Fri, Dec 06, 2013 - Page 7 News List

Venezuela crackdown ensnares Web’s Bitly

‘CAUGHT IN CROSSFIRE’:Bitly was restricted after sites that publish the black market rate for the bolivar were blocked. Bitly said China is the only other country to do this


Venezuelans have been scrambling for US dollars for weeks, taking refuge in the greenback as their own currency is in free fall. Rather than address the economic imbalances behind the bolivar’s plunge, the Venezuelan government is going after the bearers of the bad news — it is taking down Web sites people use to track exchange rates on the black market.

Cyberactivists say the crackdown goes to absurd lengths, even targeting Bitly, the popular site for shortening Web addresses to make it easier to send them as links via Twitter and other social media.

For more than two weeks, access to the service has been partially censored by several Venezuelan Internet service providers, apparently because Bitly was being used to evade blocks put on currency tracking Web sites.

The New York company says such restrictions have only previously been seen in China, which has one of the worst records for Internet freedom, and even then not for such an extended period. Opponents of Venezuela’s socialist government say the restrictions are designed to obscure reporting of the nation’s mounting economic woes.

“We help connect people with information and insight about their world,” Bitly CEO Mark Josephson said. “When someone is standing in the way of that mission, that’s not something we feel good about.”

Bitly got caught in the crossfire of Venezuela’s polarized politics a month ago, shortly after Venezuelan President Nicolas Maduro decided to block access to sites such as that publish the black market rate for the bolivar, which is now 10 times the official rate of 6.3 bolivars per dollar.

Maduro accuses the sites of fueling an “economic war” against his government, which is facing municipal elections this weekend that will be its first political test since he narrowly won the presidency in April following Hugo Chavez’s death. Many of the sites are also openly critical of the government.

Yet with the blocks in place, many sites managed to skirt the controls by migrating to Twitter, keeping hundreds of thousands of Venezuelans informed of the black market rate by using Bitly to direct traffic to newly created Web sites.

In response, telecom regulator Conatel sent a letter to Twitter on Nov. 19 asking it to immediately shut all accounts used to violate Venezuela’s currency controls, warning that its failure to do so would be “highly damaging to the Venezuelan economy.”

Twitter has ignored the request, but declines to comment on the matter.

Around the same time, Bitly was taken down without notice — at least for Venezuelans who are subscribers to the state-run service provider, CANTV. As a result, the average number of clicks on Bitly-generated links in Venezuela has fallen by half to about 1.5 million a day, Josephson said.

“It’s like shutting down all the highways in the country because there was an accident on one street,” said Luis Carlos Diaz, a cyberactivist and tech columnist for the Caracas newspaper Tal Cual.

Meanwhile, the Venezuelan government has not said how it intends to stem the bolivar’s decline, a major factor fueling inflation that hit a two-decade high of 54 percent in October.

Economists say the only way to stabilize the currency is by devaluing the bolivar and unwinding decade-old controls that restrict the amount of foreign currency Venezuelans can purchase. Maduro vigorously insists he will never adopt such policies.

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