Snowden's Revelations Hurting the Profits of American Tech Companies


Mon, Mar 24th, 2014 11:00 by capnasty NEWS

As originally identified by Bloomberg back in December, Snowden's revelations on the extent of American surveillance is causing foreign businesses and governments to make sure that American tech companies are avoided at all costs in order to safeguard their data.

[...] There are German companies, Mr. Staten said, “explicitly not inviting certain American companies to join.”

He added, “It’s like, ‘Well, the very best vendor to do this is IBM and you didn’t invite them.’ ”

The result has been a boon for foreign companies.

Runbox, a Norwegian email service that markets itself as an alternative to American services like Gmail and says it does not comply with foreign court orders seeking personal information, reported a 34 percent annual increase in customers after news of the N.S.A. surveillance.

Brazil and the European Union, which had used American undersea cables for intercontinental communication, last month decided to build their own cables between Brazil and Portugal, and gave the contract to Brazilian and Spanish companies. Brazil also announced plans to abandon Microsoft Outlook for its own email system that uses Brazilian data centers.

Mark J. Barrenechea, chief executive of OpenText, Canada’s largest software company, said an anti-American attitude took root after the passage of the Patriot Act, the counterterrorism law passed after 9/11 that expanded the government’s surveillance powers.



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