Welcome to the CAVEAT Weekly Newsletter, where we break down some of the major developments and happenings occurring worldwide when discussing cybersecurity, privacy, digital surveillance, and technology policy.
At 1,650 words, this briefing is about a 7-minute read.
At a Glance.
- EU and US relations become increasingly tense.
- The Acting Commissioner of the Social Security Administration resigned.
EU’s Antitrust Chief Expresses Concerns Regarding US-EU Relationship.
The News.
On Tuesday, the European Union’s (EU) Competition Chief, Teresa Ribera, commented on how the EU and United States (US) relationship has become increasingly strained. Ribera noted how President Trump has disrupted the relationship between the two regions and emphasized that Brussels needs to focus on ensuring the predictability and stability that the US no longer provides. For context, the EU’s Competition Chief is the second most powerful position at the European Commission behind the EU’s President and can approve or veto major mergers and apply significant fines among many other powers.
One key point of tension that Ribera highlighted revolved around US technology companies like Apple and Meta. Ribera mentioned that the EU will issue decisions next month on US companies, assessing whether these two companies effectively complied with EU law. However, given the tensions between the two regions, it is unclear whether this will impact these decisions or ongoing and future investigations.
Ribera commented, “we need to be flexible but we cannot transact on human rights nor are we going to transact on the unity of Europe, and we are not going to transact on democracy and values.” Ribera continued stating that she does not “see any predictability, stability or affordability in [the US’s] announcements.”
The Knowledge.
Since the Trump administration took over several weeks ago, a great deal of uncertainty has been created across the world as existing relationships and trade dynamics are now tenuous at best. These tensions between both the US and EU can be attributed to a variety of reasons including newly imposed tariffs and divisive actions from the Trump administration among other reasons. Regarding tariffs, President Trump’s proposed taxes would target numerous EU products, such as pharmaceuticals. While these tariffs have not been formally introduced yet, they are slated to go into effect in March. Both governmental and industry leaders have already commented on this dynamic emphasizing how these tariffs could cause impacts on both costs of goods and services as well as further raise tensions between the two regions.
Aside from the growing tensions due to a potential tariff battle, President Trump’s firing of key committees has also caused concerns amongst the EU. At the end of January, President Trump ordered the resignation of all the Democratic members of the Privacy and Civil Liberties Oversight Board (PCLOB). For context, PCLOB managed the Trans-Atlantic Data Privacy Framework (TDPF), which is a joint agreement between the US and EU to help facilitate data transactions between the two regions to ensure privacy requirements and allow the secure flow of information. However, with the resignations of PCLOB, EU leaders have already expressed their concerns. Silvia Lorenzo Perez, the EU’s program director for security, surveillance, and human rights at the Center for Democracy and Technology, commented on this dynamic. Perez emphasized how “if PCLOB is weakened or rendered non-functional, it undermines trust in the TDPF and the adequacy of protections for EU citizens’ data transferred to the US.” Coupling the threat of tariffs with the sudden changes made within the federal government, it is not surprising that the EU leaders are reacting negatively to President Trump’s actions and are signaling their intentions to dissolve mutually beneficial agreements and impose tariffs of their own.
The Impact.
As tensions continue to rise between the US and EU, this dynamic could result in significant instability. Businesses reliant on cross-border operations and imports face significant risks, including increased costs due to potential tariffs and disruptions to supply chains. By securing supply chains and properly assessing risks, businesses can minimize these impacts and ensure that operations are stable even if relations continue to decline. Consumers could experience price hikes and limited availability of goods. Moreover, the erosion of trust and cooperation between these major economic powers could have far-reaching geopolitical consequences. While the future of US-EU relations remains uncertain, businesses and individuals must stay informed and prepare for potential economic and political instability.
Social Security Chief Resigns After Clash With DOGE.
The News.
On Monday, the Social Security Administration’s acting leader, Michelle King, stepped down after a reported clash with Department of Government Efficiency (DOGE) staffers. DOGE staffers requested to access Social Security recipient data, but Acting Commissioner King denied their request. Alongside King’s resignation, Tiffany Flick, King’s chief of staff, also resigned. For context, with DOGE’s request, the new department was seeking access to an internal data repository, which contained significant amounts of personal information including financial data, employment information, and addresses.
Nancy Altman, the President of Social Security Works, commented on this report emphasizing how “there is no way to overstate how serious a breach this is,” and how the Social Security Administration “has our bank information, our earning records, the names and ages of our children, and much more.”
With the departures of King and Flick, Leland Dudek who has previously collaborated with DOGE has been tapped to temporarily head the agency. For greater context, Dudek had previously worked in the Social Security Administration’s anti-fraud office. Harrison Fields, a White House spokesperson commented on the leadership change stating that “the agency will be led by a career Social Security anti-fraud expert as the acting commissioner” while the administration awaits its nomination, Frank Bisignano, to be confirmed by the Senate.
The Knowledge.
With these resignations, this development marks another instance of DOGE staffers getting unprecedented access to sensitive information data repositories across numerous agencies. Aside from the Social Security Administration, DOGE staffers have also sought access to the Internal Revenue Service (IRS) systems including the data related to 270 million tax returns from individuals and businesses alike. When initially requested, officials stated that this access was meant to conduct an anti-fraud review. However, this statement has received notable push-back from Nina Olson, the Executive Director of the Center for Taxpayer Rights, by stating that “if you’re interested in whether the IRS program and computer systems are efficient, you don’t need taxpayer information to make that determination.” Executive Director Olson also commented that this access was unnecessary as fraudulent efforts could be determined by using anonymized data.
With how rapidly DOGE has been able to access numerous sensitive systems across the federal government, security experts and officials have been raising significant privacy and security concerns. For example, New York Attorney General Letitia James has filed lawsuits to block DOGE’s access, commenting on this dynamic stating that “this unelected group…is not authorized to have this information, and they explicitly sought this unauthorized access to illegally block payments that millions of Americans rely on.” While some of DOGE’s attempts have been successful, these lawsuits have slowed down some of DOGE’s efforts. For example, earlier this month, US District Judge Paul Engelmayer issued a preliminary injunction that blocked DOGE staffers from accessing Treasury Department records containing information related to social security information and bank account numbers for millions of Americans.
The Impact.
The recent actions of the Trump administration, particularly DOGE's attempts to access sensitive data, have created significant uncertainty and raised numerous concerns regarding data handling and access within the federal government. US citizens should be aware of these developments and understand what types of data may be potentially exposed. By staying informed, individuals can take proactive steps to monitor their sensitive information and take appropriate action if necessary. As DOGE continues to pursue access and the courts resolve whether this access is legal, people should expect tensions to continue to rise across the government.
Highlighting Key Conversations.
In this week’s Caveat Podcast, our team met with Donna Grindle, the CEO at Kardon, to discuss HIPAA. Throughout this conversation, Donna shared her insights on HIPAA and the possible changes that it could face in 2025. Additionally, our team discussed DOGE and its latest spree of firings across various federal government agencies.
Like what you read and curious about the conversation? Head over to the Caveat Podcast for the full scoop and additional compelling insights. Our Caveat Podcast is a weekly show where we discuss topics related to surveillance, digital privacy, cybersecurity law, and policy. Got a question you'd like us to answer on our show? You can send your audio file to caveat@thecyberwire.com. Hope to hear from you.
Other Noteworthy Stories.
Meta to Show Rival Ad Providers After EU Antitrust Fine.
What: Meta announced it will allow rival ad providers to list ads on their Facebook Marketplace.
Why: Last Thursday, Meta announced this decision after it was fined 797 million euros. This fine was imposed by the European Commission last November when they ruled Meta had imposed unfair trading conditions on its rivals. With this announcement, Meta wrote in a blog post that “this new program will mean that third-party partners (specifically, online classified ad service providers as defined in the European Commission’s decision) will be able to list their consumer-to-consumer inventory on Facebook Marketplace.”
Additionally, the European Commission stated that it is still assessing whether Meta is fully compliant with the November ruling.
Prominent Cryptocurrency Investor Facing Senate Inquiry.
What: A Senate Committee aims to investigate if a cryptocurrency investor violated a federal tax law.
Why: Last Friday, reports emerged that the Senate Finance Committee is planning to investigate Pantera Capital for potentially violating federal tax law. This effort comes after Senator Ron Wyden sent a letter to Dan Morehead, the company’s founder, in January. In this letter, Senator Wyden stated that the Committee was planning to investigate if the people who had moved to Puerto Rico were doing so to take advantage of tax breaks. In the letter, Senator Wyden wrote that “in most cases, the majority of the gain is actually US source income, reportable on US tax returns, and subject to US tax.”