Emmanuel Macron has reportedly spoken to the Israeli prime minister, Naftali Bennett, to ensure that the Israeli government is “properly investigating” allegations that the French president could have been targeted with Israeli-made spyware by Morocco’s security services.
In a phone call, Macron expressed concern that his phone and those of most of his cabinet could have been infected with Pegasus, hacking software developed by the Israeli surveillance firm NSO Group, which enables operators of the tool to extract messages, photos and emails, record calls and secretly activate microphones from infected devices.
NSO has said Macron was not a “target” of any of its customers, meaning the company denies he was selected for surveillance using Pegasus. The company says that the fact that a number appeared on the list was in no way indicative of whether that number was selected for surveillance using Pegasus.
The Pegasus project could not examine the mobile phones of the leaders and diplomats, and could therefore not confirm whether there had been any attempt to install malware on their phones.
The Macron-Bennett phone call reportedly took place on Thursday, but was first reported by Israel’s Channel 12 News on Saturday evening after the end of Shabbat, the Jewish day of rest.
The prime minister’s office has declined to comment on the phone call or the two leaders’ conversation. According to Channel 12, an unnamed source said Bennett had stressed that the alleged events occurred before he took office in May, and that a commission was examining whether rules on Israel’s export of cyberweapons such as Pegasus should be tightened.
The investigation has been based on forensic analysis of phones and analysis of a leaked database of 50,000 numbers, including that of Macron and those of heads of state and senior government, diplomatic and military officials, in 34 countries.
In multiple statements, NSO said the fact a number appeared on the leaked list was in no way indicative of whether it was selected for surveillance using Pegasus. “The list is not a list of Pegasus targets or potential targets,” the company said. “The numbers in the list are not related to NSO Group in any way.”
But the list is believed to provide insights into those identified as persons of interest by NSO’s clients. It includes people whose phones showed traces of NSO’s signature phone-hacking spyware, Pegasus, according to forensic analysis of their devices. The analysis was conducted by Amnesty International’s security lab, which discovered traces of Pegasus-related activity on 37 out of 67 phones that it analysed.
While the rest of the world grapples with the seismic consequences of the revelations, in Israel reaction has been muted. Meretz, a leftwing party long in opposition but now part of the new government coalition, has asked the defence ministry for “clarification” on the issue, but no party is seeking a freeze of export licences or an inquiry into NSO’s close links to the Israeli state under the tenure of the former prime minister Benjamin Netanyahu.
But as the mammoth impact of the disclosures has become clearer, the diplomatic pressure on Israel is mounting. On Thursday, the senior Israeli MP Ram Ben-Barak – a former deputy head of the Mossad spy agency – confirmed that the Israeli defence establishment had “appointed a review commission made up of a number of groups” to examine whether policy changes were needed regarding sensitive cyber exports.
US defence officials have also asked their Israeli counterparts for more details on the “disturbing” disclosures stemming from the Pegasus project, the Israeli newspaper Haaretz reported on Saturday.
The UK capital was the only European city to make the top ten in Startup Genome’s ranking, tying with New York in second place for the second year in a row.
London is Europe’s number one start-up city, according to a recent report by Startup Genome. The research and advisory body which specialises in start-ups released its ‘Global Startup Ecosystem Report 2021’ report today (22 September).
The report identified London and New York as joint second-best cities in the world for start-ups. London was the only European location to make it into the top ten. The city is attractive to founders thanks to its educated workforce and tax incentives, the report found.
Silicon Valley in California took the top spot, unsurprisingly. This year’s global rankings were dominated by the US, with half of the top 30 ecosystems coming from this region, followed by Asia with 27pc and Europe with 17pc of the top performing ecosystems globally.
Silicon Valley, New York City, Boston, and Los Angeles alone contributed more than 70pc to the US’s total ecosystem value.
Paris made the top 20, coming in at number 12. The Amsterdam-Delta region followed in thirteenth place. Dublin improved its rank from the previous year’s report, coming in at number 36 this time.
Beijing, Boston, Los Angeles, Tel Aviv, Shanghai, Seattle and Stockholm also made the top ten best start-up cities.
The global start-up economy is currently worth more than $3.8trn in ecosystem value. There are 79 ecosystems generating over $4bn in value, which is more than double the number identified in 2017. This time last year, 91 ecosystems had achieved unicorn status.
“Entrepreneurs, policymakers, and community leaders in Europe have been working hard to build inclusive innovation ecosystems that are engines of economic growth and job creation for all,” commented JF Gauthier, founder and CEO of Startup Genome on the report’s release.
“The Global Startup Ecosystem Report is the foundation of knowledge where we, as a global network, come together to identify what policies actually produce economic impact and in what context,” Gauthier added.
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Facebook’s semi-independent oversight board says it will review the company’s “XCheck” system, an internal program that has exempted high-profile users from some or all of its rules.
The decision follows an investigation by the Wall Street Journal that revealed that reviews of posts by well-known users such as celebrities, politicians and journalists are steered into the separate system.
Under the program, some users are “whitelisted”, or not subject to enforcement action, while others are allowed to post material that violates Facebook rules pending content reviews that often do not take place. The Xcheck system, for example, allowed Brazilian footballer Neymar to post nude pictures of a woman who had accused him of rape, according to the report.
Users were identified for additional scrutiny based on criteria such as being “newsworthy”, “influential or popular” or “PR risky”, the Wall Street Journal found. By 2020 there were 5.8 million users on the XCheck list, according to the newspaper.
The oversight board said Tuesday that it expects to have a briefing with Facebook on the system and “will be reporting what we hear from this” as part of a report it will publish in October.
The board may also make other recommendations, although Facebook is not bound to follow these.
The Journal’s report, the board said, has drawn “renewed attention to the seemingly inconsistent way that the company makes decisions, and why greater transparency and independent oversight of Facebook matters so much for users”.
Facebook told the Journal in response to its investigation that the system “was designed for an important reason: to create an additional step so we can accurately enforce policies on content that could require more understanding”. The company added that criticism of it was “fair” and that it was working to fix it.
A representative for Facebook declined to comment to the Associated Press on the oversight board’s decision.
The Philippines has become the latest nation to impose a digital services tax.
Such taxes require the likes of Netflix and Spotify to pay local sales taxes even though their services are delivered – legally, notionally, and physically – from beyond local jurisdiction.
The Philippines has chosen a rate of 12 per cent, mirroring local value added taxes.
“We have now clarified that digital services and the goods and services traded through digital service providers should generally be subject to VAT. This is just a matter of common tax sense,” said Joey Salceda, a member of the Philippines’ House of Representatives and a backer of the change to the nation’s tax code.
Salceda tied the change to post-pandemic economic recovery.
“If brick and mortar establishments, which are the hardest-hit by the pandemic, have to pay VAT, the giants of e-commerce shouldn’t be exempt,” he said.
However, local companies that are already exempt from VAT by virtue of low turnover won’t be caught by the extension of the tax into the virtual realm.
Salceda’s amendments are designed to catch content streamers, but also online software sales – including mobile apps – plus SaaS and hosted software. The Philippines’ News Agency’s report on the amendment’s passage into law even mentions firewalls as subject to VAT.
But the taxes are controversial because they are seen as a unilateral response to the wider issue of multinational companies picking the jurisdictions in which they’ll pay tax – a practice that erodes national tax bases. The G7 group of nations, and the OECD, think that collaborations that shift tax liabilities to nations where goods and services are acquired and consumed are the most appropriate response, and that harmonising global tax laws to make big tech pay up wherever they do business is a better plan than digital services taxes.