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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.
Gary Edwards

FeedHenry Secures $9M Funding Led By Intel Capital To Feed Boom in Mobile Enterprise | ... - 0 views

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    FeedHenry provides a cloud Mobile Application Platform that simplifies the development, integration, deployment and management of secure mobile apps for business. This mobile platform-as-a-service (PaaS) allows apps to be developed in HTML5, JavaScript, and CSS and deployed to multiple mobile devices from a single code base. The node.js backend service offers a complete range of APIs designed to simplify and secure the connectivity of mobile apps to backend and third party systems. The platform can be deployed to private, public or hybrid clouds. FeedHenry's PaaS offers developers speed of development, instant scalability, device and cloud independence, and the ability to easily integrate to backend information. ................................ If, say, a company uses both Sharepoint and Salesforce inside a mobile app, to get that data into one app they need multiple levels of API integration. Because of the enormous boom in mobile and tablet apps, so-called 'back-end as a service' (BaaS) platforms like FeedHenry - which solve these problems - are hugely expanding. Thus, today FeedHenry has secured $9M (€7M) in a funding round led by Intel Capital, alongside a "seven figure" investment from existing investor Kernel Capital. Other existing investors VMware Inc., Enterprise Ireland and private investors also participated and were joined by new investment from ACT Venture Capital. The funds will be used on an international roll out. FeedHenry's mobile application platform - built between Ireland and the U.S. - helps businesses build mobile apps that integrate securely to their business through the cloud. This is a competitive market that includes StackMob, Usergrid, Appcelerator, Sencha.io, Applicasa ,Parse, CloudMine , CloudyRec , iKnode, yorAPI, Buddy and ScottyApp.
Paul Merrell

EFF to Court: U.S. Warrants Don't Apply to Overseas Emails | Electronic Frontier Founda... - 0 views

  • The Electronic Frontier Foundation (EFF) has urged a federal court to block a U.S. search warrant ordering Microsoft to turn over a customer's emails held in an overseas server, arguing that the case has dangerous privacy implications for Internet users everywhere. The case started in December of last year, when a magistrate judge in New York signed a search warrant seeking records and emails from a Microsoft account in connection with a criminal investigation. However, Microsoft determined that the emails the government sought were on a Microsoft server in Dublin, Ireland. Because a U.S. judge has no authority to issue warrants to search and seize property or data abroad, Microsoft refused to turn over the emails and asked the magistrate to quash the warrant. But the magistrate denied Microsoft's request, ruling there was no foreign search because the data would be reviewed by law enforcement agents in the U.S.
  • Microsoft appealed the decision. In an amicus brief in support of Microsoft, EFF argues the magistrate's rationale ignores the fact that copying the emails is a "seizure" that takes place in Ireland. "The Fourth Amendment protects from unreasonable search and seizure. You can't ignore the 'seizure' part just because the property is digital and not physical," said EFF Staff Attorney Hanni Fakhoury. "Ignoring this basic point has dangerous implications – it could open the door to unfounded law enforcement access to and collection of data stored around the world."
  • For the full brief in this case:https://www.eff.org/document/eff-amicus-brief-support-microsoft
Paul Merrell

Microsoft to host data in Germany to evade US spying | Naked Security - 0 views

  • 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.
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  • Microsoft and T-Systems' lawyers may well think that storing customer data in a German trustee data center will protect it from the reach of US law, but for all we know, that could be wishful thinking. Forrester cloud computing analyst Paul Miller: To be sure, we must wait for the first legal challenge. And the appeal. And the counter-appeal. As with all new legal approaches, we don’t know it is watertight until it is challenged in court. Microsoft and T-Systems’ lawyers are very good and say it's watertight. But we can be sure opposition lawyers will look for all the holes. By keeping data offshore - particularly in Germany, which has strong data privacy laws - Microsoft could avoid the situation it's now facing with the US demanding access to customer emails stored on a Microsoft server in Dublin. The US has argued that Microsoft, as a US company, comes under US jurisdiction, regardless of where it keeps its data.
  • Running away to Germany isn't a groundbreaking move; other US cloud services providers have already pledged expansion of their EU presences, including Amazon's plan to open a UK datacenter in late 2016 that will offer what CTO Werner Vogels calls "strong data sovereignty to local users." Other big data operators that have followed suit: Salesforce, which has already opened datacenters in the UK and Germany and plans to open one in France next year, as well as new EU operations pledged for the new year by NetSuite and Box. Can Germany keep the US out of its datacenters? Can Ireland? Time, and court cases, will tell.
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    The European Community's Court of Justice decision in the Safe Harbor case --- and Edward Snowden --- are now officially downgrading the U.S. as a cloud data center location. NSA is good business for Europeans looking to displace American cloud service providers, as evidenced by Microsoft's decision. The legal test is whether Microsoft has "possession, custody, or control" of the data. From the info given in the article, it seems that Microsoft has done its best to dodge that bullet by moving data centers to Germany and placing their data under the control of a European company. Do ownership of the hardware and profits from their rent mean that Microsoft still has "possession, custody, or control" of the data? The fine print of the agreement with Deutsche Telekom and the customer EULAs will get a thorough going over by the Dept. of Justice for evidence of Microsoft "control" of the data. That will be the crucial legal issue. The data centers in Germany may pass the test. But the notion that data centers in the UK can offer privacy is laughable; the UK's legal authority for GCHQ makes it even easier to get the data than the NSA can in the U.S.  It doesn't even require a court order. 
Paul Merrell

Challenge to data transfer tool used by Facebook will go to Europe's top court | TechCr... - 0 views

  • 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.
  • Schrems’ Safe Harbor challenge also started in the Irish Court before being ultimately referred to the ECJ. So there’s more than a little legal deja vu here, especially given the latest development in the case. In its ruling on the SCC issue, the Irish Court noted that a US ombudsperson position created under Privacy Shield to handle EU citizens complaints about companies’ handling of their data is not enough to overcome what it described as “well founded concerns” raised by the DPC regarding the adequacy of the protections for EU citizens data.
  • 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.
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  • 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.
  • On Facebook, he also said: “In simple terms, US law requires Facebook to help the NSA with mass surveillance and EU law prohibits just that. As Facebook is subject to both jurisdictions, they got themselves in a legal dilemma that they cannot possibly solve in the long run.”
  • While Schrems’ original complaint pertained to Facebook, the Irish DPC’s position means many more companies that use the mechanism could face disruption if SCCs are ultimately invalidated as a result of the legal challenge to their validity.
Paul Merrell

Profiled From Radio to Porn, British Spies Track Web Users' Online Identities | Global ... - 0 views

  • One system builds profiles showing people’s web browsing histories. Another analyzes instant messenger communications, emails, Skype calls, text messages, cell phone locations, and social media interactions. Separate programs were built to keep tabs on “suspicious” Google searches and usage of Google Maps. 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.
  • The power of KARMA POLICE was illustrated in 2009, when GCHQ launched a top-secret operation to collect intelligence about people using the Internet to listen to radio shows. The agency used a sample of nearly 7 million metadata records, gathered over a period of three months, to observe the listening habits of more than 200,000 people across 185 countries, including the U.S., the U.K., Ireland, Canada, Mexico, Spain, the Netherlands, France, and Germany.
  • GCHQ’s documents indicate that the plans for KARMA POLICE were drawn up between 2007 and 2008. The system was designed to provide the agency with “either (a) a web browsing profile for every visible user on the Internet, or (b) a user profile for every visible website on the Internet.” The origin of the surveillance system’s name is not discussed in the documents. But KARMA POLICE is also the name of a popular song released in 1997 by the Grammy Award-winning British band Radiohead, suggesting the spies may have been fans. A verse repeated throughout the hit song includes the lyric, “This is what you’ll get, when you mess with us.”
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  • GCHQ vacuums up the website browsing histories using “probes” that tap into the international fiber-optic cables that transport Internet traffic across the world. A huge volume of the Internet data GCHQ collects flows directly into a massive repository named Black Hole, which is at the core of the agency’s online spying operations, storing raw logs of intercepted material before it has been subject to analysis. Black Hole contains data collected by GCHQ as part of bulk “unselected” surveillance, meaning it is not focused on particular “selected” targets and instead includes troves of data indiscriminately swept up about ordinary people’s online activities. Between August 2007 and March 2009, GCHQ documents say that Black Hole was used to store more than 1.1 trillion “events”  a term the agency uses to refer to metadata records  with about 10 billion new entries added every day. As of March 2009, the largest slice of data Black Hole held  41 percent  was about people’s Internet browsing histories. The rest included a combination of email and instant messenger records, details about search engine queries, information about social media activity, logs related to hacking operations, and data on people’s use of tools to browse the Internet anonymously.
  • Throughout this period, as smartphone sales started to boom, the frequency of people’s Internet use was steadily increasing. In tandem, British spies were working frantically to bolster their spying capabilities, with plans afoot to expand the size of Black Hole and other repositories to handle an avalanche of new data. By 2010, according to the documents, GCHQ was logging 30 billion metadata records per day. By 2012, collection had increased to 50 billion per day, and work was underway to double capacity to 100 billion. The agency was developing “unprecedented” techniques to perform what it called “population-scale” data mining, monitoring all communications across entire countries in an effort to detect patterns or behaviors deemed suspicious. It was creating what it saidwould be, by 2013, “the world’s biggest” surveillance engine “to run cyber operations and to access better, more valued data for customers to make a real world difference.” 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.
Paul Merrell

As Belgium threatens fines, Facebook's defence of tracking visitors rings hollow | nsnb... - 0 views

  • Facebook has been ordered by a Belgian court to stop tracking non-Facebook users when they visit the Facebook site. Facebook has been given 48 hours to stop the tracking or face possible fines of up to 250,000 Euro a day.
  • Facebook has said that it will appeal the ruling, claiming that since their european headquarters are situated in Ireland, they should only be bound by the Irish Data Protection Regulator. Facebook’s chief of security Alex Stamos has posted an explanation about why non-Facebook users are tracked when they visit the site. The tracking issue centres around the creation of a “cookie” called “datr” whenever anyone visits a Facebook page. This cookie contains an identification number that identifies the same browser returning each time to different Facebook pages. Once created, the cookie will last 2 years unless the user explicitly deletes it. The cookie is created for all visitors to Facebook, irrespective of whether they are a Facebook user or even whether they are logged into Facebook at the time. According to Stamos, the measure is needed to: Prevent the creation of fake and spammy accounts Reduce the risk of someone’s account being taken over by someone else Protect people’s content from being stolen Stopping denial of service attacks against Facebook
  • The principle behind this is that if you can identify requests that arrive at the site for whatever reason, abnormal patterns may unmask people creating fake accounts, hijacking a real account or just issuing so many requests that it overwhelms the site. Stamos’ defence of tracking users is that they have been using it for the past 5 years and nobody had complained until now, that it was common practice and that there was little harm because the data was not collected for any purpose other than security. The dilemma raised by Facebook’s actions is a common one in the conflicting spheres of maintaining privacy and maintaining security. It is obvious that if you can identify all visitors to a site, then it is possible to determine more information about what they are doing than if they were anonymous. The problem with this from a moral perspective is that everyone is being tagged, irrespective of whether their intent was going to be malicious or not. It is essentially compromising the privacy of the vast majority for the sake of a much smaller likelihood of bad behaviour.
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    I checked and sure enough: five Facebook cookies even though I have no Facebook account. They're gone now, and I've created an exception blocking Facebook from planting more cookies on my systems. 
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