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Big Tech to EU: "Drop Dead"

13 May 2024 at 13:02

The European Union’s new Digital Markets Act (DMA) is a complex, many-legged beast, but at root, it is a regulation that aims to make it easier for the public to control the technology they use and rely on.  

One DMA rule forces the powerful “gatekeeper” tech companies to allow third-party app stores. That means that you, the owner of a device, can decide who you trust to provide you with software for it.  

Another rule requires those tech gatekeepers to offer interoperable gateways that other platforms can plug into - so you can quit using a chat client, switch to a rival, and still connect with the people you left behind (similar measures may come to social media in the future). 

There’s a rule banning “self-preferencing.” That’s when platforms push their often inferior, in-house products and hide superior products made by their rivals. 

And perhaps best of all, there’s a privacy rule, reinforcing the eight-year-old General Data Protection Regulation, a strong, privacy law that has been flouted  for too long, especially by the largest tech giants. 

In other words, the DMA is meant to push us toward a world where you decide which software runs on your devices,  where it’s easy to find the best products and services, where you can leave a platform for a better one without forfeiting your social relationships , and where you can do all of this without getting spied on. 

If it works, this will get dangerously close to better future we’ve spent the past thirty years fighting for. 

There’s just one wrinkle: the Big Tech companies don’t want that future, and they’re trying their damndest to strangle it in its cradle.

 Right from the start, it was obvious that the tech giants were going to war against the DMA, and the freedom it promised to their users. Take Apple, whose tight control over which software its customers can install was a major concern of the DMA from its inception.

Apple didn’t invent the idea of a “curated computer” that could only run software that was blessed by its manufacturer, but they certainly perfected it. iOS devices will refuse to run software unless it comes from Apple’s App Store, and that control over Apple’s customers means that Apple can exert tremendous control over app vendors, too. 

 Apple charges app vendors a whopping 30 percent commission on most transactions, both the initial price of the app and everything you buy from it thereafter. This is a remarkably high transaction fee —compare it to the credit-card sector, itself the subject of sharp criticism for its high 3-5 percent fees. To maintain those high commissions, Apple also restricts its vendors from informing their customers about the existence of other ways of paying (say, via their website) and at various times has also banned its vendors from offering discounts to customers who complete their purchases without using the app.  

Apple is adamant that it needs this control to keep its customers safe, but in theory and in practice, Apple has shown that it can protect you without maintaining this degree of control, and that it uses this control to take away your security when it serves the company’s profits to do so. 

Apple is worth between two and three trillion dollars. Investors prize Apple’s stock in large part due to the tens of billions of dollars it extracts from other businesses that want to reach its customers. 

The DMA is aimed squarely at these practices. It requires the largest app store companies to grant their customers the freedom to choose other app stores. Companies like Apple were given over a year to prepare for the DMA, and were told to produce compliance plans by March of this year. 

But Apple’s compliance plan falls very short of the mark: between a blizzard of confusing junk fees (like the €0.50 per use “Core Technology Fee” that the most popular apps will have to pay Apple even if their apps are sold through a rival store) and onerous conditions (app makers who try to sell through a rival app store are have their offerings removed from Apple’s store, and are permanently  banned from it), the plan in no way satisfies the EU’s goal of fostering competition in app stores. 

That’s just scratching the surface of Apple’s absurd proposal: Apple’s customers will have to successfully navigate a maze of deeply buried settings just to try another app store (and there’s some pretty cool-sounding app stores in the wings!), and Apple will disable all your third-party apps if you take your phone out of the EU for 30 days. 

Apple appears to be playing a high-stakes game of chicken with EU regulators, effectively saying, “Yes, you have 500 million citizens, but we have three trillion dollars, so why should we listen to you?” Apple inaugurated this performance of noncompliance by banning Epic, the company most closely associated with the EU’s decision to require third party app stores, from operating an app store and terminating its developer account (Epic’s account was later reinstated after the EU registered its disapproval). 

It’s not just Apple, of course.  

The DMA includes new enforcement tools to finally apply the General Data Privacy Regulation (GDPR) to US tech giants. The GDPR is Europe’s landmark privacy law, but in the eight years since its passage, Europeans have struggled to use it to reform the terrible privacy practices of the largest tech companies. 

Meta is one of the worst on privacy, and no wonder: its entire business is grounded in the nonconsensual extraction and mining of billions of dollars’ worth of private information from billions of people all over the world. The GDPR should be requiring Meta to actually secure our willing, informed (and revocable) consent to carry on all this surveillance, and there’s good evidence that more than 95 percent of us would block Facebook spying if we could. 

Meta’s answer to this is a “Pay or Okay” system, in which users who do not consent to Meta’s surveillance will have to pay to use the service, or be blocked from it. Unfortunately for Meta, this is prohibited (privacy is not a luxury good that only the wealthiest should be afforded).  

Just like Apple, Meta is behaving as though the DMA permits it to carry on its worst behavior, with minor cosmetic tweaks around the margins. Just like Apple, Meta is daring the EU to enforce its democratically enacted laws, implicitly promising to pit its billions against Europe’s institutions to preserve its right to spy on us. 

These are high-stakes clashes. As the tech sector grew more concentrated, it also grew less accountable, able to substitute lock-in and regulatory capture for making good products and having their users’ backs. Tech has found new ways to compromise our privacy rights, our labor rights, and our consumer rights - at scale. 

After decades of regulatory indifference to tech monopolization, competition authorities all over the world are taking on Big Tech. The DMA is by far the most muscular and ambitious salvo we’ve seen. 

Seen in that light, it’s no surprise that Big Tech is refusing to comply with the rules. If the EU successfully forces tech to play fair, it will serve as a starting gun for a global race to the top, in which tech’s ill-gotten gains - of data, power and money - will be returned to the users and workers from whom that treasure came. 

The architects of the DMA and DSA foresaw this, of course. They’ve announced investigations into Apple, Google and Meta, threatening fines of 10 percent of the companies’ global income, which will double to 20 percent if the companies don’t toe the line. 

It’s not just Big Tech that’s playing for all the marbles - it’s also the systems of democratic control and accountability. If Apple can sabotage the DMA’s insistence on taking away its veto over its customers’ software choices, that will spill over into the US Department of Justice’s case over the same issue, as well as the cases in Japan and South Korea, and the pending enforcement action in the UK. 

 

 

Disinformation and Elections: EFF and ARTICLE 19 Submit Key Recommendations to EU Commission

21 March 2024 at 14:35

Global Elections and Platform Responsibility

This year is a major one for elections around the world, with pivotal races in the U.S., the UK, the European Union, Russia, and India, to name just a few. Social media platforms play a crucial role in democratic engagement by enabling users to participate in public discourse and by providing access to information, especially as public figures increasingly engage with voters directly. Unfortunately elections also attract a sometimes dangerous amount of disinformation, filling users' news feed with ads touting conspiracy theories about candidates, false news stories about stolen elections, and so on.

Online election disinformation and misinformation can have real world consequences in the U.S. and all over the world. The EU Commission and other regulators are therefore formulating measures platforms could take to address disinformation related to elections. 

Given their dominance over the online information space, providers of Very Large Online Platforms (VLOPs), as sites with over 45 million users in the EU are called, have unique power to influence outcomes.  Platforms are driven by economic incentives that may not align with democratic values, and that disconnect  may be embedded in the design of their systems. For example, features like engagement-driven recommender systems may prioritize and amplify disinformation, divisive content, and incitement to violence. That effect, combined with a significant lack of transparency and targeting techniques, can too easily undermine free, fair, and well-informed electoral processes.

Digital Services Act and EU Commission Guidelines

The EU Digital Services Act (DSA) contains a set of sweeping regulations about online-content governance and responsibility for digital services that make X, Facebook, and other platforms subject in many ways to the European Commission and national authorities. It focuses on content moderation processes on platforms, limits targeted ads, and enhances transparency for users. However, the DSA also grants considerable power to authorities to flag content and investigate anonymous users - powers that they may be tempted to mis-use with elections looming. The DSA also obliges VLOPs to assess and mitigate systemic risks, but it is unclear what those obligations mean in practice. Much will depend on how social media platforms interpret their obligations under the DSA, and how European Union authorities enforce the regulation.

We therefore support the initiative by the EU Commission to gather views about what measures the Commission should call on platforms to take to mitigate specific risks linked to disinformation and electoral processes.

Together with ARTICLE 19, we have submitted comments to the EU Commission on future guidelines for platforms. In our response, we recommend that the guidelines prioritize best practices, instead of policing speech. Furthermore, DSA risk assessment and mitigation compliance evaluations should focus primarily on ensuring respect for fundamental rights. 

We further argue against using watermarking of AI content to curb disinformation, and caution against the draft guidelines’ broadly phrased recommendation that platforms should exchange information with national authorities. Any such exchanges should take care to respect human rights, beginning with a transparent process.  We also recommend that the guidelines pay particular attention to attacks against minority groups or online harassment and abuse of female candidates, lest such attacks further silence those parts of the population who are already often denied a voice.

EFF and ARTICLE 19 Submission: https://www.eff.org/document/joint-submission-euelections

European Court of Human Rights Confirms: Weakening Encryption Violates Fundamental Rights

5 March 2024 at 09:09

In a milestone judgment—Podchasov v. Russiathe European Court of Human Rights (ECtHR) has ruled that weakening of encryption can lead to general and indiscriminate surveillance of the communications of all users and violates the human right to privacy.  

In 2017, the landscape of digital communication in Russia faced a pivotal moment when the government required Telegram Messenger LLP and other “internet communication” providers to store all communication data—and content—for specified durations. These providers were also required to supply law enforcement authorities with users’ data, the content of their communications, as well as any information necessary to decrypt user messages. The FSB (the Russian Federal Security Service) subsequently ordered Telegram to assist in decrypting the communications of specific users suspected of engaging in terrorism-related activities.

Telegram opposed this order on the grounds that it would create a backdoor that would undermine encryption for all of its users. As a result, Russian courts fined Telegram and ordered the blocking of its app within the country. The controversy extended beyond Telegram, drawing in numerous users who contested the disclosure orders in Russian courts. A Russian citizen, Mr Podchasov, escalated the issue to the European Court of Human Rights (ECtHR), arguing that forced decryption of user communication would infringe on the right to private life under Article 8 of the European Convention of Human Rights (ECHR), which reads as follows:  

Everyone has the right to respect for his private and family life, his home and his correspondence (Article 8 ECHR, right to respect for private and family life, home and correspondence) 

EFF has always stood against government intrusion into the private lives of users and advocated for strong privacy guarantees, including the right to confidential communication. Encryption not only safeguards users’ privacy but also protects their right to freedom of expression protected under international human rights law. 

In a great victory for privacy advocates, the ECtHR agreed. The Court found that the requirement of continuous, blanket storage of private user data interferes with the right to privacy under the Convention, emphasizing that the possibility for national authorities to access these data is a crucial factor for determining a human rights violation [at 53]. The Court identified the inherent risks of arbitrary government action in secret surveillance in the present case and found again—following its stance in Roman Zakharov v. Russiathat the relevant legislation failed to live up to the quality of law standards and lacked the adequate and effective safeguards against misuse [75].  Turning to a potential justification for such interference, the ECtHR emphasized the need of a careful balancing test that considers the use of modern data storage and processing technologies and weighs the potential benefits against important private-life interests [62-64]. 

In addressing the State mandate for service providers to submit decryption keys to security services, the court's deliberations culminated in the following key findings [76-80]:

  1. Encryption being important for protecting the right to private life and other fundamental rights, such as freedom of expression: The ECtHR emphasized the importance of encryption technologies for safeguarding the privacy of online communications. Encryption safeguards and protects the right to private life generally while also supporting the exercise of other fundamental rights, such as freedom of expression.
  2. Encryption as a shield against abuses: The Court emphasized the role of encryption to provide a robust defense against unlawful access and generally “appears to help citizens and businesses to defend themselves against abuses of information technologies, such as hacking, identity and personal data theft, fraud and the improper disclosure of confidential information.” The Court held that this must be given due consideration when assessing measures which could weaken encryption.
  3. Decryption of communications orders weakens the encryption for all users: The ECtHR established that the need to decrypt Telegram's "secret chats" requires the weakening of encryption for all users. Taking note again of the dangers of restricting encryption described by many experts in the field, the Court held that backdoors could be exploited by criminal networks and would seriously compromise the security of all users’ electronic communications. 
  4. Alternatives to decryption: The ECtHR took note of a range of alternative solutions to compelled decryption that would not weaken the protective mechanisms, such as forensics on seized devices and better-resourced policing.  

In light of these findings, the Court held that the mandate to decrypt end-to-end encrypted communications risks weakening the encryption mechanism for all users, which was a disproportionate to the legitimate aims pursued. 

In summary [80], the Court concluded that the retention and unrestricted state access to internet communication data, coupled with decryption requirements, cannot be regarded as necessary in a democratic society, and are thus unlawful. It emphasized that a direct access of authorities to user data on a generalized basis and without sufficient safeguards impairs the very essence of the right to private life under the Convention. The Court also highlighted briefs filed by the European Information Society Institute (EISI) and Privacy International, which provided insight into the workings of end-to-end encryption and explained why mandated backdoors represent an illegal and disproportionate measure. 

Impact of the ECtHR ruling on current policy developments 

The ruling is a landmark judgment, which will likely draw new normative lines about human rights standards for private and confidential communication. We are currently supporting Telegram in its parallel complaint to the ECtHR, contending that blocking its app infringes upon fundamental rights. As part of a collaborative efforts of international human rights and media freedom organisations, we have submitted a third-party intervention to the ECtHR, arguing that blocking an entire app is a serious and disproportionate restriction on freedom of expression. That case is still pending. 

The Podchasov ruling also directly challenges ongoing efforts in Europe to weaken encryption to allow access and scanning of our private messages and pictures.

For example, the controversial UK's Online Safety Act creates the risk that online platforms will use software to search all users’ photos, files, and messages, scanning for illegal content. We recently submitted comments to the relevant UK regulator (Ofcom) to avoid any weakening of encryption when this law becomes operational. 

In the EU, we are concerned about the European Commission’s message-scanning proposal (CSAR) as being a disaster for online privacy. It would allow EU authorities to compel online services to scan users’ private messages and compare users’ photos to against law enforcement databases or use error-prone AI algorithms to detect criminal behavior. Such detection measures will inevitably lead to dangerous and unreliable Client-Side Scanning practices, undermining the essence of end-to-end encryption. As the ECtHR deems general user scanning as disproportionate, specifically criticizing measures that weaken existing privacy standards, forcing platforms like WhatsApp or Signal to weaken security by inserting a vulnerability into all users’ devices to enable message scanning must be considered unlawful. 

The EU regulation proposal is likely to be followed by other proposals to grant law enforcement access to encrypted data and communications. An EU high level expert group on ‘access to data for effective law enforcement’ is expected to make policy recommendations to the next EU Commission in mid-2024. 

We call on lawmakers to take the Court of Human Rights ruling seriously: blanket and indiscriminate scanning of user communication and the general weakening of encryption for users is unacceptable and unlawful. 

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