EU's Chat Control Law Sparks Privacy Concerns and Potential Shift to Web3 Platforms

According to Cointelegraph, European lawmakers are approaching a decision on the controversial “Chat Control” legislation, raising alarms among privacy experts who warn it could undermine public trust in digital communication and drive users toward decentralized Web3 platforms. The proposed Regulation to Prevent and Combat Child Sexual Abuse aims to mandate platforms to scan private messages for illegal content before encryption, effectively creating a backdoor into encrypted systems. Critics argue this contradicts the EU’s commitments to privacy. Hans Rempel, co-founder and CEO of Diode, described the proposal as a dangerous overreach, stating that granting an entity nearly unlimited visibility into individuals' private lives is incompatible with digital privacy values. Elisenda Fabrega, general counsel at Brickken, highlighted the difficulty in justifying the law under the existing jurisprudence of the Court of Justice of the European Union, referencing Articles 7 and 8 of the EU Charter of Fundamental Rights, which ensure confidentiality of communications and protection of personal data. She explained that client-side scanning would allow monitoring of content on user devices before transmission, even without indications of unlawful activity. The regulation has garnered support from 15 EU countries, yet experts caution it sets a dangerous precedent legally and technologically. Rempel noted the absence of guarantees against misuse, citing that over 10% of data breaches occur in government systems. Fabrega expressed concerns about the broader impact on public trust, emphasizing that encryption is not merely a technical feature but a promise of confidentiality in private communications. The erosion of trust in traditional messaging platforms could lead users to explore Web3 alternatives, which are designed to protect user data through encryption by design. Rempel emphasized Web3’s privacy ethos, stating, “Not your keys, not your data,” highlighting true self-custody for data where the end-user maintains sovereignty over their information. Fabrega echoed this sentiment, predicting that privacy-conscious users will increasingly turn to decentralized Web3 alternatives if the Chat Control law is enacted. She warned that such a shift could fragment the European digital market and weaken the EU’s ability to influence international privacy norms. Germany holds the pivotal vote, with 15 EU countries supporting the proposal but falling short of the 65% population threshold required for passage. If Germany votes in favor, the law is likely to pass; if it abstains or opposes, the legislation is expected to fail. Rempel expressed skepticism about the likelihood of passage, noting that attempts to subvert fundamental human rights in the name of safety are likely to continue.