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CYBER WARS
US threatened Yahoo with huge fine over surveillance
by Staff Writers
Washington (AFP) Sept 11, 2014


Chinese tech giant Huawei on Europe recruitment drive
Beijing (AFP) Sept 12, 2014 - Controversial Chinese technology giant Huawei -- which has been condemned as a security risk in the US and Australia -- is to recruit hundreds of research and development staff in Europe, the president of its French subsidiary said.

"In the next two or three years, we are going to double our researchers" in Europe, who currently number around 800, Francois Quentin told AFP.

A total of 200 of the new staff, including applied mathematicians and designers, will be based in France.

In July, Huawei was ranked as the world's number three smartphone maker by sales, behind South Korea's Samsung and Apple of the US, according to research firm International Data Corp.

It has 17 research sites in Europe spread across eight countries, including Germany, Finland and Italy, and expects to employ 13,000 people across the continent by 2017.

The Shenzhen-based firm was founded in 1987 by former People's Liberation Army engineer Ren Zhengfei, and is now among the world's top makers of telecommunications equipment.

Washington has long seen it as a security threat due to perceived close links to the Chinese government, which the company denies, and both the United States and Australia have barred it from involvement in broadband projects over espionage fears. It denies such allegations vigorously.

Huawei announced net profit of 21 billion yuan ($3.47 billion) last year, up from 15.62 billion in 2012. Sales revenue surged 8.5 percent year on year to 239.03 billion yuan, it said.

US authorities threatened to fine Yahoo $250,000 a day if it failed to comply with a secret surveillance program requiring it to hand over user data in the name of national security, court documents showed Thursday.

The documents, made public in a rare unsealing by a secretive court panel, "underscore how we had to fight every step of the way to challenge the US government's surveillance efforts," Yahoo general counsel Ron Bell said in a blog post that will again raise privacy concerns.

The documents shed new light on the PRISM snooping program revealed in leaked files from former National Security Agency contractor Edward Snowden.

The program allowed US intelligence services to sweep up massive amounts of data from major Internet firms including Yahoo and Google. Officials have said the deeply contentious program ended in 2011.

The 1,500 pages of documents were ordered released by the Foreign Intelligence Surveillance Court in the case dating from 2007, according to Bell, who said that in 2007, the US government "amended a key law to demand user information from online services."

"We refused to comply with what we viewed as unconstitutional and overbroad surveillance and challenged the US government's authority," he said.

Yahoo's court challenge failed and it was forced to hand over the US user data.

"At one point, the US government threatened the imposition of $250,000 in fines per day if we refused to comply," Bell revealed.

Since the Snowden leaks, Yahoo and others have been seeking to make public these court documents to show they were forced to comply with government requests and made numerous attempts to fight these efforts, rather than simply acquiescing to them, as some critics say.

The opening of these court dockers to the public "is extremely rare," Bell said, adding that the company was in the process of making the 1,500 pages publicly available online.

"We consider this an important win for transparency and hope that these records help promote informed discussion about the relationship between privacy, due process, and intelligence gathering," Bell added.

But he said that "despite the declassification and release, portions of the documents remain sealed and classified to this day, unknown even to our team."

- 'Not reasonable' -

The redacted court records, seen by AFP, showed Yahoo challenged the government on constitutional grounds, saying the surveillance program violated protections against unreasonable search and seizure.

Yahoo said in one brief that the government's requests were "unconstitutional because they permitted warrantless surveillance of US persons' private communications without prior judicial review, and were not reasonable."

The company argued that the program was not merely monitoring overseas targets but some in the United States "with no knowledge that their Internet communications are being retrieved."

Yahoo said the process was "similar to what is done in criminal cases" and would require monitoring from the company's headquarters in Sunnyvale, California.

"The US Supreme Court has never sanctioned warrantless surveillance of US citizens," Yahoo said in another brief.

A document dated May 14, 2008 said Yahoo began complying with the government order two days earlier, on May 12, on "priority user accounts for which the government wanted surveillance."

rl/pst

YAHOO!

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