Thats reassuring but, not knowing much about this, I have a couple of questions:
1. Is this proactively monitored for? And how? And by whom?
2. If a major state-level CA was discovered to have issued a mitm cert, would browser vendors really take the commercial hit of removing or distrusting their root cert?
Yes, security researchers like myself are constantly looking in CT logs for suspicious certificates, and I've found many, most notably Symantec issuing certs for example.com (https://groups.google.com/g/mozilla.dev.security.policy/c/fy...) and Certinomis issuing for test.com (https://bugzilla.mozilla.org/show_bug.cgi?id=1496088). Both CAs were eventually distrusted. (But Certinomis will be back once eIDAS is adopted!)
Domain owners can use Certificate Transparency Monitors to learn about suspicious certificates for their own domains. Here are some monitors:
https://crt.sh/ - allows you to search for certificates for a domain
https://github.com/SSLMate/certspotter/ - open source tool which notifies you when a certificate is issued for one of your domains
https://sslmate.com/certspotter/ - commercial service that does the same, operated by my company
> 2. If a major state-level CA was discovered to have issued a mitm cert, would browser vendors really take the commercial hit of removing or distrusting their root cert?
In 2017, Chrome and Firefox distrusted Symantec, which was at the time the world's largest certificate authority: https://security.googleblog.com/2017/09/chromes-plan-to-dist...
Symantec hadn't even issued MitM certs - they were just grossly incompetent. Distrusting them was very painful, but necessary to uphold the integrity of the CA system, and demonstrated conclusively that there is no such thing as a too-big-to-fail CA.
If you're a security researcher monitoring other people's domains, you have to rely on heuristics - e.g. if a domain has a long history of getting certs from a major US CA, and then suddenly a tiny European CA issues them a certificate, that's pretty suspicious. When I found the example.com certificate misissued by Symantec, I though it was suspicious because it was also valid for subdomains like products.example.com and support.example.com, which don't make sense for a domain that's reserved for documentation purposes. ICANN operates example.com, so I emailed their security team to confirm that they did not authorize the certificate.
The system works best if domain owners are monitoring their own domains, because only they know for sure if a certificate is authorized or not.
Care to point out where I said that?
example.com and test.com are real domains, and their owners did not authorize those certificates to be issued, so issuing them was a serious breach of the trust which CAs are expected to uphold. Furthermore, the discovery of these certificates led to investigations which turned up additional issues which are documented in detail here:
Pretty much every browser distrusted the root certificate from Spain's FNMT-RCM for a decade, so I think the answer's yes.