Shhh… Snowden Supports Apple’s Public Stance On Privacy

Edward Snowden Supports Apple’s Public Stance On Privacy

by Josh Constine (@joshconstine)

Edward Snowden says we should support Apple’s newly emphasized commitment to privacy rather than a business model driven by personal data collection, whether or not Tim Cook is being genuine. Snowden spoke over video conference during the Challenge.rs conference in Barcelona today.

I asked Snowden his thoughts on Cook’s recent acceptance speech for an Electronic Privacy Information Center award, saying:

CEO Tim Cook recently took a stand on privacy and Apple’s business, saying “some of the most prominent and successful companies have built their businesses by lulling their customers into complacency about their personal information. They’re gobbling up everything they can learn about you and trying to monetize it. We think that’s wrong. And it’s not the kind of company that Apple wants to be.”

Do you think Cook’s perspective genuine and honest, and how do you think it will play out long-term with regards to it hurting or helping Apple’s business, or whether Apple will keep this promise to privacy?

Snowden responded:

I think in the current situation, it doesn’t matter if he’s being honest or dishonest. What really matters is that he’s obviously got a commercial incentive to differentiate himself from competitors like Google. But if he does that, if he directs Apple’s business model to be different, to say “we’re not in the business of collecting and selling information. We’re in the business of creating and selling devices that are superior”, then that’s a good thing for privacy. That’s a good thing for customers.

And we should support vendors who are willing to innovate. Who are willing to take positions like that, and go “You know, just because it’s popular to collect everybody’s information and resell it..to advertisers and whatever, it’s going to serve our reputation, it’s going to serve our relationship with our customers, and it’s going to serve society better. If instead we just align ourselves with our customers and what they really want, if we can outcompete people on the value of our products without needing to subsidize that by information that we’ve basically stolen from our customers, that’s absolutely something that should be supported. And regardless of whether it’s honest or dishonest, for the moment, now, that’s something we should support, that’s something we should incentivize, and it’s actually something we should emulate.

And if that position comes to be reversed in the future, I think that should be a much bigger hammer that comes against Apple because then that’s a betrayal of trust, that’s a betrayal of a promise to its customers. But I would like to think that based on the leadership that Tim Cook has shown on this position so far, he’s spoken very passionately about private issues, that we’re going to see that continue and he’ll keep those promises.

It’s reasonable to wonder how much of Cook’s chest-beating on privacy is philosophy and how much is marketing. Since the iCloud celebrity photo hack last year, we’ve written about how Apple needs to be more transparent about security and privacy. Snowden seems to agree it could benefit the company as well as society.

Apple’s steps in that direction through press releases and public appearances by Cook have been positively received. They resonate especially well with the public in contrast to other tech giants like Google and Facebook that are aggressively collecting private personal data, and the widespread security breaches of big brands.

Yet while people frequently say privacy is important to them, their unwillingness to stray from products that rely on mining their data seems to suggest otherwise. We’re just at the start of the age of personalized computing, and those that embrace it may get an advantage in the market.

Apple is experimenting with ways to personalize with privacy in mind. Its new Proactive update to Siri scans your email to remind you about events, but only does this on your device rather than copying your data to its servers for processing. To keep up while remaining true to its ideals, Apple will need more creative solutions like this to deliver convenience without being creepy.

Obama's Still On the Wrong Frequency On Cybersecurity Issues

This is probably the most telling moment of how US President Barack Obama is still on the wrong frequency on cyber matters…

Obama blamed the “impact on their [the tech companies] bottom lines” for the mistrust between the government and Silicon Valley in the aftermath of the Snowden revelations. These were his words, straight from the POTUSA mouth rather than reading from the scripts, in an exclusive interview with Re/code’s Kara Swisher (see video below) following the well publicized cybersecurity summit at Stanford University last Friday, when he signed an executive order to encourage the private sector to share cybersecurity threat information with other companies and the US government.

Contrast that with the high-profile speech by Apple CEO Tim Cook (see video below), who warned about “life and death” and “dire consequences” in sacrificing the right to privacy as technology companies had a duty to protect their customers.

His speech was delivered before Obama’s address to the summit – which the White House organized to foster better cooperation and the sharing of private information with Silicon Valley – best remembered for the absence of leaders from tech giants like Google, Yahoo and Facebook who gave Obama the snub amid growing tensions between Silicon Valley and the Obama administration. Heavyweights whom Obama counted as “my friends” in the Re/code interview (watch closely his expression at the 39th second of the clip above).

Shhh… US in Long Battle As China Request Source Code From Western Technology Companies

This spat on intrusive rules is going to be a huge long battle.

The US is voicing opposition to Chinese rules that foreign vendors hand over the source code if they were to supply computer equipments to Chinese banks – which could expand to other sectors as the matter is “part of a wider review”.

Other measures to comply with include the setting up of research and development centers in China and building “ports” for Chinese officials to manage and monitor the data processed by their hardware.

Submitting to these “intrusive rules” for a slice of the huge Chinese markets also means alienating the rest of the world – as complying with these rules means creating backdoors, adopting Chinese encryption algorithms and disclosing sensitive intellectual property.

Find out more from this video:

US-China Spat on Intrusive Rules – And Actual Intrusions

Speaking of “intrusive rules” (see BBC report far below) and “actual intrusions” in China, the latter I have expanded recently in two articles – one on Apple yesterday and the other on VPN blocks last week – and merged in this new column I’m also pasting right below.

The long and short of it, it’s espionage made easy. Period.


Apple Lets Down Its Asia Users

Written by Vanson Soo
MON,02 FEBRUARY 2015

Knuckling under to China on security inspections

If you are a die-hard fan of Apple products and if you, your company or business have anything to do with mainland China, recent developments involving the US tech giant can be construed as bad news, with deeper implications than what was generally thought and reported.

First, about Apple.

I have always liked the beauty and elegance of Apple products. I have owned two Mac laptops and an iPhone but I have shunned them as anyone deeply conscious and concerned about privacy and security should do. Edward Snowden, for example, who laid bare extensive snooping by the US National Security Agency, recently said he had never used the iPhone given the existence of secret surveillance spyware hidden in the devices.

Consider the latest news that Apple Inc. has caved in to Chinese demands for security inspections of its China-made devices including iPhones, iPads and Mac computers. The move understandably makes business sense to Apple [and its shareholders] as China is just too huge a market to ignore – so the Cupertino-based company [whose market capitalization hit US$683 billion last week, more than double Microsoft’s US$338 billion] realized it simply couldn’t ignore Beijing’s “concerns” about national security arising from the iPhone’s ability to zero in onto a user’s location.

Now pause right there. No, there’s no typo above. And yes, the Android and Blackberry smartphones can also mark a user’s location. So what’s the catch? Figure that out – it’s not difficult.

What Apple found they can ignore is the privacy and security of its die-hard users – after all, it has been well documented that Apple users were [and probably still are] known for their cult-like loyalty to the brand. Look no further for evidence than last summer when Apple announced its plan to host some of its data from its China-based users on servers based inside the country and claimed the company was not concerned about any security risks from using servers hosted by China Telecom, one of the three state-owned Chinese carriers.

The company has also denied working with any government agencies to create back doors into its products or servers… So surrendering to security audits wouldn’t?

If only Apple users managed to chuck away their cult mentality and come to their senses about their privacy and security risks, the firm would realize the Google approach, though still not perfect, is a better way of cultivating brand loyalty.

And in case you’re wondering, I use Linux most of the time – and shun the most popular Linux distributions to be on the safe side.a

Now next. And this is bad news with far-reaching global implications – and it’s affecting not just only those based in China.

News surfaced in late January that some foreign-based virtual private network (VPN) vendors found their services in China had been disrupted following a government crackdown – which the authorities labeled as an “upgrade” of its Internet censorship – to block the use of VPNs as a way to escape the so-called Great Firewall.

The real impact is not merely on domestic residents who were cut off from YouTube, BBC/CNN news and other information sources but resident expatriates, multinationals, foreign embassies and those traveling to China, especially businessmen and executives. Think: Chinese espionage now made easy!

Many China-based internet users use VPNs to access external news sources but this is also bad news for companies and government offices based in China as well as anyone visiting the Chinese mainland – as many businessmen and executives use VPNs, as part of their company (and security) practice, on their business trips. Many foreigners and businesses residing in China also use VPNs for their day-to-day communications.

The VPNs provide an encrypted pipe between a computer or smartphone and an overseas server such that any communications would be channeled through it, which effectively shields internet traffic from government filters that have set criteria on what sites can be accessed.

And as China is fast moving beyond the “factories of the world” tag to become a global economic powerhouse and important trading partner to many developed and developing countries, this is one development to keep a close watch on.

Obama-XiJinping5

29 January 2015 Last updated at 14:35

US tech firms ask China to postpone ‘intrusive’ rules

By Kevin Rawlinson BBC News

US business groups are seeking “urgent discussions” over new Chinese rules requiring foreign firms to hand over source code and other measures.

The groups wrote to senior government officials after the introduction of the cybersecurity regulations at the end of last year.

The US Chamber of Commerce and other groups called the rules “intrusive”.

The regulations initially apply to firms selling products to Chinese banks but are part of a wider review.

“An overly broad, opaque, discriminatory approach to cybersecurity policy that restricts global internet and ICT products and services would ultimately isolate Chinese ICT firms from the global marketplace and weaken cybersecurity, thereby harming China’s economic growth and development and restricting customer choice,” the letter read.

The groups said that the rules would force technology sellers to create backdoors for the Chinese government, adopt Chinese encryption algorithms and disclose sensitive intellectual property.

Firms planning to sell computer equipment to Chinese banks would also have to set up research and development centres in the country, get permits for workers servicing technology equipment and build “ports” which enable Chinese officials to manage and monitor data processed by their hardware, Reuters reported.

Source code is the usually tightly guarded series of commands that create programs. For most computing and networking equipment, it would have to be turned over to officials, according to the new regulations.

Tension

In the letter, a copy of which has been seen by the BBC, the groups have asked the Chinese government to delay implementation of the regulations and “grant an opportunity for discussion and dialogue for interested stakeholders with agencies responsible for the initiatives”.

They added: “The domestic purchasing and related requirements proposed recently for China’s banking sector… would unnecessarily restrict the ability of Chinese entities to source the most reliable and secure technologies, which are developed in the global supply chain,” the letter, which was dated 28 January, read.

The letter from the American groups, including the US Chamber of Commerce, AmCham China and 16 others, was addressed to the Central Leading Small Group for Cyberspace Affairs, which is led personally by Chinese President Xi Jinping.

It comes at a time of heightened tension between the USA and China over cybersecurity. In May last year, Beijing denounced US charges against Chinese army officers accused of economic cyber-espionage.

Pressure

It was also alleged that the US National Security Agency spied on Chinese firm Huawei, while the US Senate claimed that the Chinese government broke into the computers of airlines and military contractors.

American tech firms, such as Cisco and Microsoft, are facing increased pressure from Chinese authorities to accept rigorous security checks before their products can be purchased by China’s sprawling, state-run financial institutions.

Beijing has considered its reliance on foreign technology a national security weakness, particularly following former National Security Agency contractor Edward Snowden’s revelations that US spy agencies planted code in American-made software to snoop on overseas targets.

The cyber-space policy group approved a 22-page document in late 2014 that contained the heightened procurement rules for tech vendors, the New York Times reported on Thursday.

From Apple With Love – Granting Chinese Security Audits Leaves More Deep & Profound Implications Than Betrayal of Apple Die-Hards

I always like the beauty and elegance of Apple products (I had 2 Mac laptops and 1 iPhone) but I have to admit I have already shunned them as anyone deeply conscious and concerned about privacy and security should do – Snowden, for example, recently said he never used the iPhone given the existence of secret surveillance spyware in the devices.

Consider the latest news that Apple Inc. has caved in to Chinese demands for security inspections of its China-made devices like the iPhones, iPads and Mac computers. The move understandably makes business sense to Apple (and its shareholders) as China is just too huge a market to ignore – so the Cupertino-based company (whose market capitalization hit $683 billion last week, more than double Microsoft’s $338 billion) realized it simply can’t ignore Beijing’s “concerns” about national security arising from the iPhone’s ability to zero in onto a user’s location.

Now pause right there. No, there’s no typo above. And yes, the Android and Blackberry smartphones can also mark a user’s location. So what’s the catch? Figure that out – it’s not difficult.

And what Apple found they can ignore is the privacy and security of its die-hard users – after all, it has been well-documented Apple users were (and probably still are) well known for their “cult” like loyalty to the brand. Look no further for evidence than last summer when Apple announced its plan to host some of its data from its China-based users on servers based inside the country and claimed the company was not concerned about any security risks from using servers hosted by China Telecom, one of the three state-owned Chinese carriers. The company has also denied working with any government agencies to create back doors into its products or servers… (So surrendering to security audits wouldn’t?)

If only Apple users somewhat managed to chuck away their cult mentality and come to their senses (about their privacy and security risks), the US tech giant would realize the Google approach (though still not the perfect example) is a better way to cultivating brand loyalty (see article below).

And in case you’re wondering, I use laptops with no parts made in China along with Linux most of the time – and shun the most popular Linux distributions to be on the safe side.


Apple’s New Security Concessions to Beijing

By Doug Young | January 27, 2015, 10:13 AM

Apple is deepening its uneasy embrace of Beijing security officials, with word that it has agreed to allow security audits for products that it sells in China. This latest development comes less than a year after Apple took the unusual step of moving some of the user information it collects to China-based servers, which was also aimed at placating security-conscious regulators in Beijing.

Apple’s increasingly close cooperation with Beijing contrasts sharply with Google, whose popular Internet products and services are increasingly being locked out of China as it refuses to play by Beijing’s rules. Other global tech giants are also having to deal with the delicate situation, each taking a slightly different approach to try to protect user privacy while complying with Beijing’s insistence that they make their information available to security-conscious government regulators.

As a relatively neutral observer, I can sympathize with both the Apples and Googles of the world. Companies like Apple have decided that China is simply too large for them to ignore, and thus are taking steps to address Beijing’s security concerns as a condition for access to the huge market. Microsoft has also taken a similar tack, and Facebook is showing it will also be willing to play by such rules with its recent repeated lobbying for a chance to set up a China-based service.

Google has taken a more defiant stance by refusing to compromise user privacy and free speech, with the result that a growing number of its products and services are now blocked in China. The company shuttered its China-based search website in 2010 over a dispute with Beijing on self censorship. Last year many of its global sites and even its Gmail email service also became increasingly difficult to access for users in China.

Apple isn’t being nearly so defiant, and the latest headlines say it has agreed to the audits of its products by the State Internet Information Office. The reports say Apple agreed to the audits when CEO Tim Cook met with State Internet Information Office official Lu Wei during a December trip to the U.S. I previously wrote about Lu’s trip after photos appeared on an official Chinese government website showing him visiting the offices of Facebook, Apple, and also Amazon.

Lu reportedly told Cook that China needs to be sure that Apple’s popular iPhones, iPads, and other products protect user privacy and also don’t compromise national security. Unlike other PC and cellphone makers that simply sell their devices to consumers, Apple actively keeps records of its product users and some of their usage habits and other related information on remote computers.

This latest move looks like an extension of another one last summer, which saw Apple agree to host some of the data from its China-based users on servers based inside the country. That move also looked aimed at calming national security worries from Beijing, since storing such information on China-based computers would make it more accessible to investigators conducting security-related probes.

In an interesting twist to the story, this latest report comes from a state-owned newspaper in Beijing, making it a sort of semi-official disclosure of China’s approach to the matter. That would follow the government’s own announcement of Lu Wei’s December trip, and perhaps shows that Beijing wants to be more open about steps it’s taking to address national security threats like terrorism. That kind of more open attitude could help both domestic and foreign companies to better navigate China’s tricky cyber realm, though it won’t be of much help to defiant companies like Google that are more intent on protecting free speech and user privacy.

Shhh… Tim Cook in China to Discuss Data Protection & iCloud Hacks

Apple CEO Tim Cook tweeted his photo Wednesday during a China “road trip” where he visited Foxconn and also met Chinese vice premier Ma Kai in Beijing to discuss recent targeted attacks on iCloud originating from the country – The activist group GreatFire.org has reportedly alleged Chinese government involvement.

Meanwhile, Apple has published a guide on how one can verify the authenticity of the iCloud website in Safari, Chrome and Firefox.