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Apple appeals UK encryption backdoor demand
Apple has publicly been pushing back against a UK order that demands it create encryption backdoors, and it has now formally appealed that order to the UK Investigatory Powers Tribunal.
The filing is only slightly concerned with the UK market, said Fred Chagnon, principal research director at Info-Tech Research Group. The United States has also echoed Apple’s concerns.
The greater objective is getting the UK authorities to back off on the request, which would hopefully discourage other governments from trying the same tactic, Chagnon said, describing it as preventing a potential domino effect.
Let’s say that Apple lets the order stand and simply opts out of the UK market, which is essentially what it has already done, he said. That could encourage other governments, especially those in France, Australia, and Canada, to try the same tactic.
“If that happens, then the [UK] government has set a precedent,” Chagnon said. But if Apple succeeds in this appeal, which was reported in various media including The Financial Times, “then Apple will have turned the tables and set their own precedent. It would be saying ‘No, China, no, Germany, no, France, you can’t have a backdoor.’”
Nikolas Guggenberger, an assistant law professor at the University of Houston Law Center, said the risk of a domino effect is particularly strong in Europe right now.
Guggenberger, who was born in Germany and studied law there before immigrating to the US, said many European countries might try to mimic what the UK does. The situation would have been different before 2020, when the UK formally exited the EU, because that shift gave more influence to Germany and France. Given Germany’s strong privacy position, Guggenberger said, it’s unlikely the EU today would embrace an encryption backdoor.
However, noted Forrester senior analyst Madelein van der Hout, the potential for global ripple effects is very real and troubling.
“If one government is granted this level of access, others will undoubtedly follow, leading to a global erosion of digital privacy,” van der Hout said.
Guggenberger also questioned the premise of the UK’s official argument. The UK maintains that it only want this backdoor to access the records of specific criminal suspects. But Guggenberger argued that what the UK authorities actually want is to be able to access a massive number of records at once.
“They want to be able to, very cheaply, hit not the cloud content of one person but the cloud content of thousands of people at once,” Guggenberger said.
Fruit of the poisonous treeIn the US, there is a legal doctrine known as the fruit of the poisonous tree. It holds that if data is accessed illegally, not only will that data be excluded as evidence, but anything that law enforcement learned by leveraging that data is also excluded.
But, Guggenberger argued, “the fruit of the poisonous tree doctrine is not nearly as strong in Europe compared with the US,” meaning that law enforcement fishing expeditions might benefit police there.
Another concern about forcing Apple to create a backdoor, beyond the fact that a backdoor for law enforcement will also be a backdoor for state actors and cyberthieves, is that if UK law enforcement is truly only interested in the records of specific criminal suspects, it has the ability to access them without Apple’s help.
The FBI proved that back in 2017 when it used tools, reportedly from an Israeli security vendor, to break into the phone of a suspect in the San Bernardino shooting attack, without any help from Apple. Since then, the technology has sharply improved.
Could create an uneven playing fieldForrester’s van der Hout also speculated that the appeal likely argues that it was unfair for the UK government to issue such an order against only Apple rather than all tech players.
“Apple’s position also raises concerns about fairness in the industry. If it were forced to comply while competitors faced no such obligations, it could create an uneven playing field, potentially distorting market competition,” van der Hout said. “More broadly, Apple’s stance sends a strong message to other technology providers: companies can — and should — push back against government overreach when it threatens the security of their users. This could galvanize a broader industry movement advocating for stronger encryption protections.”
Van der Hout said that Apple’s resistance is also about broader issues.
“Ultimately, this case highlights the ongoing tension between innovation, security and regulation. Apple’s resistance is not just about one company’s policies,” van der Hout said. “It’s about setting a global precedent for how technology firms defend encryption and user trust in the face of increasing governmental pressure. Especially since more European governments are trying to demand similar measures,” as illustrated by Signal’s battle with Sweden.
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Microsoft-OpenAI investigation closed by UK regulators
The UK’s Competition and Markets Authority (CMA) spent a great deal of time deciding whether it should investigate Microsoft’s investment in OpenAI as a potential merger situation, but in the end, decided to open and close the investigation within 24 hours.
In explaining why the the investigation was closed so quickly, Joel Bamford, CMA executive director, wrote in a LinkedIn post, “looking at the evidence in the round (including the recent changes), we have found that there has not been a change of control by Microsoft from material influence to de facto control over OpenAI. Because this change of control has not happened, the partnership in its current form does not qualify for review under the UK’s merger control regime.”
However, he wrote, “the CMA’s findings on jurisdiction should not be read as the partnership being given a clean bill of health on potential competition concerns; but the UK merger control regime must of course operate within the remit set down by Parliament.”
Recent changes in relationship helpedThe CMA, he wrote, “engaged directly and constructively with executives at Microsoft and OpenAI throughout the process, carefully reviewing both companies’ operations and documents as the partnership continued to evolve.”
According to Bamford, “the changing nature of the arrangements between Microsoft and OpenAI during the course of our investigation added a further layer of complexity in what is already a rapidly evolving sector. As recently as January 2025, Microsoft announced a change to its contractual rights in relation to supply of compute capacity, which reduced OpenAI’s reliance on Microsoft.”
Phil Brunkard, executive counselor at Info-Tech Research Group UK, said that perhaps OpenAI’s plans with Project Stargate, its gradual distancing from Microsoft, and Microsoft’s scaling down of its plans for building AI infrastructure were just the levers the CMA needed to close the investigation.
The CMA, he said, recognizes that they need to address the Pace, Predictability, Proportionality, and Process of their merger investigations. For the AI market, perhaps they need to consider which of those factors is most important.
Pace, said Brunkard, “is important because businesses and investors need guidance in the current climate, but that is challenging when the AI market is unpredictable, as we have seen with the shifting dynamic between Microsoft and OpenAI.”
As regulators, he said, “they need to give guidance at a pace that is in proportion to degrees of confidence in what they are assessing. Overdo the process and decisions take too long, as we can see in this instance, leading to a ‘so what’ when the decision is eventually made.”
The CMA, added Brunkard, “admitted this took a long time because of the degree of complexity (predictability), the changing nature of the arrangements and how they operate in practice (pace), and the mutual desire for open dialogue between the CMA and the companies to ensure [they] understood these developments over time (proportionality), has led to an exceptionally extended period of review (process).”
The changing of any of those dynamics, he said, enhances the ability of the UK regulator to make a quicker decision on the cases it reviews.
Ritu Jyoti, group vice president of the worldwide AI, automation, data and analytics research practice at IDC, said she thinks too much is being read into Microsoft’s cancellation of data center leases. “Per my understanding, they have reiterated that it’s sticking to its plan to allocate more than $80 billion of its cash to capital expenditures this fiscal year, which ends in June. I know they have also clarified that they are looking at it strategically and adjusting their infrastructure in some areas,” she said.
Similarly, on the Stargate project, said Jyoti, “here’s their official statement: Microsoft and OpenAI evolve partnership to drive the next phase of AI – The Official Microsoft Blog. I would not speculate more than this.”
She said that the last paragraph of the official statement is important; it indicates that in some ways, the altered agreement is a win-win. It reads: “In addition to this, OpenAI recently made a new, large Azure commitment that will continue to support all OpenAI products as well as training. This new agreement also includes changes to the exclusivity on new capacity, moving to a model where Microsoft has a right of first refusal (ROFR). To further support OpenAI, Microsoft has approved OpenAI’s ability to build additional capacity, primarily for research and training of models.”
In addition, Brunkard said, “investments alone don’t guarantee business value. We can all use Copilot and see some efficiency gains, but does that move the bottom line? AI’s future is inevitable, but outside of a few niche areas, ROI is a big question mark. That’s the real challenge here — not just keeping up with the pace, but figuring out what actually matters when the dust settles.”
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