Google and Amazon have agreed to a highly unusual deal with the Israeli government, known as Project Nimbus, which grants access to their cloud services for the country while also implementing a secret code that sidesteps legal obligations.
The arrangement was born out of Israel's concerns that data it moves into the global corporations' cloud platforms could end up in the hands of foreign law enforcement authorities. The companies, Google and Amazon, routinely comply with requests from police, prosecutors, and security services to hand over customer data to assist investigations.
As part of the deal, Israeli officials inserted controls into the Nimbus agreement that require the companies to send coded messages to its government if it has disclosed Israeli data to foreign courts or investigators. The secret code is a "wink" system where payments are made by the companies to the Israeli government in the form of telephone dialing codes.
According to leaked documents, if either Google or Amazon provides information to authorities in the US, they must send 1,000 shekels to Israel; however, this could be as much as 9,999 shekels for foreign countries. If the companies are unable to signal which country has received the data, there is a backstop of 100,000 shekels.
Legal experts say that the arrangement is highly unusual and carries risks for the companies as it could violate US law obligations in keeping secrets about subpoenaed information. The mechanism seems "clever" but also "risky".
The Nimbus deal would appear to prohibit Google and Amazon from taking unilateral action taken by Microsoft, when it disabled the Israeli military's access to technology used to operate an indiscriminate surveillance system monitoring Palestinian phone calls.
While both companies stated they had accepted Israel's stringent demands in the completed contract, saying they did not circumvent their confidentiality obligations, a spokesperson for the Israeli finance ministry said that the company was "bound by stringent contractual obligations that safeguard Israel's vital interests".
The arrangement was born out of Israel's concerns that data it moves into the global corporations' cloud platforms could end up in the hands of foreign law enforcement authorities. The companies, Google and Amazon, routinely comply with requests from police, prosecutors, and security services to hand over customer data to assist investigations.
As part of the deal, Israeli officials inserted controls into the Nimbus agreement that require the companies to send coded messages to its government if it has disclosed Israeli data to foreign courts or investigators. The secret code is a "wink" system where payments are made by the companies to the Israeli government in the form of telephone dialing codes.
According to leaked documents, if either Google or Amazon provides information to authorities in the US, they must send 1,000 shekels to Israel; however, this could be as much as 9,999 shekels for foreign countries. If the companies are unable to signal which country has received the data, there is a backstop of 100,000 shekels.
Legal experts say that the arrangement is highly unusual and carries risks for the companies as it could violate US law obligations in keeping secrets about subpoenaed information. The mechanism seems "clever" but also "risky".
The Nimbus deal would appear to prohibit Google and Amazon from taking unilateral action taken by Microsoft, when it disabled the Israeli military's access to technology used to operate an indiscriminate surveillance system monitoring Palestinian phone calls.
While both companies stated they had accepted Israel's stringent demands in the completed contract, saying they did not circumvent their confidentiality obligations, a spokesperson for the Israeli finance ministry said that the company was "bound by stringent contractual obligations that safeguard Israel's vital interests".