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 Free Basics, launched in Egypt in October, is aimed at low-income
customers, allowing anyone with a cheap computer or smartphone to
create a Facebook account and access a limited set of Internet
services at no charge.
The Egyptian government suspended the service on Dec. 30 and said at
the time that the mobile carrier Etisalat had only been granted a
temporary permit to offer the service for two months.
Two sources with direct knowledge of discussions between Facebook
and the Egyptian government said Free Basics was blocked because the
company would not allow the government to circumvent the service's
security to conduct surveillance. They declined to say exactly what
type of access the government had demanded or what practices it
wanted Facebook to change.
A spokesman for Facebook declined to comment. Etisalat did not
respond to a request for comment.
Mohamed Hanafi, a spokesman for Egypt's Ministry of Communication,
declined to comment specifically on the allegation about
surveillance demands but cited other reasons for Free Basics to be
blocked.
"The service was offered free of charge to the consumer, and the
national telecommunication regulator saw the service as harmful to
companies and their competitors," he said.
Free Basics, which is available in 37 countries that have large
populations without reliable Internet service, is central to
Facebook's global strategy. The company does not sell ads on the
Free Basics version of its website and app, but it aims to reach a
large group of potential users who otherwise would not be able to
create Facebook accounts.
Facebook said more than 3 million Egyptians used the service before
it was suspended, and 1 million of them had never had Internet
access. The main Facebook site and app are still available in Egypt,
which has a population of about 90 million.
The conflict over Free Basics highlights the delicate balancing act
that global Internet companies face in responding to the demands of
governments while protecting the privacy of their customers,
especially at a time of heightened concerns about Internet
surveillance and censorship worldwide.
It represents one of the few known cases in which a global Internet
company has received and rejected a government demand for special
access to its network and been forced to shut down a service,
Internet privacy experts say.
Free Basics has come under fire from Internet activists across the
globe, most notably in India, for violating net neutrality by
allowing free access to a select group of websites and businesses,
thus putting others at a disadvantage.
Indian regulators issued new rules in February that effectively
barred Free Basics after a two-month public consultation process.
Hanafi cited the India example in explaining Egypt's move, but there
has been no public debate or regulatory proceeding over net
neutrality or the competitive impact of Free Basics in Egypt.
STRONGER SECURITY
Facebook in September strengthened the security protections for Free
Basics after criticism from privacy advocates that it did not do
enough to prevent spying. In part, the problem was that users could
not seamlessly connect over encrypted channels to the secure
websites marked by addresses beginning HTTPS.
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That meant that customers using web-based email might have their
messages exposed. Authorities might also be able to watch who was
visiting particular websites.
Now, those using the Free Basics mobile app can connect directly
with encryption to secure sites. Those connecting via the Free
Basics website can connect securely to Facebook, which decrypts and
then re-encrypts user traffic before sending it along to partner
sites.
It is not known whether the new security measures were a factor in
Egypt's decision to block Free Basics. It is also not known if the
government has asked other social media companies or Internet
service providers for security back doors.
When Free Basics launched in Egypt, there was no mention of a
temporary permit or concerns about competition or net neutrality,
according to people who were involved in the discussions.
At the time of the suspension, Facebook said it was "disappointed"
and hoped to "resolve (the) situation soon."
Some former Facebook employees said the company has reason to be
especially vigilant in defending its customers in Egypt.
A Facebook page started in 2010 by a Google <GOOGL.O> employee in
Dubai about the death of an Alexandria man at the hands of police
played a direct role in fomenting the protests that toppled autocrat
Hosni Mubarak in 2011.
In January this year, amid a crackdown on dissent in the run-up to
the fifth anniversary of the uprising, Egyptian security forces
arrested two people for managing Facebook pages that they said were
used to support the outlawed Muslim Brotherhood and encourage
protest.
The two are still in jail pending investigations on charges of
inciting violence and disseminating and publishing false news.
Any move to shut down Facebook completely in Egypt would likely
bring a harsh popular backlash, said Ramy Raoof, a digital security
researcher and consultant. But blocking Free Basics can crimp
Facebook's growth among lower income people, without alienating
middle-class Internet users and businesses.
"Shutting down Facebook completely is an idea that is far-fetched
and would lead to great consequences," Raoof said.
(Reporting by Yasmeen Abutaleb and Joseph Menn in San Francisco;
Additional reporting by Ola Noureldin and Ahmed Mohamed Hassan in
Cairo; Editing by Jonathan Weber and Tiffany Wu)
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