Just as troubling, Google and Amazon signed a huge $1.2 billion cloud-computing agreement with the Israeli government in 2021. Aside from its monumental importance, the change has important implications for corporate compliance and corporate legal obligations. This agreement — dubbed Project Nimbus — has come under fire. It has very strange provisions in it, including a secret signaling system that triggers an alert for Israeli officials when data is shared with foreign actors. Neither company has ever admitted to deliberately evading their legal obligations in spite of the burdensome terms set forth by Israel.
Under the settlement, Google and Amazon will be required to send “negative signals” when a transaction occurs that was not supposed to go through. These signals warn the Israeli state every time they publish any Israeli material to international courts or investigators. This strange protocol – which is known as the “winking mechanism” – has struck legal experts and privacy advocates with instant shock and disbelief.
The Ins and Outs of Project Nimbus
Project Nimbus established a public-private partnership between the Israeli government and the cloud computing arms of Google and Amazon. Primary purpose of such assistance is to augment the strength and capacity of Israel’s military and intelligence services. This cloud-computing platform is proving to be an essential tool in storing and analyzing massive amounts of data. As such, it’s a fundamental element used within the military’s offensives.
In line with this settlement, Google and Amazon need to transfer funds in amounts ranging from 1,000-9,999 shekels. They must negotiate and finalize these payments within 24 hours of moving any data. These payments are based on the foreign country receiving the information telephone dialing code. If businesses believe that gag order clauses prevent them from disclosing to which foreign country the data went, they risk a $1 million civil penalty. They need to pay 100,000 shekels (the equivalent of about $30,000) to the Israeli government.
Israeli officials have emphasized that these terms are designed to safeguard Israel’s vital interests in a rapidly changing global landscape. Finally, they claim that Google and Amazon are still subject to strict contractual requirements that would guarantee adherence with Israeli law.
“These agreements are confidential and we will not legitimise the article’s claims by disclosing private commercial terms.” – Israel’s finance ministry spokesperson
Reactions from Google and Amazon
Both companies have since publicly denied any assertion that they would violate a legal duty. Google continues to assert that it has a very strict doctrine in place in regard to answering lawful, US government requests for customer data. A spokesperson for Google stated, “The idea that we would evade our legal obligations to the US government as a US company, or in any other country, is categorically wrong.”
In the same way, Amazon transcribed at each hearing their dedication to customer privacy and compliance with the law. An Amazon spokesperson said, “We do not have any processes in place to circumvent our confidentiality obligations on lawfully binding orders.” In addition, the company pointed to its multi-layered global process for responding to lawful requests about customer data.
“We have a rigorous global process for responding to lawful and binding orders for requests related to customer data.” – Amazon spokesperson
Even with these reassurances, expert advocates for equitable development caution against the dangers of such P3 arrangements. As one former senior US security official noted, “It’s all brilliant, but it’s dangerous.” He highlighted how such practices might violate state law and the greater likelihood of being investigated by state legal authorities.
Implications for International Law and Oversight
The implications of Project Nimbus would reach beyond corporate accountability. They pose thorny dilemmas about international law and corporate oversight. As Israel presses ahead with its military campaign, the use of cloud services and associated tools to manage that data becomes even more vital. A recent UN commission of inquiry has found reasonable grounds to conclude that Israel is committing acts of genocide in Gaza. This finding only intensifies the ethical quagmire surrounding this cloud partnership.
Microsoft’s decision to cut off access to some cloud and artificial intelligence services for Israel underscores the shifting dynamics among technology providers in response to human rights concerns. More on that here. This move came after extensive reporting showing war crimes under international law associated with Israel’s military campaign.
Israeli officials have claimed that their contracts with Google and Amazon are legal under Israeli law. A spokesperson for the Israeli finance ministry stated, “The government is permitted to make use of any service that is permitted by Israeli law,” defending the legality of their arrangement.
“[The companies] understand the sensitivities of the Israeli government and are willing to accept our requirements.” – Finance ministry memo