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Dutch DPA fines Uber €290M because of transfers of drivers’ data to the US

wyager
50 replies
1d6h

We are fortunate to have lived through a brief period where the internet was truly a global network. A person in the Netherlands or Nigeria [1] could access the best technology services the world had to offer. People could more or less interact freely across borders.

Obviously this is coming to an end. Every fiefdom wants their cut and their say, to the point where the internet being a global network is obviously becoming inviable. It was fun while it lasted.

[1]: https://www.reuters.com/technology/nigerias-consumer-watchdo...

sjamaan
21 replies
1d6h

These laws have been created for good reasons, and US tech companies have had free reign to trample on people's privacy rights for a very long time.

If a company acts in a honorable way, there's nothing to fear and they can easily do business world wide. It's when companies do things that are shady and should've been outlawed from the start that they run into trouble. The main issue here is that the US has the least restrictive laws and allows its citizens' privacy to be grossly invaded, which means these companies now feel like they're being unnecessarily restricted.

If the US had stricter laws, this would be a non-issue and you wouldn't hear anyone about it. It's all very myopic and US-centered to focus on the company's freedom to do as it pleases. What about the users' freedom to live without being spied upon? Free market rules don't apply - the network effects are too big to really say "you can take your business elsewhere if you don't like it". Also it's a transparency issue - it's too hard to tell from the outside how your data will be handled to make an informed decision about what companies to deal with. Especially because all of them treat your data like they own it, as a cash cow.

pembrook
17 replies
1d5h

It's all very myopic and US-centered to focus on the company's freedom to do as it pleases.

The Dutch DPA is not accusing Uber of doing anything nefarious. They are mad that Uber, as an American company, can be compelled by the US government to hand over data. Ultimately, their beef is not with US companies, it’s with the US government.

This is all wildly ironic because the EU is constantly trying to spy on their own citizens and undermine encryption. The EU is just upset that the US is able to do it instead of them.

This is just companies being caught in a geopolitical spat between competing powers. The EU keeps moving the goalposts on what constitutes “safe” transfers (we’re on the 5th round of this). So there’s no way for companies to be compliant unless the US government changes its laws. So right now it’s just a lever to extract money from US corporations via never ending fines.

The US government and the EU need to sort this out. Blaming the companies shows a total lack of understanding of the real situation. I get that we all hate big tech now, but there’s literally no way to comply in good faith with these competing EU cash grabs over the shifting specifics of how you can transfer data to US servers.

akie
4 replies
1d5h

That's a nonsensical load of hyperbole, pardon my French. It's not particularly difficult to be careful with personal data, it's just inconvenient and prevents all kinds of uses that can make you money - which is why US corporations would prefer to not implement it. But if you want to do business in the EU, you need to play by their rules. Simple.

pembrook
1 replies
1d5h

I have soberly explained the actual situation to you. I know it’s impossible to have a rational conversation about privacy on HN and my comments go against the narrative everyone has stuck in their heads here, but I urge you to look further into this issue.

This is an ongoing geopolitical spat and compliance in good faith is currently impossible.

I have spoken to many lawyers about this. Any US company operating in the EU is at risk of constant fines no matter what you do, due to this geopolitical issue.

troupo
0 replies
22h30m

Any US company operating in the EU is at risk of constant fines no matter what you do, due to this geopolitical issue.

So why don't the poor trillion-dollar supranational corporations do anything about it?

I can tell you why: they are happy about this. And you can often find they sign their support for these laws in the US.

--- start quote ---

The CLOUD Act primarily amends the Stored Communications Act (SCA) of 1986 to allow federal law enforcement to compel U.S.-based technology companies via warrant or subpoena to provide requested data stored on servers regardless of whether the data are stored in the U.S. or on foreign soil.

The CLOUD Act received support from Department of Justice and of major technology companies like Microsoft, AWS, Apple, and Google.

https://en.wikipedia.org/wiki/CLOUD_Act?wprov=sfti1#

--- end quote ---

Boohoo cry me a river about the plight of these poor hapless companies.

JoshuaRogers
1 replies
1d2h

At my company, we do business in the EU. It's a wide market with many opportunities. We're extremely careful with personal data: we do not intentionally collect user data, we do not share data with any third-party (and certainly never sell it)!

Importantly though, the law does not suffice with "careful". We *think* we have our bases covered and are careful to try to ensure they are but we're not sure how to *know* our bases are covered. There's the fear that some logs that we believe are anonymous might be considered identifying by some data scientist armed with techniques we've never heard of. There's the concern that some third-party library might dynamically pull in a font-set that comes from a US-based CDN based on some user configuration that we don't foresee. There's the anxiety of asking "Did we forget something? Is the DNS server in us-east-1?" when trying to roll out new features.

These are all strawmen, but they represent the kind of anxiety we feel. Having done our best to respect the requirements and the spirit in which they were written, there's the fear that we were imperfect in our awareness and that that something could cost us a fine that would have gone to someone's salary.

I would very much condemn the indiscriminate collecting, reuse, and selling of personal data, but I would also caution that those of us wanting to play by the rules find them lacking in precision.

troupo
0 replies
22h31m

These are all strawmen, but they represent the kind of anxiety we feel.

No idea why you would feel the anxiety. If you're found lacking, you will forest get s notification from the DPA asking you to remedy the situation. You wont even be fined

TeMPOraL
4 replies
1d5h

Government spying on citizens is one thing. Companies is another. GDPR applies mostly to the latter, and in practice, today, most people in Europe aren't being harmed by their governments spying on them, but they are being harmed by private business abusing personal data.

AuryGlenz
3 replies
1d4h

I would much rather companies “spy” on me than the government.

amarcheschi
0 replies
1d4h

but the us can, and perhaps did in the past, and perhaps will in the future, be able to access all that data nonetheless. it's not a dicotomy

TeMPOraL
0 replies
1d4h

That's a pretty outdated preference in the current age in the West.

OKRainbowKid
0 replies
1d3h

I'd prefer if neither was the case. In the US, you can be certain that both are true.

troupo
2 replies
1d5h

"These cannibals keep eating people because their country's laws allow it. It's not right to blame the cannibals, the governments should figure it out."

ruthmarx
0 replies
1d3h

Except in this case people love being eaten and keep volunteering to be eaten by the cannibals.

pembrook
0 replies
1d5h

There is no actual OR theoretical harm from the companies. Only theoretical harm in the event the US government decides to spy on an EU citizen.

The correct analogy: “There’s cannibals in both countries governments. Country A claims Uber hasn’t done enough to protect from Country B’s government cannibals.

This ignores the shifting rules around proper data transfers to the US, but you wanted a pithy logical fallacy, so there you go.

simion314
0 replies
1d5h

This is all wildly ironic because the EU is constantly trying to spy on their own citizens

I am assuming you refer to a law proposal that was rejected, but did you know americans were sponsoring and pushing that law proposal to spy on chats? Yeah same CP people.

Also there is a GIANT difference for a country to "spy" on their own citizens and USA spying on foreigners , a country has a consitution and lwas that protect the citizens freedom where USA has no laws that protect foreigners freedom so the NSA guys could watch an EU citizens photos, read their emails since they are not from USA they are lesser humans.

earthnail
0 replies
1d5h

The people advocating for more privacy in the EU and pushing legislation like GDPR aren’t necessarily the same people who want to weaken encryption. Lots of things going on in the EU at the same time.

I agree though that it can be hard for a US company to comply with GDPR as every country seems to interpret it slightly differently. The same difficulty is coming on the AI legislation side.

LunaSea
0 replies
1d5h

Since the company getting fined is also the company that spied on police car positions in the US I don't think that this type of shady behaviour helped in showing good faith in this case.

Attrecomet
0 replies
1d5h

The EU keeps moving the goalposts on what constitutes “safe” transfers (we’re on the 5th round of this)

This is a wrong phrasing of the problem: The US is not, and has never been, a safe haven to transfer personal data to. However, it would significantly impact trade (and policing) concerns between the EU and the US if that statement were to be treated seriously. This is why the European Commission and the Parliament have repeatedly tried to create a framework which allows transfer of data despite the US' insistence on secret access to the data without due process (aka secret courts, which cannot be due process by any reasonable definition). European courts, again repeatedly, have taken the stipulations in various laws guaranteeing rights to citizens seriously, and keep striking down the badly made frameworks. It's not "shifting goal posts", but rather "not willing to accept the political costs of respecting citizens' rights".

muaytimbo
1 replies
1d3h

"What about the users' freedom to live without being spied upon?" Pretty simple, don't use Uber.

mrguyorama
0 replies
1d3h

Facebook showed this to be a stupid premise. You don't have to use a company to "interact with it" on the internet.

wyager
0 replies
1d4h

I'm not going to address your comment at the object level; I'm just going to point out that you've missed the point of my comment entirely. My comment is descriptive (the internet is going to become nationally siloed) not normative (a moral judgement on the conditions that are leading to this state of affairs).

stavros
5 replies
1d6h

EU citizens: We don't want our data in the US, where it can be siphoned off to other companies.

US company: siphons data

EU: You can't do that.

HN commenter: Damn these fiefdoms wanting their cut, what has the internet become? I pine for a simpler time, when I could do anything I wanted with data against people's will and nobody could stop me, that truly was the golden age.

renlo
4 replies
1d5h

He was saying that Uber will no longer operate in NL/EU, the pining was for "equal access to US services", not your data. FWIW, I am annoyed myself about having to accept GDPR popups on every website I visit, so I too pine for a day where US companies have nothing to do with "EU citizens".

stavros
1 replies
1d5h

Right, but the reason EU citizens don't have equal access to US services is because EU citizens decided that the services they use need to be careful with the EU citizens' data. US services said "nah, that sounds too hard, I'm outta here" instead.

jeltz
0 replies
1d5h

What US services left? Only ones I know of are a couple of US centric newspapers. Virtually everyone stay in the EU market.

jeltz
0 replies
1d5h

Hahaha, that will not happen. And if Uber against all odds actually leaves some other company will swoop in and take their market. Personally I prefer Bolt over Uber for rides here in Sweden.

ForHackernews
0 replies
1d5h

Imagine how much poorer the world will be when one fewer jitney cab company operates in the Netherlands.

teekert
4 replies
1d6h

Uber’s right to do what ever the f they want stops at my right to control information pertaining to me.

What’s freedom? GPL? BSD? Swinging a fist? Not getting hit on the nose?

michaelteter
2 replies
1d5h

Freedom to some means creating a startup that willfully ignores regulations in virtually every market while playing a funding ponzi game until finally handing the consequences off to the foolish public (IPO).

Attrecomet
1 replies
1d5h

We don't say "Ponzi scheme" here, we say "disrupting traditional markets" and "investment opportunity"

michaelteter
0 replies
1d3h

Or just “funding rounds”

wyager
0 replies
1d4h

You've missed the point of my comment. It has no normative claims, unlike your angry invective about rights. I'm just pointing out that the inevitable consequence of these new regulatory regimes is a nationally siloed internet. You can feel however you want about it; maybe that's a good thing from your perspective. But it's happening

mtkd
3 replies
1d6h

Access to tech is different from handling of personal data though -- the EU GDPR laws around that are clear and fair

People have a right to know where their personal data is going, what is being stored, what it is being used for and should have a mechanism to correct it and delete

The wider challenge is how that is handled in a compliant way with LLMs and generative tools which vendors do not seem to be taking particularly seriously yet

ndsipa_pomu
2 replies
1d5h

The wider challenge is how that is handled in a compliant way with LLMs and generative tools which vendors do not seem to be taking particularly seriously yet

I'm curious as to why people would want to train LLMs on personal identifying information. What's the benefit of an LLM that has a large collection of names, addresses, dates of birth etc.?

tpxl
1 replies
1d4h

Free-form text like Reddit posts contains a whole load of PII. Since there is absolutely no regard for what goes into a LLM, naturally, they also contain this PII.

ndsipa_pomu
0 replies
1d2h

That's not something that I've encountered on Reddit - I've mostly seen people deliberately not using their real names.

If there is indeed a lot of personal identifying information from Europeans on Reddit, then they'd better get ready for a GDPR investigation.

ndsipa_pomu
2 replies
1d6h

Well, I'm not sure that I'd equate "freedom" with companies exploiting people's personal identifying information and selling it for their own profit. Personally, I don't want my information that's protected by GDPR in my own country to be smuggled into another country where there's almost no legal protection for someone's data/privacy.

imachine1980_
1 replies
1d6h

Free as in corporate freedom to extract and abuse your personal information

ndsipa_pomu
0 replies
1d5h

Quite - it reminds me of the "freedom" to own slaves, but obviously not nearly as abusive.

jeltz
1 replies
1d6h

And this freedom was ended by companies like Google and Facebook who abused this freedom forcing governments to act. Internet was at its worst right before GDPR. I don't think we will ever get back to the old free Internet and instead we will have this power balance between big corps and governments.

TeMPOraL
0 replies
1d5h

Like with any new frontier. There's age of exploration, then the age of exploitation, and in the latter. Even if the former is usually funded by commercial interests, it's in the latter that they finally suck out everything that's nice and fair and fun about the venture. We're at this stage now with the Internet.

_Algernon_
1 replies
1d6h

We are fortunate to have lived through a brief period where the world was truly a global trade network. A person in England could access the best tea the world had to offer. People could more or less interact freely across borders.

Obviously this is coming to an end. Every fiefdom wants their cut and their say, to the point where the world being a global network is obviously becoming inviable. It was fun while it lasted.

- Some ignorant bloke at the end of the British empire, probably

ben_w
0 replies
1d5h

Point, but IIRC the end of the British Empire was met with a mix of "We didn't want it anyway it was so expensive"* and "We lost an empire but gained a continent".

(The latter followed by lots of pikachu surprise face because they weren't in charge of said continent).

* Not only an Aesop reference, but also an actual claim I've repeatedly encountered

Ragnarork
1 replies
1d6h

Every fiefdom wants their cut and their say, to the point where the internet being a global network is obviously becoming inviable

Why exactly would physical products have to comply with local laws when exported to other countries and not online services? Do you also call it "fiefdom wanting their cut and their say"? Do you disagree with the concept of laws altogether?

wyager
0 replies
1d4h

The thing that made a global internet possible is that it was understood that sending bits over a wire is different from shipping physical goods. The customs regime for physical goods is prohibitively expensive for bits.

I'm not interested in arguing if eliminating free transit of data is a good idea or not; I'm just pointing out the inevitable consequence of the current trends.

zoobab
0 replies
1d6h

The US still does not have legislation to protect Personal Data like the GDPR.

That did not prevent the corrupt European Commission to issue a third variant of the Shield to still allow american corporation to send data of EU citizens to the US, despite the Schrems2 ruling.

pyrale
0 replies
1d5h

Every fiefdom wants their cut and their say

You mean, the epicenter of that global network transformed it into a tool of influence and surveilance? [1] Or maybe that the companies participating in that global network saw interest in walling that global network ? [2] [3] Or maybe that global network is being reshaped by a few dominant actors so much that outside regulation becomes necessary? [4] [5]

No, of course not; it must be local barons trying to scrap a bit of power, not at all a reaction to massive abuses from the industry.

[1]: https://en.wikipedia.org/wiki/PRISM [2]: https://www.eff.org/fr/deeplinks/2013/05/google-abandons-ope... [3]: https://blockthrough.com/blog/the-walled-gardens-of-the-ad-t... [4]: https://www.theverge.com/c/23998379/google-search-seo-algori... [5]: https://en.wikipedia.org/wiki/Facebook%E2%80%93Cambridge_Ana...

meiraleal
0 replies
1d6h

Local & capable internet is the future. I don't want my country influenced by US/EU politics all the time.

cynicalsecurity
0 replies
1d6h

It was fun for companies to freely steal people's data and sell it to the highest bidder. I'm glad this is slowly coming to an end.

I'm not sure I like Meta's and the influence of other foreign companies on European culture too. We were more free before them.

philip1209
39 replies
1d5h

Which big tech company will be the first to stop doing business in Europe? It's going to happen sooner or later.

Rinzler89
16 replies
1d4h

The sooner the better. This way local EU players can fill the void they'll leave. This insular isolation also fueled China's domestic SW sector.

kmlx
15 replies
1d4h

this take is naive.

building alternatives takes time and resources. the EU has neither.

a diverse, competitive tech ecosystem with both EU and non-EU players is better than a protectionist approach.

hoping for an exodus of major global players when you’re leapfrogged by both China and the US…

kergonath
4 replies
1d4h

building alternatives takes time and resources. the EU has neither.

The EU does not have the motivation, mostly. They are not rivals of the US in the way China is. So money goes elsewhere. Europe is still a continent with a whole bunch of people and quite a lot of money. The path of least resistance is to just use American solutions in some areas and to develop others locally. This might change and if there is a vacuum, it will be filled quickly.

philipwhiuk
3 replies
1d3h

Except there already alternatives to Uber

kergonath
2 replies
1d3h

Uber is a poor example of dominant American companies. They don’t really have a moat and they don’t really provide a better service than the alternatives in Europe. I don’t think people would miss them much if they left.

Rinzler89
1 replies
1d3h

The famous companies with a moat are Apple, Google, Microsoft and Amazon(AWS) since they're vertically integrated so no start-up stands a chance of competing or like Reddit and you hold a large userbase knowledge repository.

Food delivery companies, ride sharing companies, flight & boarding booking companies are all expendable. If one goes down, another one will spring up tomorrow.

kergonath
0 replies
1d2h

Yes, and I don’t see them moving away any time soon. It’s too much on their balance sheets (Europe is a bigger market than China for Apple, and the other two are deeply embedded with the local administrations and companies). All of them are following the legislative frameworks and adapting.

devuo
3 replies
1d4h

building alternatives takes time and resources. the EU has neither.

Oh no. What would we poor Europeans do without a US company to lead us. /s

Of course local and regional players would appear, as they always have and are already in place in multiple segments.

Bolt, Glovo, Delivery Hero and many others are successful competitors to different Uber offerings in the different European markets they operate.

The biggest gap in Europe is not due to a lack of technical ability but rather of European wide capital that's not super risk averse.

pb7
2 replies
1d3h

The biggest gap in Europe is not due to a lack of technical ability but rather of European wide capital that's not super risk averse.

It’s both. Copying a validated business model is not a sign of competency.

Rinzler89
1 replies
10h32m

You don't need to be competent, you need to make money. Japan, China et al also got wealthy by copying.

kmlx
0 replies
3h21m

that’s not how it works. you can’t build long term wealth just by copying. this is why both china and japan had to innovate.

Rinzler89
2 replies
1d4h

>building alternatives takes time and resources. the EU has neither.

This is kind of a FUD fueled false dichotomy, when the truth is we can't know if the EU doesn't have time or resources if it never tries.

What the US has that EU doesn't is the infinte money to throw in the bonfire at moonshot projects knowing that 99% will fail and the 1% will be hugely successful, but now the market is mature with less untapped opportunities, and the EU doesn't have to spend like the US did to achieve the same results, since we now know what works and what doesn't and how to make an Uber that's compliant with local regulations while using less money.

kmlx
1 replies
1d3h

but now the market is mature with less untapped opportunities

at a macro level i don’t think things stand still waiting for the europeans to catch up. i think things are moving extremely fast and you either adapt or “stagnate”.

Rinzler89
0 replies
1d3h

What's "moving" right now besides overhyped and unprofitable generative AI and AI chat bots, most of which are trained on copyrighted content and can be regulated away with a piece of paper when copyright holders lobby enough?

StrLght
1 replies
1d4h

What makes you think there are no alternatives to Uber in EU right now? Actually, it's the opposite:

* ride hailing alternatives: FreeNow, Bolt

* food delivery: Wolt (technically owned by DoorDash, but still), Just Eat, Bolt Food

* bikes / scooters: Tier, Bolt, NextBike, Voi, and many others

If Uber leaves, there won't be any void to fill.

kmlx
0 replies
1d3h

agree. but competition will always trump protectionism in the long term.

gapplevert1984
0 replies
1d4h

building alternatives takes time and resources. the EU has neither.

This is a smartphone app that buys a local service that already exists, it's not hard... In fact alternatives already exist.. I mean of course they do cmon.

On the flip side do you realise the lithographic tech used to build your Intel fabs come from EU? (ASML) building an alternative to that will take serious time and resources. EU is not some third world country.

returningfory2
9 replies
1d4h

I'm not sure if it will actually happen. But the theoretical "problem" with these "X% of worldwide revenue" fines is that they change the calculus of launching an existing product in Europe. It makes it so that if a company enters the EU they risk it being a net negative to revenue.

vanviegen
8 replies
1d4h

Isn't that exactly the intended effect? Otherwise, why wouldn't BigCorp just ignore any inconvenient laws?

returningfory2
7 replies
1d3h

I don't understand, are you saying the intended effect of these laws is that non-EU countries don't enter the EU market?

vanviegen
5 replies
1d3h

Not necessarily, but it should "change the calculus of launching an existing product in Europe", factoring in privacy laws. Either don't launch, or make sure that your product complies.

andersa
3 replies
1d2h

It isn't possible for an American company to actually comply.

max51
2 replies
1d1h

That's not a EU problem. If the US puts laws in place that prevents their company from expending overseas, that's a problem that Americans need to fix.

andersa
1 replies
1d

There is nothing the companies can do about it.

com
0 replies
23h38m

They can lobby, right? I mean what are those $billions being spent on? Weakening environmental or consumer protections?

returningfory2
0 replies
1d1h

Yeah. But even if you act in good faith there's still a chance you'll make mistakes and run afoul of the law. And now the cost of a mistake is not "we'll end up losing money in this new market" it's "our business might fail worldwide".

max51
0 replies
1d1h

The intended effect is that they follow the law, it's really not that complicated. Why do people assume that US-based companies have this inalienable right to break any law they want in every country around the world and that we all have to cheer for them when they do it?

eclecticfrank
2 replies
1d4h

Not many will shed a tear for Uber. Europe had taxis, private for hire limousines, taxi apps and delivery services long before Uber arrived.

And no, they won't leave. They will comply in order to have access to the European market.

flanked-evergl
0 replies
1d3h

Europe had taxis, private for hire limousines, taxi apps and delivery services long before Uber arrived.

All the "Uber" rip-offs in Norway are worse than Uber was last time I used it. Not that anyone can afford to use a taxi here anyway unless the government covers the bill, which they do and which is the only thing that keeps taxis employed, I think.

alex_suzuki
0 replies
1d3h

At least here in non-EU Switzerland, Uber often provides superior service over regular taxis. They‘re cheaper and you can’t get ripped off by a driver choosing a more circuitous route.

akudha
1 replies
1d4h

Why do you think they will leave? They will make noise, complain but if the choice is between following rules or give up profits, they will fall in line. Money trumps everything else.

They will however keep lobbying, support candidates favorable to them etc.

EU (and other governments) should be vigilant all the time. The moment they take it easy a bit, big tech will be back to their usual shenanigans

bitmasher9
0 replies
1d3h

The EU fines based on global revenue. If the EU is a small part of a companies’ profit then they may decide to stay away for liability reasons.

ricardo81
0 replies
1d4h

Too big a market. That's the power of the EU I guess. If they can adapt to abide, they will. If they can't, quite likely due to GDPR for many US companies.

pyrale
0 replies
1d4h

[flagged]

phatfish
0 replies
1d4h

Hopefully it is one of the social media parasites. But the "gig economy" is a close second.

nehal3m
0 replies
1d4h

My first instinct would say if someone pulls out I hope that would finally spur some competition. You don't need to apply anti-trust to companies that don't operate in your market. Maybe a competing video platform or phone operating system would get a chance at organic growth.

Maybe a pipe dream though. I haven't given it serious thought.

kklisura
0 replies
1d3h

Why can't big tech companies just adhere to the rule of the law?

gostsamo
0 replies
1d4h

twitter, hopefully. This is an aspect of Musk that I can live without.

Sharlin
0 replies
1d4h

I doubt it. Besides Apple, none has even complained very loudly, and even Apple just did it in order to garner some sympathy points from the fans. That is, for marketing reasons. The fact is that none of this legislative stuff, this basic level of consumer protection in the EU is in any way a dealbreaker or a significant hindrance to big tech, merely a cost of doing business.

pylua
31 replies
1d5h

Funny thing is, us data is almost always maintained by people outside of the US, at least for banking. The servers may live in the us, but the people accessing it are probably located in Europe or India. This also means that the data lives their temporarily while it is being accessed.

The US definitely needs stronger laws here.

lolinder
20 replies
1d3h

The US definitely needs stronger laws here.

Can someone clarify for me why the physical location where data is stored is a big deal? Why does the US need stronger laws here?

This is probably just my inner naive technologist speaking, but I really enjoyed the moment of time during which the internet was a global network of computers that created a virtual space where physical borders were largely irrelevant. So it's a bit jarring for me to see people take for granted the idea that borders matter on the internet after all.

Edit: 0x62 has a good explanation here: https://news.ycombinator.com/item?id=41357888

I hadn't considered the recursive nature of suppliers.

bayindirh
5 replies
1d3h

Can someone clarify for me why the physical location where data is stored is a big deal?

What can you do if your data is silently copied by third parties and used for other activities? What if I build a ghost profile of you and steal your identity when I have enough data? What if I relay that you have a fancy car to some people who have the means to get that from you while sleeping? What if I craft a good scam by targeting you with your own data?

It's not about data is sent to where, it's about what happens when it arrives to the physical servers, who has access to these files, and what can they do with it.

When I visited the states, I got EZ-Pass spam/scam e-mails for a year, on an e-mail I gave to nobody when I was there. So, these laws matter.

lolinder
4 replies
1d3h

It's not about data is sent to where, it's about what happens when it arrives to the physical servers, who has access to these files, and what can they do with it.

Right, but the EU can only enforce its laws on companies that have a presence in the EU. A company that doesn't do business in the EU and never will do business in the EU will not obey EU law regardless of what those laws say.

Meanwhile, a company that does business in the EU would be subject to fines by the EU and wouldn't be able to dodge them without just stopping doing business in the EU. So why do the laws not just say "here's how you have to treat data belonging to our citizens if you want to continue to do business in the EU"? Why does the physical location of the data that is being thus protected matter at all?

0x62
3 replies
1d3h

That works fine if the company itself stores the data, but becomes difficult to enforce when 3rd parties store the data. Imagine a company with an EU presence stores it's EU data in US, with a hypothetical cloud provider that doesn't have an EU presence.

The company would need to have a DPA with it's cloud provider. That cloud provider technically would also need a corresponding DPA with any 3rd parties that they themselves use, except without an EU presence that is hard to enforce.

In this case where there is one hop you could argue that it's the companies responsibility to ensure that their service providers are operating in compliance. Imagine the same scenario, but with one, two or more middlemen and the whole thing becomes an unenforceable mess of jurisdictions for the company to do meaningful due diligence on their service providers.

It's much easier for the EU to say EU data has to be stored in the EU, and know that any party touching the data is likely to be in compliance, and significantly easier to investigate if they are not.

miki123211
1 replies
1d2h

There's also the Cloud act, which makes it illegal for US cloud providers to refuse data access requests from the US government.

As far as I understand, the EU is fine with you sending data to other countries, as long as those countries have the same standards for data protection. In the EU's opinion, the Cloud act, as well as the whole NSA situation, mean that the US doesn't fulfill this definition.

bayindirh
0 replies
23h13m

EU is fine with you sending data to other countries, as long as those countries have the same standards for data protection.

Yes, we have a GPDR compliant law in place, and we can interoperate with EU.

lolinder
0 replies
1d3h

Thanks, this explanation makes sense.

ryandrake
1 replies
1d2h

What does that even mean, though? Data does not have a location. It's just information. The fact that "I live on 123 Oak Street" is data. It's not anywhere. How can you say that it's in a particular country? This post might be read by people all across the world. Now that information is in many different countries? Or none at all? Is it simply about where the physical hard drive containing a textual representation of that data is located? What makes that relevant?

These laws seem to have been written for the age of fax machines, not for today.

peterpost2
0 replies
22h46m

This is clearly about where the information is stored.. And therefore under which jurisdiction and laws it falls.

pylua
0 replies
1d2h

The U.S. needs this!

maxglute
3 replies
1d3h

global network of computers

Global network of computers where data ultimately flowed to American mainframes. Countries realize data is a resource / liability / vunerability, and even if most struggle to profit from it, they'd still want sovereign control over it. You only really control things on your soil. Physical location / possession matters for control.

lolinder
2 replies
1d3h

You only really control things on your soil. Physical location / possession matters for control.

This feels like an outdated worldview that no longer really applies to data. Data can be exfiltrated from the EU in milliseconds and there's nothing that the EU can physically do about it short of setting up a great firewall a la China.

The only thing they can do about it to retain sovereignty is to tell companies they're not allowed to exfiltrate data. But if they can do that successfully, they can also just tell the companies what they're allowed to do with the data wherever it is in the world.

maxglute
1 replies
1d3h

Someone illegally exfiltrates data from within your jurisdication and you can use _your_ legal instruments. Someone uses your data stored on another jurisdication and your legal options more limited or even powerless. Data is too leaky to prevent, so states focus on having the most tools to deter, including legal. And for some legal instruments to have maximum effectiveness, the location of physical molecules are important.

lolinder
0 replies
1d3h

Someone uses your data stored on another jurisdication and your legal options more limited or even powerless.

If that someone is a legal entity within your jurisdiction, you have lots of options.

I edited my original comment to link to someone who gave a good explanation—what I hadn't considered is how difficult tracking suppliers and subcontractors recursively and ensuring that they all have a presence in the EU would be. I think it's a bad solution to that problem, but it does make sense.

Nursie
3 replies
1d3h

Can someone clarify for me why the physical location where data is stored is a big deal?

Because the place where data is collected and stored may have different rules around privacy and data protection then the place it is exfiltrated to.

If I give my data to a company in one place that has strict laws on what may be done with that information, I don’t want it escaping to a low-protection jurisdiction where there are no penalties for selling it to the highest bidder for god knows what purpose.

If there was an acceptable worldwide convention on personal data privacy that would solve the problem. Until there is, it matters a lot.

lolinder
2 replies
1d3h

But again I ask, why does the physical location of the data matter? Why do the laws care?

The EU has a law that said you must treat data of their citizens with respect. Fine, that's great. Any business that has a presence in the EU will need to follow that law. At that point, why does it matter where the bits are actually stored? Can the EU for some reason not enforce its privacy laws on Uber if Uber keeps its data somewhere else?

Conversely, if a business has no presence in the EU, can the EU enforce its data location laws on them?

The only thing that seems to matter for enforcement is where the company is located, so I'm really unclear what data location has to do with anything.

kangda123
0 replies
1d3h

Can the EU for some reason not enforce its privacy laws on Uber if Uber keeps its data somewhere else?

Yes. Even assuming these laws still work if data is in another jurisdiction (prob. not), they become unenforceable. If someone sells your data in, say, Somalia, how could EU gather evidence and start a legal process?

Nursie
0 replies
1d3h

Can the EU for some reason not enforce its privacy laws on Uber if Uber keeps its data somewhere else?

Maybe not, especially if they are separate corporate entities. Uber EU may choose to pay for operation of data storage by Uber US. Uber US is not under the same privacy restrictions and sells the data for profit, then what? Who sues who and for what?

This is also partly about governments - the US in particular is known for compelling access to servers that are on its soil and doing large-scale spying (not that EU powers don’t do the same, but bear with me). Companies operating in the US may not be legally able to guarantee data privacy. So having the data not enter US jurisdiction in the first place is considered safer.

legacynl
1 replies
1d3h

The reason why the physical location matters, besides latency, is that certain governments have laws in place that allows them access to any data in their territory.

In the case of EU countries (I think its part of gdpr), services that handle personal data need to make sure that that data stays safe. The only way they can do that is to make sure that the data stays in a certain region.

I think that is why op is advocating for stronger laws. Due to lax privacy laws in the US, it's impossible for European companies (and other privacy concerned companies) to host their data in the US, therefore your missing a share of the market

lolinder
0 replies
1d3h

certain governments have laws in place that allows them access to any data in their territory.

This explanation makes sense, but assuming "certain governments" includes the US then the remedy isn't stronger laws in the US, it's weaker laws—it means that the US was the first to break the borderless internet and it needs to rewrite its laws to be border-agnostic.

ndsipa_pomu
4 replies
1d5h

It shouldn't be a problem for Europeans to access/process U.S. data that belongs to U.S. citizens - GDPR doesn't cover that AFAIK, so it's fine for it to cross borders. The issue is with GDPR protected data of EU citizens, as the law does not permit that data to cross non-EU borders unless it's for specific exemptions such as law enforcement.

mananaysiempre
2 replies
1d4h

Or, IIRC, if the destination country has privacy protections that are at least as strict as those in the EU, which the US legal regime for foreign intelligence definitely doesn’t provide (a non-US-citizen wouldn’t even have standing to sue wrt their personal data).

ruthmarx
1 replies
1d3h

a non-US-citizen wouldn’t even have standing to sue wrt their personal data

Sure they would, I think? They would just have to foot the bill to travel and file in a US court. And whatever user agreements they 'agreed' to might come in to play without legislation to supersede it. But they would have standing, I'm pretty sure.

mananaysiempre
0 replies
1d3h

Not a lawyer and not going to find the relevant references in the US’s vast body of law in reasonable time, so let’s check what the CJEU concluded?

Schrems I [1] (the old CJEU judgment invalidating Safe Harbor) endorses (§90) the opinion that:

[D]ata subjects [whose personal data was transferred to the US] had no administrative or judicial means of redress enabling, in particular, the data relating to them to be accessed and, as the case may be, rectified or erased.

In what reads like a reference to FISA, it continues (§95):

Likewise, legislation not providing for any possibility for an individual to pursue legal remedies in order to have access to personal data relating to him, or to obtain the rectification or erasure of such data, does not respect the essence of the fundamental right to effective judicial protection, as enshrined in Article 47 of the Charter [of Fundamental Rights of the European Union].

It then stops short of calling out FISA by name, instead (IIUC) invalidating on the basis that the adequacy of the legal regime was not addressed in the Safe Harbour decision to begin with. Privacy Shield came next and did, so Schrems II [2] (the newer judgment invalidating Privacy Shield) states (§181–2):

According to the findings in the Privacy Shield Decision, the implementation of the surveillance programmes based on Section 702 of the FISA is, indeed, subject to the requirements of PPD‑28. However, although the Commission stated, in recitals 69 and 77 of the Privacy Shield Decision, that such requirements are binding on the US intelligence authorities, the US Government has accepted, in reply to a question put by the Court, that PPD‑28 does not grant data subjects actionable rights before the courts against the US authorities. Therefore, the Privacy Shield Decision cannot ensure a level of protection essentially equivalent to that arising from the Charter [...].

As regards the monitoring programmes based on E.O. 12333, it is clear from the file before the Court that that order does not confer rights which are enforceable against the US authorities in the courts either.

It sounds like the official legal position of the US executive is that individual foreigners do not have standing to contest FISA 702 surveillance of them. (I could not quickly find the text of that position.) This is a 2020 judgment in a case from July 2018 regarding a European Commission decision from 2016, so the implications of the CLOUD Act, signed in March 2018, do not look to be in scope.

[1] https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:62...

[2] https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:62...

pylua
0 replies
1d3h

You could be a citizen of the eu and us.

mjw_byrne
1 replies
1d5h

NAL, but I think GDPR has exceptions for remote access, i.e. if a worker in India is viewing data held in the US, that is not necessarily formally considered a transfer from the US to India, even though the data clearly has made it to India if it's being displayed on a screen there.

theptip
0 replies
1d3h

Under GDPR I believe if the data access is from an employee of the company (eg Uber) then there aren’t location checks. (Been a while so I could be mistaken here.)

But if you are subcontracting to an agency you need to list them as Subprocessors in your DPA. So subcontracted support staffing companies for example would be required to be listed and explicitly consented to.

This is all assuming you set up the base contractual protections for the data required to export the data at all, which Iber apparently didn’t do here.

Puts
1 replies
1d5h

Well technically data transfer according to GDPR has nothing to do with where the data is geographically. It’s what legal jurisdiction the controller or processor is under that matters. If you move data to a processor under another jurisdiction that is a transfer.

organsnyder
0 replies
1d4h

GDPR absolutely does have requirements for the physical location of data.

begueradj
0 replies
1d3h

Except that the US authorities have the right to access the data you stored on Apple or Google & Co. servers whenever needed, without your consent and even if you are completely innocent.

qqcqq
25 replies
1d4h

This puts the total fines from the EU on American tech businesses at $14.8B in the last few years: https://loeber.substack.com/p/20-no-more-eu-fines-for-big-te...

I think this substack is good, it makes a pretty clear case that US tech companies may not leave Europe any time soon, but they wield the power in the relationship much more so than the Europeans. Those regulators are overplaying their hands.

berikv
7 replies
1d4h

The counterpoint to that article is: US Big Tech could also abide to EU laws and avoid fines altogether.

pembrook
5 replies
1d4h

US companies literally cannot abide by EU laws, because they are subject to US laws, which conflict with EU laws. This is what all these European judgements are disagreeing with.

The companies are not at fault here. The governments are at fault for dropping the ball on coming to an agreement. We’re on like the 5th round of this. Compliance is impossible.

Until the two governments fix this, US companies cannot operate in the EU without being at risk for pilfering from EU government.

Y_Y
2 replies
1d4h

In fact were talking about a Dutch company, Uber BV. If it can't abide by EU law then it shouldn't exist!

And does US law really prevent them from handling EU customer data in a compliant way? Could you give a specific example?

acedTrex
1 replies
1d4h

You could argue that the CLOUD act is in direct conflict with European data laws.

https://en.wikipedia.org/wiki/CLOUD_Act

However, it does not prevent data at rest being stored in the EU. Only that if requested the american company has to exfiltrate it to the states.

Y_Y
0 replies
1d3h

Thanks, it seems like indeed the US government could request that an EU subsidiary of a US entity provide data on an EU subject. This request could be lawful under US law but not EU and hence you'd have a conflict.

https://www.edps.europa.eu/sites/default/files/publication/1...

snowpid
0 replies
1d4h

The action by Uber was complettly avoidable.

j_maffe
0 replies
1d4h

Couldn't they have kept the data stored in the EU? What US law prevents that?

mananaysiempre
0 replies
1d4h

While the CLOUD Act exists, and in general while the US refuses to recognize privacy rights of foreigners and grant them sane due-process protections, it seems logically impossible to comply with US and EU legislation at the same time (the European Commission’s repeated but non-binding pronouncements to the contrary notwithstanding). That US companies aren’t exactly in a hurry to try looks to mostly be a distraction.

snowpid
5 replies
1d4h

Im curios: The author claims to be a EU - citizen, yet has an English name, has lived his whole life in the US and his thinking is deeply American (this made me chuckle: "You can view this almost like a class-action lawsuit, where some compensation is sought for harm done to a large group of people. But for a class-action lawsuit to be legitimate, it must reward the consumers!")

So where is he from? Which country?

johnloeber
4 replies
1d4h

Where does it say that I lived in the US my whole life? You're getting ahead of yourself.

From another blog post:

I grew up in Europe (mostly Germany, Denmark, Switzerland). I had never even set foot outside the continent until I was 18, when I moved to the United States. I have lived here for 12 years now, with most of that in San Francisco.
snowpid
3 replies
1d4h

Dankeschön für die Antwort!

You might understand that I read only Bio and LinkedIn, not your whole blog. Also again very very American thinking. Im just amused.

jonathan_landy
2 replies
1d3h

And which kind of thinking led you to assert he lived in us his whole life on the basis of what little you read?

snowpid
1 replies
1d3h

Class suite actions as only moral option to protect consumers (which is not common in Germany), Citing Kissinger as a god like authority in intra - countries relationships, lack of knowledge in pro - market / competition regulation (very strong in Germany, EU [for different reasons]),

I regularly read German and Swiss newspapers. The arguments are very different (and in many cases more nuanced)

johnloeber
0 replies
1d3h

I never cited Kissinger as a "god like authority", and to insinuate that I did is offensive.

Furthermore, you made an earlier false statement about bias -- claiming I had lived in the US all my life -- and backing it up claiming that you had read my LinkedIn. My LinkedIn features my European high school. You're either lying or lazy; you can tell me which.

Making bombastic and trivially false statements doesn't help your arguments. Good luck with your "nuance".

schleck8
3 replies
1d4h

What happens then? They leave a vacuum and then what? Noone fills that vacuum? Assuming there is zero competence in the EU, which is highly unlikely since both the best image generation model right now and very respectable open source llms are from the EU, and on top of this several countries in Europe have exceptional tech talent (especially in the East), the Chinese would jump in immidiately.

dumbo-octopus
2 replies
1d1h

If your concern is privacy, moving to Chinese services is not the answer.

schleck8
1 replies
10h58m

Okay, but this isn't about privacy since Telegram isn't even end to end encrypted by default where it matters.

dumbo-octopus
0 replies
6h8m

This has nothing to do with Telegram.

cube2222
1 replies
1d4h

How exactly are they overplaying their hand?

If, and that is a big if, American big tech decided to pull back from Europe, I wouldn’t be surprised if it ended up being a good thing for the local market in anything but the short term.

It’s very hard to compete with them (even in the local US market). Their disappearance from a market as big as the EU would likely spark competition.

nerdponx
0 replies
1d4h

They aren't overplaying their hand, or at least they aren't according to anything presented in that article. The author frets about some balance of power, but does not make a convincing case that the EU position is threatened in any way.

Less we also forget that US public sentiment is shifting. If anything, big tech needs to be careful.

scotty79
0 replies
1d4h

I think it rather shows that they make a fortune off of European customers if they can afford those fines so it's still terrible deal for Europe.

nerdponx
0 replies
1d4h

I admit I didn't cross check every detail here, but this article reads a lot like American "pro business" literature that cries about regulation stifling innovation, hurting American international competitiveness, etc.

The conclusion that the EU must stop fining American tech businesses does not follow from the evidence presented. I am willing to take them at their word that EU regulators are overly fixated on Meta and Google specifically... except here we are in a thread about Uber.

The principle that fines for bad behavior should be doled out to citizens is noble, but laughable. Is there any precedent for that anywhere in any developed nation state in the last 50 years? I'm not talking about damages in civil suit, I'm talking about proceeds from fines being directly redistributed to citizens.

Overall, I am very happy that, as an American, the EU is stepping up to govern and regulate American businesses, while the US federal government itself continues to extend its decade-long vacation from governing.

eclecticfrank
0 replies
1d4h

Two of your last three comments refer to loeber.substack.com

blackeyeblitzar
0 replies
1d3h

Although I support European privacy laws, I also detest their push for censorship of social media, the arrest of Telegram CEO Pavel Durov, and this feeling that they’re milking US companies for tax revenue. I do think this can end up being overplaying their hand - why should US taxpayers fund NATO and the EU’s defense disproportionately, for example, if the EU is also going to steal from US companies and not holding up classically liberal values like free speech? Is it really in American interest to tolerate this status quo?

benreesman
0 replies
1d4h

Let’s get that number up! I want to see some CEOs opting for the E-Class vs the S-Class because they intentionally, willfully, knowingly treated citizens like plebeians.

You guys can get with the program now, or you can wait for one of those tent camps to abruptly rise up and drag you out of your Plaid Tesla and beat you to death with your own iPhone.

pyrale
19 replies
1d5h

Since the end of last year, Uber uses the successor to the Privacy Shield.

Sounds like they're going to get condemned again in the future, seeing how these things get knocked down again and again. The EU commission is really dropping the ball there.

AlanYx
18 replies
1d5h

The EC has issued an "adequacy decision" regarding the new EU–US Data Privacy Framework (the replacement for Privacy Shield): https://commission.europa.eu/document/fa09cbad-dd7d-4684-ae6... and has begun "certifying" compliance with the Framework: https://www.dataprivacyframework.gov/list

So maybe the DPAs will defer to the EC's interpretation of adequacy under the GDPR for this new Framework?

Lots of unknowns though, since Schrems has already announced a challenge to the Framework. The only "safe" option without any uncertainty seems to be architect every system so that data never transits to the US and is also never in the custody of a subsidiary of a US-domiciled corporate parent.

pyrale
6 replies
1d4h

The EC has issued an "adequacy decision" regarding the new EU–US Data Privacy Framework

To bad the EC isn't the body that can judge whether that deal is legal, and has been caught repeatedly lying about past deals [1].

So maybe the DPAs will defer to the EC's interpretation of adequacy under the GDPR for this new Framework?

As before, cases will go to the actual authority on the matter: the CJUE. I personally don't have high hopes for this deal to last.

[1]: https://noyb.eu/en/european-commission-gives-eu-us-data-tran...

AlanYx
5 replies
1d4h

I tend to agree with you about what will happen, but it illustrates the depth of legal uncertainty that exists in architecting software systems in Europe that process personal information. Corporations can't necessarily trust the EC's own published interpretations of their own laws, nor the certification processes the EC has created, so the only risk-minimizing route is a maximally pessimistic approach about what is permissible.

pyrale
4 replies
1d4h

but it illustrates the depth of legal uncertainty that exists in architecting software systems in Europe that process personal information.

Oh I agree with that. EC's behaviour in that case is appalling.

Corporations can't necessarily trust the EC's own interpretations of their own laws

There is a way to be safe with regards to EU law, and it's to engineer systems where European data stays in Europe. Of course, the issue is that corporations would then be liable under US' FISA 702.

That's the big issue: the United States made a law that basically states that no US company should follow EU law, and the US admin manages to beat EC officials into submission every few years with another flawed agreement to keep the ball rolling.

AlanYx
3 replies
1d4h

It's not that easy really. Several European countries have FISA s.702 functional equivalents that enable intelligence to get orders for interception of personal information on servers and entities within their legal jurisdiction. (e.g., The French Law on Intelligence and the German BND Act)

It's easy to say that the US should just scrap s.702, but unless it's reciprocal with Europe scrapping their interception powers as well, that's a pretty unrealistic ask.

mananaysiempre
1 replies
1d3h

Hm. I was aware that French law was kind of awful on this, but never investigated the specifics. As, say, a non-EU person, would I be able to bring suit to a French court (and, if that fails, to the CJEU) regarding foreign-intelligence eavesdropping violating my privacy rights? (AFAIU the US answer is that if I’m a foreigner on foreign soil I don’t have any of those).

AlanYx
0 replies
1d1h

Yes, you could bring a suit if you knew about the interception. However, like FISA s.702, intelligence collection warrants under the French LI and German BND are generally secret, so most targets have no knowledge they are under surveillance. All three pieces of legislation have an oversight mechanism in terms of oversight bodies who have access to secret warrants and are supposed to ensure that they are being used appropriately.

pyrale
0 replies
1d3h

that enable intelligence to get orders for interception of personal information on servers and entities within their legal jurisdiction.

That is common indeed. What's peculiar with US law is that it can mandate companies to move data about people outside of US jurisdiction that is stored outside of US jurisdiction and turn it over to US authorities, even when it violates local law.

judge2020
6 replies
1d4h

The only "safe" option without any uncertainty seems to be architect every system so that data never transits to the US and is also never in the custody of a subsidiary of a US-domiciled corporate parent.

If i'm not mistaken, because of this (via[0])

The CLOUD Act primarily amends the Stored Communications Act (SCA) of 1986 to allow federal law enforcement to compel U.S.-based technology companies via warrant or subpoena to provide requested data stored on servers regardless of whether the data are stored in the U.S. or on foreign soil.

It sounds like compliance is only possible* if "the US company doesn't have any influence on the EU data-holding company" which is insane. This might be satisfied if the US company simply licenses their software product (e.g. the Uber backend) to an EU company. But this might not be adequate since chances are updates would be somewhat automated, and thus the US-based Uber might be compelled by the government to ship malware with their update to catch some US criminal (or otherwise enact some US spying).

* edit: only possible in lieu of a data agreement like Privacy Shield or its successor as mentioned above

0: top comment on https://news.ycombinator.com/item?id=33561222

marcosdumay
1 replies
1d4h

which is insane

It's completely sane from the EU's point of view. Why would they submit their citizens to forceful government eavesdrop?

I do agree it's insane. But the insanity is not on the GDPR.

blackeyeblitzar
0 replies
1d3h

You mean like the EU governments? Which country / countries have fundamental protections for free speech and censorship free social media? Which are seeking to force encryption backdoors?

buzer
1 replies
1d3h

If i'm not mistaken, because of this (via[0])

> The CLOUD Act primarily...

As far as I understand (IANAL) the CLOUD Act has not been used as basis of decision at least for Schrems II. The primary issues court found were regarding surveillance programs authorized under Section 702 of the FISA & executive order 12333.

Full Schrems II judgement is available at https://curia.europa.eu/juris/document/document.jsf?text=&do...

judge2020
0 replies
22h48m

That makes more sense then. Is it still right to say that they're afraid of a US company being compelled to access data at the request of the US gov when it's stored in the EU, or is it still only trying to avoid EU data actually going to the US during _regular_ operations of a business (paragraph 63)? I feel like it's still a threat if some US employee could access servers inside the EU as a one-off for NSA/etc surveillance?

jeroenhd
0 replies
1d3h

It's true, the extensive surveillance capabilities the American government demands from American businesses is one of the reasons American companies cannot enter the European market.

I doubt this will change any time soon. The GDPR isn't going away, and the USA isn't known for loosening their data collection laws. Maybe in a few years the EU can find a legal ground to allow the USA to spy on EU citizens without acceptable legal defences, maybe the USA will give up their capability to use American businesses as a tool to spy on the EU, but for now surveillance law is a major roadblock for American companies expanding to Europe.

pembrook
2 replies
1d4h

Exactly, compliance is currently impossible since this is a geopolitical spat between the US and EU over US law.

The goalposts on this move every 6 months, so the fines are easy money for the EU.

The companies are just collateral damage. For some reason HN is full of people who don’t actually understand this issue but feel very emotionally passionate that all US tech companies are evil and doing this on purpose.

“Just follow the law, you evil companies!”

Lol. They would if there was a clear law/process to follow that didn’t get shot down every few months.

As it stands, you cannot operate in the EU as a US company if you want to be totally immune from fines.

I urge you to talk to your government representatives (on both sides of the pond) if you care about this issue. This benefits nobody except for EU government coffers.

pyrale
0 replies
1d4h

Lol. They would if there was a clear law/process to follow that didn’t get shot down every few months.

There isn't a process because US law makes it clear that US companies should be auxiliary to illegal acts abroad. And we find out every few months, that even when they aren't forced to, they disregard the law.

Sure, maybe they're not "evil", but they apparently can't find a way to be law-abiding entities.

Vinnl
0 replies
1d4h

feel very emotionally passionate that all US tech companies are evil and doing this on purpose.

Oh no, it's the US government that claims authority to use these companies to surveil EU citizens that is the problem here. One that, unfortunately, does affect all US companies.

MyFedora
0 replies
1d

No, the EC asked ChatGPT to rewrite the Privacy Shield but give it another name, and the CJEU is expected to retroactively invalidate the law again. This will only change if the US provides essentially equivalent privacy protection laws, which they don't.

childintime
13 replies
1d5h

Funny they are being fined in the Netherlands, because Uber is almost invisible there, as regular taxis have been protected. I don't have accurate data, but it's at least 15€ per inhabitant, so it seems like a very very steep fine. I can't imagine how much this is per driver, €25000?

It seems the dutch regulator is saying "why don't you just go away?". The feeling is likely mutual.

kmlx
4 replies
1d4h

a very steep fine

> The appeals process is expected to take some four years and any fines are suspended until all legal recourses have been exhausted, according to the DPA.

fine is suspended. it will take 4 years of appeals :)

mcmcmc
3 replies
1d4h

Once again demonstrating that fining a corporation for criminal behavior is simply adding to their operating cost, and the lawyers will always get paid

brigadier132
1 replies
1d3h

Once again demonstrating that fining a corporation for criminal behavior is simply adding to their operating cost

what is the major insight that you are trying to share?

whamlastxmas
0 replies
1d3h

The rich are above the law as long as they don’t mess with another rich person

mananaysiempre
0 replies
1d4h

Corporations recognize nothing but operating cost, so that’s in fact an appropriate lever. The question is if the correct amount of force is applied to it—usually not, but here I’m not so sure.

decide1000
3 replies
1d4h

Uber HQ is in the Netherlands. They like the tax system here..

jgowdy
2 replies
1d2h

That's one way of saying "Europe is full of nations who provide unethical tax shelters for businesses (while criticizing any nation that doesn't provide their level of social programs), so they can regulate and fine and fill their coffers with money from businesses all over the world." But yeah, blame it on the companies that take advantage of the tax shelters EU nations choose to provide and the EU chooses to allow.

diggan
1 replies
1d1h

Maybe our definitions of "Tax shelters" are a bit different, but I think of Cayman Islands or Bermuda when I hear that, and Netherlands is not like that in the context of Europe. Probably Ireland is the closest you get, so would have been a much better example.

jgowdy
0 replies
5h56m

The Dutch Innovation Box regime provides a lower effective tax rate (7% as of 2024) on profits derived from qualifying intellectual property, such as patents and software. For companies like Uber, which rely heavily on proprietary technology, this can significantly reduce their overall tax burden on profits derived from IP.

The participation exemption in the Netherlands allows companies to receive dividends and capital gains from qualifying foreign subsidiaries free from Dutch corporate tax. This is particularly beneficial for multinational corporations with substantial foreign operations, as it prevents profits from being taxed multiple times as they move up through the corporate structure.

The Netherlands is a popular location for holding companies due to its favorable tax regime for holding and managing subsidiaries. The combination of participation exemptions, tax treaties, and rulings makes it ideal for structuring complex international operations.

So... a nation like the Netherlands optimizes their tax laws such that it's advantageous for businesses that are otherwise completely unrelated to their nation to HQ in their nation to avoid their proper tax burdens in the country they were started in and operate in much more significantly, for the benefit of the Netherlands getting additional tax revenue and to the detriment of other nations who would otherwise be able to tax that business.

Some people might call that a "tax shelter." Since it you know, benefits Uber, benefits the Netherlands, at the detriment of the nation(s) that Uber operates in...

peterpost2
0 replies
1d4h

Uber europe is headquartered in the Netherlands, which is why the fine was handed out there, the complaint was passed from the french privacy watchdog to the Dutch one.

diggan
0 replies
1d1h

because Uber is almost invisible there, as regular taxis have been protected

Uber is almost invisible there because they continue to blatantly break the law, and even when told to stop, they continue like nothing happened. (https://www.wsj.com/articles/dutch-authorities-raid-uber-off...). This seems to be just another case of the same hubris.

Of course Uber faces pushback when they act like that.

creesch
0 replies
1d4h

Not sure if you are actually dutch, but it is explained in more detail here: https://tweakers.net/nieuws/225768/uber-krijgt-van-ap-avg-bo...

Although the fine comes from the Dutch regulator, the investigation began in France. In June 2020, 21 Uber drivers there stepped forward to human rights organization Ligue Des Droits De L'homme Et Du Citoyen. Another 151 Uber drivers later joined that complaint. The LDH took that complaint back to the CNIL, France's national privacy regulator. The latter forwarded the complaint to the Dutch Personal Data Authority in January 2021 because Uber's European headquarters is in the Netherlands.
Manfred
0 replies
1d4h

It's a fine meant to be a punishment, not damage settlement.

All DPAs in Europe calculate the amount of fines for businesses in the same manner. Those fines amount to a maximum of 4% of the worldwide annual turnover of a business.
agentcooper
9 replies
1d6h

The Dutch DPA started the investigation on Uber after more than 170 French drivers complained to the French human rights interest group the Ligue des droits de l’Homme (LDH), which subsequently submitted a complaint to the French DPA.

I wonder on what the initial suspicion from the drivers was based.

troupo
7 replies
1d5h

Could be simple negligence on Uber's part.

Personal anecdote:

Many years ago I was involved with a US organization, and then happily forgot about it. Almost 15 years later they started spamming me with emails coming from their head office in Washington.

I asked them to stop. They didn't. I threatened legal action under GDPR and requested deletion, also under GDPR. They said they complied. A year later they started spamming me again. From the same address.

That's how I knew that they never deleted my info and kept it in the US.

einpoklum
2 replies
1d5h

Could be simple negligence on Uber's part.

The didn't slip, fall, and drop some USB flash drives into the hands of a US data processor...

I doubt it is any sort of negligence, but if it is - it's not "simple".

troupo
0 replies
22h34m

negligence: failure to exercise the care that a reasonably prudent person would exercise in like circumstances.

Most companies are negligent. Many of those are also deliberately negligent

lazide
0 replies
1d5h

Indeed. It’s about as plausible as the ‘I tripped and fell’ excuse for cheating.

raverbashing
1 replies
1d5h

Uber is very aggressive with notification span

Even worse when you move between countries and suddenly "Uber Country X" uses your account of "Country Y" to spam notify you about promotions in X. It's weird in a bad way

amarcheschi
0 replies
1d4h

I've visited us not long ago and took a uber (i had uber on my phone since 2019, when i used it before). They started aggressively spamming notifications to my phone and uber eats this and uber that. in the end, i was still going to use the service that was the cheapest

amarcheschi
1 replies
1d5h

Have you followed with a notification to your privacy authority?

troupo
0 replies
22h36m

In this case it really wasn't worth it, but I've done it in other cases

shiandow
0 replies
1d6h

Common sense if I had to guess. Or maybe the app connected to the servers in the US directly.

askonomm
8 replies
1d8h

Love it. Maybe one day U.S companies will learn that while they can steal and sell their own peoples information as they please, and they'll even have their own people brainwashed into such a state of stockholm syndrome that they will defend the corporations ability to do so, that's not the culture EU has, and it won't fly here. Corporations are not the peoples identity here, privacy and safety however are.

xiphias2
3 replies
1d8h

Or maybe all companies will learn to leave EU behind in innovation.

Even though the rules are great, I'm just not sure if it will be good or bad long term for EU.

gherkinnn
0 replies
1d7h

Why can't this argument die? What innovation? These practices are those of parasites and leeches and ticks.

doikor
0 replies
1d8h

What is the actual innovation of Uber outside of trying to push the competitors out of the market with investor money? (this isn't anything new/innovative either)

We had app based ride hailing services before Uber and still have them so it can't be that. Surge pricing also has existed before them.

askonomm
0 replies
1d8h

I love the mention of "innovation". What innovation? All the areas of innovation that matter to the EU people, the U.S does not have. 0 federal paid holidays, almost non existent maternity leave, encourages unpaid overtime (something that is illegal in most of EU). Innovation in regards to corporations ability to screw over their own people for monetary gain is not something we're interested in, that's the U.S mindset - money and success before anything else, including personal freedom, employee rights, and so forth.

upperneath
0 replies
1d5h

I think you’re reaching and acting like Americans don't understand the implication, we just don’t consider it something that’s bad. We are allies on a global market and therefore treat you no differently. This is why the US is concerned about data islands with China, but has no problem with European countries and companies with US data.

Clearly the American capitalist strategy is working since all the products you keep regulating are made in the US. I’d welcome Europe to make some alternatives to what the US is providing before you just unilaterally say we’re immoral and wrong, because currently if all the US companies got fed up enough with the regulation and for some reason pulled out of the market it would cripple the digital life you’re used to in Europe.

Revenue has to come from somewhere otherwise a company can’t grow. “Enough revenue to survive” doesn’t incentivize the kind of rapid business development that consistently comes out of the US versus Europe and is just a naive economic worldview. You have to either sell user data, serve ads, or sell the product wholesale or a subscription. Currently the market (including European users) have decided that they’d rather click skip on an ad and have their usage data sold to drive those ads than pay for the product.

sneak
0 replies
1d7h

The surveillance systems in the EU are just as invasive, and frequently moreso, than in the US.

This is largely a false meme, an urban legend. There is no meaningful privacy difference between Europe and the US.

This is simply a money grab; it won’t move the needle on privacy one bit. You’ll still be surveilled everywhere you go in Europe by the state, the mobile operators, and most of the other apps on your phone.

Furthermore, it doesn’t matter if the data stays inside the EU or not. Google collects the same data and the US intelligence agencies can compel them to access the data on EU citizens, stored on EU-located Google servers just the same as if it were in Mountain View.

cqqxo4zV46cp
0 replies
1d8h

No, you see US-headquartered multinationals have a God-given right to freedom, including the freedom to smuggle customer data overseas. God bless America.

dtquad
6 replies
1d5h

Does anyone know good best practices and software/DB patterns to model localized GDPR-compliance into global software systems?

I know ASP.NET Core comes with some GDPR-related helpers but it's more interesting to know general best practices and patterns not related to a specific framework.

oneplane
2 replies
1d5h

It's pretty much part of your normal data management that you'd be doing anyway, except it now has an additional lifetime (on top of any you might have had).

Since when ingesting the data you knew where it came from and on what timestamp, you also know when to next check for deletion. And since you also know where it came from (the owner), deleting/sending it on request (when applicable - not all data is always required to be deleted) is pretty straightforward. In essence it's like garbage collection for managed languages (like C#) but for your data.

At the end of the day, no matter what you use (existing process, create a new process if you weren't managing your data so far, or use some product), treating data like radio active waste will generally lead to good designs. You only keep what you need for the time that you need it, everything else gets removed.

ndsipa_pomu
1 replies
1d5h

You only keep what you need for the time that you need it

Just to add that it's stricter than that - you can only keep the data that is required for the purpose that you detailed to the customer. e.g. If you ask for their email address for password validation, then you're not allowed to use that email for other communication unless you explicitly asked for that as well.

oneplane
0 replies
1d5h

I completely agree, GDPR is definitely a more detailed ruleset than what I outlined, but from a data management superset perspective you would have the mechanisms and facilities to deal with the GDPR-specific rules anyway.

I've found that this is mostly a problem in organisations where data isn't managed, the government doesn't protect the people, or where some vague value is assigned to the data (so it does get stored, but when it leaks it is supposed to not have value and therefore do no damage). So looking at it from an "you will be managing it anyway" angle has worked well for me when trying to activate teams/units/orgs.

losvedir
0 replies
1d4h

Yeah, I have to think things like DynamoDB Global Tables and other tools designed (in a bygone era) of "magic low latency from anywhere in the world" are going to be big footguns going forward.

dacryn
0 replies
1d5h

basically, make sure your data governance is on point. It should almost live outside of your software stack.

Tools like collibra, purview, informatica, ... that know you database, are your best tools at enterprise level.

AdamN
0 replies
1d5h

First off, just presume GDPR applies globally. Then, know your legal 'zones' and by default keep all data in those containers. Thirdly, if you need to send data from one zone to another, ask "Do I really need to?? really???" and only if the answer is 'yes' do you do a proper design and engage legal and security from the beginning of the project through to the end and on an ongoing basis.

shiandow
2 replies
1d5h

I guess this is always going to raise some eyebrows, with this amount of money it's hard to say it's not political.

However I would like to say that the Dutch privacy authority actually seems pretty sincere at enforcing privacy legislation. It's just that until recently they were just sending angry letters, and now they've been given power to do more than empty threats.

landosaari
0 replies
1d4h

Spain fined Booking (Dutch company) 413M€ last month.

For abusing its dominant position, the post has only 2 points [0].

Yet, this one has significantly more comments.

The only political aspect is where the company comes from.

Forum members then want to speak up.

[0] https://news.ycombinator.com/item?id=41115644

creesch
0 replies
1d5h

with this amount of money it's hard to say it's not political.

If by political you mean "aimed to be effective", then yes it is political. If the fine is too low and these companies make a healthy profit through these practices, they will just take the loss.

AlanYx
2 replies
1d7h

Can anyone explain how this relates to the EU-US Data Privacy Framework (also sometimes called the Trans-Atlantic Data Privacy Framework)?

I thought that that framework was supposed to allow this (as a replacement for the EU–US Privacy Shield framework)? Presumably this wouldn't have been a problem under Privacy Shield (i.e., pre-2020), or am I getting that wrong?

di4na
1 replies
1d7h

You are getting this wrong.

Basically the framework, like the Shield before, is the Commission trying to show "look, we fixed it".

Sadly, for the previous two times, the ECJ pointed out after the fact that no framework can fix the lack of data privacy law in the US, and that as such, the Shield, just like its predecessor, was not allowing what it claimed to do.

The Framework has not been tested in the ECJ so far, but the US has not significantly altered its laws so...

AlanYx
0 replies
1d7h

Thanks. So basically the new framework hasn't accomplished anything that can be relied upon when architecting a system to reduce the risk of GDPR compliance issues?

flanked-evergl
1 replies
11h7m

At this point, I would pay to have my data stored somewhere outside the jurisdiction of the EU.

peterpost2
0 replies
10h59m

why?

shinycode
0 replies
1d8h

It’s good to know that GDPR is not just annoying banners

pyaamb
0 replies
1d7h

Good. This should be applied to Chinese EVs too.

peterpost2
0 replies
1d8h

Seems fair.

okasaki
0 replies
1d8h

Meanwhile the UK handed all of its patient medical records to Palantir.

kmlx
0 replies
1d8h

The appeals process is expected to take some four years and any fines are suspended until all legal recourses have been exhausted, according to the DPA.

i guess we’ll hear more about this in 4 years.

irdc
0 replies
1d8h

In another article (https://nos.nl/l/2534629, Dutch language) Uber claimed to have been talking to the Autoriteit Persoonsgegevens about what they said was an “unclear law”. Via iOS Translate:

A spokesperson for Uber explains to the NOS that they have also contacted the AP themselves about the ambiguity surrounding the privacy rules. Then, according to Uber, the watchdog didn't say that the company violated the rules.

Which is all fine and dandy but the rule really is that if it’s not clear to you (as a rich and well-lawyered company) that something is permitted, that doesn’t give you the right to then do it.

And yes, the fine really has to be this high: fines can never be just a part of doing business; colouring within the lines has to have the attention of everybody involved, from the shareholders on down.

croes
0 replies
1d8h

I'm confused.

Thanks to the CloudAct there is not protection of EU user data no matter the location of the servers.

baxtr
0 replies
1d3h

They will filed it under “cost of doing business in Europe” and add it as markup on their prices.