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Germany Plans To Ban Computer Companies That Work With NSA From Sensitive Public Contracts


As early as June last year, Techdirt noted that beyond the political fallout of NSA spying, there is a considerable risk that there will be serious economic consequences too. That’s because other countries are now aware that one way the NSA has been obtaining sensitive information is through US computer products that have secret backdoors added in some way. In that post, we mentioned that Sweden had banned the country’s public bodies from using Google Apps; it looks like Germany is going even further, as reported here in the international edition of the German newspaper Süddeutsche Zeitung:

Germany’s black-red “grand coalition” government has now tightened the rules for awarding sensitive public IT contracts. In cases of doubt, suspicious companies will now be excluded from such contracts. And companies now have to sign documents to the effect that no contracts or laws oblige them — nor can they be coerced — to pass on confidential data to foreign secret services or security authorities.

The new rule would seem to be aimed primarily at American companies. These companies, as numerous Snowden documents reveal, regularly pass on information to the U.S. spy agencies. At the NSA, a separate Special Sources Operations department deals with cooperation with “strategic partners,” as agents call such companies. The companies say they are merely following the laws of the respective country, and so far this explanation has been accepted.

But since April, any company that cannot guarantee that foreign services or authorities will not obtain any of their data is being excluded from federal contracts in Germany. A spokesperson for the Ministry of the Interior said that the aim of the new rule is to prevent “the flow of data worth protecting to foreign security authorities.”


1. The lowest economic loss estimate that I’ve seen is $35 Billion.

2. Forrester estimated economic damage of $180 Billion (a quarter of the entire Tech sector).

3. IBM just transferred $1.2 Billion into London and Hong Kong datacentres due to client concerns. That’s major investment flowing into Europe.

These are HUGE sums of money – and the NSA did this to their own country.

One Comment
  1. Reblogged this on oogenhand and commented:
    Arms race.


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