UK Edition
Apple spying fears as iCloud data moved to China
Apple is giving Chinese authorities greater access over customers' iCloud accounts to comply with new laws there, it has confirmed.
The tech giant will begin hosting the accounts in a new data centre which stores the cryptographic keys needed to unlock an iCloud account. These have previously been stored in the US, meaning any foreign state looking for access to an account needed to submit a request through the US legal system.
But now Chinese authorities will no longer have to use the US courts to seek information on iCloud users and can instead use their own legal system to ask Apple to hand over iCloud data for Chinese users, legal experts said.
Human rights activists say they fear the authorities could use that power to track down dissidents, citing cases from more than a decade ago in which Yahoo Inc handed over user data that led to arrests and prison sentences for two democracy advocates. Jing Zhao, a human rights activist and Apple shareholder, said he could envisage worse human rights issues arising from Apple handing over iCloud data than occurred in the Yahoo case.
In a statement, Apple said it had to comply with recently introduced Chinese laws that require cloud services offered to Chinese citizens be operated by Chinese companies and that the data be stored in China. It said that while the company’s values don’t change in different parts of the world, it is subject to each country’s laws.
“While we advocated against iCloud being subject to these laws, we were ultimately unsuccessful,” it said. Apple said it decided it was better to offer iCloud under the new system because discontinuing it would lead to a bad user experience and actually lead to less data privacy and security for its Chinese customers.
As a result, Apple has established a data center for Chinese users in a contractual arrangement with state-owned firm Guizhou - Cloud Big Data Industry Co Ltd. The firm was set up and funded by the provincial government in the relatively poor southwestern Chinese province of Guizhou in 2014. The Guizhou company has close ties to the Chinese government and the Chinese Communist Party.
The Apple decision highlights a difficult reality for many U.S. technology companies operating in China. If they don’t accept demands to partner with Chinese companies and store data in China then they risk losing access to the lucrative Chinese market, despite fears about trade secret theft and the rights of Chinese customers.
Apple says the joint venture does not mean that China has any kind of "backdoor" into user data and that Apple alone – not its Chinese partner – will control the encryption keys. But Chinese customers will notice some differences from the start: their iCloud accounts will now be co-branded with the name of the local partner, a first for Apple.
And even though Chinese iPhones will retain the security features that can make it all but impossible for anyone, even Apple, to get access to the phone itself, that will not apply to the iCloud accounts. Any information in the iCloud account could be accessible to Chinese authorities who can present Apple with a legal order.
Apple said it will only respond to valid legal requests in China, but China's domestic legal process is very different than that in the U.S., lacking anything quite like an American "warrant" reviewed by an independent court, Chinese legal experts said. Court approval isn’t required under Chinese law and police can issue and execute warrants.
“Even very early in a criminal investigation, police have broad powers to collect evidence,” said Jeremy Daum, an attorney and research fellow at Yale Law School’s Paul Tsai China Center in Beijing. “(They are) authorized by internal police procedures rather than independent court review, and the public has an obligation to cooperate.”
Guizhou - Cloud Big Data and China’s cyber and industry regulators did not immediately respond to requests for comment. The Guizhou provincial government said it had no specific comment.
There are few penalties for breaking what rules do exist around obtaining warrants in China. And while China does have data privacy laws, there are broad exceptions when authorities investigate criminal acts, which can include undermining communist values, “picking quarrels” online, or even using a virtual private network to browse the Internet privately.
Apple says the cryptographic keys stored in China will be specific to the data of Chinese customers, meaning Chinese authorities can't ask Apple to use them to decrypt data in other countries like the United States.
Privacy lawyers say the changes represent a big downgrade in protections for Chinese customers.
"The U.S. standard, when it's a warrant and when it's properly executed, is the most privacy-protecting standard," said Camille Fischer of the Electronic Frontier Foundation.
Apple has given its Chinese users notifications about the Feb. 28 switchover to the Chinese data center in the form of emailed warnings and so-called push alerts, reminding users that they can choose to opt out of iCloud and store information solely on their device. The change only affects users who set China as their country on Apple devices and doesn’t affect users who select Hong Kong, Macau or Taiwan.
Apple doesn't require an iCloud account to set up and use an iPhone. But if the user enables iCloud during set up, the default settings on the iPhone will automatically create an iCloud back-up. Apple declined to comment on whether it would change its default settings to make iCloud an opt-in service, rather than opt-out, for Chinese users.
Apple said it will not switch customers’ accounts to the Chinese data center until they agree to new terms of service and that more than 99.9 percent of current users have already done so.