Big tech companies may be handling data of Hong Kong users to China

Big tech firms may be complying to China's confidentialrequests and handling the data of Hong Kong users to the autocratic country, as per a senior US state department official.

The allegation of cooperation between Hong Kong authorities and major technology company comes after China passed a controversial security law in Hong Kong according to which authorities can demand user sensitive data and threaten action if their request is denied.

“There is a possibility that things are happening but because of the restrictions put on by the Hong Kong authorities, they [companies] would not be able to divulge this,” the state department official said.

US tech giants face a reckoning over how Hong Kong's security law will reshape their businesses, with their suspension of processing government requests for user data a stop-gap measure as they weigh options, people close to the industry say.

While Hong Kong is not a significant market for firms such as Facebook, Google, and Twitter, they have used it as a perch to reach deep-pocketed advertisers in mainland China, where many of their services are blocked.

But the companies are now in the crosshairs of a national security law that gives China authority to demand that they turn over user data or censor content seen to violate the law - even when posted from abroad.

“As we would with any new legislation, we are reviewing the new law to understand its implications. In the past, we’ve typically received only a relatively small number of requests from Hong Kong authorities, but we are pausing our responses to these requests as we conduct our review,” software and application developer Microsoft said in a statement.

"These companies have to totally reassess the liability of having a presence in Hong Kong," Charles Mok, a legislator who represents the technology industry in Hong Kong said.

If they refuse to cooperate with government requests, he said, authorities "could go after them and take them to court and fine them, or imprison their principals in Hong Kong".

The US internet firms are no strangers to governments demands regarding content and user information, and generally say they are bound by local laws.

The companies have often used a technique known as "geo-blocking" to restrict content in a particular country without removing it altogether.

But the sweeping language of Hong Kong's new law could mean such measures won't be enough. Authorities will no longer need to get court orders before requesting assistance or information, analysts said.