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Europe Frightened By US 'Cloud Act', Fearing National Security Risks (straitstimes.com)

"A foreign power with possible unbridled access to Europe's data is causing alarm in the region. No, it's not China. It's the U.S.," writes Bloomberg (in an article shared by hackingbear).

"As the U.S. pushes ahead with the 'Cloud Act' it enacted about a year ago, Europe is scrambling to curb its reach." Under the act, all U.S. cloud service providers, from Microsoft and IBM to Amazon -- when ordered -- have to provide American authorities with data stored on their servers, regardless of where it's housed. With those providers controlling much of the cloud market in Europe, the act could potentially give the US the right to access information on large swaths of the region's people and companies.

The U.S. says the act is aimed at aiding investigations. But some people are drawing parallels between the legislation and the National Intelligence Law that China put in place in 2017 requiring all its organisations and citizens to assist authorities with access to information. The Chinese law, which the US says is a tool for espionage, is cited by President Donald Trump's administration as a reason to avoid doing business with companies like Huawei Technologies. "I don't mean to compare US and Chinese laws, because obviously they aren't the same, but what we see is that on both sides, Chinese and American, there is clearly a push to have extraterritorial access to data," said Ms Laure de la Raudiere, a French lawmaker who co-heads a parliamentary cyber-security and sovereignty group. "This must be a wake up call for Europe to accelerate its own, sovereign offer in the data sector."

29 of 182 comments (clear)

  1. Well duh by Rosco+P.+Coltrane · · Score: 5, Informative

    When you put your data elsewhere than on your own iron, expect it to be as good as public. Everybody has known this since the beginning of the internet. Security-conscious IT folks don't do cloud, even if it costs more.

    In my opinion, the Cloud Act is just an official recognition of what's already going on.

    --
    "A door is what a dog is perpetually on the wrong side of" - Ogden Nash
    1. Re:Well duh by Tough+Love · · Score: 2

      It's not actually worse than storing your data on a Windows computer, or an Apple, or Android. Basically, Linux and its ilk where the software stack is top to bottom visible to you is the _only_ way you can expect to keep your privacy and even that requires constant vigilance. Or to put it another way, if you have allowed yourself to be anally raped by Microsoft all these years then what is the point of getting upset just because your cloud provider decided to join the party?

      If you have absolute control of your client, which is pretty much the default with Linux on a white box PC (short of your hardware actually being backdoored, awfully hard to hide from prying Linux eyes) then you can encrypt your cloud data and be pretty confident that nobody is getting into it. But your metadata will still be visible and you may attract attention from those who automatically regard you as a criminal because you believe that privacy is a right. It hasn't gotten quite that bad in functional democracies yet, although not for want of trying.

      --
      When all you have is a hammer, every problem starts to look like a thumb.
    2. Re:Well duh by dryeo · · Score: 3, Insightful

      While Linux is obviously superiour to Windows etc, most people can't review all the code, including user land. Look at OpenSSL and even bash having vulnerabilities for years.
      It's also really hard to guard against someone sneaking in and putting a key logger in your keyboard.

      --
      https://en.wikipedia.org/wiki/Inverted_totalitarianism
    3. Re:Well duh by Teun · · Score: 2

      For a measure of 'better'. Over here in Europe we have standards regarding privacy and ownership of data.

      --
      "The likes of Facebook and WhatsApp are free to those whose privacy is of zero value."
    4. Re:Well duh by Kjella · · Score: 3, Interesting

      Well in this case we're talking about people who come with a court-approved warrant. As long as we're in a single jurisdiction it's only a question whether the police officers will knock on you company's door or the company next door running your servers, unless you work for the mafia or something you're just going to hand it over. And keeping it in-house doesn't actually solve the problem. It doesn't even have to involve client data.

      There's two issues here:
      1) Jurisdiction shopping, that despite operating in one jurisdiction you send your data to another country with more favorable laws and courts.
      2) Jurisdiction leakage, that your data is unwittingly and unwillingly brought under the jurisdiction of other legal systems.

      Now it's not exactly news that countries have different laws, that's one of many reasons you have legal subsidiaries. Say you're McDonald's, if you want to operate a restaurant here in Norway you have to comply with local taxes and regulations and permits and whatnot so you create McDonald's Norway, in the US you create McDonald's US and so on for each country with a simple holding company on top. So far, so good.

      But now imagine if they fear some kind of price fixing investigation and say hey Norway got better privacy laws than us, let's just move the company email servers and all other non-essential data there to be operated by our Norwegian subsidiary. US courts come with a warrant, you shrug and like we have no data try the Norwegian courts. This is bad. But then you try to fix it by saying subsidiaries are puppets to a parent company, if you can instruct them then you must. That solves one problem but creates a new one.

      Let's say that to reduce long term sick leave we have a program to help people get back to work, lots of gory detail on what condition you have, how it limits your working ability, what the company has done to try to accommodate you and we say this isn't just company data we're going to give it special protection and access restrictions. But then the marching orders come from the top, hand over all your data. Do you comply? If US companies can instruct their subsidiaries to comply with US law, well then Chinese companies can instruct their subsidiaries to comply with Chinese law.

      The US, as usual, wants the rules to only apply in one direction. They want US courts to be able to go in and grab data from other jurisdictions, while they'll get very angry if China uses their companies as hired thugs in the same way. And they justify their hypocrisy by saying we're the good guys, it's okay when we do it. It's not okay, start respecting that these businesses operate in other countries and that here our laws take precedence and stop trying to act like world police.

      --
      Live today, because you never know what tomorrow brings
  2. As they should be! by oldgraybeard · · Score: 4, Informative

    "Under the act, all U.S. cloud service providers, from Microsoft and IBM to Amazon -- when ordered"
    Guess if you have already move on board(to the cloud) you have some thinking to do. Your data is in someone elses hands.

    Just my 2 cents ;)

    1. Re:As they should be! by currently_awake · · Score: 3, Informative

      I think EU data protection laws forbid this. Meaning every single American cloud server company just got banned from the entire EU.

    2. Re: As they should be! by Tough+Love · · Score: 2

      Want to investigate Company X, its CEO or any of its employees? Sorry, all pertinent e-mails and documents are stored on servers in [some other country] and we don't have to give them to you.

      I see your point! The problem is, even if we can always get your data, then what about your thoughts? We need access to those too, and it shouldn't matter where you live.

      --
      When all you have is a hammer, every problem starts to look like a thumb.
    3. Re: As they should be! by Teun · · Score: 3, Insightful

      You a very wrong
      This is data belonging to the company and when a national government legally orders the company (not the ISP or storage provider!) to hand over the data to a court it is immaterial where the data is stored.
      The problem here is the US believes it can access data belonging to others without going through the owners, just because it is stored on US operated servers, even in other jurisdictions.
      Yesterday I heard German police depts. are storing their body cam footage on Amazon and now questions have been asked in the German parliament for exactly this reason/fear, US lack of legislation allows all kinds of people access without proper legal oversight.

      --
      "The likes of Facebook and WhatsApp are free to those whose privacy is of zero value."
    4. Re: As they should be! by Tough+Love · · Score: 2

      Whoosh.

      --
      When all you have is a hammer, every problem starts to look like a thumb.
  3. But China! by Anonymous Coward · · Score: 2, Insightful

    Every fucking article on China controlling state is written like they are bad guys and we are good guys.

    No, fucking morons. Our leaders are exactly the same.

    1. Re:But China! by Anonymous Coward · · Score: 2, Informative

      false. china's "drain the swamp" policy resulted in heads being rolled of both corrupt local politicians, high ranking party members and more than a few millionaires. they also have an affordable health care system and when they set out to oversee their industries, they nationalized whole companies and factories that dared to routinely violate regulations. additionally when some factory closes down they make damn sure people don't end up without jobs. even if they have to subsidize the whole sector (steel) they'll figure something out.

      overall, both the us and china are corrupt and oppressive oligarchies run by the 1%. but china is still acting to improve the welfare and the overall quality of life of all its people. by comparison, the us has wasted all its capital on class warfare in the last 100 years.

    2. Re:But China! by Cmdln+Daco · · Score: 2

      Read Maos Lil' Red book; then the USA Constitution & Bill of Rights.

      What does that even mean? You are saying that China's legal system is run according to 'Quotations from Chairman Mao' as compiled in 1966?

      Or just ignorant anti-Communist red-baiting?

    3. Re:But China! by AHuxley · · Score: 2

      In the USA you have the freedom of speech.
      To say Taiwan is the real China.
      To talk about the 1989 Tiananmen Square protests.
      To enjoy a cartoon bear.
      Read and comment on books like 1984, Animal farm.
      To mention term limits.
      To enjoy a movie and review the movie. To make a movie. To comment on a movie. To comment on the politics of a movie.
      Enjoy many different types of publications from Japan, South Korea, Taiwan.
      No getting reported to a Communist gov after speech and for speech.

      Thats what sets the freedom in the USA apart from the total control of any Communist government.

      The good guys let people publish and stay free after publication.
      The bad guys have list of words, books, terms, cartoons, history to remove.

      EU nations have their own laws on art, culture, history, politics, cartoons, protests making the US cloud products much better for publication globally.

      --
      Domestic spying is now "Benign Information Gathering"
  4. Please restrict us by WindBourne · · Score: 4, Insightful

    America has NO RIGHT doing this. It was what Russia did within USSR and CHina does. Now, we are becoming no different than other dictatorial nations.

    --
    I prefer the "u" in honour as it seems to be missing these days.
    1. Re:Please restrict us by Tablizer · · Score: 2

      I hope Europe tells the USA to shove that law where the Eagle doesn't shine.

  5. Yes, if you don't own it, someone else does. by Frobnicator · · Score: 5, Interesting

    Hardly news, and this has been "news" in the computer world since the beginning.

    This is not a new concern. People have been renting out hardware long before Amazon was invented, computer time has been rented out . Back in the 1960s and 1970s many mid-sized banks were hesitant to avoid computers not because they didn't trust or couldn't afford the machines, but because they didn't trust the companies who owned the machines or the governments where the computers were located. IBM with locations around the globe was the biggest and generally considered most trustworthy, but (looking up history online) you could rent computer access from Honeywell, Sperry Rand, Siemens, EMI, Olivetti, and others. Noting their location, that could mean you were subject to US laws, or UK laws, or Germany or France or Italy or wherever the computing center was located.

    I recall discussions a decade ago asking how much we valued hosting our own data, if we were willing to sacrifice the security of controlling it versus the convenience of letting Google Docs control access to all our documents. There are companies who trust every bit of their digital data to Amazon or Google or other companies. They figure that the cost savings is a benefit, and they don't care about (or don't realize) the security implications.

    There are companies that decide that maintaining control is important. For them, even if it would be cheaper or easier to lease out hardware remotely the value of maintaining control is greater than any cost savings.

    --
    //TODO: Think of witty sig statement
  6. What they're saying... by Anonymous Coward · · Score: 3, Insightful

    ...is that companies, organisations, & individuals outside the US can't do business with US data farm companies if they value their privacy, R&D secrets, & IP. Add this to the revelations outed by Edward Snowden & it's a wonder that anyone in their right mind would want to get entangled in that mess.

  7. Re:Happy I'm NOT "millennial" by Rosco+P.+Coltrane · · Score: 2

    That's the power of hindsight my friend. We know what is (or may be) in store for the new generations because we've lived more than then.

    But look at the bright side: like you said, the younger generation stay hopeful. They walk blindly into their bleak future, because they don't have a past to compare it to. But at least they don't fret over it like we do.

    --
    "A door is what a dog is perpetually on the wrong side of" - Ogden Nash
  8. Interaction with GDPR by stevelinton · · Score: 5, Insightful

    Isn't this in combination with the GDPR just going to make it plain illegal for European data controllers to put their data on US owned servers?

    1. Re:Interaction with GDPR by CanadianMacFan · · Score: 2

      The problem is that it isn't just US owned servers. The US authorities also believe that any servers owned by the subsidiaries of US companies are also fair game. Microsoft recently tried to fight having data stored in Ireland, owned by Microsoft Ireland, being included in a search in the US.

      So this act will include servers in Europe owned by European companies that have to follow the GDPR just because they have an American parent company. The companies are going to do some creative working in order to break up the ownership link to foreign subsidiaries while still maintaining the value they have in order to prevent the stocks from tanking. They can't just create a parent for all of the companies because the parent needs to be outside of US jurisdiction. But they all have expensive and creative accountants and lawyers so they will figure something out.

    2. Re:Interaction with GDPR by Cederic · · Score: 4, Insightful

      Europe forces its laws on every company in the world

      Ah, that old canard.

      No, GDPR is not forced onto every company in the world.

      Companies wanting to operate or provide services in the EU must comply with EU law. What the mothering fuck is wrong with that?

  9. So, make it impossible to read the data by jtara · · Score: 5, Insightful

    So, just make it impossible for even the vendor to read the (unencrypted) data. The most the vendor could do is hand over encrypted data, leaving authorities to try to decrypt it without the key. Or try to force the owner to give up the key.

    One such new offering is IBM Hyper Protect DBAAS:

    Hyper Protect DBaaS: the evolution of cloud databases

    Getting started with IBM Cloud Hyper Protect DBaaS

    IBM® hosts your databases in a highly available and secure environment:

    The underlying technologies prevent IBM or a third party from being able to access your data.
    The IBM Secure Service Container technology protects the system via a tamper-proof environment. Access to the system is restricted and is only enabled through well-defined RESTful APIs.

    Data is encrypted at rest and in flight.
    The system hardware, the system configuration, and the database setup ensure high availability.

    BTW, this doesn't run on Intel hardware. It runs on IBM Z hardware, on dedicated cores per instance, which should minimize the potential for Spectre-type attacks.

    IBM is rolling this out aggressively. How aggressively?

    For now, they are handing out well-provisioned Postgres (8G memory, 80G data) and MongoDB (8G memory, 40G data) experimental instances for free.
    Only reason I am not taking them up on this is that I know we won't be able to afford the price, once it is not free. I'll stick with out 1G memory Databases for PostgreSql instance for our little educational app.

    Hyper Protect DBaaS (pricing)

    Not an IBM shill. Just happy to not be drinking the AWS kool aid.

  10. Re:The west needs to get our act together by Anonymous Coward · · Score: 3, Funny

    Yeah, I'm sure if Putin was never in the picture, all the Democrat and Republican politicians would just be double super good.
    Damn you Putin!

  11. American law is a double edged sword for them by MikeRT · · Score: 3, Interesting

    The flip side of this is that if you're European and can evade being identified locally, you can use American hosts to protect your speech since federal law protects American hosts from being taken to court for speech that is legal under the first amendment.

  12. No, because they need a warrant / subpoena by raymorris · · Score: 5, Informative

    In a word, no. There could be some concerns in some cases, but generally not an issue.

    The Cloud Act relates to what a warrant or subpeona may reach, and doesn't change anything - it just affirms what existing law, stating explicitly what had been implicit.

    It says that the pre-existing power of US courts to order US companies to turn over data material to a case cannot be thwarted by the US company stashing the bits on disks which are physically overseas. That was already a bit of a "duh, no shit" to anyone who has studied law, but Congress saw fit to state it explicitly.

    GDPR doesn't say you can't comply with a subpoena or warrant. It explicitly says you can comply. So no problem, there, no conflict between Cloud Act and GDPR, generally.

    The one wrinkle is that GDPR says when you send data to another country, one of two things needs to be in place

    A mutual legal assistance agreement
    Or
    The other country has approved privacy law

    The US has both. A new data privacy safe harbor agreement with the US was approved by the EU in 2016, after the previous one was found lacking. We also have a Mutual Legal Assistance Agreement (MLAA).

    There could be cases, however, in which a subpoena is issued which doesn't comply with the MLAA. Then one could argue complying with that particular subpeona could violate GDPR. Except we ALSO have the 2016 safe harbor agreement, so the MLAA isn't actually necessary anyway.

    So in rare cases you could argue that there might be a conflict, but you'd probably lose that argument.

  13. Current leadership in the USA is an issue by Anonymous Coward · · Score: 2, Informative

    But there is a huge difference between China and the USA govts.
    In China, when you disagree with the govt, you and your family disappear, cannot travel, don't get a lawyer and often aren't seen for a yr. If you appeal, you get re-sentenced to death.
    In the USA, you get a lawyer, can usually fight back, appeal any decision.

    A few quick reminders:
    Xi is
    * a dictator for life
    * sends millions of Chinese to "re-education camps"
    * no freedom of speech
    * no freedom of travel
    * China uses tanks against their own people.
    * Religious re-education cities with 1M+ people.
    * smartphones **must** have govt tracking software
    * Your social network posts are tracked by the govt and rated. A poor rating can block rights and travel.
    * don't recognize international waters as ruled by world-wide govts
    * Currency manipulation
    * intellectual property stealer / Hacker of companies and govts world-wide
    * Highly selective enforcement for any laws; usually against foreign companies and Chinese companies that cause large number of deaths
    * Tibet takeover
    * Tienanmen Square; they admit to killing over 1,022 civilians. Other estimates are over 10,000 deaths.
    * Check your server logs, most attacks are probably from Chinese IP ranges.
    * Their elections are fixed - only approved party members can be on the ballot. So, would you like Bernie or Clinton or Gore or Dukakis?
    Like any of those are even a different choice from the others. Well, freakin' terrible vs really, really, bad is a choice, I suppose.
    * Police in China behave like thugs. Ok, sometimes that happens in the USA too.
    * Taiwan, cough.

    Don't forget what China is and how they behave.
    ---
    Cisco and Motorola caught Huawei stealing their intellectual property.
    https://www.wsj.com/articles/S...

            Huawei Admits Copying Code From Cisco in Router Software
    https://www.reuters.com/articl...
    ---
            Motorola sues Huawei for trade secret theft
    Huawei physically stole parts in 2014 from a testing robot during a
    visit to T-Mobile. The robot was used to ensure buttons on phones would last.
    ---
    https://www.nytimes.com/2016/1...
    China hacked more than 245 companies and agencies, including US Navy and NASA.
    Ref: https://arstechnica.com/tech-p...

    This happened while The US/China economic espionage pact was in-force beginning in 2016.

    The USA isn't perfect, but it isn't China. Not by a long shot. If you refuse to decrypt data at the US border, they keep the data and you can sue to have it returned. Canada, UK, Australia, France, Thailand, and 50 other countries would demand you unlock it at the border without any reasonable cause. It is illegal to refuse, a crime.

  14. Re:USA has no jurisdiction in Europe by Anonymous Coward · · Score: 4, Funny

    When push comes to shove the EU will not impose liabilities on multinationals for complying with the Cloud act

    In before "OMG, EU is just fining US companies to get free money!"

    Also, the solution is going to be that "Microsoft Cloud US" and "Microsoft Cloud EU" are two completely different companies that has nothing to do with each other more than both having the same owner.
    One will comply with US rules and one will comply with EU rules.

    There will also be a "Microsoft Cloud CH" where you for some reason can't have files named Winnie.

  15. Not DMCA safe harbor. It's a legal term by raymorris · · Score: 2

    I'm going to guess that when you saw the term "safe harbor" you thought of the safe harbor provisions of the DMCA, or some other law you are familiar with. Many laws have safe harbor provisions - including GDPR.

    GDPR Article 47 states that companies outside the EEA that adopt "binding corporate rules" for data protection are exempt from GDPR Article 45, if their adoption is "approved by a competent supervisory authority".

    Such "binding corporate rules" was first laid down in the EU-US Safe Harbour Principles (2000-2015), which was later renamed (with minor changes) as the EU-US Privacy Shield Framework (2016).