Encryption, Lawsuits & Leaked Data: Tech’s Rollercoaster Week
From high-stakes privacy battles between the FTC and tech giants to the courtroom showdown over free speech rights, the digital world is heating up. Meanwhile, a major data breach at TransUnion has left millions vulnerable. Here's a quick dive into the latest tech dramas unfolding in the U.S. and beyond.
FTC Fires Warning Shot at Tech Giants Over Privacy Erosion Amid UK Encryption Drama
Source: Scott Ikeda, CPO Magazine
The Federal Trade Commission (FTC) has issued strong warnings to US tech companies, cautioning against the weakening of privacy features due to foreign government pressures. The letters, sent by FTC Chairman Andrew N. Ferguson, came after the public escalation of the Apple-UK encryption backdoor dispute. The UK’s Investigatory Powers Act (IPA) had previously attempted to compel Apple to include a backdoor in iCloud for surveillance, prompting concerns over potential compromises to privacy.
The FTC emphasized that tech companies must not degrade security features, like encryption, in response to foreign demands. Failure to uphold privacy commitments could result in legal action for deceptive practices. The letters also stressed that companies should notify users about any changes made under foreign government pressure, a point especially relevant in the context of Apple’s struggle with the UK over encryption.
Key companies such as Apple, Meta, Amazon, and Google received the letters, as the FTC also called on them to reaffirm their privacy and security obligations. The warning reflects broader concerns about the potential for foreign governments to undermine privacy, particularly through laws like the UK’s Online Safety Act and the EU’s Digital Services Act.
The issue has been compounded by the Trump administration’s pressure on the UK to back down on encryption requirements, signaling ongoing US resistance to backdoor encryption mandates. This development indicates a continued push in both the Trump and Biden administrations to make end-to-end encryption a standard feature in digital communications.
4chan & Kiwi Farms Hit Back at UK’s Online Safety Law in US Court
Source: Paul Sandle, Reuters
Internet forums 4chan and Kiwi Farms have taken a bold legal step by suing the UK’s media regulator, Ofcom, in the United States. The lawsuit argues that the UK’s Online Safety Law infringes on American free speech rights. The law, which holds global online platforms accountable for content, has raised alarm for U.S. tech companies, with critics accusing European regulators of overreach.
The lawsuit stems from Ofcom’s investigation into 4chan and Kiwi Farms for potential illegal content under the new UK law, with demands for compliance and threats of hefty fines. Both platforms, which operate solely in the U.S., argue that the law violates their First Amendment rights. Ofcom, however, insists that any service linked to the UK, regardless of where it's based, must protect UK users.
This case could set a major precedent, as it challenges the growing trend of global regulation targeting American tech giants.
TransUnion Hack Exposes Data of 4.4 Million Consumers
Source: Raphael Satter, Reuters
TransUnion has revealed that a recent data breach compromised the personal information of 4.4 million consumers. The hack, traced to a third-party application used by the company’s U.S. consumer support operations, did not involve TransUnion’s core credit database or credit reports, the company assured. While the exact identity of the third-party app remains undisclosed, the breach highlights growing concerns over cybersecurity, especially following recent incidents where hackers infiltrated corporate systems like Salesforce.
The company quickly contained the breach, but it underscores the vulnerability of sensitive data across various platforms. TransUnion has notified affected individuals, in compliance with Maine’s breach disclosure laws, though more details are awaited.
