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A meta program to monitor mouse clicks made by employees in violation of EU privacy regulations

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Internal documents reviewed by ​Reuters show Meta Platforms’ (META.O) effort to collect detailed logs of U.S. workers’ computer activity to train its artificial intelligence models is broader than previously stated and would sweep up non-U.S. information along the way.

The documents present significant challenges for the project – a major part of CEO Mark Zuckerberg’s bigger strategy to overhaul how the firm functions around AI agents – that might drag Meta into a new European privacy battle, rights groups told Reuters.

Last month the owner of Facebook and Instagram told staff it was introducing the tool to capture how people use computers including mouse movements, clicks and navigation through drop-down menus to construct AI agents that can automatically do routine software jobs.

The program, Model Capability Initiative or MCI, is gathering data from over 200 apps and websites, according to a list Meta shared with colleagues. The cuts will affect only U.S.-based personnel and protections are in place to protect sensitive information, the corporation said.

But in the weeks since the introduction, Meta employees have complained that MCI was using so much data it was generating spikes in their personal internet usage, in some cases devouring an entire month’s limit in just days, according to internal posts obtained by Reuters.

In a question-and-answer paper sent to staff, Meta also said the tool would collect the contents of any email or direct message sent to anybody in the U.S., no matter where the sender was located.

MCI was “not installed on devices used by employees in the U.S.,” and focused on how individuals interacted with their computers, not what was on their screens, Meta spokesperson Dave Arnold said in a statement.

“We told non-U.S. employees in the spirit of transparency that it was used on the computers of U.S. colleagues they might email or chat with in the normal course of business,” Arnold said.

He acknowledged the rough number of apps and websites the program is tracking, but declined to answer questions about how much data it is consuming and whether it is lawful.

“We’ve looked at and taken steps to mitigate any potential privacy concerns during the development of this tool and as we roll it out, and we remain committed to complying with all applicable laws and regulations,” he said.

GDPR Compliance Issues Increasing

The findings could add to Meta’s regulatory headaches in the EU, where digital companies are embroiled in fierce legal battles over data collection and use.

U.S. workers rarely have any protection against being monitored by their employer, but companies operating under the EU’s General Data Protection Regulation must have a legal basis for processing personal data, disclose what they collect and meet strict conditions for especially sensitive data like health information.

One entry in Meta’s FAQ sheet on MCI was on tracking from the perspective of a non-U.S. employee: “I’m based outside the U.S. “Will my conversations or data be picked up if I’m talking with a U.S.-based colleague who has the tool enabled?”

The company’s response: “If a U.S.-based colleague has the tool turned on while gchatting or emailing with someone outside the U.S., that activity would be captured.

Meta also noted in the FAQ that data acquired by MCI would be “dissociated” from identifying employee information and hence could not be looked up or deleted for individuals, a requirement in Europe.

Kleanthi Sardeli, a legal expert at privacy advocacy organization NOYB (“none of your business”), told Reuters that even minimal or indirect collection of EU employee data might put Meta in breach of GDPR requirements.

She said that key sticking points could include whether the tool’s acquisition of European data is deemed “incidental” or constitutes monitoring under the GDPR, and whether the effort can pass a “purpose limitation” test.

“Such data was originally obtained in the context of work communication and the performance of the employment contract. “Feeding an employee’s chat to an AI model does not align with that initial purpose,” Sardeli said.

Meta notified the Irish Data Protection Commission, the lead EU privacy regulator under GDPR, that neither EU employee data nor the recording of screen content “falls within the primary purpose of the tool,” a DPC representative told Reuters without elaborating.

“We are not going to comment on the company’s exchanges with regulators,” said Arnold, the Meta spokesperson.

BACKLASH FROM EMPLOYEES OVER DATA SCOPE

The MCI project is part of a sweeping reorganisation at Meta that aims to give over big chunks of labour to AI agents. That has led to an intense response among staff, who have compared Meta to a “Employee Data Extraction Factory.”

One employee discussed internal discoveries from a deep dive of MCI log files using Anthropic’s Claude, an AI tool Meta has been nudging employees to incorporate into their job.

The analysis – replicated by others – found that MCI was added to the company’s existing data security software, giving it access to more details including employees’ code changes, their computers’ sleep and wake cycles, URLs visited and any clipboard content they copy and paste, which it then stored less securely in unencrypted form.

The employee said that having that much data would allow the construction of “a complete behavioural model of how a knowledge worker does their job.”

Not ‘an AI that clicks a dropdown for you’ but ‘an AI that knows which dropdown to click, what to pick, which document to paste it into, and what to do next,’ she wrote.
Two additional employees told Reuters that the employee’s post later disappeared.

“The conclusions of the post are fundamentally inaccurate,” said Meta spokeswoman Arnold, who would not answer questions about its assertions or indicate if the firm had taken it down.

The interactions within Meta bolstered why Johnny Ryan, director of the Irish Council for Civil Liberties’ Enforce team, believes it is “essential” that the DPC investigate the effort, he told CNN.

“This situation, this case, is not only for Meta employees. It applies to every worker in any industry where they could be replaced. If people know what it is, everybody worries about this,” he said.

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IHC forms larger bench to hear plea against PTI’s Sept 27 protest

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The Islamabad High Court (IHC) has issued a written decision on a petition challenging Pakistan Tehreek-e-Insaf’s (PTI) scheduled September 27 protest and long march, while creating a three-member bigger bench to consider the matter.

The larger bench will comprise IHC Chief Justice Sarfraz Dogar, Justice Azam Khan and Justice Muhammad Asif. The bench is slated to hear the case on September 10.

Chief Justice Sarfraz Dogar issued a three-page written order from the last session and directed the chief secretaries and inspectors general of police of all four provinces to come before the court in person on Thursday.

PTI finalises backup protest plan if Minar-e-Pakistan demonstration is denied permission

The court also summoned the Islamabad chief commissioner, Islamabad IG and deputy commissioner in their personal capacity. The advocate generals of all four provinces and Islamabad have also been asked to assist the court in the proceedings.

The petition was submitted by a businessman who contended that PTI’s intended demonstration could disrupt citizens and economic activity in Islamabad. His counsel informed the court that legislation governing protests in the capital already exists and highlighted concerns about the likely use of government resources during the planned mobilisation.

During the previous session, the petitioner’s lawyer also referred to PTI’s 2024 protest and brought relevant remarks and newspaper reports before the court. He suggested that protests should not be utilized to exert pressure on governmental institutions and judges.

The court remarked that the subject was of substantial importance and, in view of its sensitivity, issued a notice to the Attorney General for Pakistan for help in the case. The court then determined that the dispute should be heard by a larger bench.

The plea came after PTI organized a September 27 rally and long march towards Islamabad. The party has said the mobilisation is focused at getting access to party founder Imran Khan for his family and personal doctors, as well as raising concerns regarding his legal and prison-related affairs.

The IHC has fixed the subject for further hearing on September 10, when the summoned officials are likely to appear before the three-member bigger bench.

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Iran says it caught US underwater drone in Strait of Hormuz

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Iran’s Revolutionary Guards said on Tuesday it has captured a U.S. uncrewed submarine at the entrance to the Strait of Hormuz, offering a rare insight at how underwater drones are being ​used in military operations.

Iranian state media reported the craft was a Dive-LD, a ​large autonomous underwater vehicle made by California defense firm Anduril. The 19-foot (5.8-metre) ⁠submersible can carry out duties like mine countermeasures, seabed mapping, intelligence collection and the ​inspection of undersea infrastructure such as cables and pipelines, the business has said. “We detained one ​of the most advanced, clever and unmanned submarines of the terrorist American army near the entrance to the Strait of Hormuz. This submersible is equipped with the latest technologies,” the Revolutionary Guards Navy said ​in a statement broadcast by Iranian state media.

In response, a Pentagon spokesperson revealed a ​underwater drone had “malfunctioned more than a day ago.” “It was surveying regional seas in support of ongoing operations. ‌The ⁠defective drone was an earlier model that neither collected sensitive data nor carried any classified sonar or radar technology,” the spokesperson stated.

Anduril confirmed the loss of one of its vessels, but minimized the seriousness of the incident. “Dive-LD is an attritable autonomous system, meaning it ​is built from the ​outset to operate ⁠in perilous conditions where loss of the vehicle is a predicted possibility,” a company representative stated.

The U.S. Navy is spending extensively in ​unmanned naval systems, including undersea and surface vehicles, as it seeks ​cheaper ways ⁠to monitor broad expanses of ocean, gather intelligence and track hostile ships and submarines without putting troops at danger.

According to Anduril’s website, Dive-LD can operate for up to 10 days ⁠without returning ​to base and is meant to dive to depths ​of as much as 6,000 metres (19,700 ft). Dive-LD units cost roughly $2.5 million each, U.S. military news site DefenseScoop ​reported in 2024.

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Dollar wobbles, oil’s dash to $100 chills sentiment, Yen stands big

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The Japanese yen was pinned near its best level since February on Wednesday, leaving the dollar on the ‌defensive as traders grappled with oil prices heading toward $100 a barrel amid an expanding war in the Middle East.

Iranian-backed Houthis in Yemen attacked several Saudi cities, drawing a U.S. partner further into a battle that has dragged on for more than six months, as U.S. forces struck multiple Iranian oil tankers and Iran threatened a U.S. station in Jordan.

Brent crude futures rose by more than 1.48% to $99.37 a barrel, weighing on global markets ahead of a U.S. inflation data on Friday that will set the stage for central bank meetings next week in the U.S. and Japan.

The currency market nudged the dollar down a touch in response, though some analysts said that was due to the yen’s swift rally over the past week.

The euro held constant at $1.1631 while the pound was last bought at $1.3546. ​The dollar index, measuring the U.S. currency against a basket of six major rivals, was at 98.15, near its lowest level in nearly two weeks.

OCBC strategists said the current increase keeps Fed policy implications from higher energy prices in focus, especially after last week’s robust U.S. payrolls report reignited expectations of another rate hike. “Higher oil and rates should help limit USD fall for now but we anticipate a more dramatic move will await confirmation from the impending inflation data,” they said in a note.

The yen has been under focus after its 4% surge in September that has altered the math for the popular carry trade in which investors borrow in yen at a low cost and invest in other currencies and assets yielding better interest.

The yen was stronger at 153.65 per dollar, close to the seven-month peak of 152.89 struck on Tuesday. The surge has been broad-based with the Japanese currency strengthening against the euro and sterling as well as favorite carry-trade targets such as the Mexican peso and Turkish lira.

The increase has been fueled by expectations of quicker tightening by the Bank of Japan and the return of offshore cash by Japanese investors and pressure from Washington for a higher yen.

Traders broadly expect the BOJ to hike rates by 25 basis points at its September 17-18 meeting but the rise will rest on if Governor Kazuo Ueda delivers hawkish comments and the wild card will be the Federal Reserve.Aninda Mitra, head of Asia macro and investment strategy at BNY Investments, stated “Much will depend on how the market prices in the Fed’s path of interest rates too.We estimate the Yen’s “fair value” to be in the 140’s and a further move to that area should not be a total surprise following what has clearly been an overshoot to the side of excessive Yen weakness.”

The Australian dollar gained 0.12% to $0.7225, just below a four-month high set in the previous session, in Pacific trade. The New Zealand dollar was up 0.16% at $0.5862.

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