Interview

Prince (Cloudflare): 'This law can make us leave Italy. Blocking the Internet is not justice'

Cloudflare's CEO against the Agcom fine for anti-piracy rules: 'It's a retaliation, let's consider what to do about Milan Cortina'

by Andrea Biondi

Il ceo di Cloudflare, Matthew Prince

3' min read

Translated by AI
Versione italiana

3' min read

Translated by AI
Versione italiana

Matthew Prince, ceo and co-founder of Cloudflare, does not use half measures. In this interview with Il Sole 24 Ore he speaks of retaliation, of 'illegal' laws, of an authority that 'does not understand how the Internet works' and of an Italy that risks paying a very high price.

The casus belli is the fine of EUR 14.2 million imposed by Agcom on what is one of the world's largest providers of Cdn (the Internet content distribution networks). The accusation: not having intervened to block IP addresses used by online pirates. In particular, Agcom speaks of 'non-compliance' with the order given in resolution 49/25/CONS.

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According to the Authority, Cloudflare failed to comply with the order in connection with the Anti-Piracy Law 93/2023, which requires it to make inaccessible a range of content reported by rights holders through Piracy Shield. In Japan, the digital service platform was also condemned for allowing pirate sites to illegally offer access to copyright-protected editorial content. As for Italy, on the anti-piracy system, which provides for 30-minute blocks without a judge, Prince is clear: 'It's like cutting off the electricity to an entire city because someone hasn't paid the bill'. Hence the warning, already aired in the heat of the moment and confirmed in this interview: if the fine holds up, Cloudflare could pack its bags. With side effects that go well beyond piracy.

Prince, let's start with the most serious accusation: you say that Agcom's approach is disproportionate. Why?

Because it affects everyone to punish one. Blocking entire portions of the Internet to stop a single offence is like turning off the electricity to a city. The result is that small businesses, NGOs, humanitarian organisations, even those helping Ukraine are being harmed. We are not defending Cloudflare: we are defending the Italian Internet.

But Agcom only asked you to comply with the law.

It depends on which law. Here we are talking about a scheme that allows private parties to report a site and have it blocked globally within 30 minutes, without judicial supervision. This violates Italian law and EU principles. If a rule is illegal, a company's duty is to challenge it before a judge. And that is what we did. With an outcome worth reporting and putting on the index for how it ended up

What does it refer to? 

Just before Christmas, a judge expressed strong misgivings about the Agcom system and authorised us to access the Authority's internal documents. Immediately afterwards, Agcom imposed a fine on us. We read it as retaliation.

A heavy accusation.

But well-founded. Fining while a judicial review is in progress violates due process. It looks like an attempt to intimidate us and prevent it from revealing how ill-conceived this system is.

The theme remains the fight against piracy. On which you are considered too timid to put it mildly. 

Absolutely wrong. We hate illegal streaming. They cost us money and clog up our infrastructure. We cooperate with sports leagues and rights holders all over the world. But it is one thing to cooperate, it is another to adhere to a blind and dangerous mechanism.

You also contested the amount of the fine.

It is out of scale. The law allows penalties of up to 2% of revenues in Italy. Not of global revenues as it has been done. Here we are 100 times over the legal maximum. If a company is fined more than it invoices in the country, it is rational for it to leave.

Are you really thinking of leaving Italy?

If the fine remains, yes. And this will hurt hundreds of thousands of Italian organisations that use Cloudflare for free: public administrations, hospitals, NGOs. We are even considering suspending pro bono services related to major events.

You have also evoked the Olympics in recent days.

We provide pro bono services that would normally cost tens of millions. We cannot do this in a country that does not treat us fairly. Without us, events of that magnitude become vulnerable.

On social media you commented on the fine with harsh words. In hindsight would you make that choice again?

Yes. When an institution acts in retaliation, the only tool is transparency. Making noise. Ten million people read those messages. Many Italians wrote to us saying that this system is out of control.

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