NSA spying risks $35 billion in U.S. technology sales

“International anger over the National Security Agency’s Internet surveillance is hurting global sales by American technology companies and setting back U.S. efforts to promote Internet freedom,” Nicole Gaouette reports for Bloomberg News. “Disclosures of spying abroad may cost U.S. companies as much as $35 billion in lost revenue through 2016 because of doubts about the security of information on their systems, according to the Information Technology & Innovation Foundation, a policy research group in Washington whose board includes representatives of companies such as International Business Machines Corp. and Intel Corp.”

“Any setback in the U.S. push to maintain an open Internet also could inflict indirect damage on companies such as Apple Inc. and Google Inc. that benefit from global networks with few national restrictions,” Gaouette reports. “Cisco Systems Inc., the world’s largest maker of computer-networking equipment, said this month that the NSA disclosures are causing some hesitation among customers in emerging markets.”

“News about U.S. surveillance disclosed by former NSA contractor Edward Snowden has ‘the great potential for doing serious damage to the competitiveness’ of U.S. companies such as Cupertino, California-based Apple, Facebook Inc., and Microsoft Corp., Richard Salgado, Google’s director for law enforcement and information security, told a U.S. Senate panel Nov. 13. ‘The trust that’s threatened is essential to these businesses,'” Gaouette reports. “The uproar in Germany will probably hurt Akamai Technologies Inc.’s business there, according to Tom Leighton, chief executive officer of the Cambridge, Massachusetts-based company that helps corporate customers deliver online content faster. ‘It’s clearly bad for American companies,’ Leighton said Nov. 20 at ‘The Year Ahead: 2014,’ a two-day conference in Chicago hosted by Bloomberg LP. ‘It’s particularly bad now in Germany, where it’s really being played up, to whip up anti-American corporate sentiment. We’ll probably lose some business there.'”

“A survey by the Cloud Security Alliance, an industry group, found that 10 percent of its non-U.S. members have canceled contracts with U.S.-based cloud providers since May. Fifty-six percent said they’d be less likely to use one,” Gaouette reports. “‘People aren’t going to trust the U.S. and U.S. companies as much,’ said Jason Healey, director of the Cyber Statecraft Initiative at the Atlantic Council, a Washington-based policy group. ‘You’re going to see national boundaries begin in cyberspace.’ …Google’s Salgado said international reaction to the NSA’s surveillance risks changing the nature of the Internet. He said proposals being advanced could lead to the ‘creation of a splinter net, broken up into smaller national regional pieces with barriers around it to replace the global Internet that we know today.'”

Read more in the full article here.

MacDailyNews Take: Karma.

United States Constitution, Amendment IV:

The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no Warrants shall issue, but upon probable cause, supported by Oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized.

Those who would give up essential liberty to purchase a little temporary safety deserve neither liberty nor safety. – Benjamin Franklin, Historical Review of Pennsylvania, 1759

Join The Electronic Frontier Foundation in calling for a full congressional investigation here.

Related articles:
Apple iPhones phased out of German government in favor of encrypted phones to block U.S. NSA spying – November 22, 2013
U.S. NSA secretly infiltrated Yahoo, Google data centers worldwide, Snowden documents say – October 30, 2013
Obama administration decides NSA spying is ‘essential,’ but oversight of NSA is not – October 8, 2013
Apple’s iPhone 5s with Touch ID seen as protection against U.S. NSA – September 16, 2013
German government: Windows 8 contains U.S. NSA snooping back doors; too dangerous to use – August 23, 2013
Report: NSA can see 75% of U.S. Web traffic, can snare emails – August 21, 2013
NSA can read email, online chats, track Web browsing without warrant, documents leaked by Edward Snowden show – July 31, 2013
Momentum builds against U.S. government surveillance – July 29, 2013
U.S. House rejects effort to curb NSA surveillance powers, 205-217 – July 24, 2013
Obama administration scrambles to shut down imminent U.S. House vote to defund NSA spying – July 24, 2013
Obama administration demands master encryption keys from firms in order to conduct electronic surveillance against Internet users – July 24, 2013
Apple, Google, dozens of others push Obama administration to disclose U.S. surveillance requests – July 19, 2013
Secret court agrees to allow Yahoo to reveal its fight against U.S. government PRISM requests – July 16, 2013
How Microsoft handed U.S. NSA, FBI, CIA access to users’ encrypted video, audio, and text communications – July 11, 2013
DuckDuckGo search engine surges 33% in wake of PRISM scandal – June 20, 2013
Yahoo: Since December 2012, we have received up to 13,000 U.S. gov’t requests for customer data – June 18, 2013
Apple: Since December 2012, we have received U.S. gov’t requests for customer data for up to 10,000 accounts – June 17, 2013
Nine companies, including Apple, tied to PRISM, Obama to be smacked with class-action lawsuit – June 12, 2013
U.S. lawmakers urge review of ‘Prism’ domestic spying, Patriot Act – June 10, 2013
PRISM: Do Apple, Google, Facebook have an ethical obligation not to spy on users? – June 8, 2013
Plausible deniability: The strange and unbelievable similarities in the Apple, Google, and Facebook PRISM denials – June 7, 2013
Google’s Larry Page on government eavesdropping: ‘We had not heard of a program called PRISM until yesterday’ – June 7, 2013
Seecrypt app lets iPhone, Android users keep voice calls, text messages away from carriers, government eyes and ears – June 7, 2013
Obama administration defends PRISM data-collection as legal anti-terrorism tool – June 7, 2013
Facebook, Google, Yahoo join Apple in sort-of denying PRISM involvement – June 7, 2013
Report: Intelligence program gives U.S. government direct access to customer data on Apple servers; Apple denies – June 6, 2013


      1. You really could use some lessons in recognizing sarcasm. It’s no fun when you have to explain it to people. Maybe you need a dictionary too. It’s really hard to be a fascist and a communist at the same time. I do applaud your openness as to what’s really bugging you.

        1. “I do solemnly swear that I, Barack Obama, will faithfully execute the Office of President of the United States, and will to the best of my ability, preserve, protect and defend the Constitution of the United States.”

          I suggest you look-up the definition of traitor.

            1. I’ll do it for you:

              traitor |ˈtrātər|
              a person who betrays a friend, country, principle, etc.
              ORIGIN Middle English: from Old French traitour, from Latin traditor, from tradere ‘hand over.’

      1. Yeah, why don’t we bring back Bush (dripping sarcasm….for those that can’t tell).

        And that moron Morman would have done wonders for the US.

        Get a grip! It is because of the re-pubic-an’s that we are in this mess to begin with.

      2. Gee, it was the Republicans and their neocon friends who allowed for the rapid expansion of the Patriot Act (another curious ultra-right label) to allow for this widespread behavior. Before you and your nihilistic provenance go about wanting to disassemble the government, remember that it was you who wanted this to begin with.

        You are a traitor.

          1. The President is not a king and he did not invent the NSA by himself. Your representatives in congress (and mine) conspired against the people to give the NSA all the power they have. Giving them a pass and blaming the black guy is disingenuous and myopic. Do you want the NSA to stop spying on everyone? Write to your representative. I have.

            1. The National Security Agency is in the executive branch of the Federal government, as such, it’s employees serve at the behest and pleasure of the president of the United States. Wake the fuck up.

      3. new boss same as the old boss.
        you need to start over USA, your country is fucked
        you are the low eduction, prison country, you brutalise large groups of your population, then give them push button death machines…so dumb.

    1. I see your point, but we all have to remember that, regardless of how wrong Mr. Snowden might have been, if the NSA hadn’t been spying in the first place, he couldn’t have disclosed anything. Snowden merely revealed what was being done. Without the NSA’s much larger wrong, there could have been no wrongdoing on Snowden’s part.

    2. If some guy rings my door and tells me somebody is eye-dropping me through my windows it’s only logical to whack the warner right? Never mind the one doing the snooping around.


  1. If you ever have the time read up on what allowed 9-11 to happen. It was a complete eft up from Federal to local by people due to incompetence, ineptitude, corruption, negligence, stupidity and laziness- otherwise it should never have happened. Now we get to live in a paranoid security state and find ourselves fighting just to maintain our rights from those seeking to make a profit from paranoia, fear and insecurity.

    What the NSA is doing is what the NSA wanted to do all along but was denied by public opinion. Now an American public blames Edward Snowden for telling them the truth they dare not believe. Sadly, after a decade plus of security theater the American people seem content to hand over their birthright for a false sense of security.

    Make no mistake, this is all about money. 70+% of the spying is now done by contractors who just happen to recycle some of that money to the Congressmen and others who pimp the ever expanding national security state, for-profit prisons and all the rest. Some seem not to care as long as their colonoscopy is not on pay per view cable.

    Now all this BS is costing jobs and money due to the rest of the world deciding that they would prefer more than a little personal privacy, Thank You, and do not want the US spying on everyone for fun and profit.

    A GPS equipped smartphone, the NSA and no online privacy equals a tool any dictator would die for- a mobile big brother tele screen.

    1. The ultimate NSA wet dream would be a Dick Tracy wristwatch with microphone and camera. I don’t care what others will say, Apple will look the other way while the NSA places remote control into the design, plausible deniability. That will apply to the iWatch just as it does to iCloud, and just about most high-tech goods and services today, with everyone holding their hands over their ears, eyes or mouths while wrong is committed.

  2. Regional internets…. Borders….

    …but just before SkyNet was about to achieve full self-awareness, John came back with the Terminator and took a job with the US NSA under the name of Eric Snowden…

    1. Oh sorry, you didn’t know? Americans care about only one thing: money. So if anything will reign in the NSA it will be the corporate bosses that own us. If only there was a word used to describe when business and government conspire against the will of the people… golly I just cannot think of it.

      1. I think you need to open your eyes.
        The government is ALL powerful, not the “corporations”. Just look at what the government is doing to the largest corporation (by monetary standards) in the US, Apple. They have browbeat them from one direction and then another.
        You have to understand that the money given to crooked politicians by the “corporations” does not constitute power, but rather extortion by the federal government. Apple situation proves that plain as day. If corporate wealth were power, as you allege, Apple would be the king, not the presidents whipping boy. Apple succeeded IN SPITE of the US federal government. Many aren’t so lucky and have to succumb to the federal government’s implicit extortion (also known as lobbying) eventually becoming part of the machine.
        Who IS john Galt?

  3. I get it. People don’t like snoops, some people don’t like government or this president, too bad for them. NSA is needed, spying is necessary to protect the people. I don’t feed political trolls as they are a waste of time but which president caught Bin Laden?

    Nobody is perfect, no president is perfect but a true American will support his or her president despite their personal opinions. Hating your president doesn’t make any country better.

  4. I am not an American so politeness dictates that it is not proper to comment on domestic politics.
    That said this is not a black and white issue .All countries do what the NSA is doing including my own and the NSA has been doing this for a very long time .Bamford’s “The Puzzle Palace” was written almost 30 years ago and even then it was obvious the scale of surveillance .
    We live in a perilous world .
    The one entity that I trust is Apple .

    1. “The one entity that I trust is Apple .”

      I would like to believe that I can trust Apple and I’m moderately certain that Apple is not willingly sharing data with the NSA, but there is one big problem.

      Apple may indeed be resisting the NSA’s intrusions, but the NSA is able to intercept all internet data into and out of Apple’s systems. How can Apple know that the NSA are not able to unencrypted that data ? There’s no way that the NSA will tell us and if they had cracked it, they would be very keen to promote the story that Apple’s systems are uncrackable.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.