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Data Privacy

Aug. 30, 2024

Pavel Durov's arrest: Just a coincidence or a new trend?

Pavel Durov, co-founder of Telegram, was recently detained in France for alleged criminal offenses, including complicity in the sale of child sexual abuse material and drug trafficking, fraud, aiding organized crime groups, and refusing to provide investigators with information or documents when required by law.

Victor S. Dorokhin

Email: victordorokhin1@gmail.com

Victor S. Dorokhin, PhD, is a legal expert, attorney, lecturer, and the author of the book "Law, Morality, and Economics."

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Pavel Durov's arrest: Just a coincidence or a new trend?
The New York Times

The recent detention of Pavel Durov, co-founder of Telegram, for violating European law has caused a storm of discussion in the media and among analysts. Recall that Durov was detained in France as part of a judicial investigation launched last month into 12 alleged criminal offenses, according to the Paris prosecutor's office. The report said that among the suspected violations are complicity in the sale of child sexual abuse material and drug trafficking, fraud, aiding organized crime groups, and refusal to provide investigators with information or documents when required by law.

The uproar this case has caused is of course related to the importance of the messenger itself. Telegram, created by Durov in 2013, has established itself as one of the most popular messengers in the world, becoming an important player in the market due to its emphasis on security and privacy, using in particular "secret chats" with end-to-end encryption, which allows users to communicate without fear of data leakage.

The platform is also known for its extensive capabilities for group chats and channels, which allow not only to communicate with friends but also to subscribe to news and information resources. Thanks to these features, Telegram has become an important tool not only for personal communication but also for organizing public processes. For example, in countries such as Hong Kong, Belarus, Iran, France, Russia, and Belarus, protesters used Telegram to share information about demonstration routes, and police actions quickly, and to mobilize participants. Telegram channels have become key platforms for coordinating mass actions, exposing repression, and organizing support.

In 2024, active messenger users exceeded 800 million, putting it on par with giants such as WhatsApp and Facebook Messenger.
Durov's fortune exceeds 15 billion dollars, making him one of the richest people in the technology sector. Durov's influence extends far beyond Telegram: his approaches and decisions influence the development of technology and digital communications in general, making him an important figure on the global stage of technology entrepreneurs.

That is why his arrest cannot be an accident. Moreover, I believe that we have witnessed the beginning of a new trend in world politics and law.

Durov's detention may be a sign that authorities in European countries and elsewhere are beginning to impose tighter controls on global technology projects. This underscores the growing desire of states to regulate burgeoning technology companies and their creators.

Recent history confirms this trend. One of the most striking examples is the scandal with Facebook and Cambridge Analytica in 2018. It turned out that Cambridge Analytica used the data of millions of Facebook users to manipulate political campaigns. This caused a global outcry and drew attention to data protection and privacy issues, leading to significant fines for Facebook and stricter data processing requirements.

Another important case is the ban on TikTok in India in 2020. In response to concerns about data security and threats to national security, India decided to ban TikTok and other Chinese apps. The move was part of a broad policy to limit the influence of foreign technology on the country's domestic affairs and emphasized how states can respond to threats from technological innovation.

In the US, the problems with TikTok have also become significant. Over the past few years, the U.S. government has raised concerns about the data security and potential impact of TikTok, which is owned by Chinese company ByteDance. In 2020, President Donald Trump signed an executive order that required TikTok to sell its U.S. assets or face a ban on the app in the United States. The main argument was fears that user data could be handed over to the Chinese government. While the Biden administration has not acted on a full ban in 2021, it has continued to investigate and is developing new rules to protect data.

In addition, China took strict measures to regulate cryptocurrencies in 2021. Authorities shut down mining firms and restricted the use of cryptocurrencies in financial transactions, which was aimed at reducing financial risks and controlling investment in new technologies. These measures also demonstrate how states can use regulation to manage technological development and protect their economic interests.

The European Union is also actively engaged in regulating new technologies, and one of the most significant steps in this direction was the Artificial Intelligence Regulation Act (AI Act), adopted in 2023. The Act was the world's first large-scale regulation aimed at governing the use of AI. It sets strict requirements for transparency and ethics in the use of AI technology, especially in critical areas such as healthcare and law enforcement. The AI Act requires companies developing or deploying AI systems to ensure a high level of security, prevent discrimination and abuse, and ensure transparency of algorithms and data about their performance. The Act emphasizes the growing desire of governments to not only bring existing technologies into the framework but also to anticipate future technological developments to prevent potential risks and abuses. The introduction of the AI Act shows that European countries are ready to more strictly monitor and regulate new technological trends to protect citizens' rights and maintain ethical standards.

All of these measures, taken seemingly haphazardly and chaotically, in my opinion, show that now, more than ever, the traditional functions of the state are under threat. Young technology leaders believe that they know how the future should unfold, and that the old power structures of the Senate and government "boomers" are outdated and unable to adequately deal with new challenges. These innovators seek to build a future based on decentralized solutions, artificial intelligence, and other breakthrough technologies that can change the way society and economies are run.

They envision a world in which traditional state institutions are losing their dominant role, giving way to new forms of governance and interaction based on technology. Blockchain and cryptocurrencies, for example, can offer decentralized alternatives for financial and legal systems, and artificial intelligence and automation can transform social and economic structures. Their main religion is not even liberalism, but libertarianism, i.e., the rejection of the importance of the state as such.

In this new digital ecosystem, the old state, with its centralized authorities and traditional approaches to governance, may begin to lose its relevance. Technology giants and startups with innovative solutions and new ways of interacting may become the main players shaping the future.

The question is whether the old state will be able to resist or fall under the onslaught of digital technologies. At the moment, we see states trying to adapt and regulate new technologies, but this may not be enough. Traditional institutions may find themselves in a difficult position where they must either evolve and integrate with new technologies or give way to new forms of governance.

Thus, we may be witnessing the old state beginning to die out. Exactly how events will unfold remain an open question. Whether state institutions will be able to retain their importance in the new digital world, or whether they will be replaced by more efficient and adaptive technologies, time will tell.

And while we see these rather clumsy attempts to outline the role of the state in this system - everything is as old as the world, there is nothing better than state coercion. Thus, the state defends itself with the help of good old-fashioned violence. Well, this is quite an expected and predictable move, but whether it will be successful or not, time will tell. Therefore, it comes as no surprise that Iran's Supreme Leader Ayatollah Ali Khamenei, after the detention of Telegram founder Pavel Durov, advocated the need to regulate cyberspace and supported President Macron in his endeavors. Who would have thought that their positions would be so close?

But this is just the beginning. As the French say "L'appétit vient en mangeant.".

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