Google and Amazon’s Israeli Cloud Contracts Allegedly Include Secret Workarounds

It seems the tech giants are getting a bit too clever for their own good—or is it just savvy legal maneuvering? According to a recent The Guardian report, Google and Amazon have apparently devised an ingenious—if somewhat controversial—approach when dealing with Israeli cloud computing contracts. The setup, known as ‘Project Nimbus,’ supposedly involves a covert communication mechanism that enables these companies to sidestep certain legal requirements.

This alleged workaround is part of a broader trend in the tech industry where major players are increasingly finding creative ways to navigate complex international regulations. In 2021, Google and Amazon agreed to send coded messages to Israel whenever they comply with overseas legal requests for Israeli data. The catch? Each message comes with a price tag.

The Coding System

According to the report, these companies are required to send specific amounts of money to indicate which country has issued a request. For example, if Google or Amazon complies with an order from the US (dialing code +1), they would transfer 1,000 shekels to Israel. Similarly, for Italy (+39), the amount is 3,900 shekels. The highest dialing prefix belongs to Uzbekistan (+998).

Should a gag order prevent them from using the standard signal, they can opt for an alternative method: sending 100,000 shekels as a failsafe notification.

The Bigger Picture

This isn’t just about Google and Amazon. Microsoft, which bid for the same contract but did not win, reportedly declined to agree with some of Israel’s terms. The story highlights how cloud service providers are navigating an increasingly complex legal landscape, especially when it comes to international data requests.

In a statement provided to Engadget, Amazon emphasized its commitment to customer privacy and stressed that they do not discuss their relationships or workloads without consent. They also denied having any clandestine methods in place for dealing with government demands: “We have a rigorous global process for responding to lawful and binding orders related to requests for customer data,” the statement reads.

“[Amazon Web Services] carefully reviews each request to assess non-disclosure obligations and maintains confidentiality as required by applicable laws. We do not disclose customer information in response to government demands unless we’re legally obligated to do so, while recognizing the need of law enforcement to investigate serious crimes.”

The Implications

While these alleged arrangements certainly raise eyebrows from a legal standpoint, they also shed light on the intricate web of international data regulations and corporate compliance strategies. The story is an interesting case study in how technology companies are adapting their business practices to fit within—and sometimes challenge—the boundaries set by different countries’ laws.

We reached out to Google for additional comments but have yet to receive a response as of this publication. Similarly, we contacted the Israeli government to provide context and clarify aspects of the report’s claims.