Archive for the ‘European Union’ Category

Declaration by the High Representative Josep Borrell on behalf of the EU: European Union response to promote international security and stability in…

The European Union and its member states have repeatedly signalled their concern and denounced malicious behaviour in cyberspace. Such behaviour is unacceptable as it undermines international security and stability and the benefits provided by the Internet and the use of Information and Communication Technologies (ICTs). We strongly promote a global, open, stable, peaceful and secure cyberspace where human rights and fundamental freedoms and the rule of law fully apply, supporting the acceleration of social, political and economic development.

In order to better prevent, discourage, deter and respond to such malicious behaviour in cyberspace, the Council decided today to apply restrictive measures to six individuals and three entities or bodies involved in cyber-attacks with a significant effect, or attempted cyber-attacks with a potentially significant effect, which constitute an external threat to the European Union or its member states, or with a significant effect against third States or international organisations. The measures concerned are a travel ban and asset freeze to natural persons and an asset freeze to entities or bodies. It is also prohibited to directly or indirectly make funds available to listed individuals and entities or bodies.

The measures follow the European Union and member states consistent signalling and determination to protect the integrity, security, social-wellbeing and prosperity of our free and democratic societies, as well as the rules-based order and the solid functioning of its international organisations. We will continue to strengthen our cooperation to advance international security and stability in cyberspace, increase global resilience and to raise awareness on cyber threats and malicious cyber activities.

The European Union and member states will continue to strongly promote responsible behaviour in cyberspace, and call upon every country to cooperate in favour of international peace and stability, to exercise due diligence and take appropriate action against actors conducting malicious cyber activities, as well as continue to contribute to the implementation of the existing consensus based on the by the UN General Assembly endorsed 2010, 2013 and 2015 reports of the UN Group of Governmental Experts in the field of Information and Telecommunications in the Context of International Security (UNGGE) and to advance cooperation to strengthen this consensus in the context of the current sixth UNGGE and the Open-Ended Working Group (OEWG) as well as other appropriate international fora in this regard.

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Declaration by the High Representative Josep Borrell on behalf of the EU: European Union response to promote international security and stability in...

First-ever EU cyber sanctions hit Russian, Chinese, NKoreans – The Associated Press

BRUSSELS (AP) The European Union on Thursday imposed its first-ever sanctions over cyberattacks, slapping them on alleged Russian military agents, Chinese cyber spies and organizations including a North Korean firm.

The six people and three groups hit with sanctions include Russias GRU military intelligence agency. EU headquarters blamed them in a statement for the 2017 WannaCry ransomware and NotPetya malware attacks and the Cloud Hopper cyberespionage campaign.

EU foreign policy chief Josep Borrell said the sanctions are a travel ban and asset freeze to natural persons and an asset freeze to entities or bodies. It is also prohibited to directly or indirectly make funds available to listed individuals and entities or bodies.

Four Russians identified as GRU members were accused of trying to hack the Wi-Fi network of the Netherlands-based Organization for the Prohibition of Chemical Weapons, or OPCW, which has probed the use of chemical weapons in Syria. The 2018 attack was foiled by Dutch authorities.

The GRU was also sanctioned for NotPetya, which targeted companies that do business with Ukraine and caused billions of dollars in damage globally, and cyberattacks on Ukraines power grid in 2015 and 2016.

The two sanctioned Chinese nationals were accused of involvement in Operation Cloud Hopper, which the EU said hit companies on six continents, including Europe, through cloud services providers and gained unauthorized access to commercially sensitive data, resulting in significant economic loss.

One of the two, Zhang Shilong, was indicted in the United States in December 2018 for his alleged role in the operation, which U.S. authorities said at the time targeted a wide array of industries including aviation, biotechnology and satellite and maritime technology. Also sanctioned by the EU was the Chinese company Huaying Haitai, listed as Zhangs employer.

The North Korean firm sanctioned is Chosun Expo, which the EU said backed cyberattacks including WannaCry, the hacking of Sony Pictures and cyber robberies of Vietnamese and Bangladeshi banks.

A leading U.S. cybersecurity expert noted that the attempt to hack the chemical weapons group involved a rare physical visit to its organizations facilities in The Hague, Netherlands.

The consistent use of physical human intelligence teams to supplement its intrusion efforts makes the GRU a particularly effective adversary, said John Hultquist, director of threat intelligence at FireEye.

Sanctions may be particularly effective for disrupting this activity as they may hinder the free movement of this unit, he said.

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AP Technology Writer Frank Bajak in Boston contributed to this report.

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First-ever EU cyber sanctions hit Russian, Chinese, NKoreans - The Associated Press

European Union response to promote International Security and Stability in Cyberspace – Sarajevo Times

The European Union and its member states have repeatedly signalled their concern and denounced malicious behaviour in cyberspace. Such behaviour is unacceptable as it undermines international security and stability and the benefits provided by the Internet and the use of Information and Communication Technologies (ICTs). We strongly promote a global, open, stable, peaceful and secure cyberspace where human rights and fundamental freedoms and the rule of law fully apply, supporting the acceleration of social, political and economic development, is stated in the declaration by the High Representative Josep Borrell on behalf of the EU.

In order to better prevent, discourage, deter and respond to such malicious behaviour in cyberspace, the Council decided today to apply restrictive measures to six individuals and three entities or bodies involved in cyber-attacks with a significant effect, or attempted cyber-attacks with a potentially significant effect, which constitute an external threat to the European Union or its member states, or with a significant effect against third States or international organisations. The measures concerned are a travel ban and asset freeze to natural persons and an asset freeze to entities or bodies. It is also prohibited to directly or indirectly make funds available to listed individuals and entities or bodies.

The measures follow the European Union and member states consistent signalling and determination to protect the integrity, security, social-wellbeing and prosperity of our free and democratic societies, as well as the rules-based order and the solid functioning of its international organisations. We will continue to strengthen our cooperation to advance international security and stability in cyberspace, increase global resilience and to raise awareness on cyber threats and malicious cyber activities.

The European Union and member states will continue to strongly promote responsible behaviour in cyberspace, and call upon every country to cooperate in favour of international peace and stability, to exercise due diligence and take appropriate action against actors conducting malicious cyber activities, as well as continue to contribute to the implementation of the existing consensus based on the by the UN General Assembly endorsed 2010, 2013 and 2015 reports of the UN Group of Governmental Experts in the field of Information and Telecommunications in the Context of International Security (UNGGE) and to advance cooperation to strengthen this consensus in the context of the current sixth UNGGE and the Open-Ended Working Group (OEWG) as well as other appropriate international fora in this regard.

EPA/WALLACE WOON

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European Union response to promote International Security and Stability in Cyberspace - Sarajevo Times

New study forecasts the EU’s population will plummet by millions more than expected – Euronews

New research has forecast the European Union's population will plummet by millions more than previously predicted.

The United Nations has said the number of people in the bloc will drop to 365 million by 2100, down from 446 million today.

But a new study, published in the medical journal The Lancet, predicts it will fall more sharply, to 308 million by the end of the century.

Scientists, mostly from the Institute for Health Metrics and Evaluation, forecast the fertility rate the number of children per woman on average will drop to 1.41 in the EU. Previous UN estimates had put the figure at 1.75.

The new analysis predicts that Earth will be home to 8.8 billion people by 2100, with global growth peaking in 2064 at a population of 9.7 billion. Previous UN projections forecast 10.8 billion.

Global fertility rates have steadily declined since the 1960s. According to the online publication Our World in Data's study, this can be put down to three factors: "The empowerment of women (increasing access to education and increasing labour market participation), declining child mortality, and a rising cost of bringing up children (to which the decline of child labour contributed)."

The authors of the new study add another reason for the global trend of declining fertility: "Educational attainment and access to contraception."

Women in the EU27 are generally now having fewer children when they are younger, choosing to have them when they are older, which reduces the potential number of children possible on a biological level, according to Eurostat.

By 2100, 21 out of the 27 EU Member States will see their populations decline, the study predicts. Some countries like Bulgaria, Latvia, Portugal, Romania, Slovakia, and Spain will probably even see their populations reduce by more than half by 2100 up to a 77% decline for Latvia.

The figures show that 15 of the EU's countries, including Italy, Greece, Hungary, Poland and Portugal, are already experiencing a decline.

Five countries (Belgium, Denmark, France, Ireland, and Luxembourg) will gain in population size by 2100, despite a reduction in speed of growth. Scientists attribute these small rises to a relatively steady fertility rate and positive net migration forecast in these countries.

Alongside mortality and migration, fertility is a significant figure for demographers. "Many variables have an effect of this rate," says Catherine Scornet, an Aix-Marseille University lecturer in sociology and demography.

"They can either be direct: the marriage age, the access to birth control methods, the right to abortion" or indirect. "Providing school education to women will also lead them to be fulfilled other than through their role of mothers," she says, and therefore impact the fertility rate.

This too is a worldwide trend. By 2100, 183 countries out of 195 in the study will have a fertility rate lower than the global replacement level (2.1), it predicts. The replacement level is the total fertility rate (the average number of children born per woman) at which a population exactly replaces itself from one generation to the next, without migration.

As many as 23 countries are forecast to have their populations reduced by more than half between 2017 and 2100.

Globally India, Nigeria, China, the U.S. and Pakistan are predicted to have the largest populations in 2100 with 1.09 billion, 791 million, 732 million, 336 million and 248 million inhabitants respectively.

Fertility rates can have a major impact on the political and economical life of the inhabitants of countries, as they determine the number of working-age individuals.

These analyses are extremely important for leaders because they help them assess tomorrow's needs when it comes to infrastructures, job creation, food production and housing among other factors.

The new study has used forecasting of the working-age population to establish a ranking of the top 25 national economies over time.

It predicts that China will rise to the top of this list in 2035 but will be superseded by the U.S. again in 2098, thanks to immigration making up for the country's fertility rate being lower than the replacement level.

A shift in population, and therefore workforce, can cause new domestic policies an ageing population may mean a country has to reconsider its retirement system, for example.

The study's findings suggest that the ratio of the "population older than 80 years to the population younger than 15 years will increase in countries with more than 25% population decline," adding the "economic and fiscal consequences that will be extremely challenging".

According to Eurostat, people who are 65+ in the European Union represented 16,11% of the population in 2008, which rose to 19.06% in 2018.

"The prospect of seeing a country's population reducing for a leader is not always good news. However, this may be felt as opportune nowadays since the impact on natural resources would be lessened," Scornet notes.

Researchers chose not to include climate change as a factor in their prospects because of the "challenges" incorporating it represented.

However, they recognised that it "is likely to have a role in future migration patterns, with populations being forced to migrate because of sea-level rise, extreme weather events, environmental degradation, and more."

Factors like global warming will have a major impact on fertility, mortality, and, as we have already seen, migration.

"What is plausible within a generation is far less plausible within an 80-year range of time," Scornet said. However, such studies have the merit of addressing issues that will be essential in the future.

The study concludes by putting forward the many limitations of work on demographics. "Population size and composition are not exogenous factors for countries to account for in their planning, but rather outcomes that they can help direct," researchers said.

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New study forecasts the EU's population will plummet by millions more than expected - Euronews

European Union: European Commission Launches a Sector Inquiry into the Consumer Internet of Things – Lexology

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On 16 July 2020, the European Commission announced the launch of a sector inquiry into the market for consumer products and services linked to the Internet of Things (IoT).

The Commission defines IoT broadly. The sector inquiry is likely to cover any consumer facing system connecting physical or virtual objects to other objects or the internet. This includes smart home appliances and wearables (e.g., fitness trackers or smart watches). Commissioner Vestager says voice assistants are at the centre of this: theyre a new interface between consumers and products/services, and there is a question as to how choices are presented to consumers over this medium. Connected cars are not in scope (the Commission is considering Standard Essential Patents in that area, but separately).

The Commission believes consumers will only see the full benefits of IoT if markets stay open and competitive. The Commission wants to act quickly before tipping points are reached, although arguments exist that a market tipping may be beneficial if it results in more efficient products. This is an area of key concern for the Commission, and a concept being used to support the need for a New Competition Tool. The Commission views data as a key ingredient for competition in the wider technology sector. The Commission is concerned that producers of devices and assistants can collect vast amounts of data, and firms may then misuse this data to cement their market power, or otherwise harm competition to the detriment of consumers, through e.g., self-preferencing (directing users to their own products), or exclusive deals (sending consumers to preferred partners and limiting choice). Interoperability between devices will also be crucial.

What are Sector Inquiries?

Sector inquiries are in-depth reviews of particular markets with significant opportunities for stakeholder participation through consultations and working groups. Our experience of the recent e-commerce sector inquiry is that it led to a widespread re-examination of industry practices and is credited as the source of a major renaissance in enforcement against distribution arrangements. The Commissions new Vertical Agreements Guidelines will also be heavily influenced by the outcome of that study.

Lengthy questionnaires and tight deadlines

The Commission will invite comments from both businesses selling smart products and those selling services that can be accessed through these devices. Questionnaires are currently being sent out to approximately 400 companies worldwide asking about products they sell, how the market works, how data is collected/used/monetized, how products and services work together and any problems with making them interoperable. The questionnaires are lengthy which is also consistent with our experience advising clients on the e-commerce inquiry. Deadlines will be tight and companies should monitor mailboxes including generic mailboxes that the Commission may have found on company websites that may not ordinarily be monitored. We expect the Commission to follow up with companies that do not respond.

Report Process and the Potential for Future Enforcement Action

A preliminary report will be published in Spring next year, with a final report published in 2022. The sector inquiry will identify potential competition law breaches, but will also identify information that will feed into regulatory initiatives affecting IoT, as well as sending a powerful message to companies that the Commission is watching them. Commissioner Vestager noted in the press conference that the Commission may take enforcement action in certain areas before the inquiry is concluded where speed is of the essence.

The Commission has the ability to undertake unannounced inspections against companies in the context of sector inquiries, as such companies who receive questionnaires as part of the IoT sector inquiry should make sure their dawn raid guidance and internal processes are up to date. In addition, companies should expect to see targeted investigations under either Article 101 and/or 102. Whilst these individual investigations often start after the conclusion of the sector inquiry, as we have seen in the ecommerce sector inquiry, the Commission has previously launched investigations whilst the sector inquiry is ongoing. It is therefore a very important opportunity for companies to review their existing business practices to verify antitrust compliance.

Background and the Commissions Wider Policy Initiatives

The Commissions focus on IoT complements its broader Digital Single Market and Data Strategies, at the heart of which lie an ambition to ensure European businesses and citizens can take full advantage of the benefits of increased digitalisation and data collection. The Commissions Digital Strategy, published in February, forewarns a fitness check of existing competition rules to ensure their appropriateness to the digital economy. Problems are intended to be addressed through a Digital Services Act Package. The sector inquiry will complement the newly launched consultations on revising e-commerce rules, introducing new powers to govern platforms and introduction of a New Competition Tool (links to these consultations can be found on the Commission Digital Single Market landing page hyperlinked above). The package of proposals in their current form advocate ex ante regulation potentially compelling broader data sharing by stronger market players.

The Commission thinks there are significant advantages to data being pooled and shared widely, including facilitating the development of new products and services, of data analytics and machine learning, and allowing the emergence of data-driven ecosystems. The Commission wants to examine whether European businesses are being locked out of this new market. Other questions which will be addressed by the present inquiry will include practical points around the degree of interoperability between devices collecting data, standard setting, and licensing.

The inquiry also dovetails with the Commissions White Paper on AI, published in February, and which provides insight into the Commissions view on introducing a legislative regime to govern AI, which might include requirements to ensure quality and verifiability of underlying datasets (BM insight here).

The launch also comes days after the publication of the UK Consumer and Markets Authoritys final report in its online platforms and digital advertising market study. While IoT was not a specific focus of that study, the underlying theories of harm and concerns around concentration of market power along with themes such as the balancing act between protection of personal data and the need for businesses to access more data in order to compete will likely also be central to this new sector inquiry.

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European Union: European Commission Launches a Sector Inquiry into the Consumer Internet of Things - Lexology