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Funny that this comes from a company that talks of "building a truly transparent network", and says "... And we have nothing to hide."

Well, they are being transparent. Courts ordered them to block Pirate Bay, so they complied and put up a notice saying so.

in my opinion transparency is something of a red herring, or buzzword.

usually you can tell what's going on inside of an organization just by observing what they do.

conversely, if you can't observe it, how would you know they're not being transparent (despite their claims)?

court usually asks to block URLs, not to sniff data between PirateBay and CloudFlare.

And how would you block url without sniffing packets?