Apple Inc. AAPL has reportedly launched a legal battle against the U.K. government, challenging a directive that would force the company to create a "backdoor" into its encrypted iCloud storage, a move that has drawn criticism from President Donald Trump.
What Happened: The iPhone maker filed a complaint with the U.K.'s Investigatory Powers Tribunal, an independent body that reviews government surveillance actions, reported the Financial Times, citing people familiar with the matter.
The challenge targets a technical capability notice (TCN) issued under the 2016 Investigatory Powers Act, which requires Apple to weaken encryption in its Advanced Data Protection (ADP) feature for iCloud.
Apple did not immediately respond to Benzinga's request for comments.
Why It Matters: Apple withdrew its most secure cloud backup service from the U.K. last month. Despite this, U.K. officials maintain that Apple has not fully met their demands, which could allow authorities access to data stored outside Britain.
Trump and U.S. intelligence chief Tulsi Gabbard have strongly opposed the U.K.'s move, warning that it could violate privacy rights and jeopardize transatlantic data agreements.
Trump likened the demand to China’s surveillance practices, while Gabbard called it an "egregious violation" of privacy.
Price Action: Apple’s stock ended Tuesday at $235.93, slipping 0.88%. However, it rose 0.72% in after-hours trading. Year to date, AAPL has declined 3.25%, according to Benzinga Pro data.
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