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UK Renews Push for Apple to Open Cloud Access for British User Data

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The British government has issued a new order to Apple (AAPL.O) demanding the creation of a backdoor into its iCloud storage service — this time limited to British users’ data, the Financial Times reported on Wednesday.

The move marks the government’s second attempt to gain access to encrypted data stored by Apple, following the company’s appeal earlier this year against a broader order that sought access to both UK and U.S. citizens’ data. The earlier mandate was dropped after U.S. intelligence officials, including Director of National Intelligence Tulsi Gabbard, warned that such access could expose sensitive personal data to cybercriminals and foreign governments.

APPLE MAINTAINS REFUSAL TO CREATE BACKDOOR

Apple reiterated its long-standing position that it will not build a backdoor into its systems, citing user privacy and global security risks. “We have never built a backdoor or master key to any of our products or services — and we never will,” Apple said in a statement on Wednesday.

The company also confirmed that it was forced to withdraw its Advanced Data Protection (ADP) feature for UK users in February due to the government’s demands. The feature, which offers end-to-end encryption for iCloud data, ensures that only the user — not even Apple — can decrypt stored information.

“Apple is still unable to offer Advanced Data Protection in the United Kingdom to new users, and current users will eventually need to disable this feature,” the company said. “ADP protects iCloud data with end-to-end encryption, meaning only the user can access it on trusted devices.”

GOVERNMENT DEFENDS SECURITY ACTIONS

A spokesperson for the UK government declined to confirm the existence of the new order but said:

“We will always take all actions necessary at the domestic level to keep UK citizens safe.”

The latest demand comes under Britain’s Investigatory Powers Act, often called the “Snooper’s Charter,” which allows the government to compel tech firms to provide access to encrypted communications under certain conditions.

Apple’s ongoing appeal against the earlier order is being heard by the Investigatory Powers Tribunal (IPT), the UK’s top court for intelligence-related cases.

The standoff underscores the growing global tension between governments seeking digital surveillance capabilities and technology companies defending encryption as a cornerstone of privacy and cybersecurity.

Microsoft May Walk Away from OpenAI Negotiations Amid Stake Disputes

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Microsoft is reportedly prepared to abandon high-stakes negotiations with OpenAI over the future of their strategic alliance, according to a report by the Financial Times published Wednesday. The talks have hit a stalemate over key disagreements, particularly regarding the size and structure of Microsoft’s future equity stake in the artificial intelligence company.

Sources familiar with the matter told the FT that Microsoft may pause or terminate discussions if no breakthrough is reached. In the meantime, Microsoft plans to lean on its existing commercial agreement, which guarantees access to OpenAI’s technologies, including its ChatGPT models, through 2030.

The situation comes amid increased tension between the two AI powerhouses. A separate Wall Street Journal report earlier this week revealed that OpenAI executives have considered accusing Microsoft of anticompetitive practices related to their ongoing partnership. Both companies are reportedly negotiating changes to Microsoft’s investment terms, including its future stake in OpenAI.

Despite the friction, both sides released a joint statement earlier this week affirming their intention to collaborate:

“Talks are ongoing, and we are optimistic we will continue to build together for years to come.”

Microsoft’s multi-billion dollar investment into OpenAI has positioned it as a central player in the AI boom, helping the company compete aggressively with rivals like Google and Amazon. The partnership has powered Microsoft’s integration of OpenAI models into products like Copilot in Microsoft 365 and Azure OpenAI Service.

Meanwhile, OpenAI is seeking approval from Microsoft—its dominant backer—to convert into a public-benefit corporation, a structural change the startup believes would facilitate greater capital raising flexibility.

The evolving rift highlights the complex interdependence between Big Tech firms and rapidly-scaling AI startups, raising questions about governance, control, and long-term alignment in the sector.

OpenAI Partners with Financial Times to Leverage Content for AI Model Training

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OpenAI Recently Partnered with AP, Axel Springer, Le Monde, and Prisa Media for Content Licensing

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