Italy's Privacy Watchdog, Scourge of US Big Tech, Hit By Corruption Probe

The powerful data privacy watchdog in Italy long known for aggressively policing U.S. and Chinese AI giants is under investigation for possible corruption and embezzlement. Reuters reports: Rome prosecutors are investigating the agency's president, Pasquale Stanzione, and three other board members over alleged excessive spending and possible corruption behind its decisions, Italian news agencies including ANSA as well as the judicial source, who did not wish to be named, said. Stanzione, when asked by reporters to comment on the investigation, said he was "absolutely serene."

The opposition 5-Star Movement said the agency's credibility had been undermined and called for Stanzione to resign. Stanzione declined to answer when asked repeatedly by reporters whether he would step down. The data privacy authority, known in Italy as the Garante, is one of the European Union's most proactive regulators in assessing AI platform compliance with the bloc's data privacy regime. It frequently takes initiatives -- such as requesting information or imposing fines or bans -- on matters affecting high-tech multinationals operating in the country.

Criminals want the control the most

[Anonymous Coward]

It feels to me like anybody trying to regulate other people need to first have their own house in order.

Re:

[Anonymous Coward]

Or a few influential people in the world are making threats behind the scenes to distract from the cause.

Just have to look at how many people in the US are now under investigation by the Trump administration and how every single one has not toed the Trump line.

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[arglebargle_xiv]

It feels to me like a non-US privacy watchdog that's annoyed US megacorporations has a giant target painted on its back. Corruption charges are a favourite tool to shut down someone like that - the US corporations go to the USG and instruct it to pressure Italy to shut down the Garante, and badabing, badabang, "corruzione!".

Maybe corruption, maybe defamation

[ffkom]

Given how many parties have big financial incentives to meddle with regulation of digital services, corruption is certainly lucrative in such positions - but at the same time, companies paying for smear campaigns and defamation of good intended regulators is likewise not improbable.

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[gweihir]

Indeed. Remember that accusations and even running investigations do not mean anything regarding actual guilt. And there are certainly quite a few people with money that would like to take this organization down. Still, anybody sane will wait for the results of that investigation. Can go either way.

Oh, how convenient

[Bruce66423]

Given the high levels of corruption in Italy, it is surely suspicious that the time has been found to target an organisation that is upsetting some VERY wealthy people. And, of course, even if the allegations prove unfounded, the distraction from targeting those very wealthy people will have saved them a lot of money...

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[test321]

suspicious that the time has been found to target an organisation that is upsetting some VERY wealthy people

Corruption is a matter of opportunities. They mention embezzlement, so I'm thinking kickbacks. The watchdog director has the power to steer his organisation to fine a Big Tech company for many millions (it's not hard to make a case). He could have offered the target companies to cut the fine by 90% if suitable side-effects would happen to a particular bank account. Several big companies have in the past being caught agreeing to similar corruption pacts, say, mining companies in developing countries.

Re:Oh, how convenient

[paulatz]

In fact, I have just read the original articles in Italian, and he's only accused of (quite egregious) embezzlement: spending a few thousand of public money on luxury hotels and shopping, overspending on plane tickets, overusing the agency chauffeur service, paying for an "official residence" flat that was actually rented on AirB&B by his daughters. In the order of a few 100k€. It is a lot of money, but nothing w.r.t. what he could have done "consulting" for a tech firm after ruling in their favor a few times.

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[test321]

Thanks. Happy to learn it was regular stupidity rather than evil corporate conspiracies.

Very serene

[GrahamJ]

What an odd response.