Global IT Outage Disrupts Services and Travel
On 19 July, a severe IT outage caused global disruptions, with significant
impact on various sectors. The issue originated from a CrowdStrike antivirus update that affected Windows PCs, led to crashes and the notorious “blue screen of death.” While CrowdStrike confirmed the issue and assured it was not a security breach, the disruption led to significant chaos. This malfunction disrupted financial services, healthcare providers, and TV broadcasters. Airports worldwide experienced extensive delays and cancellations, with over 3,300 flights grounded and long queues forming as manual check-ins became necessary. Microsoft also experienced issues with its cloud services. The problem was first detected in Australia and was felt most acutely in the air travel industry.
Nepali banks also faced disruptions. The issue has now been resolved.
Government Imposed VAT on Clearing Services Starting 16 July, 2024
The government of Nepal, which has declared this decade as the “Digital Decade,” is imposing Value Added Tax (VAT) on clearing services starting 16 July, 2024. This change is being introduced through the budget for the fiscal year 2081/82 BS and is outlined in the Finance Act, 2081, which removes clearing services from the list of VAT-exempt services. Previously, these services have enjoyed a VAT exemption.
As a result of this new regulation, a 13% VAT is now being applied to the transaction fees of Nepal Clearing House Limited (NCHL) and other payment service providers, placing an additional financial burden on customers. In response, NCHL has notified its customers about the impending VAT on their transaction fees, ensuring transparency and awareness about this new tax imposition.
Internet Blackout in Dhaka Amidst Protests and Crackdown
Bangladesh soldiers patrolled the deserted streets of Dhaka, enforcing a curfew to quell deadly student-led protests against government job quotas, which have claimed at least 105 lives this week. The most significant impact has been the government-imposed internet and communication blackout since 18 July, isolating Bangladesh from the rest of the world. This shutdown has severely disrupted internet and mobile data services, particularly in Dhaka, where social media platforms are inaccessible. The blackout coincided with a global internet outage but was notably more extensive in Bangladesh.
The country’s Telecommunication Regulatory Commission reported that their data center was attacked by demonstrators, though this claim has not been independently verified. The communication blackout has hindered citizens’ ability to coordinate, access information, and communicate, exacerbating the crisis and adding to the tension and uncertainty in an already volatile situation.
U.S. Appeal Court Temporarily Halts Net Neutrality Reinstatement
On 12 July, a U.S. Appeal Court temporarily put the Federal Communications Commission’s (FCC) reinstatement of landmark net neutrality rules on hold until 5 August, as it considers legal challenges from the broadband industry.
These rules, initially adopted in 2015, were set to go back into effect on 22 July. However, the Sixth Circuit U.S. Court of Appeals issued an order delaying their implementation to “provide sufficient opportunity to consider the merits” of the broadband industry’s request to halt the rules as the legal challenge proceeds.
Net neutrality rules require internet service providers to treat all internet data and users equally, prohibiting them from restricting access, slowing speeds, or blocking content for certain users. These rules also forbid special arrangements in which ISPs provide improved network speeds or access to favored users.
