Proton, the Geneva-based encrypted email provider founded 11 years ago by three scientist who met at CERN, will freeze its investments in Switzerland, its chief executive Andy Yen told Le Temps on Wednesday. The company, best known for its privacy-first services, accuses Switzerland of edging towards becoming a surveillance state.
The dispute centres on two draft ordinances updating rules on communications monitoring. The measures would compel encrypted messaging providers, including WhatsApp and Proton, to identify users and store their data, handing it over to authorities upon request. Such obligations clash with the core selling point of firms such as Proton that put privacy at the heart of their product.
“If the proposals pass, Proton’s services in Switzerland would be less private than Google’s,” Mr Yen told Le Temps. Frustrated by the lack of assurances from Beat Jans, the federal councillor overseeing the matter, Proton has opted to halt Swiss investments and shift its infrastructure plans abroad. Its artificial-intelligence data centres, deemed especially sensitive, will be located in Germany and Norway and involve investing CHF 100 million.
Samuel Bendahan, a Socialist member of parliament, told RTS that he shares Proton’s concerns about state overreach but dislikes the firms tactics. “I never like it when companies try to pressure Switzerland or its people with money,” he said. “In a democracy, the right way is to argue, not threaten to leave.” Allowing firms to dictate policy by brandishing relocation threats, he warned, “is the worst possible outcome—for democracy itself.”
Privacy advocates argue that the ordinances risk opening the door to broader state surveillance. But proponents cite a surge in online crime—fraud, theft and child exploitation—all of which thrive on anonymity. The clash is an old one: balancing individual privacy against public safety.
Proton, which is investing CHF 100 million to build AI systems under the brand Lumo, plans more than CHF 1 billion in European expansion by 2030 to compete with Google, a company that has a business model fundamentally at odds with data privacy. Some CHF 900 million could still be invested in Geneva, but only if the regulatory environment remains favourable, said the company.
Even critics of Proton’s stance concede the underlying issue is real. “People no longer control their data,” Bendahan said. “Breaches and hacks happen daily. The danger is not only excessive state surveillance, but also the prospect of private actors being given the responsibility to police the internet.
Many Swiss politicians, across party lines, also bridle at the government’s heavy-handed approach. “The strength of the Swiss system is building policies that a majority can accept,” Bendahan said. When the federal council issues decrees, they must reflect both the law and the popular mandate. That’s not clear here, he said.
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Le Temps article (in French) – Take a 5 minute French test now
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