in “search, social media, and some retail services online” are engaging in behavior that stifles competition and harms consumers. While the Justice Department did not name any targets in announcing the probe on Tuesday, sources have indicated Alphabet Inc’s Google, social media giant Facebook Inc, online retailer Amazon.com Inc and possibly Apple Inc will likely be reviewed. Here’s what regulators could focus on at the big technology companies:
Paul Merrell

White House Plans to Reverse Bush Antitrust Rules - washingtonpost.com - 0 views

  • The Obama administration today said it would reverse rules made during the Bush administration that made it difficult to stop anticompetitive business behavior.
  • Over the past couple weeks, antitrust regulators have launched reviews of online giant Google. The DOJ is investigating a settlement Google made with book publishers and authors. And the FTC is reviewing the board ties between Google and Apple, which some antitrust experts argue are competitors.
Paul Merrell

The antitrust thing that won't blow over | Here we go again | The Economist - 0 views

  • Google, the industry’s newest giant, is also coming under closer scrutiny. On April 29th it emerged that America’s Justice Department is examining whether Google’s settlement with authors and publishers over its book-search service violates antitrust laws; and on May 5th the Federal Trade Commission (FTC) launched a probe to see whether Google’s sharing of two board members with Apple reduces competition between the two firms.
  • Similarly, antitrust lobbying is part of a broader “platform war” for IBM, which hopes thereby to keep Microsoft at bay. Among other things, IBM is a sponsor of the European Committee for Interoperable Systems (ECIS), which has many of Microsoft’s other competitors as its members and is one of the prime movers behind the new browser case. It started in late 2007 with a complaint by Opera, a Norwegian browser-maker and ECIS member. Not to be outdone, Microsoft has entered the antitrust game, too. It recently made an investment in T3, a small vendor of mainframe-like computers, which in January lodged a complaint with the European Commission, alleging that IBM kept it from competing by refusing to license mainframe software to T3’s customers. Microsoft has also lobbied American antitrust regulators to tackle Google, encouraging them to look into an online-advertising deal between the search giant and its rival, Yahoo!, which was eventually abandoned.
  • IBM, for its part, would appear to have little to fear. It is hard to argue, with so many different computer systems around, that mainframes still constitute a separate market—a necessary condition if IBM’s behaviour is to be judged anticompetitive.
Paul Merrell

US judge slams surveillance requests as "repugnant to the Fourth Amendment" - World Socialist Web Site - 0 views

  • Federal Magistrate Judge John M. Facciola denied a US government request earlier this month for a search and seizure warrant, targeting electronic data stored on Apple Inc. property. Facciola’s order, issued on March 7, 2014, rejected what it described as only the latest in a series of “overbroad search and seizure requests,” and “unconstitutional warrant applications” submitted by the US government to the US District Court for the District of Columbia. Facciola referred to the virtually unlimited warrant request submitted by the Justice Department as “repugnant to the Fourth Amendment.” The surveillance request sought information in relation to a “kickback investigation” of a defense contractor, details about which remain secret. It is significant, however, that the surveillance request denied by Facciola relates to a criminal investigation, unrelated to terrorism. This demonstrates that the use by the Obama administration of blanket warrants enabling them to seize all information on a person's Internet accounts is not limited to terrorism, as is frequently claimed, but is part of a program of general mass illegal spying on the American people.
  • Facciola’s ruling states in no uncertain terms that the Obama administration has aggressively and repeatedly sought expansive, unconstitutional warrants, ignoring the court’s insistence for specific, narrowly targeted surveillance requests. “The government continues to submit overly broad warrants and makes no effort to balance the law enforcement interest against the obvious expectation of privacy email account holders have in their communications…The government continues to ask for all electronically stored information in email accounts, irrespective of the relevance to the investigation,” wrote Judge Facciola. As stated in the ruling, the surveillance requests submitted to the court by the US government sought the following comprehensive, virtually limitless list of information about the target: “All records or other information stored by an individual using each account, including address books, contact and buddy lists, pictures, and files… All records or other information regarding the identification of the accounts, to include full name, physical address, telephone numbers and other identifies, records of session times and durations, the date on which each account was created, the length of service, the types of service utilized, the Internet Protocol (IP) address used to register each account, log-in IP addresses associated with session times and dates, account status, alternative email addresses provided during registration, methods of connecting, log files, and means of payment (including any credit or bank account number).”
  • Responding to these all-encompassing warrant requests, Judge Facciola ruled that evidence of probable cause was necessary for each specific item sought by the government. “This Court is increasingly concerned about the government’s applications for search warrants for electronic data. In essence, its applications ask for the entire universe of information tied to a particular account, even if it has established probable cause only for certain information,” Facciola wrote. “It is the Court’s duty to reject any applications for search warrants where the standard of probable cause has not been met… To follow the dictates of the Fourth Amendment and to avoid issuing a general warrant, a court must be careful to ensure that probable cause exists to seize each item specified in the warrant application… Any search of an electronic source has the potential to unearth tens or hundreds of thousands of individual documents, pictures, movies, or other constitutionally protected content.” Facciola also noted in the ruling that the government never reported the length of time it would keep the data, or whether it planned to destroy the data at any point.
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  • Facciola’s ruling represents a reversal from a previous ruling, in which a Kansas judge allowed the government to conduct such unlimited searches of Yahoo accounts.
  • In testimony, De and his deputy Brad Wiegmann rejected the privacy board’s advice that the agency limit its data mining to specific targets approved by specific warrants. “If you have to go back to court every time you look at the information in your custody, you can imagine that would be quite burdensome,” said Wiegmann. De further said on the topic, “That information is at the government’s disposal to review in the first instance.” As these statements indicate, the intelligence establishment rejects any restrictions on their prerogative to spy on every aspect of citizens lives at will, even the entirely cosmetic regulations proposed by the Obama administration-appointed PCLOB.
Paul Merrell

Data Transfer Pact Between U.S. and Europe Is Ruled Invalid - The New York Times - 0 views

  • Europe’s highest court on Tuesday struck down an international agreement that allowed companies to move digital information like people’s web search histories and social media updates between the European Union and the United States. The decision left the international operations of companies like Google and Facebook in a sort of legal limbo even as their services continued working as usual.The ruling, by the European Court of Justice, said the so-called safe harbor agreement was flawed because it allowed American government authorities to gain routine access to Europeans’ online information. The court said leaks from Edward J. Snowden, the former contractor for the National Security Agency, made it clear that American intelligence agencies had almost unfettered access to the data, infringing on Europeans’ rights to privacy. The court said data protection regulators in each of the European Union’s 28 countries should have oversight over how companies collect and use online information of their countries’ citizens. European countries have widely varying stances towards privacy.
  • Data protection advocates hailed the ruling. Industry executives and trade groups, though, said the decision left a huge amount of uncertainty for big companies, many of which rely on the easy flow of data for lucrative businesses like online advertising. They called on the European Commission to complete a new safe harbor agreement with the United States, a deal that has been negotiated for more than two years and could limit the fallout from the court’s decision.
  • Some European officials and many of the big technology companies, including Facebook and Microsoft, tried to play down the impact of the ruling. The companies kept their services running, saying that other agreements with the European Union should provide an adequate legal foundation.But those other agreements are now expected to be examined and questioned by some of Europe’s national privacy watchdogs. The potential inquiries could make it hard for companies to transfer Europeans’ information overseas under the current data arrangements. And the ruling appeared to leave smaller companies with fewer legal resources vulnerable to potential privacy violations.
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  • “We can’t assume that anything is now safe,” Brian Hengesbaugh, a privacy lawyer with Baker & McKenzie in Chicago who helped to negotiate the original safe harbor agreement. “The ruling is so sweepingly broad that any mechanism used to transfer data from Europe could be under threat.”At issue is the sort of personal data that people create when they post something on Facebook or other social media; when they do web searches on Google; or when they order products or buy movies from Amazon or Apple. Such data is hugely valuable to companies, which use it in a broad range of ways, including tailoring advertisements to individuals and promoting products or services based on users’ online activities.The data-transfer ruling does not apply solely to tech companies. It also affects any organization with international operations, such as when a company has employees in more than one region and needs to transfer payroll information or allow workers to manage their employee benefits online.
  • But it was unclear how bulletproof those treaties would be under the new ruling, which cannot be appealed and went into effect immediately. Europe’s privacy watchdogs, for example, remain divided over how to police American tech companies.France and Germany, where companies like Facebook and Google have huge numbers of users and have already been subject to other privacy rulings, are among the countries that have sought more aggressive protections for their citizens’ personal data. Britain and Ireland, among others, have been supportive of Safe Harbor, and many large American tech companies have set up overseas headquarters in Ireland.
  • “For those who are willing to take on big companies, this ruling will have empowered them to act,” said Ot van Daalen, a Dutch privacy lawyer at Project Moore, who has been a vocal advocate for stricter data protection rules. The safe harbor agreement has been in place since 2000, enabling American tech companies to compile data generated by their European clients in web searches, social media posts and other online activities.
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    Another take on it from EFF: https://www.eff.org/deeplinks/2015/10/europes-court-justice-nsa-surveilance Expected since the Court's Advocate General released an opinion last week, presaging today's opinion.  Very big bucks involved behind the scenes because removing U.S.-based internet companies from the scene in the E.U. would pave the way for growth of E.U.-based companies.  The way forward for the U.S. companies is even more dicey because of a case now pending in the U.S.  The Second U.S. Circuit Court of Appeals is about to decide a related case in which Microsoft was ordered by the lower court to produce email records stored on a server in Ireland. . Should the Second Circuit uphold the order and the Supreme Court deny review, then under the principles announced today by the Court in the E.U., no U.S.-based company could ever be allowed to have "possession, custody, or control" of the data of E.U. citizens. You can bet that the E.U. case will weigh heavily in the Second Circuit's deliberations.  The E.U. decision is by far and away the largest legal event yet flowing out of the Edward Snowden disclosures, tectonic in scale. Up to now, Congress has succeeded in confining all NSA reforms to apply only to U.S. citizens. But now the large U.S. internet companies, Google, Facebook, Microsoft, Dropbox, etc., face the loss of all Europe as a market. Congress *will* be forced by their lobbying power to extend privacy protections to "non-U.S. persons."  Thank you again, Edward Snowden.
Paul Merrell

NAS Report: A New Light in the Debate over Government Access to Encrypted Content - Lawfare - 0 views

  • The encryption debate dates back to Clinton administration proposals for the “clipper chip” and mandatory deposit of decryption keys. But that debate reached new prominence in connection with the FBI’s efforts to compel Apple to decrypt the phone of a dead terrorist in the San Bernardino case. A new study by the National Academies of Sciences, Engineering, and Medicine tries to shed some light, and turn down the heat, in the debate over whether government agencies should be provided access to plaintext versions of encrypted communications and other data. FBI and other law enforcement officials, and some intelligence officials, have argued that in the face of widespread encryption provided by smart phones, messaging apps, and other devices and software, the internet is “going dark.” These officials warn that encryption is restricting their access to information needed for criminal and national security investigations, arguing that they need a reliable, timely and scalable way to access it. Critics have raised legal and practical objections that Apples to ensure government access would pose unacceptable risks to privacy and civil liberties and undermine computer security in the face of rising cyber threats, and may be less necessary given the wider availability of data and alternative means of obtaining access to encrypted data. As the encryption debate has become increasingly polarized with participants on all sides making sweeping, sometimes absolutist, assertions, the new National Academies’ report doesn’t purport to tell anyone what to do, but rather provides a primer on the relevant issues.
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