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DW Weekly #177 – 13 September 2024

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Dear readers, 

This week, Margrethe Vestager’s final months as the EU antitrust chief were crowned with two significant victories, cementing her legacy as a fearless challenger of Big Tech’s monopolistic grip. Europe’s top court sided with her in two high-profile cases, one involving Apple’s controversial Irish tax deal and another targeting Google’s anti-competitive behaviour. Both rulings sent ripples through the tech world, signalling a tightening grip on regulatory oversight and reaffirming Europe’s commitment to holding global giants accountable.

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The Apple case, which saw the company ordered to repay EUR 13 billion in taxes to Ireland, is not just a win for the EU—it is a symbolic blow against sweetheart tax deals that have long allowed multinationals to sidestep their fiscal responsibilities. Vestager hailed the judgement as a victory for ‘tax justice’; Apple voiced its disappointment, painting the decision as a retroactive rule change. Yet, the ruling echoes a broader shift in Europe, where even Ireland, once a stalwart defender of its low corporate tax rates, has started to pivot, cooperating with global tax reform while paradoxically witnessing an increase in its tax revenue from multinationals.

Conversely, Google’s appeal against a EUR 2.42 billion fine over its market dominance by unfairly promoting its shopping service was also quashed. Despite the tech giant’s claims that the changes were made years ago, the court’s ruling stood firm, solidifying Vestager’s stance against anti-competitive practices. But this was just one chapter in Google’s ongoing skirmishes with the EU, where it faced a staggering total of EUR 8.25 billion in fines over the past decade, and the battle is far from over as other cases await judgement.

Both rulings, beyond their monetary implications, set a powerful precedent. As Vestager prepares to step down, her successor will likely pick up the mantle with renewed vigour, emboldened by these landmark victories. The era of unchecked Big Tech dominance in Europe may close as the fight for a fairer digital and fiscal landscape presses on.

Marko and the Digital Watch team

Highlights from the week of 6-13 September 2024

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Legal showdown could decide TikTok ban in US

ByteDance contends that selling TikTok is not feasible and seeks a court ruling by 6 December, which could allow the US Supreme Court to review the case before any ban.

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EU scrutinises Google over AI model data use

As the lead EU regulator for many major US tech firms, the DPC’s investigation is part of broader efforts to regulate personal data processing in AI development across the EU/EEA.

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Australia targets social media giants over misinformation

Industry reactions vary, with Meta threatening to block news content if forced to pay royalties and X reducing content moderation post-Elon Musk’s acquisition.

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European Commission unveils comprehensive plan for transforming telecom sector and enhancing digital infrastructure

The report also advocates for ‘commercial investment sharing,’ suggesting that major online platforms like Amazon and Google contribute financially to telecom infrastructure.

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EU court rules against Apple’s tax deal and Google’s market practices

Apple was ordered to pay €13 billion in back taxes to Ireland for receiving unlawful state aid, while Google’s €2.42 billion fine for anti-competitive practices was upheld.

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Microsoft hosts a cybersecurity summit after global IT outage

The summit will include government representatives and aims to discuss steps to improve cybersecurity systems and address concerns about organisational preparedness and vendor dependence.

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US DoJ takes Google to court over monopoly

If found guilty, Google might be required to divest its Google Ad Manager platform.

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Australia plans age limits for social media use

Prime Minister Anthony Albanese announced an age verification trial, suggesting the limit might be between 14 and 16.

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Telegram tightens content rules after criticism

Despite claiming that most of Telegram’s users are not involved in criminal activities, Durov acknowledged the need to address the platform’s reputation.

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South Korea hosts global summit on AI in warfare

Attended by representatives from over 90 countries, including the US and China, the event aims to develop a non-binding blueprint for AI military applications.

View all updates

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The end of freedom in cyberspace? – Diplo

Is cyberspace still a realm of freedom, or has it become defined by control and surveillance? With commercialisation and geopolitical tensions rising, are we trading too much privacy for security? Petru Dumitriu analyses.

DW Weekly #176 – 6 September 2024

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Dear readers, 

In the past few days, Elon Musk’s legal battle with the Brazilian judiciary culminated in the ban of his social media platform X and the freezing of Musk’s assets in Brazil. X became the focal point of controversy particularly when Musk missed the deadline to appoint a legal representative in the country and used the platform to challenge Brazil’s institutions, sparking a fierce response from officials determined to assert control. Musk’s combative stance, however, only fuelled the tension, casting him as a rebellious figure against Brazil’s sovereignty.

When Judge Alexandre de Moraes banned X, the Brazilian Supreme Court upheld the ban, citing the platform’s disregard for national law since the tech giant did not comply with the imposed demands. 

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The implemented measure underscores growing global concerns over the unchecked influence of social media in shaping public discourse. The billionaire’s insolence, in fact, sparks a broader frustration among governments worldwide, where platforms like X threaten national stability and governance. However, Brazil’s judiciary has clarified that even economic giants like Musk must abide by the rule of law.

The roots of this legal standoff run deep, tracing back to Brazil’s recent political turmoil. During Jair Bolsonaro’s presidency, disinformation on X spread like wildfire, and justices like de Moraes took a firm stand to protect Brazil’s democracy. Musk’s ‘free speech absolutist’ stance and his attacks on Brazil’s left-leaning government suggest that this battle is as ideological as legal.

The development clearly shows that the conflict between Musk’s tech empire and Brazil’s judiciary reached its peak. The court’s unwavering determination to regulate digital platforms and enforce laws—despite Musk’s insults and defiance—raises profound questions about the balance between digital freedom and state authority. With Musk’s platform continuing to challenge Brazil’s regulations, this case offers a glimpse into the complex global tensions between powerful tech moguls and the governments determined to regulate them.

In other news, the Council of Europe Framework Convention on Artificial Intelligence and Human Rights, Democracy and the Rule of Law will open for signature. The Convention, adopted earlier in May, aims to ensure AI aligns with human rights and democratic values, applying to both public and private sectors. It sets forth key principles like transparency, accountability, and privacy protection but has faced criticism for being too lenient and lacking strong regulatory measures. Its success will depend on how signatory countries implement its principles into law.

Andrijana, Marko and the Digital Watch team

Highlights from the week of 30 August-6 September 2024

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Global AI framework signed to safeguard human rights

The legally binding agreement mandates states to implement safeguards against any threats posed by AI to these essential societal pillars.

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Australia introduces new AI regulations

The move responds to global concerns about AI’s role in spreading misinformation, as seen with generative AI models like OpenAI’s ChatGPT and Google’s Gemini.

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FBI files expose Russian efforts to influence public opinion in Europe

The Social Design Agency, operating under Kremlin orders, used real social media posts, fake media websites, and cryptocurrencies to manipulate public opinion in European societies.

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Council of Europe opens AI convention for signature

The Convention on Artificial Intelligence is a first-of-its-kind global treaty that aims to ensure AI upholds human rights.

Musk’s X wins court battle and partially blocks California’s social media law

Musk argued that the law violated First Amendment protections, a stance initially rejected by a lower court.

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Starlink complies with Brazilian court order amid country’s crackdown on Elon Musk

The order, issued by Judge Alexandre de Moraes, also involves freezing Starlink’s accounts to ensure payment of fines owed by X, which Musk also owns.

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Meta complies with Brazil’s data protection demands

The decision comes after ANPD suspended Meta’s new privacy policy over data usage concerns in July.

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Chinese influence campaign targets US election

Active since at least 2017, the campaign has intensified recently, leveraging thousands of accounts across over 50 platforms.

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Brazil plans new taxes on tech giants to meet 2025 fiscal goals

The 2025 budget bill forecasts a primary surplus of 3.7 billion reais, with anticipated revenues from increased income taxes and tax negotiations totalling 58.5 billion reais.

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California passes new bill regulating digital replicas of performers

The passage of AB 1836 signals California’s leadership in protecting performers’ digital rights, ensuring control over how the likenesses of deceased actors are used in media.

View all updates

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Digital Watch newsletter – Issue 92 – September 2024

In our September issue, we analyse how Durov’s arrest and X ban in Brazil spell the end of the illusion of cyberspace, look at the debates at the last session of the Ad Hoc Committee on Cybercrime, explore the new WTO digital trade agreement, explain the lessons learned from the Crowdstrike July 2024 outage, and mark our calendars for the Summit of the Future.
digital public infrastructure

Digital Public Infrastructure: An innovative outcome of India’s G20 leadership

India’s G20 leadership has elevated the concept of Digital Public Infrastructure from a latent term to a globally recognised driver of socioeconomic development. Expectations are now shifting to Brazil to sustain and expand this momentum.
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Durov and X-Brazil cases: The end of the illusion of cyberspace? – Diplo

The Durov and Brazil-X cases symbolically mark the end of the illusion of cyberspace, which dates back to 1996, when in Davos, John Barlow wrote the Declaration of Independence of Cyberspace, telling governments that ‘Cyberspace does not lie within your borders’.

Digital Watch newsletter – Issue 92 – September 2024

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Snapshot: The developments that made waves

AI governance

Two European Parliament committees have formed a joint working group to oversee the implementation of the AI Act. The AI Act officially came into force on 1 August 2024. It will be fully applicable 24 months after its entry into force, except for bans on prohibited practises, which will apply 6 months after the entry into force date; codes of practise (9 months after entry into force); general-purpose AI rules including governance (12 months after entry into force); and obligations for high-risk systems (36 months). 

Top competition authorities from the EU, the UK, and the USA have issued a joint statement emphasising the importance of fair, open, and competitive markets in developing and deploying generative AI. 

Serbia unveiled a new AI Development Strategy 2024–2030, aiming to nurture a vibrant AI ecosystem in the country. Government agencies in Australia must disclose their use of AI within six months under a new policy effective from 1 September.

OpenAI and Anthropic have agreed to collaborate with the US Artificial Intelligence Safety Institute on research, testing, and evaluating their advanced AI models. Elon Musk revived his lawsuit against OpenAI and Sam Altman, alleging that the company shifted its focus from advancing AI for humanity to commercial gain.

Technologies

Researchers at the University of California Davis Health have developed a highly accurate brain-computer interface (BCI) that can translate brain signals into speech with 97% accuracy. 

Neuralink, the brain-computer interface company owned by Elon Musk, has successfully implanted its BCI in a second patient. Neuralink reported that the device allows the patient to control digital devices with their mind, for example, playing video games and using computer-aided design (CAD) software.

Infrastructure

Sri Lanka’s parliament amended its telecommunications law to permit Elon Musk’s Starlink to commence operations there. Nokia and Telecom Egypt have announced a new partnership to introduce 5G technology in Egypt. The Nigerian Communications Commission (NCC) has introduced regulations to enhance telecom service quality in Nigeria, setting key performance indicators (KPIs) for 2G, 3G, and 4G networks. 

The South African telecoms industry is intensifying its push for digital content and service providers to contribute financially to expanding and maintaining the country’s network infrastructure.

Cybersecurity

NATO has announced the establishment of the NATO Integrated Cyber Defence Centre (NICC), aimed at bolstering the alliance’s cyber defence capabilities. 

The UK and France will launch a consultation to address the proliferation and irresponsible use of commercial cyber intrusion tools.

Kaspersky Lab closed its US offices following a ban by the US Commerce Department, which prohibits the firm from selling its software to US customers.

An undisclosed victim paid $75 million to the Dark Angels ransomware group, setting a record for the largest ransomware payout.Halliburton, a major US oilfield services company, suffered a cyberattack on 21 August. The company acknowledged that data was accessed and removed but stated that the incident is not expected to impact its operations significantly.

Digital rights

Türkiye restored access to Instagram after a nine-day ban, which had been imposed due to the platform’s failure to comply with local laws and sensitivities. The restriction was lifted after Instagram’s parent company, Meta, agreed to cooperate with Turkish authorities.

On 22 August, Nepal lifted its ban on TikTok more than nine months after blocking the platform due to the disruption of social harmony and goodwill caused by the misuse of the app. 

Iran’s Supreme Council of Cyberspace issued a directive endorsed by Supreme Leader Ayatollah Ali Khamenei that prohibits the use of virtual private networks (VPNs) unless authorised by authorities.

Legal

Meta Platforms agreed to a USD 1.4 billion settlement with the US state of Texas over allegations of illegally using facial-recognition technology to collect biometric data without consent. Nigeria imposed a USD 220 million fine on Meta for ‘multiple and repeated’ breaches of local consumer data protection laws in a move to enforce data privacy regulations. A federal judge in Brazil has issued a ruling forcing WhatsApp to limit data sharing with other companies in the Meta group.

A US appeals court has reinstated a lawsuit against Google, allowing Chrome users to pursue claims that the company collected their data without permission. The case centres on users who chose not to synchronise their Chrome browsers with their Google accounts, yet allege that Google still gathered their information.

California is codifying AI protections for performers into law: California’s state Senate passed two bills: AB 2602, requiring explicit consent from performers for creating digital replicas in various media, and AB 1836, mandating consent from deceased performers’ estates for similar digital recreations.

Internet economy

Antitrust regulators had a busy summer. A US judge ruled that Google violated antitrust law by spending billions to establish an illegal monopoly as the world’s default search engine. The company lost its case against Epic Games, and a US judge ordered Google to provide Android users with more ways to download apps outside of its Play Store. Google is set to face a critical antitrust trial as the US Department of Justice targets the tech giant’s advertising practices, accusing the company of using its dominance to stifle competition and harm news publishers. Across the pond, the UK’s antitrust watchdog is examining Google parent Alphabet’s partnership with AI startup Anthropic to assess its impact on market competition.

Google is not the only company in the crosshairs of the antitrust regulators. Apple’s App Store is being investigated by Spain’s antitrust regulator, the CNMC, for alleged imposition of unequal commercial conditions on developers of mobile applications sold through its platform. The French competition authority has officially launched an investigation into chipmaker Nvidia for suspected anti-competitive behaviour.

UNCTAD published the Digital Economy Report 2024, which stresses the need for sustainable and inclusive digitalisation strategies. It highlights the growing environmental impact of the digital economy, including increased energy use and digital waste.

Development

The EU’s Ecodesign for Sustainable Products Regulation (ESPR) came into force on 18 July, mandating Digital Product Passports (DPPs) for most products (excluding food and medicine) by 2030. 

The G20 Task Force 05 on Digital Transformation has unveiled a policy brief titled ‘Advocating an International Decade for Data under G20 Sponsorship’, highlighting the fundamental role of accessible and responsibly re-used data in driving social and economic development, particularly in the context of emerging technologies like AI.

Sociocultural

A coalition of 21 states and over 50 US lawmakers has supported the US Justice Department’s mandate requiring ByteDance to sell TikTok’s US assets by 19 January 2025 or face a ban. Meta’s Oversight Board has issued a decision on how to moderate posts about armed groups in Venezuela amid ongoing violence and protests. The Malaysian government will collaborate with Worldcoin to enhance national digital ID verification.

The end of the illusion of cyberspace?

Tech CEOs are finding out the hard way that no matter how powerful their platforms are, there’s no dodging the law.

The Durov case. At the end of August, Pavel Durov, the founder of Telegram, a messaging app known for its strong encryption and commitment to user privacy, was detained by French authorities.

There’s a long list of charges: of complicity in operating an illegal online platform; possessing and distributing child pornography; drug trafficking; organised fraud; and criminal association. Additional charges involve laundering proceeds from criminal activities and the unauthorised provision of cryptology services.

Durov has since been granted bail, but the investigation continues. The case could answer the question: Does a platform owner hold any responsibility for what is published on their sites/apps? The outcome of the case could have significant implications for social media platforms’ compliance with various regulatory requirements, as well as the future of digital communication and free speech.

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X banned in Brazil. Free speech on social media is the crux of another legal case in which a tech oligarch is battling a country. Musk’s feud with Brazil’s Supreme Court started in April this year when Justice Alexandre de Moraes ordered that X block certain accounts accused of spreading misinformation and hate speech – orders which X initially refused to follow, but later complied with.

Mid-August, X announced that it would cease operations in Brazil immediately, claiming that Moraes threatened to arrest X’s legal representative in the county if X did not comply with orders to remove certain content from the platform. Moraes did not comment on this, but he then gave X 24 hours to appoint a new local representative, as Brazilian law requires companies to have representation in the country. The deadline passed, and X company did not name a representative. The outcome: X is blocked in Brazil. 

The ban will last until X complies with all court orders, names a legal representative, and pays all fines. The local accounts for Starlink, another company owned by Musk, are also blocked until X pays the fines, a decision that has been criticised because Starlink has nothing to do with the X case. Meanwhile, Brazilians are joining Bluesky (started by Twitter’s founder Jack Dorsey) in troves.

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These developments highlight the core tension between cyberspace and real space. Once, there was a belief that the virtual world –  the home of bits and bytes and endless data streams – was somehow distinct from the tangible world we inhabit. In the early days of the internet, the virtual world felt like a vast, uncharted frontier – a place where the rules of the physical world didn’t seem to apply. 

But this so-called cyberspace was never a separate reality; it was an augmentation, a different layer of the same world we already knew. The concept of punishment in the digital world was, and remains, a legal reality. Those who are accused of cybercrimes or do not comply with national laws are not sent to some virtual holding cell; they face real-world justice systems, real-world courts, and real-world fines and prisons.

UN approves landmark cybercrime convention

After years of negotiations, the UN member states at the Ad Hoc Committee (AHC) adopted the draft of the first globally binding legal instrument on cybercrime. 

The convention’s adoption has proceeded despite significant opposition from civil society and tech companies, who have raised concerns about the potential risks of increased surveillance. Stakeholders emphasised the urgent need for a treaty focused on core cybercrime offences, strengthened by robust safeguards. It was also hard to imagine that states would reach a consensus given how many issues they disagreed on earlier. A snapshot of the debates at the last session of the AHC follows.

Debates about the convention’s title, scope, and terminology. The majority of delegations advocated for a succinct title, suggesting ‘United Nations Convention Against Cybercrime’ for clarity’s sake. However, the term cybercrime has not been agreed upon by all states in the use of terms. The title ‘Draft United Nations convention against cybercrime’ was adopted with a subtitle: ‘Strengthening international cooperation for combatting certain crimes committed by means of information and communications technology and for the sharing of evidence in electronic form of serious crimes’.

Negotiations on the conventions’s scope resulted in the adoption of Article 4, which says:

1. In giving effect to other applicable United Nations conventions and protocols to which they are Parties, States Parties shall ensure that criminal offences established in accordance with such conventions and protocols are also considered criminal offences under domestic law when committed through the use of information and communications technology systems.

2. Nothing in this article shall be interpreted as establishing criminal offences in accordance with this Convention. 

Human rights protections and safeguards. States held differing views to the chair’s proposal for Article 6.2, which suggested adding the phrase ‘and in a manner consistent with applicable international human rights law’ to address concerns about human rights safeguards. Negotiations resulted in the adoption of Article 6, which says:

1. States Parties shall ensure that the implementation of their obligations under this Convention is consistent with their obligations under international human rights law.

2. Nothing in this Convention shall be interpreted as permitting suppression of human rights or fundamental freedoms, including the rights related to freedom of expression, conscience, opinion, religion or belief, peaceful assembly and association, in accordance with applicable international human rights law.

A significant portion of the session was dedicated to debating Articles 14 and 16 on child sexual exploitation material and the dissemination of intimate images, respectively. Concerns were raised about the phrase without right in these articles, which some member states felt could potentially legitimise access to such material. In the end, both articles were adopted containing the phrase without right. 

Ratification and following steps. After exchanging different views, states agreed on the threshold of 40 ratifications. They also adopted Article 61, which stipulates that the convention may be supplemented by one or more protocols. Article 62 specifies that at least 60 signatory parties shall be required before any supplementary protocol is considered for adoption by the Conference of the States Parties. If consensus on the protocol isn’t reached, the protocol can still be adopted if it receives a two-thirds majority vote from the states parties present and voting at the meeting of the Conference of the States Parties.

Reservations. Some countries announced reservations. For example, Russia highlighted that it dissociates itself from the consensus on the title of the convention and intends to make an interpretive statement when signing or ratifying this instrument. Nigeria also dissociated itself from specific provisions, particularly those in Article 14, arguing that they were inconsistent with its domestic laws and cultural norms. 

Explore the convention’s contents with our AI assistant, and read our detailed analysis of the last round of the negotiations.

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UN approves its first comprehensive convention on cybercrime: What happened at the last round of the negotiations?

How was the first UN cybercrime convention adopted? What was the last round of negotiations about? 

Read more

Major trade agreement unveiled at WTO

The co-conveners of the World Trade Organization (WTO) Joint Initiative (JI) on Electronic Commerce – Australia, Japan, and Singapore – have published a stabilised text of an Agreement on Electronic Commerce, a significant milestone after almost seven years of discussions and negotiations.

Why is the agreement significant? So far, e-commerce and digital trade regulations have been handled mainly through preferential trade agreements (PTAs) among countries. Creating a specific WTO agreement on e-commerce would help standardise e-commerce rules globally, making it easier for everyone to do business in the digital age.

What’s in the Agreement on Electronic Commerce? The text contains provisions to:

  1. Promote the facilitation of digital trade within and between countries, including by fostering the adoption of electronic signatures and invoices.
  2. Make international digital trade more reliable and affordable by working together on cybersecurity risks.
  3. Ban customs duties on digital content among participating countries.
  4. Protect online consumers from misleading and fraudulent activities.
  5. Protect the personal data of consumers.
  6. Help consumers and companies from developing countries participate in digital trade.
  7. Encourage competition in the telecommunications sector by ensuring independent regulators, better access to infrastructure, and market-based frequency band assignments.

What’s missing from the text? Negotiations on crucial digital issues like data flows and source code hit a roadblock when the USA pulled its support so it could maintain domestic policy flexibility. The co-conveners simply state that ‘participants recognise that some issues of importance to digital trade have not been addressed in this text. Participants will discuss the inclusion of these issues in future negotiations.’

Who’s missing from the deal? The latest draft text represents 82 out of 91 JI members. However,  Brazil, Colombia, El Salvador, Guatemala, Indonesia, Paraguay, the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu, Türkiye, and the USA are still reviewing the text domestically.

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Negotiators in early 2024. Credit: WTO.

What are the next steps? To become the foundation for global rules on digital trade among WTO members, the text must be integrated into the WTO legal framework. However, all JIs at the WTO ran into opposition from several WTO members who hold that JIs do not have any legal status because they were not launched based on consensus. 

Similarly, these countries claim that the outcomes of JIs are not based on consensus and are neither multilateral agreements nor plurilateral agreements as defined in Article IV of the agreement that established the WTO – the Marrakesh Agreement.

If the Agreement on Electronic Commerce comes into force, much work will be needed. Five changes in the global landscape are important to consider in its implementation. Firstly, there has been a rise in digital inequality, which will need to be tackled. Secondly, there has been a shift eastwards in digital trade rule-making. Thirdly, digital economy agreements (DEAs) are increasingly important, perpetuating the normative patchwork. Fourth, global value chains have been rewired because of the global COVID-19 pandemic and geopolitical considerations, leading to uncertain trade consequences. Finally, the systemic nature of challenges to multilateralism has also been felt at the WTO, jeopardising the organisation’s negotiating and dispute-settlement functions.

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The WTO Joint Initiative stabilised ‘Agreement on Electronic commerce’: Looking at the broader picture – Diplo

The WTO Joint Initiative stabilised ‘Agreement on Electronic Commerce’ must contend with five changes that took place in the global landscape that are important to consider in its implementation.

Read more

The CrowdStrike update that triggered a USD 5 billion outage, lawsuits, and congressional scrutiny

A routine update turned catastrophic when CrowdStrike’s Falcon Sensor kernel-level driver, designed to safeguard Windows systems, triggered a massive tech outage on 19 July. The disruption reverberated across industries globally, affecting sectors like air travel, healthcare, finance, and media.

The problem began when CrowdStrike released a content configuration update for the Windows sensor to collect telemetry on potential new threat techniques. These updates are a regular aspect of the Falcon platform’s dynamic protection system, sometimes occurring daily. 

However, this particular update contained a logic error that resulted in a system crash, causing the notorious blue screen of death (BSOD) on 8.5 million Windows devices.

Blue screen of death for the Microsoft failure

The issue was traced back to a bug in CrowdStrike’s Content Validator, which allowed the problematic update to pass validation despite containing problematic content data.

The consequences. Financially, the impact of this incident is staggering. According to cyber insurer Parametrix, the faulty update could result in losses of up to USD 5.4 billion for companies like Microsoft, major airlines, banks, and healthcare providers.

However, the insured losses from the CrowdStrike incident are estimated at between USD 1.5 billion and USD 10 billion.

CrowdStrike announced that it will give customers about USD 60 million in credits to remain with the company. At the end of August, the company had a 98% customer retention rate after the outage.

However, CrowdStrike is not remotely out of the woods. On 23 September, Adam Meyers, senior vice president of counter-adversary operations at CrowdStrike, will testify before the US House Homeland Security cybersecurity subcommittee. Meyers will be expected to explain in detail how this incident happened and the mitigation steps CrowdStrike is taking.

The company is also facing a flurry of lawsuits. Delta plans to sue CrowdStrike and Microsoft for USD 500 million over significant losses related to the update. Law firm Labaton Keller Sucharow has filed a class action lawsuit on behalf of CrowdStrike shareholders, alleging they were misled about software testing. Gibbs Law Group is also considering a class action for small businesses impacted by the outage.

What did we learn from this case? Numerous organisations are overreliant on single-point IT solutions. Should tech companies bear responsibility for cyber risks associated with their products and services? 

Defining supplier responsibility (and liability) for the security and stability of digital products through legal instruments is essential for ensuring accountability and safety. This would incentivise companies to invest more in robust security measures, thorough testing protocols, and fail-safe mechanisms. 

Moreover, it would foster a culture of responsibility within the tech industry, where the potential real-world impacts of digital failures, their solutions, and their broader implications for society are given the serious consideration they deserve.

The Summit of the Future

The upcoming Summit of the Future is being hailed as a ‘once-in-a-generation opportunity’ to reaffirm core principles and adapt multilateral frameworks to meet the challenges of tomorrow.  

Scheduled for 22–23 September 2024, this high-level UN event will bring together various stakeholders, under the theme, ‘Summit of the Future: Multilateral Solutions for a Better Tomorrow’.

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The summit will be preceded by a preparatory ministerial meeting on 18 September and Action Days on 20–21 September.

The ‘Digital Future for All’ track of the Action Days aims to harness innovation, science, and data to promote a more inclusive, safe, and sustainable digital world. Early sessions will focus on how digital technologies can foster a sustainable and responsible future, while later sessions will celebrate commitments and explore the foundations needed for an open, secure digital landscape. Stakeholders will also discuss the Global Digital Compact and practical applications of AI.

An interactive dialogue entitled ‘Towards a Common Digital Future: Strengthening inclusive innovation and cooperation to bridge the digital divides’ will be held during the summit.

The summit’s immediate outcome will be a final version of the Pact for the Future, the much-anticipated Global Digital Compact (GDC) and the Declaration for Future Generations, all expected to be adopted by member states during the summit.

We’ve written about the GDC at length. The GDC looks at the full gamut of digital, technological, and AI developments, and is expected to maximise the benefits of new technologies and minimise the risks. It will focus on (1) closing all digital divides and accelerating progress across the SDGs; (2) expanding inclusion in and benefits from the digital economy for all; (3) fostering an inclusive, open, safe and secure digital space that respects, protects and promote human rights; (4) advancing responsible, equitable and interoperable data governance approaches; and (5) enhancing international governance of AI for the benefit of humanity. 

The GDC is being negotiated separately and it will be annexed to the pact. The document has gone through various revisions. Most recently, co-facilitators shared the fourth revision of the draft under silence procedure (tacit consent) with UN member states. The silence could be broken until Thursday, 29 August, signalling (a) state(s) dissatisfaction with the text. It appears that the silence has been broken this time. Discussions about the next steps of the negotiations are now ongoing.

Consult Diplo’s analysis and chat with AI assistants on the Pact for the Future and the Global Digital Compact. Here, you can follow just-in-time reporting from the Summit of the Future on 22 and 23 September 2024.

DW Weekly #175 – 30 August 2024

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Dear readers, 

Last weekend, Pavel Durov, the founder of Telegram, a messaging app known for its strong encryption and commitment to user privacy, was detained by French authorities.

There’s a long list of charges: of complicity in operating an illegal online platform, possessing and distributing child pornography, drug trafficking, organised fraud, and criminal association. Additional charges involve laundering proceeds from criminal activities and unauthorised provision of cryptology services.

Durov’s arrest at a Paris airport has sparked a significant global debate. The arrest has drawn sharp criticism from various quarters.

Russia, where Telegram is particularly popular, has warned France it must ensure Durov’s rights are protected, while Elon Musk has publicly condemned the arrest as an attack on free speech in Europe. The incident has also strained diplomatic relations, with the UAE and Russia both demanding clearer information about the charges and consular access for Durov, who holds multiple citizenships, including the UAE, France and Russia.

Durov has since been granted bail, but the investigation continues. The case could also answer the question: Does a platform owner hold any responsibility for what is published on their sites/apps? The outcome of the case could also have significant implications for the future of digital communication and free speech.

Figures representing the military, police, courts, the secret service, and prosecution on the physical ground (the real world space) work to reach and capture tech CEOs from cyberspace.

This development also highlights the core tension between cyberspace and real space. Once, there was a belief that the virtual world –  the home of bits and bytes, and endless data streams – was somehow distinct from the tangible world we inhabit. In the early days of the internet, the virtual world felt like a vast, uncharted frontier – a place where the rules of the physical world didn’t seem to apply. But this so-called cyberspace was never a separate reality; it was an augmentation, a different layer of the same world we already knew. The concept of punishment in the digital world was, and remains, a legal reality. Those who are accused of cybercrimes are not sent to some virtual holding cell; they face real-world justice systems, real-world courts, and real-world fines and prisons.

In other news, the co-facilitators of the Global Digital Compact (GDC) shared under silence procedure (tacit consent) the text of the GDC, revision 4. with UN member states. The silence could be broken until Thursday, 29 August, signalling (a) state(s) dissatisfaction with the text; It appears that the silence has been broken this time. If you’re a diplomat based in Geneva, we hope to see you at our briefing next Tuesday to try to unpack these new developments.

Andrijana, Marko and the Digital Watch team

Highlights from the week of 23-30 August 2024

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Musk’s X faces Alexandre de Moraes and potential shutdown in Brazil

Elon Musk has publicly criticised judge Alexandre de Moraes, denouncing the legal actions as illegal and promising continued internet service to Brazilian users through SpaceX.

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Dutch Watchdog fines Uber €290 million for data transfer violations

Uber plans to appeal against the fine imposed for breaching GDPR with data transfers.

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Chinese AI developers bypass US chip restrictions

The developers utilise cloud computing services from major American providers, which are legally permissible under current regulations.

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Nigeria launches strategy for digital transformation and innovation

Frank Okafor from the EU Delegation to Nigeria and ECOWAS stated that the Participatory Policy Implementation Framework will boost digital transformation by improving state-level policy implementation.

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Europe urged to reform regulations to harness the potential of open-source AI and remain competitive in the global tech race

Mark Zuckerberg from Meta and Daniel Ek from Spotify called for simplified, harmonised regulations to boost competitiveness and retain talent, allowing Europe to fully exploit AI’s potential and ensure economic growth and innovation.

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Microsoft to host cybersecurity summit after major IT outage

The incident affected approximately 8.5 million Windows devices and disrupted multiple industries.

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China advances digital ambitions with massive data centre investment

Beijing invests billions in nationwide data centre project.

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Iran has banned VPNs to tighten internet control

Iran has banned VPNs to tighten internet control, drawing international criticism and highlighting the clash between government authority and digital rights.

View all updates

Reading corner

Diplo DW Analysis 27 8

The history of computer viruses: Journey back to where it all began!

The concept of a computer virus didn’t emerge from a place of malice, but rather from academic curiosity around self-replicating programs. This exploration delves into the origins of computer viruses, following their journey through years of technological advances and misdeeds, revealing how they evolved into a critical concern for today’s digital world.

DW Weekly #174 – 23 August 2024

Page, Text

Dear readers, 

This week, we’ve seen significant developments in brain-computer interfaces (BCIs). Researchers at the University of California Davis Health have developed a highly accurate BCI that can translate brain signals into speech with 97% accuracy. The system, which involves implanting four microelectrode arrays in the brain, decodes neural patterns into text and speech. This technology offers new hope for individuals with severe speech impairments. 

Musk’s Neuralink has also reported progress with their second patient, codenamed Alex. The device allowed Alex, who has quadriplegia, to control digital devices with his mind, such as playing video games and using computer-aided design (CAD) software. The trial aims to demonstrate that the link is safe and valuable in daily life, to restore autonomy for people with disabilities. Neuralink is working on expanding the device’s capabilities, including allowing users to feed themselves and move more independently by controlling a robotic arm or their wheelchair. Musk predicts that ‘hundreds of millions’ will have Neuralinks within ‘the next couple of decades’. Neuralink could enhance human brain output rates to keep pace with AI, enabling more efficient communication with computers, and potentially even surpassing normal human capabilities. ‘While we’re in there, why not? Let’s give people superpowers,’ Musk stated.

Architecture, Building, Hospital, Clinic, Doctor, Indoors, Medical Procedure, Operating Theatre, Person, Adult, Male, Man, People, Face, Head

Advancements in brain-computer interface (BCI) technology signal a transformative era in how humans interact with machines and, potentially, each other. The immediate benefits, such as restoring speech and mobility to individuals with severe disabilities, are groundbreaking and offer immense hope. However, as the technology progresses, particularly with the more advanced ambitions envisioned by Musk, there are critical ethical and societal implications to consider.

The prospect of enhancing human capabilities beyond natural limits raises questions about equity, accessibility, and the definition of what it means to be human. If Neuralink or similar technologies become widely available, there could be a significant divide between those who can afford such enhancements and those who cannot, leading to a new form of inequality. The long-term effects of integrating such devices into the human brain are unknown, and the potential for misuse – whether by individuals, corporations, or governments – cannot be overlooked.

Andrijana and the Digital Watch team

Highlights from the week of 16-23 August 2024

OpenAi

OpenAI and Condé Nast team up for AI-powered news delivery

Despite the advantages of AI model training, some organisations, like the New York Times, have sued OpenAI over copyright issues.

UNCTAD Master Logo Blue

UNCTAD Digital Economy Report 2024: Balancing digital growth and enviromental impact

The report calls for a shift to a circular digital economy, emphasising durable products, responsible consumption, reuse, recycling, and sustainable business models.

close up hand with mobile

Nepal lifts TikTok ban after nine months

The decision to lift the ban comes amid public protests over lost income and free speech.

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Brazilian court limits WhatsApp data sharing in landmark ruling

The ruling is part of a global movement for enhanced data protection and could impact not only WhatsApp but also other tech companies in Brazil and potentially set a precedent for similar actions worldwide.

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Shein and Temu clash over copyright allegations

Rival bargain retailers Shein and Temu are locked in a fierce copyright dispute.

V 1 Google

US court revives Chrome users’ privacy lawsuit against Google

The case has been sent back for further review. Google disagrees with the ruling but remains confident in its position.

europe flag

Europe’s digital strategy targets MENA region

EU initiatives like the MEDUSA project are key to advancing digital connectivity in the Middle East and North Africa.

Malaysia collaborates with Worldcoin to enhance digital ID verification

The Malaysian government has unveiled a fresh collaboration with Worldcoin, focusing on incorporating cutting-edge technology into its countrywide identification framework.

woman using laptop wood desk with cyberattack warning screen cyber security concept

Leading US oilfield company Halliburton struck by cyberattack

The energy sector faces increasing cyber threats, with past incidents like the 2021 Colonial Pipeline ransomware attack underscoring the severe impact such breaches can have.

south african flag

South African telecoms industry calls for OTT platforms to share network maintenance costs

Additionally, the ACT calls for a regulatory framework to bring OTT providers under the same licensing regime as traditional network operators.

View all updates

Reading corner

X a lone warrior for freedom of speech

X, a lone warrior for freedom of speech?

The ongoing scrutiny of platforms like 𝕏 under Elon Musk’s ownership highlights the complex role social media plays in public discourse and the spread of extremist content.

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Andrijana Gavrilovic – Author
Editor – Digital Watch; Head of Diplomatic u0026amp; Policy Reporting, DiploFoundation
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Virginia Paque – Editor
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DW Weekly #173 – 16 August 2024

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Dear readers, 

Welcome to another issue of the Digital Watch weekly! 

After three years of negotiations, the UN member states at the Ad Hoc Committee (AHC) adopted the draft of the first globally binding legal instrument on cybercrime. The embattled process went through ten rounds of negotiations, complete with a reconvened concluding session, as the states just could not come to an agreement at the original concluding session.

People, Person, Architecture, Building, School, Classroom, Indoors, Room, Crowd, Adult, Female, Woman, Audience, Lecture, Male, Man, Hall, Clothing, Formal Wear, Suit, Lecture Hall, College, Face, Head
The adoption of the Convention. Image credit: Council of Europe.

The convention was adopted despite multiple obstacles. 

There was significant opposition from human rights groups, civil society, and technology companies, who have raised concerns about the potential risks of increased surveillance. In July, Diplo hosted experts from various stakeholder groups to discuss their expectations before the final round of UN negotiations and to review the draft treaty. Experts noted an unprecedented alignment between industry and civil society on concerns about the draft, emphasising the urgent need for a treaty focused on core cybercrime offences and strengthened by robust safeguards and clear intent requirements.

Human rights protections and safeguards were among the most contested areas in the draft treaty throughout the negotiation process. We provided a detailed analysis of these disagreements earlier. During the final session, some states advocated for the inclusion of specific human rights in the treaty, while others preferred a more general reference without an exhaustive listing. Overall, states were divided: One group repeatedly emphasised that this was not a human rights treaty and argued that human rights should not become an obstacle to effective cross-border cooperation in combating cybercrime, while others reiterated that the lack of explicit references to human rights is itself a barrier to such cooperation.

The debates surrounding the very title of the convention highlighted ongoing challenges among states in agreeing on the scope and terminology for this legal instrument. During the final session, the majority of delegations advocated for a succinct title, suggesting ‘United Nations Convention Against Cybercrime’ for clarity.  However, the use of the term cybercrime has not been agreed upon by all states. Russia, in particular, criticised the use of cyber terminology, arguing that it does not align with the mandate. Instead, it supported the use of ICTs, which had been agreed upon by states and included in the use of terms (Article 2). In the end, both terms were used: The convention was named ‘United Nations Convention against Cybercrime (Crimes Committed through the Use of an Information and Communications Technology System)’. 

These are not the only areas of disagreement. We will provide a more detailed analysis from the final session on dig.watch come Monday (19 August).

The convention establishes ‘a global criminal justice policy’ to protect society against cybercrime by ‘fostering international cooperation’ and will now be presented to the UN General Assembly for formal adoption later this year. It will take effect once ratified by at least 40 member countries.

You can read the full text of the convention or explore the convention with Diplo’s AI assistant on our dedicated AHC page.

And if you’re curious about how this convention compares to the Budapest Convention, there’s a comparative analysis in the pipeline.

Andrijana, Anastasiya, and the Digital Watch team

Highlights from the week of 9-16 August 2024

flag of usa and china on cracked concrete wall background

Alphabet behind the wheel: US dominates AI, but China closes in

Baidu tops AI patent applications, showcasing China’s growing strength in the field.

artificial intelligence technology concept with human hand using laptop keyboard digital sphere with microcircuit ai sign inside

Humans to maintain control over AI, says OpenAI executive

AI systems become more controllable, easing fears about their potential risks, says Kwon.

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Australia set six-month deadline for AI use disclosure

Australian government aims to boost public trust in technology adoption.

beautiful hand woman opening play store logo

Google ordered to allow more app download options after Epic Games victory

These cases underscore increasing legal and regulatory pressure on Google’s business model and practices, with potential broad repercussions for the tech industry.

the flags of the united kingdom and france fly side by side

UK and France to launch consultation on misuse of commercial cyber intrusion tools

The UK and France will begin a consultation as part of the Pall Mall Process to address the misuse of commercial cyber intrusion tools, involving input from states, industry, and civil society experts.

the white house

White House announces plan to strengthen open-source software security

The White House and DHS have launched an $11 million initiative to enhance the security of open-source software in critical infrastructure, emphasizing collaboration between the government, private sector, and cybersecurity community.

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Ransomware group dismantled by global authorities

Authorities have dismantled the servers and domains in Germany, the US, and Britain.

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Financial Times: Cyber insurers emerge as winners amid recent CrowdStrike IT outage

July’s massive tech outage caused significant disruptions and $15 billion in damages, but the majority of these costs were uninsured, leaving cyber insurers largely unaffected.

turkey flag is depicted on the screen with the program code

Turkey lifts Instagram ban after agreement

The social media platform was initially blocked on 2 August for failing to adhere to Turkish regulations and public sensitivities, including accusations of blocking condolence posts for Hamas leader Ismail Haniyeh.

View all updates

Reading corner

a bitcoin conference in the usa realistic no people

‘Please, please president, we don’t want any more electricity’

Republican Party candidate and former US President Donald J Trump is the first high-visibility political figure in the USA who has agreed to address the bitcoin crowd. What did he promise to the crowd in Nashville?

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Andrijana Gavrilovic – Author
Editor – Digital Watch; Head of Diplomatic & Policy Reporting, DiploFoundation
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Virginia Paque – Editor
Senior Editor Digital Policy, DiploFoundation
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DW Weekly #172 – 9 August 2024

Page, Text

Dear readers, 

Welcome to another issue of the Digital Watch weekly! 

Remember that ScarJo vs OpenAI kerfuffle over her voice being used for ChatGPT? Here’s a quick summary: OpenAI used a voice eerily similar to actress Scarlett Johanson’s voice, seemingly inspired by her performance as an AI assistant in the movie Her. The catch is that OpenAI did it without her consent. The company has since removed the voice from ChatGPT. Most recently, Johannson said OpenAI CEO Sam Altman would make a good Marvel villain.

This week, The New York Times reported that Meta is negotiating with actors such as Judi Dench, Awkwafina, comedian Keegan-Michael Key, and other celebrities and influencers to use their voices for its MetaAI digital assistant. Reportedly, Meta could pay millions in fees to secure their voices.

Our voices are one of the very few things that are uniquely ours, and as such, are considered biometric data. We are certainly more accustomed to other data being used for biometric identification – chief among them our fingerprints and faces to unlock our sleeping devices. Voice identification is plagued with problems that make it less accurate than other kinds of biometric identification. For instance, if we contract a cold, it can be enough for the software not to recognise the voice. Still, voice identification is a viable identification method.

The Little Mermaid gave up her voice in a deal with the evil sea witch – she did it for love. Celebrities might sell their voice for money. Readers, would you do it? Would you feel comfortable with your voice saying thoughts that are not yours?

A corporation is depicted as an evil, black sea witch offering a contract to a mermaid who is holding bubbles containing a heart and musical notes.

The UN Ad Hoc Committee (AHC) adopted a draft convention on cybercrime after extensive negotiations – keep an eye out for a short update on the outcomes next week and a more extensive analysis in the next few weeks.

If you’re an AI professional or enthusiast watching the Paris Olympics or an Olympian reading this digest, scroll down to our reading corner or click here to read our take on the transformative impact of AI on the Olympics.

Andrijana and the Digital Watch team

Highlights from the week of 2-9 August 2024

google mobile application smart phone screen

Google found guilty of antitrust violations

Google controls about 90% of the online search market and 95% of smartphones.

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Apple-Google deal faces threat after monopoly ruling against Google

Apple’s lucrative $20 billion annual deal with Google, which sets Google’s search engine as the default on Apple devices, could be under threat after a US judge ruled that Google…

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Air travellers sue CrowdStrike over global outage

The global computer outage caused by CrowdStrike’s software update led to lawsuits from air travellers.

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Neuralink implants device in second patient

The first patient, Noland Arbaugh, can now play video games and browse the internet using the implant.

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Altman hints at groundbreaking AI, reveals Project Strawberry

Project Strawberry includes a ‘deep-research’ dataset, expected to revolutionise AI research capabilities.

chinese flag with the city of shanghai in the background and digital letters ai somewhere over the flag

487 new AI algorithms from Baidu, Alibaba, Tencent approved in China

The growing number of approved algorithms highlights an efficient approval process and China’s striving for leadership in AI regulation.

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Musk revives lawsuit against OpenAI and Sam Altman

The revived suit alleges that Altman has altered the narrative to capitalise on the company’s technological advancements, moving away from the altruistic mission it was founded upon.

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US states and lawmakers support TikTok ban

They argue that TikTok poses a national security threat due to its ties to China, which could exploit user data.

asian woman using tiktok application her iphone14 while relaxing coffee shop

TikTok withdraws rewards program from EU to comply with DSA

The programme allowed users to earn points for activities such as watching videos and liking content.

national flag of the philippines

Philippines Central Bank to lift moratorium on digital bank licenses in 2025

New digital bank licenses in the Philippines will require innovative business models and a focus on reaching underserved markets.

View all updates

ICYMI

Discover how John Calvin’s 16th-century ideas on individualism and societal responsibility journeyed from Geneva to Silicon Valley and shaped today’s tech-driven world!

What exactly is a deepfake and how do you spot one? Find out in the 7th part of our AI shorts series.

Survey

Olimpic AI Agenda

How will the Olympic AI agenda shape the future after Paris 2024?

Discover how AI is transforming every facet of the Olympics, from organisation, logistics, data collection, and event broadcasting, to the sustainability of the games. Join us for an in-depth exploration of the Olympic AI agenda.

fact fake wordplay banner headline

Disinformation takes to the streets: lessons from other countries that could inspire discussions in the UK

Content governance and disinformation came into the sharp public focus as hate speech spilt over from social media platforms to the streets of UK cities. Marilia Maciel provides just-in-time reflections on what can be done to improve online content governance and reviews key findings from Diplo’s research on online disinformation and content management. Read the blog and register for debates in September.

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Andrijana Gavrilovic – Author
Editor – Digital Watch; Head of Diplomatic u0026amp; Policy Reporting, DiploFoundation
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Virginia Paque – Editor
Senior Editor Digital Policy, DiploFoundation
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DW Weekly #171 – 2 August 2024

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Dear readers, 

Welcome to another issue of the Digital Watch weekly! 

The co-conveners of the World Trade Organization (WTO) Joint Initiative (JI) on Electronic commerce – Australia, Japan and Singapore – have published a stabilised text of an Agreement on Electronic Commerce, a significant milestone after almost seven years of discussions and negotiations.

Either you know exactly what we’re writing about, or it is all gobbledygook to you. Let’s break it down.

What’s a WTO JI? WTO Joint Initiatives (JIs) are a way for a group of World Trade Organization members to move forward on specific issues without waiting for the entire organisation to reach a consensus. They are open to any WTO Member. 

What does the WTO JI on Electronic commerce negotiate? This JI tackles a mix of traditional trade issues and modern digital policy challenges. Discussions cover trade facilitation, cross-border data flows, data localisation, access to source code, and net neutrality.

Why is the WTO JI particularly important? So far, e-commerce and digital trade regulations have been handled mainly through preferential trade agreements (PTAs) between countries. However, there isn’t a specific WTO agreement on e-commerce. Creating one would help standardise e-commerce rules globally, making it easier for everyone to do business in the digital age.

What’s in the Agreement on Electronic Commerce? The text contains provisions to:

  1. Promote easy digital trade within and between countries, including electronic signatures and invoices.
  2. Make international digital trade more reliable and affordable by working together on cybersecurity risks.
  3. Permanently ban customs duties on digital content among participating countries.
  4. Protect online consumers from misleading and fraudulent activities.
  5. Protect the personal data of workers and consumers
  6. Help consumers and companies from developing countries participate in digital trade.
  7. Digitalise the various trading systems to make global trade cheaper, faster, and more secure for businesses.
  8. Encourage competition in the telecommunications sector by ensuring independent regulators, better access to infrastructure, and market-based frequency band assignments.

What’s missing in the text? Negotiations on crucial digital issues like data flows and source code hit a roadblock when the USA pulled its support to maintain domestic policy flexibility. While data flows are essential for the digital economy, global rules on this matter are unlikely to be agreed upon anytime soon. The co-conveners simply state that ‘participants recognise that some issues of importance to digital trade have not been addressed in this text. Participants will discuss the inclusion of these issues in future negotiations.’

Who’s missing from the deal? The latest draft text, published by the co-conveners, represents 82 out of 91 JI members. However,  Brazil, Colombia, El Salvador, Guatemala, Indonesia, Paraguay, the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu, Türkiye, and the USA are still reviewing the text domestically.

Under the title 'Agreement on Electronic Commerce, delegates discuss around a table with a computer and papers. Chat bubbles contain icons of agreement, shopping carts, a graph, a fingerprint a piggy bank, and an umbrella.

What are the next steps? To become the basis for global rules on digital trade among WTO members, the text must be integrated into the WTO legal framework. However, the JI on e-commerce runs into a snag here.

The JIs themselves run into opposition from a number of WTO members who hold that JSIs do not have any legal status because they were not launched based on consensus. Similarly, these countries claim that the outcomes of JIs are not based on consensus and are neither multilateral agreements nor plurilateral agreements as defined in Article IV of the agreement that established the WTO – the Marrakesh Agreement.

If the agreement crosses the finishing line, our colleague Marilia Maciel writes that five changes in the global landscape are important to consider in its implementation. These are rising digital inequality, a shift eastwards in digital trade rule-making, the growing importance of Digital Economy Agreements (DEAs), the uncertain consequences of the re-wiring of Global Value Chains, and the systemic nature of challenges to multilateralism.

In other news, researchers uncovered the largest ever ransomware payment of a whopping USD 75m, the EU AI Act officially comes into force on 1 August, and the concluding session of the Ad Hoc Committee on Cybercrime has reached its halfway point today.

Andrijana and the Digital Watch team

Highlights from the week of 26 July-2 August 2024

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Record $75 million ransom paid to hackers

Researchers also note that the USA remains the top target for ransomware, followed by the UK and Germany.

8U8BWHpU Meta

Meta settles Texas lawsuit for $1.4 billion

Filed in 2022 under Texas’ 2009 biometric privacy law, the lawsuit accused Meta of capturing biometric data through the ‘Tag Suggestions’ feature, which has since been discontinued.

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UK scrutinises Google-Alphabet AI deal

The scrutiny is part of a global regulatory effort, highlighted by a joint statement from the CMA, US, and the EU regulators to safeguard fair competition in the AI industry.

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Microsoft has acknowledged OpenAI as a rival in search technologies

Historical tech partnerships often evolve into competitive relationships.

the us capital building at night with a full moon politics senate house of representatives

US Senate approves major online child safety reforms

Supporters, including some tech executives and advocacy groups, see the legislation as crucial for protecting children online.

malta osce

Malta calls for international action on cybersecurity

Minister for Foreign and European Affairs and Trade from Malta, Ian Borg, advocated for increased cyber resilience among OSCE member countries through enhanced cooperation.

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Civil society and industry share concerns about the UN draft Cybercrime Convention

Stakeholders, including the UN High Commissioner for Human Rights and the Electronic Frontier Foundation, stress the need for more transparency and robust protections in the treaty.

cybersecurity cybercrime internet scam anonymous hacker crypto currency investment digital network vpn technology computer virus attack risk protection

Personal data of 40 million voters exposed in UK hack

Despite the breach, the ICO found no evidence of data misuse. In response, the Electoral Commission has since upgraded its security infrastructure.

north korea flag is depicted on the screen with the program code

North Korea steals massive data haul from US Military and NASA

The hackers also infiltrated NASA’s systems, extracting over 17 gigabytes of data.

Biden signs 2023 Executive order on AI CNBC

Kamala Harris gains momentum for 2024 nomination with strong Silicon Valley backing

Key industry figures highlight her stable leadership and alignment with Silicon Valley values.

View all updates

Reading corner

selective focus of toy shopping cart with small carton boxes near laptop e commerce concept

The WTO Joint Initiative stabilised Agreement on Electronic commerce: Looking at the broader picture

The WTO Joint Initiative stabilised ‘Agreement on Electronic Commerce’ must contend with five changes that took place in the global landscape that are important to consider in its implementation.

robot hands fingers point laptop button advisor chatbot robotic artificial intelligence concept

‘New interview with AI. Confessions. Know the weaknesses.’

In his second chat with AI, Petru Dimitiriu delves into a conversation revealing AI assistants’ strengths and weaknesses.

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📢 We want your feedback!

Are you following the UN OEWG on cybersecurity discussions? We want to hear from you! 

Help us improve our reporting by participating in our short survey. Your insights are invaluable and will directly contribute to making our coverage even better. 

Thank you for your time and support!

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Andrijana Gavrilovic – Author
Editor – Digital Watch; Head of Diplomatic & Policy Reporting, DiploFoundation
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DW Weekly #170 – 26 July 2024

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Dear readers, 

Welcome to another issue of the Digital Watch weekly! 

It should have been a routine update. Alas, an update Crowdstrike issued to its Falcon Sensor kernel-level driver that protects Windows computers caused a major tech outage last Friday, disrupting operations across different industries worldwide, including air travel, healthcare, financial services, and media. 

Caricature drawing of three human figures studying CrowdStrike computer screens and a black world analysis map. Pin markers and lines connect a global network with interspersed Microsoft blue screens of death.

The problem began when CrowdStrike released a content configuration update for the Windows sensor to collect telemetry on potential new threat techniques. These updates are a regular aspect of the Falcon platform’s dynamic protection system, sometimes occurring daily. However, this particular update contained a logic error that resulted in a system crash, causing the notorious blue screen of death (BSOD) on 85 million Windows devices.

The issue was traced back to a bug in CrowdStrike’s Content Validator, which allowed the problematic update to pass validation despite containing problematic content data. 

The silver lining? The outage, while severe, did not lead to exploitation by malicious actors on a larger scale. However, CrowdStrike intelligence reported observing threat actors leveraging the situation in Latin America, underlining the vulnerability of digital systems to exploitation.

Financially, the impact of this incident is staggering. According to cyber insurer Parametrix, the faulty update could result in losses of up to $54 billion for companies like Microsoft, major airlines, banks, and healthcare providers. In a bizarre twist, CrowdStrike tried to make amends by sending $10 Uber Eats gift cards to affected partners. However, many recipients got error messages saying the vouchers were cancelled, with Uber flagging the high redemption rate as fraud.

Screenshot of a CrowdStrike memo thanking clients with the offer of a USD 10 UberEats credit.

What did we learn from this case? Numerous organisations are overreliant on single-point IT solutions. Should tech companies bear responsibility for cyber risks associated with their products and services? 

Defining supplier responsibility (and liability) for the security and stability of digital products through legal instruments is essential for ensuring accountability and safety. This would incentivise companies to invest more in robust security measures, thorough testing protocols, and fail-safe mechanisms. Moreover, it would foster a culture of responsibility within the tech industry, where the potential real-world impacts of digital failures, their solutions, and their broader implications for society are given the serious consideration they deserve. 

As these debates heat up, the scrutiny of cybersecurity practices is intensifying:  CrowdStrike’s CEO has been summoned by a US congressional committee to explain the mess, underscoring the growing legislative interest in the issue. 

In other news, France is bracing for cyberattacks as the Olympics kick off. The USA, the EU, and the UK authorities pledged to protect competition in generative AI foundation models and AI products. Meanwhile, Sam Altman is advocating for a USA-led global coalition on AI to ensure a democratic vision for AI prevails over an authoritarian one.

Andrijana and the Digital Watch team

Highlights from the week of 19-26 July 2024

eu ai act

European Parliament forms joint working group to monitor AI Act implementation

Details on how the working group will function will be finalised after the summer.

3d render artificial intelligence logo deep learning blockchain neural network concept generative ai

US, EU, UK pledge to protect generative AI market fairness

The statement recognises the profound potential of AI and foundation models, pinpointing several competition risks: concentrated control of key AI resources, market power entrenchment by incumbent digital giants, and potentially anti-competitive collaborations among major AI players.

Sam Altman WEF

OpenAI CEO emphasises democratic control in the future of AI

Altman also advocates for international collaboration and possibly establishing governance bodies to ensure AI benefits are widely shared and risks minimised.

nvidia chip

Nvidia develops China-specific AI chips amid tightening US export controls

Despite initial weak sales, Nvidia is now on track to sell over 1 million H20 chips in China this year, generating more than $12 billion.

search bar google chatgpt competitors

OpenAI challenges Google with SearchGPT

SearchGPT offers summarised results with source links and follow-up queries.

WTO building

Some progress in snail-pace e-commerce negotiations at WTO

The Joint Statement Initiative on Electronic Commerce, co-convened by Australia, Japan, and Singapore, announced a milestone on 26 July 2024, with participants reaching a stabilised text for the Agreement on Electronic Commerce after five years of negotiations. The negotiations will continue.

singapore

EU and Singapore finalise digital trade deal

Expected to lower business costs and boost services trade, it underscores Singapore’s significant role as the EU’s fifth-largest services trade partner, with over half of the €43 billion services traded in 2022 delivered digitally.

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Spain investigates Apple’s App Store practices

The probe will examine whether Apple imposed unequal commercial conditions on developers of mobile applications sold through its App Store.

european union and meta platforms

EU prepares hefty fine for Meta’s Marketplace practices

The potential fine for Meta could reach $13.4 billion, or 10% of 2023 global revenue.

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Nigeria imposes $220 million fine on Meta for data protection violations

The fine, one of the largest by an African regulator on a global tech company, follows a 38-month investigation revealing Meta’s non-compliance with Nigeria’s Data Protection Regulation (NDPR).

cyber attack anonymous people hacking security protection hackers access sensitive data cyber war

Hackers leak documents of Pentagon’s IT service provider

The breach is suspected to stem from an earlier hack of a system by third-party vendor Diligent Corp.

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French prime minister predicts inevitable cyberattacks on Olympics

The country is committed to minimising their impact, says Prime Minister Gabriel Attal.

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AI voice clone enables lawmaker to speak in US Congress

Battling progressive supranuclear palsy (PSP), a condition that limits her ability to speak and move, Wexton announced in September that she will not seek re-election due to her worsening health.

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ICYMI

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Using current and emerging cyber tools for disaster management in Africa

This webinar explored how advanced technology can improve disaster preparedness, response, and recovery in Africa, highlighting innovative cyber tools and solutions that enhance crisis management and resilience.

DW Weekly #169 – 19 July 2024

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Dear readers, 

Welcome to another issue of the Digital Watch weekly! 

The 8th substantive session of the Open-ended Working Group (OEWG) on security of and in the use of information and ICTs 2021–2025 ended last Friday. The group gathered to adopt its annual progress report (APR), which takes stock of the group’s discussions over the previous year but also charts the way forward for the group’s discussions for the following year.

The OEWG is a process encompassing all interested UN members, and it adopts its decisions by consensus, so adopting APRs is always a momentous effort. This time, 80 UN member states participated, with their views on what the APR should or should not contain. The chair opened the session by pleading for members to maintain a dynamic of mutually agreed additions to the text of the APR, not mutually decided deletions leading to the document being empty.

Things were tense through the penultimate meeting (the OEWG sessions are typically made of ten meetings), while Iran held that they could not accept the document. The crux of Iran’s unwillingness was paragraph 27, which Iran feels does not accurately reflect the international legal order because the text says that states have obligations stemming from voluntary norms. However, at the very last meeting, Iran distanced itself from paragraph 27, and the APR was adopted.

Drawing shows standing observers studying a bar chart on the wall. The chart shows the relationship of threats, norms, international law, confidence-building measures, capacity building and regular institutional dialogue from 2019 through 2024 with a red bar. A UN logo is shown on the wall to the left of the chart.

What is not solved in the OEWG will undoubtedly make its way into the agenda of the next mechanism, but not everything should be deferred, or the delegations will be in for quite a headache in 2026. Town halls and intersessional meetings can be held to discuss international law and to agree on the elements of regular institutional dialogue, and we know Chair Burhan Gafoor is good at that – last year, the pace of meetings was near-breakneck speed.

A summary of the discussions is available on Digital Watch. AI reports and transcripts from the 8th substantive session are available on our dedicated web page – a more in-depth human-generated analysis is planned for next week.

UNFOLDING NOW
A major tech outage today (19 July) is disrupting operations across different industries worldwide, including air travel, healthcare, financial services, and media. The outage’s root cause was traced to a software update by cybersecurity firm CrowdStrike, whose CEO stated, ‘The issue has been identified, isolated, and a fix has been deployed.’ We’ll follow the story as it develops.

Andrijana and the Digital Watch team

Highlights from the week of 12-19 July 2024

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Worldwide IT outage grounds planes and disrupts airlines and banks globally

Key sectors including media, healthcare, and financial services also experienced significant impacts.

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OpenAI’s project Strawberry: Transformative AI sparks ethical debate

As OpenAI’s Strawberry advances the reasoning capabilities of models the company must face off with its employees who consider such models a threat to humanity.

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France investigates Nvidia for anti-competitive practices

Nvidia could face charges if the investigation yields sufficient evidence, hinting at the gravity of the situation.

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Trump assassination attempt sparks online conspiracy theories

The incident has led to a surge in wild claims and disinformation online

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FBI unlocks Trump shooter’s phone in 40 minutes

The FBI was assisted by the Israeli firm Cellebrite.

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Kaspersky Lab shuts US offices after a ban over national security risks

Kaspersky will continue operations outside the US, focusing on other strategic markets.

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ByteDance loses EU court challenge

TikTok’s owner, ByteDance, must comply with EU gatekeeper regulations CJEU rules.

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US senators demand answers from AT&T and Snowflake on data breach

US senators press AT&T, Snowflake on data breach, fearing sensitive customer data auctioned or compromised, demand accountability.

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Nokia and Telecom Egypt introduce 5G to Egypt

Nokia and Telecom Egypt have partnered to introduce 5G technology to Egypt, enhancing connectivity in major cities with Nokia’s AirScale portfolio. This collaboration aims to revolutionise Egypt’s digital landscape and support innovation.

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EU regulation on Ecodesign for Sustainable Products comes into force

The EU’s new regulation requires Digital Product Passports for most products by 2030.

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Moroccan AI influencer wins Miss AI title

Kenza Layli, an AI-generated Moroccan influencer, has been crowned the first Miss AI. Created by Myriam Bessa, Layli promotes diversity and inclusivity in the AI creator landscape, outshining 1,500 entries worldwide.

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ICYMI

Do we need a new international treaty to protect critical infrastructure (CI)? Which challenges would this help to address, and why? What could be the scope of this treaty? We asked our guests, Aude Géry, Senior Researcher in Public International Law and Digital Security, Geopolitics of the Datasphere (GEODE), and Marc Henauer, Senior Politics and International Affairs Officer, Swiss National Cyber Security Centre (NCSC).

Upcoming

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Using current and emerging cyber tools for disaster management in Africa

This webinar will focus on leveraging technology to enhance preparedness, response, and recovery efforts in the face of natural or man-made disasters on the African continent. This webinar aims to explore the use of cutting-edge cyber tools and technologies to improve disaster management in Africa. It will delve into innovative solutions that enable quicker, more coordinated responses to crises, ultimately enhancing overall resilience in the region.