bbieron@platformeconomyinsights.com

UK Government Wants to Climb Down from Apple Encryption Standoff

Jul 1, 2025

Report from the Financial Times

In Brief – The UK is reportedly looking to step back from its legal standoff with Apple over the company’s use of encryption in its iCloud storage service. The Starmer Government is concerned that the conflict could hamper their ability to pursue tech and AI initiatives, including partnerships with the United States and US-based digital companies. The Home Office, the country’s lead law enforcement agency, is reported to have issued a demand to Apple in January to give UK security services the ability to access data uploaded to Apple’s iCloud storage by any user worldwide that uses Apple’s Advanced Data Protection (ADP), which is end-to-end encryption that Apple cannot break. Although the demand has never been formally confirmed because publicly revealing it is itself a criminal offense under the 2016 Investigatory Powers Act (IPA), Apple stopped offering ADP to UK users in February and brought a legal complaint to the country’s Investigatory Powers Tribunal in March. Throughout, Apple has said that the company will not build “a back door or master key to any of our products”, and once the standoff became public top US officials, including President Trump and Director of National Intelligence Tulsi Gabbard, publicly criticized the UK Government initiative. Meta recently joined Apple’s case in the surveillance tribunal.

Context – Encryption policy has been an example of the UK’s digital policy schizophrenia. It aims to be a European haven of tech and AI investment while also pressing forward on tech regulations that run contrary to that goal. The Online Safety Act was nearly derailed in 2023 over threats to encryption, with top messaging services threatening to abandon the market. That standoff was defused by a government minister saying that no encryption change was forthcoming, but the issue was reopened by proposed changes to the IPA in 2024. The Home Office’s move in January might have been based on their belief that the incoming Trump Administration, which was harshly critical of Apple and Meta over encryption in its first term, would be amenable. However, this Trump Administration has a more robust digital wing.

View By Monthly
Latest Blog
Dutch Regulator Opens Digital Services Act Investigation of Roblox

Report from NL Times In Brief – The Netherlands Authority for Consumers and Markets (ACM) has launched a formal Digital Services Act (DSA) investigation of Roblox over concerns that the online gaming platform may not be doing enough to protect children. The DSA...

EU Commission Moves to Stop Meta from Banning Chatbots on WhatsApp

Report from Wall Street Journal In Brief – The European Commission has informed Meta that it plans to block the company’s ban on third-party AI chatbots from operating over WhatsApp. The antitrust regulator has reached a preliminary finding that Meta’s policy could...

Department of Justice and State AGs Appeal Google Search Remedies Order

Report from Bloomberg In Brief – The US Department of Justice has announced that it notified the Federal Court of Appeals for the District of Columbia that it will appeal US District Judge Amit Mehta’s remedies order in the federal antitrust lawsuit that found Google...

Governor Newsome Drops Funding for Media from California State Budget

Report from SFiST In Brief – The latest budget proposal from California Governor Gavin Newsom (D) has eliminated funding for the News Transformation Fund, a state initiative to pay millions of dollars to California media companies. The fund was announced in 2024 as...

Platform Economy Insights produces a short email four times a week that reviews two top stories with concise analysis. It is the best way to keep on top of the news you should know. Sign up for this free email here.

* indicates required