Report from TechRadar
In Brief – Cloudflare, a leading US-based online security service and content delivery network (CDN) provider, is threatening to shut down its operations in Italy after being fined €14 million by the Italian communications regulator, AGCOM, for allegedly failing to comply with the country’s anti-piracy enforcement regime known as “Piracy Shield.” The regulator said Cloudflare did not adequately block access to illegal websites as requested, particularly those streaming pirated live sports content. Cloudflare’s CEO responded to the judgement by arguing that Italy’s rules will lead to over-blocking and collateral damage to lawful content. Italy’s top football league, Lega Serie A, a leading backer of the law, rejected claims of censorship and accused Cloudflare of knowingly enabling piracy. Cloudflare’s executive said that along with appealing the ruling, the company is considering discontinuing its plans to offer pro bono cyber security services to the upcoming Milano-Cortina Olympics as well is free cyber security services to Italy-based users, removing all servers from Italian cities, and terminating plans to build an Italian Cloudflare office or make any investments in the country.
Context – Along with a similar standoff in Spain also fueled by that country’s top football league, Cloudflare suffered a loss in Japanese court last fall when they were found liable for copyright infringement carried out by users of its CDN platform against four major manga publishers. The publishers argued that the company’s policies allowed pirate site operators to remain anonymous and continue distributing copyrighted content with limited risk and that the company repeatedly ignored copyright violation notices and failed to terminate accounts. Cloudflare maintains that as a delivery network that improves the performance of websites, not a content hosting service that can take infringing content offline, it should not be held responsible for infringing material stored by others. Although US courts have not definitively ruled on the anti-piracy responsibilities of CDNs, the 2021 Mon Cheri Bridals case largely backed Cloudflare’s view that CDN providers are distinct from hosts.