If Apple complies with this, the UK government will gain access to all iCloud data globally. The only way Apple comes out of this with any integrity is to leave the UK market. If they give in to this, every regime in the world will demand the same thing. And that’s before we even get to the fact that there’s no such thing a “backdoor” for just so-and-so. Either there is a door or there isn’t and if there is, anyone who obtains the key can use it.
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And Five Eyes means that they then share it all with the US.