Scenario 1 – Cyber operations by State B on government systems and websites of
State A
State A undertakes major reforms to its domestic company law and tax code that are consistent with its
international obligations. In order to implement the new laws – including to allow State A’s tax office and
corporate regulator to monitor and enforce new requirements on companies – State A requires all
registered companies to disclose certain information via a government website. State B opposes the
reforms because it considers they unfairly impact on the interests of companies from State B operating in
State A. In an attempt to prevent State A from implementing the reforms, State B, through its Department
of Defence, conducts a series of cyber operations that prevent use of the website and disable government
systems of State A’s tax office and corporate regulator. As a result, State A is incapable of regulating
companies’ compliance with the new laws for a substantial period and has no choice but to indefinitely
postpone implementation of the new tax reforms. State A also loses significant tax revenue.
International law may assist State A in the following ways:
First, it provides rules of legal attribution – contained in the customary international law on state
responsibility, much of which is reflected in the International Law Commission's Articles on the
Responsibility of States for Internationally Wrongful Acts – meaning that acts of the Department of
Defence, as an organ of State B, would be attributable to State B.
Second, it defines states’ rights and obligations, including the international law duty not to
intervene in the internal affairs of another state (prohibited intervention). State B’s conduct could
constitute a prohibited intervention on the basis that it was a coercive interference in matters
which State A is entitled as a matter of state sovereignty to decide freely, including its economic
system. However, establishing the aforementioned elements of prohibited intervention would
depend on the circumstances, including the extent of economic damage and the loss of
government control over economic policy.
Third, if State B’s conduct violated international law, it would entitle State A to invoke the
international legal responsibility of State B, and State A could demand that State B cease the
unlawful act/s (if they were continuing) and make full reparation for State A’s injuries. Reparation
could include restoring full access to relevant websites and providing compensation for any
financially assessable damage. As international law governs the dispute, State A may seek to pursue
resolution through legal as well as political avenues including, for example, by seeking a resolution
consistent with the Charter of the United Nations, including Chapter VI (Pacific Settlement of
Disputes),5 which could include referring the dispute to the International Court of Justice (ICJ)
where the necessary preconditions had been met (including admissibility and jurisdiction).
Fourth, if State B’s conduct violated international law, it would entitle State A to take
countermeasures – acts which would ordinarily be unlawful – in response to State B’s wrongdoing.
Countermeasures could be cyber in nature or taken through alternative means – such as
5
For example: Article 33(1) of the UN Charter provides that “The parties to any dispute, the continuance of which is
likely to endanger the maintenance of international peace and security, shall, first of all, seek a solution by
negotiation, enquiry, mediation, conciliation, arbitration, judicial settlement, resort to regional agencies or
arrangements, or other peaceful means of their own choice.” In Security Our Common Future: An Agenda for
Disarmament (Office for Disarmament Affairs, 2018) the UN Secretary-General commits to “make available his good
offices to contribute to the prevention and peaceful settlement of conflict stemming from malicious activity in
cyberspace”.
ii
www.internationalcybertech.gov.au
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