Bonum Certa Men Certa

EPO and Microsoft Collude to Break the Law -- Part XIV: When is a Conflict of Interest Not a Conflict of Interest?

Previous parts:



Bill Gates and Campinos



Summary: Could the EPO's increasing reliance on Microsoft involve a conflict of interest?

If Lewis Carroll's Humpty Dumpty had ever managed to visit the bizarre "Wonderland" of the EPO he might have been tempted to formulate a new riddle along the lines of: "When is a conflict of interest not a conflict of interest?"



"To begin with there is Microsoft's chequered history of data protection infractions, anti-trust violations and US FCPA investigations."The answer, it seems, is: "When it involves the EPO".

At any rate, this kind of paradoxical "logic" fits the bill when it comes to the EPO's increasing reliance on Microsoft as a provider of IT products and services.

The casual observer looking at the situation from the outside might reasonably conclude that there are a whole host of legitimate concerns including strong indications of an irreconcilable conflict of interest.

To begin with there is Microsoft's chequered history of data protection infractions, anti-trust violations and US FCPA investigations.

But even if one were inclined to ignore all that, there is a more fundamental problem.

To put it in a nutshell: due to the company's position as a significant player in the global IP arena, Microsoft's role as a key IT provider to the EPO seems to be tainted by an inherent conflict of interest.

The situation might not be so precarious if Microsoft was simply a purveyor of computing hardware or a vendor of client-end data processing software for on-site data processing under the control of the EPO.

But the company's role at the EPO has now expanded far beyond that to the provision of cloud-based data processing services, including the processing of much if not all of the EPO's internal communications via Outlook, Microsoft Teams and Skype for Business.

What we have here could be described in simple terms as the large-scale export of operational data, including internal e-mail and video-conferencing communications, from the EPO to an external data processing infrastructure owned by and operated under the control of Microsoft.

It doesn't need an MBA from the Harvard Business School to realise that placing such sensitive internal operational data directly into the hands of a significant player in the global IP arena is a highly questionable undertaking.

Based on its track record to date, EPO management will undoubtedly defend its actions by arguing that Microsoft can be trusted to "do the right thing".

Microsoft will undoubtedly "do the right thing". The only question here is "the right thing for whom?"

Remember that we are talking here about a private for-profit business corporation with a well-documented track record of engaging in anti-competitive practices and other ethically dubious activities. Can any sane person be realistically expected to trust a company with such an egregious track record of data protection infractions, anti-trust violations and US FCPA investigations?

There should be more than enough warning signs here to set off alarm bells in the competent centres of oversight and governance. However, going by Steve Rowan's recent communiqué, nobody in the upper echelons of EPO management seems to be particularly worried.

Unfortunately, past experience over the last decade and a half has shown that the EPO doesn't deal with conflict-of-interest situations very well.

The rot seems to have really set in (for good) back in 2009 when the Administrative Council voted to appoint its then Chairman, Battistelli, as the executive head of the Office. At the time in question, Battistelli was an elected representative for a political party in France, which should have automatically disqualified him from holding such a position in an international organisation. But the Administrative Council remained oblivious to this glaring conflict of interest.

According to the internal EPO rumour mill, Battistelli had his successor as Chair of the Administrative Council, the Danish delegate Jesper Kongstad, quite literally "in his pocket". Kongstad reportedly received a secret "emolument" from Battsitelli's HR department in the form of the equivalent of an EPO principal director's salary -- a generous monthly tax-free sum of five-figure proportions.

One of Battistelli's first moves as President of the Office was to procure the abolition of the independent Audit Committee which reported directly to the Administrative Council.

It's highly ironic that one of the intended functions of the Audit Committee was to advise the Administrative Council about potential conflicts of interest. Now that it has been disbanded, there is no longer anybody around to warn the Council.

Given this background, it's not really surprising that the increasing reliance of the EPO on Microsoft as an IT provider hasn't generated any visible concern in the ranks of the organisation's senior management and governance bodies.

Microsoft bribe
Did "foreign corrupt practices" play a role in the award of EPO contracts to Microsoft? The opacity of the tendering process makes it difficult to give an answer to such questions.



Another remarkable aspect of the present case is the total opacity of the process that led to the award of the contract or contracts for cloud computing services to Microsoft.

It's not clear how much these contracts are worth and whether they were put out to public tender, or whether they were allocated by "direct award".

We also don't know who exactly was responsible for the internal vetting of these procurement decisions, although it seems fair to assume that they were ultimately approved and signed off by the President of the Office, António Campinos.

Whether or not Campinos was properly advised in the matter is of course a completely different question.

Readers of Techrights may recall that back in 2015, reports were circulating ([1] and [2]) about a programme of "closer cooperation" between the EPO's senior management and some of its leading corporate applicants, in particular Microsoft.

This arrangement attracted a lot of criticism at the time and many people quite rightly questioned whether it was appropriate for the EPO to be engaging in what amounted to a favourable treatment of large multinational corporations like Microsoft.

The recent expansion of Microsoft's business relationship with the EPO has caused some people to speculate about whether the latest developments might not have been influenced by a further programme of "enhanced cooperation" involving "foreign corrupt practices".

It is important to emphasise that there is currently no hard evidence of any "kickbacks" or "slush funds" operated by Microsoft at the EPO. For the moment, any such suggestions are based purely on speculation.

On the other hand, Microsoft's well-documented track record in other jurisdictions means that such speculation cannot be dismissed as completely off the wall.

Cxcel issue
The EPO is plagued by an entrenched culture of opacity and non-accountability which makes a credible investigation into suspected irregularities almost impossible



However, the problem here is that the EPO is plagued by such a deeply entrenched culture of opacity and non-accountability that if these procurement decisions had in fact been tainted by corruption, it is highly unlikely that this would ever be investigated and exposed, especially if any members of the senior management were involved.

It is doubtful whether the EPO's internal investigative procedures are really fit for purpose in such cases, and there is no external anti-corruption agency which would be competent to take appropriate action.

To sum up, we are left with a situation in which procurement decisions have been made at the EPO which effectively place sensitive internal operational data directly into the hands of an external IT service provider based in the US and subject to the laws of that jurisdiction -- including the US CLOUD Act of 2018.

In addition to this, the IT service provider in question happens to be a significant player in the global IP game.

At the same time, none of those who bear the ultimate responsibility for these procurement decisions seem to have the slightest concern about what appears to be a clear-cut case of a conflict of interest.

As Lewis Carrol's Alice might have said, "curiouser and curiouser!"

In the final part of the series we will consider whether the EPO's increasing reliance on cloud computing services hosted by Microsoft has effectively led to a sell-out of the organisation's "digital sovereignty".

Recent Techrights' Posts

Twitter as X-Rated Hatred: Criticising Microsoft is Not OK, Calling for Beheadings (With Bounties on People's Heads) is OK
Twitter automation missed 'hit job' advertising
Balancing Activism Against (or With) Basic Necessities and Daniel Cantarín on Our Collective Battle for Software Freedom Around the World
"I'm VERY angry about lots of stuff happening here in Argentina, all of it shielded behind the word "freedom"."
 
Links 16/08/2024: YouTube Bans and Surveillance Expanded
Links for the day
We Were Right All Along and the Collaborators of Microsoft Helped Competition Crimes of Microsoft
Once again vindicated regarding UEFI "secure boot"
[Meme] The New Windows Slogan
stat me up
Addendum: Associate's Notes on Free Software as a Labour Issue and the Connectivity Swindles
these are related issues/causes
Microsofters Infiltrating Roles of Authority and Government Positions to Protect Microsoft and to FUD Microsoft's Competition
friends of Microsofters who bully me and my wife
Links 16/08/2024: UK Skills Deficit and Kim Dotcom to be Extradited to the US (for Doing the Same Stuff GAFAM Does)
Links for the day
Gemini Links 16/08/2024: Overgeneralisation and Games
Links for the day
Russia's Yandex 5 Times Bigger Than Microsoft... in Ukraine
They'd rather rely on the Kremlin than on Microsoft
[Meme] Gemini is Different, So What?
different, not worse
Now It's "Official": Over 4,000 Known Gemini Capsules in Lupa
For the first time ever
Clown Computing
Reprinted with permission from Dr. Andy Farnell
[Meme] What Freedom Means to IBM
Free labou
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, August 15, 2024
IRC logs for Thursday, August 15, 2024
From 99% in 2012 to 27% in 2024: How Microsoft Lost Georgia
What we're seeing is a migration from Windows to other platforms, notably GNU/Linux
To Understand Cisco's Mass Layoffs Look at the Company's Soaring Debt (Same at Microsoft)
Look what's happening to Intel - down almost 60% since the start of the year, 57% to be precise
Windows Flying Low at 25%
It's another all-time low
[Meme] Long Texts You Never Bother Reading (Because Life is Too Short, Unlike Those Texts)
The devil is in the terms of service
Links 15/08/2024: Monkeypox Hysteria and Modern Homesteaders Living Off the Grid
Links for the day
Gemini Links 15/08/2024: Confession of a Convention Game Master and Some Release nostalgia
Links for the day
Congratulations to Romania, Where Windows is Now "Minority Market Share" Platform
Time will tell if GNU/Linux can pass 5% on the desktop/laptop "form factor" there
Why It Matters That 4,000 Gemini Capsules Are Known to Lupa and Why Gemini Protocol Matters to Us
I have no doubt Gemini Protocol will continue to expand because it solves a real problem
Links 15/08/2024: Avast Surveillance Scandal Unsolved and Facebook Still Censors Terror Sympathisers
Links for the day
Daniel Cantarín's Response to Alexandre Oliva's Talk on Achieving Software Freedom in the Age of Platform Decay
Soylent News caught up with the series
4,000 Gemini Capsules
it's basically one capsule short of 4,000
"Microsoft is a Sponsor of The New Stack."
Many articles turn out to be just ads
New Highs for Android in Russia, But It's Reportedly Working on Its Own Linux-Based Operating Systems (GAFAM-Free)
statCounter isn't equipped to properly parse user agents or to keep up
Upcoming Series: Terms of Service (TOS) Under the Microscope, FSF Party, GitHub Scandals, Clowns, and More
Right now we have way more material than we have time to cover. But that's a good thing.
Gemini Links 15/08/2024: Lies of Therapy and Web Applications
Links for the day
Software Freedom in Perspective - Part 5 - When Richard Stallman Came to Argentina
It might seem a bit harsh, but a discussion at the end of this series will tie things together and explain why those things were said
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, August 14, 2024
IRC logs for Wednesday, August 14, 2024
Russia develops an alternative to Android and iOS | News.az
Russia already has several of its own operating systems
Links 14/08/2024: Ecology and War Inside Russia
Links for the day
Daniel Pocock - Use of Technology in European Parliament Election Campaign (Public Talk)
It starts in 4 hours
Android About to Fly Past Windows in Portugal
Perhaps by month's end or next month Portugal will be orange (Android majority)
How OpenAI Will Decrease the Losses
You have no losses when you have no users left
Giving Control to Microsoft is Always a Dire, Huge Mistake
Microsoft is known for buying things and sabotaging things, not for creating things
Founders That Sell Their Company to Microsoft Speak Out
"Microsoft's closure of Arkane Austin in May was one of the more shocking events of the past couple of years"
In Chile, Microsoft's Web Browser (a Chrome Copycat) Fell to 3.6%, About the Same as Firefox and Opera and Less Than Safari, Yandex Browser, Google Chrome
It does not look like Chileans fancy Microsoft's browser. They go out of their way to use something else, even on Windows.
Software Freedom in Perspective - Part 4 - Daniel on Linux-based Mobile Platforms in LATAM (Latin America)
GNU, Linux, and mobile
Almost Nothing of Invidious Left Online (YouTube is Attacking Gateways)
what it looks like at this very moment
Gemini Links 14/08/2024: Funeral for an E-reader and a Mother Wants a Laptop
Links for the day
Links 14/08/2024: 8 Years of GDPR and Ridicule of "Hey Hi" (AI) Hype
Links for the day
This is How You Give Microsoft More Control Over LibreOffice Both as Software and as a Project
Didn't the Document Foundation learn from prior Microsoft Store scandals connected to LibreOffice?
"Heroes of Fedora" Are Just Salaried Employees of IBM (But "Community" is Just Sounding a Lot Nicer)
A real community would not allow IBM a majority
YouTube Has Thrown Free Software Users Into a Crisis
For many Free software users, who rely on Invidious, YouTube is nearly dead already
[Meme] "New Chapter in the FSF."
We expect to have some coverage from this week's event
There is No I in "GAFAM" and Soon There Won't be I At All (Like Novell Vanished, Not Overnight, as It Took Over a Decade)
Intel is going through the biggest crisis in its entire history
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, August 13, 2024
IRC logs for Tuesday, August 13, 2024
It's a "sm0l" World and It Won't Outsource to the Pentagon Anymore
As many people aren't interested in a new PC - or simply cannot afford one - we can expect leaner operating systems to gain further
Software Freedom in Perspective - Part 3 - GNU/Linux in Argentinian Desktops/Laptops
Daniel explains why many years ago many PCs shipped with GNU/Linux and that there was an economic reason for it. At least in Argentina.
Tivoisation and Decommodification in Clown Computing
Some firms or organisations lost sight of what "servers" or "hosting" even mean
The News Vacuum
The problem is worse than just an absence of reporting
x86 Lowered the Standards of Hardware Products
A lot of it is just hacks and cheats that help fake performance