Proton draws conclusions: Switzerland must go on the offensive against surveillance!

Proton draws conclusions: Switzerland must go on the offensive against surveillance!

The Geneva-based technology company Proton has decided to freeze its investments in Switzerland for the time being. The reason for this decision are planned changes to the Intelligence Services Act and the Ordinance on the Surveillance of Postal and Telecommunications Traffic, which were requested by the Federal Council. Proton boss Andy Yen criticizes the reform as extreme and fears the introduction of mass surveillance that would force Swiss companies to spy on their users on behalf of the state. Yen draws a comparison to Google and warns that the privacy of the services offered by Proton would be significantly reduced if the changes take effect. Proton has not yet received any assurances that industry concerns will be addressed.

As a result of these developments, the company plans to significantly relocate its physical infrastructure. The plan is to build AI data centers outside of Switzerland to ensure confidentiality. Proton wants to install servers in Germany and Norway to run its AI called Lumo, an AI-powered chatbot with end-to-end encryption. This relocation of the servers is valued at around one hundred million francs and could have long-term consequences for Proton, as this decision is irreversible.

Long-term investment plans despite uncertainties

Proton plans to invest over a billion francs by the end of the decade to compete in Europe with companies like Google. While the majority of these investments go abroad, 900 million francs could still be invested in Geneva. However, it remains uncertain when and whether Proton will be able to revise its plans if the legal framework in Switzerland changes. Yen emphasizes that Proton will only leave Switzerland if they are forced to.

The relocation of the infrastructure is in response to the planned changes to surveillance requirements in Switzerland. These changes could require providers to store customer data for six months and allow real-time monitoring. In this context, the federal government has made it clear that the powers of the surveillance service will not be expanded and that mass surveillance is unconstitutional. Nevertheless, the majority of cantons approved the proposals, which led to criticism from various quarters, including the Digital Society Association.

Proton also needs to keep an eye on the demand for its products. Yen says the company cannot afford a pause in investments as it could be fatal due to the increasing demand for their services. A meeting between Yen and the Justice Department is scheduled for the end of the month, but it is already clear that the first investment abroad will take place independently of the political talks. The data center in Geneva has already been closed, further accelerating the transition to new markets.