Further Reading and Other Developments (29 June)

First things first, if you would like to receive my Technology Policy Update, email me. You can find some of these Updates from 2019 and 2020 here.

Other Developments

  • The Senate Commerce, Science, and Transportation Committee held an oversight hearing on the Federal Communications Commission (FCC) with the FCC Chair and four Commissioners.
  • New Zealand’s Parliament passed the “Privacy Act 2020,” a major update of its 1993 statute that would, according to New Zealand’s Privacy Commissioner, do the following:
    • Mandatory notification of harmful privacy breaches. If organisations or businesses have a privacy breach that poses a risk of serious harm, they are required to notify the Privacy Commissioner and affected parties. This change brings New Zealand in line with international best practice.
    • Introduction of compliance orders. The Commissioner may issue compliance notices to require compliance with the Privacy Act. Failure to follow a compliance notice could result a fine of up to $10,000.
    • Binding access determinations. If an organisation or business refuses to make personal information available upon request, the Commissioner will have the power to demand release.
    • Controls on the disclosure of information overseas. Before disclosing New Zealanders’ personal information overseas, New Zealand organisations or businesses will need to ensure those overseas entities have similar levels of privacy protection to those in New Zealand.
    • New criminal offences. It will be an offence to mislead an organisation or business in a way that affects someone’s personal information or to destroy personal information if a request has been made for it.  The maximum fine for these offences is $10,000.
    • Explicit application to businesses whether or not they have a legal or physical presence in New Zealand. If an international digital platform is carrying on business in New Zealand, with the New Zealanders’ personal information, there will be no question that they will be obliged to comply with New Zealand law regardless of where they, or their servers are based.
  • The United States’ National Archives’ Information Security Oversight Office (ISOO) submitted its annual report to the White House and found:
    • Our Government’s ability to protect and share Classified National Security Information and Controlled Unclassified Information (CUI) continues to present serious challenges to our national security. While dozens of agencies now use various advanced technologies to accomplish their missions, a majority of them still rely on antiquated information security management practices. These practices have not kept pace with the volume of digital data that agencies create and these problems will worsen if we do not revamp our data collection methods for overseeing information security programs across the Government. We must collect and analyze data that more accurately reflects the true health of these programs in the digital age.
    • However, ISOO noted progress on efforts to better secure and protect CUI but added “[f]ull implementation will require additional resources, including dedicated funds and more full-time staff.”
    • Regarding classified information, ISOO found “Classified National Security Information policies and practices remain outdated and are unable to keep pace with the volume of digital data that agencies create.”
  • The Australian Strategic Policy Institute’s International Cyber Policy Centre released its most recent “Covid-19 Disinformation & Social Media Manipulation” report titled “ID2020, Bill Gates and the Mark of the Beast: how Covid-19catalyses existing online conspiracy movements:”
    • Against the backdrop of the global Covid-19 pandemic, billionaire philanthropist Bill Gates has become the subject of a diverse and rapidly expanding universe of conspiracy theories. As an example, a recent poll found that 44% of Republicans and 19% of Democrats in the US now believe that Gates is linked to a plot to use vaccinations as a pretext to implant microchips into people. And it’s not just America: 13% of Australians believe that Bill Gates played a role in the creation and spread of the coronavirus, and among young Australians it’s 20%. Protests around the world, from Germany to Melbourne, have included anti-Gates chants and slogans.
    • This report takes a close look at a particular variant of the Gates conspiracy theories, which is referred to here as the ID2020 conspiracy (named after the non-profit ID2020 Alliance, which the conspiracy theorists claim has a role in the narrative), as a case study for examining the dynamics of online conspiracy theories on Covid-19. Like many conspiracy theories, that narrative builds on legitimate concerns, in this case about privacy and surveillance in the context of digital identity systems, and distorts them in extreme and unfounded ways.
  • The Pandemic Response Accountability Committee (PRAC) released “TOP CHALLENGES FACING FEDERAL AGENCIES:  COVID-19 Emergency Relief and Response Efforts” for those agencies that received the bulk of funds under the “Coronavirus Aid, Relief, and Economic Security (CARES) Act” (P.L. 116-136). PRAC is housed within the Council of the Inspectors General on Integrity and Efficiency (CIGIE) is comprised of “21 Offices of Inspector General (OIG) overseeing agencies who received the bulk of the emergency funding.” PRAC stated
    • CIGIE previously has identified information technology (IT) security and management as a long-standing, serious, and ubiquitous challenge that impacts agencies across the government, highlighting agencies’ dependence on reliable and secure IT systems to perform their mission-critical functions.  Key areas of concern have included safeguarding federal systems against cyberattacks and insider threats, modernizing and managing federal IT systems, ensuring continuity of operations, and recruiting and retaining a highly skilled cybersecurity workforce.  
    • These concerns remain a significant challenge, but are impacted by (1) widespread reliance on maximum telework to continue agency operations during the pandemic, which has strained agency networks and shifted IT resources, and (2) additional opportunities and targets for cyberattacks created by remote access to networks and increases in online financial activity.
  • Following the completion of a European Union-People’s Republic of China summit, European Commission President Ursula von der Leyen pointed to a number of ongoing technology-related issues between the EU and the PRC, including:
    • [W]e continue to have an unbalanced trade and investment relationship. We have not made the progress we aimed for in last year’s Summit statement in addressing market access barriers. We need to follow up on these commitments urgently. And we also need to have more ambition on the Chinese side in order to conclude negotiations on an investment agreement. These two actions would address the asymmetry in our respective market access and would improve the level playing field between us. In order to conclude the investment agreement, we would need in particular substantial commitments from China on the behaviour of state-owned enterprises, transparency in subsidies, and transparency on the topic of forced technology transfers.
    • We have raised these issues at the same time with President Xi and Premier Li that we expect that China will show the necessary level of ambition to conclude these negotiations by the end of this year. I think it is important that we have now a political, high-level approach on these topics.
    • I have also made it clear that China needs to engage seriously on a reform of the World Trade Organization, in particular on the future negotiations on industrial subsidies. This is the relevant framework where we have to work together on the topic – and it is a difficult topic – but this is the framework, which we have to establish to have common binding rules we agree on.
    • And we must continue to work on tackling Chinese overcapacity, for example in the steel and metal sectors, and in high technology. Here for us it is important that China comes back to the international negotiation table, that we sit down there and find solutions.
    • We also pointed out the importance of the digital transformation and its highly assertive approach to the security, the resilience and the stability of digital networks, systems and value chains. We have seen cyberattacks on hospitals and dedicated computing centres. Likewise, we have seen a rise of online disinformation. We pointed out clearly that this cannot be tolerated.
  • United States Secretary of State Mike Pompeo issued a statement titled “The Tide Is Turning Toward Trusted 5G Vendors,” in which he claimed:
    • The tide is turning against Huawei as citizens around the world are waking up to the danger of the Chinese Communist Party’s surveillance state. Huawei’s deals with telecommunications operators around the world are evaporating, because countries are only allowing trusted vendors in their 5G networks. Examples include the Czech Republic, Poland, Sweden, Estonia, Romania, Denmark, and Latvia. Recently, Greece agreed to use Ericsson rather than Huawei to develop its 5G infrastructure.
  • Germany’s highest court, the Bundesgerichtshof (BGH), ruled against Facebook’s claim that the country’s antitrust regulator was wrong in its finding that it was abusing its dominant position in combining data on German nationals and residents across its platforms. Now the matter will go down to a lower German court that is expected to heed the higher court’s ruling and allow the Bundeskartellamt’s restrictions to limit Facebook’s activity.
  • France’s Conseil d’État upheld the Commission nationale de l’informatique et des libertés’ (CNIL) 2019 fine of €50 million of Google under the General Data Protection Regulation (GDPR) “for lack of transparency, inadequate information and lack of valid consent regarding the ads personalization.”
  • A Virginia court ruled against House Intelligence Committee Ranking Member Devin Nunes (R-CA) in his suit against Twitter and Liz Mair, a Republican consultant, and Twitter accounts @devincow and @DevinNunesMom regarding alleged defamation.
  • The California Secretary of State has listed the ballot initiative to add the “California Privacy Rights Act” to the state’s law, in large part, to amend the “California Consumer privacy Act” (CCPA) (AB 375) as having qualified for November’s ballot.

Further Reading

  • Wrongfully Accused by an Algorithm” – The New York Times. In what should have been predictable and foreseeable given the error rate of many facial recognition algorithms at identifying correctly people of color, an African American was wrongly identified by this technology, causing him to be released. Those in the field and experts stress positive identifications are supposed to only be one piece of evidence, but in this case, it was the only evidence police had. After a store loss specialists agreed a person in low grade photo was the likely shoplifter, police arrested the man. Eventually, the charges were dismissed, initially with prejudice leaving open the possibility of future prosecution but later the district attorney cleared all charges and expunged the arrest.
  • Pentagon Says it Needs ‘More Time’ Fixing JEDI Contract“ – Nextgov. The saga of the Department of Defense’s Joint Enterprise Defense Infrastructure cloud contract continues. Amazon and Microsoft will need to submit revised bids for the possibly $10 billion procurement as the Department of Defense (DOD) is trying to cure the problems turned up by a federal court in the suit brought by Amazon. These bids would be evaluated later this summer, according to a recent DOD court filing. The next award of this contract could trigger another bid protest just as the first award caused Amazon to challenge Microsoft’s victory.
  • EU pushing ahead with digital tax despite U.S. resistance, top official says” – Politico. In an Atlantic Council event, European Commission Executive Vice President Margrethe Vestager stated the European Union will move ahead with an EU-wide digital services tax despite the recent pullout of the United States from talks on such a tax. The Organization for Economic Co-operation and Development had convened multi-lateral talks to resolve differences on how a global digital services tax will ideally function with most of the nations involved arguing for a 2% tax to be assessed in the nation where the transaction occurs as opposed to where the company is headquartered. EU officials claim agreement was within reach when the US removed itself from the talks. An EU-wide tax is of a piece with a more aggressive stance taken by the EU towards US technology companies, a number of which are currently under investigation for antitrust and anti-competitive behaviors.
  • Verizon joins ad boycott of Facebook over hateful content” – Associated Press. The telecommunications company joined a number of other companies in pulling their advertising from Facebook organized by the ADL (the Anti-Defamation League), the NAACP, Sleeping Giants, Color Of Change, Free Press and Common Sense. The #StopHateforProfit “asks large Facebook advertisers to show they will not support a company that puts profit over safety,” and thus far, a number of companies are doing just that, including Eddie Bauer, Patagonia, North Face, Ben & Jerry’s, and others. In a statement, a Facebook spokesperson stated “[o]ur conversations with marketers and civil rights organizations are about how, together, we can be a force for good.” While Facebook has changed course due to this and other pressure regarding content posted or ads placed on its platform by most recently removing a Trump campaign ad with Nazi imagery, the company has not changed its position on allowing political ads with lies.
  • The UK’s contact tracing app fiasco is a master class in mismanagement” – MIT Technology Review. This after-action report on the United Kingdom’s National Health Service’s efforts to build its own COVID-19 contact tracing app is grim. The NHS is basically scrapping its work and opting for the Google/Apple API. However, the government in London is claiming “we will now be taking forward a solution that brings together the work on our app and the Google/Apple solution.” A far too ambitious plan married to organizational chaos led to the crash of the NHS effort.
  • Trump administration sees no loophole in new Huawei curb” – Reuters. Despite repeated arguments by trade experts the most recent United States Department of Commerce regulations on Huawei will not cut off access to high technology components, Secretary of Commerce Wilbur Ross claimed “[t]he Department of Commerce does not see any loopholes in this rule…[and] [w]e reaffirm that we will implement the rule aggressively and pursue any attempt to evade its intent.”
  • Defense Department produces list of Chinese military-linked companies” – Axios. Likely in response to a letter sent last year by Senate Minority Leader Chuck Schumer (D-NY) and Senator Tom Cotton (R-AR), the Department of Defense has finally fulfilled a requirement in the FY 1999 National Defense Authorization Act to update a list of “those persons operating directly or indirectly in the United States or any of its territories and possessions that are Communist Chinese military companies.” The DOD has complied and compiled a list of People’s Republic of China (PRC) entities linked to the PRC military. This provision in the FY 1999 NDAA also grants the President authority to “exercise International Emergency Economic Powers Act (IEEPA) authorities” against listed entities, which could include serious sanctions.
  • Andrew Yang is pushing Big Tech to pay users for data” – The Verge. Former candidate for the nomination of the Democratic Party for President Andrew Yang has stated the Data Dividend Project, “a movement dedicated to taking back control of our personal data: our data is our property, and if we allow companies to use it, we should get paid for it.” Additionally, “[i]ts primary objective is to establish and enforce data property rights under laws such as the California Consumer Privacy Act (CCPA), which went into effect on January 1, 2020.” California Governor Gavin Newsom proposed a similar program in very vague terms in a State of California speech but never followed up on it, and Senator John Kennedy (R-LA) has introduced the “Own Your Own Data Act” (S. 806) to provide people with rights to sell their personal data.

© Michael Kans, Michael Kans Blog and michaelkans.blog, 2019-2020. Unauthorized use and/or duplication of this material without express and written permission from this site’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Michael Kans, Michael Kans Blog, and michaelkans.blog with appropriate and specific direction to the original content.

Photo by Retha Ferguson from Pexels

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