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UK and US Engage in Private Talks to Resolve Apple Encryption Dispute

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British officials have been in private discussions with U.S. counterparts to resolve concerns surrounding the UK’s demand that Apple build a backdoor into its encrypted data, according to a Bloomberg News report on Thursday. This follows Apple’s decision last month to remove its Advanced Data Protection security feature for cloud data in the UK, a move that has raised concerns about the potential for government access to sensitive information.

The removal of this encryption feature allows Apple to access iCloud backups, including iMessages, in specific situations, which it can then hand over to authorities if legally required. Previously, with end-to-end encryption enabled, even Apple itself could not access users’ data. This shift marks a significant response to government demands for easier access to encrypted user data.

The UK’s Home Office and Apple have not responded to requests for comment. Governments and tech giants have long been in a standoff over strong encryption, with authorities often viewing it as an obstacle to surveillance and crime-fighting. However, the UK’s demands are seen as particularly expansive.

In response to the situation, U.S. officials are investigating whether the UK’s actions violate agreements between the two countries. A letter sent on February 25 by U.S. Director of National Intelligence Tulsi Gabbard indicated that the U.S. is examining whether the UK violated the CLOUD Act, which restricts foreign governments from making requests for data on U.S. citizens.

On Friday, Apple’s appeal against the UK’s order will be heard in a secret hearing at London’s High Court

Deliveroo Delays Margin Growth Goal Amid Slow Consumer Recovery

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Deliveroo has postponed its margin growth target after a slower-than-expected recovery in consumer confidence, causing a drop in shares that erased the gains made over the past year. Despite reporting its first statutory profit and positive cash flow, the meal delivery company revised its forecast for margin expansion.

For the year, Deliveroo posted a profit of £2.9 million ($3.8 million), a turnaround from a loss of £31.8 million in 2023. Its core earnings reached the top end of guidance, amounting to £129.6 million. However, CEO Will Shu admitted that the consumer environment had not recovered as quickly as expected. In 2023, Shu had set a target to achieve a 4% core earnings margin by 2026, with the possibility of further upside. But now, Deliveroo expects margin growth to pick up starting in 2026, with the 4% target set for the medium term.

“The consumer market since our capital markets event hasn’t been the smoothest,” Shu noted, reflecting the ongoing challenges. As a result, shares in Deliveroo fell 9%, wiping out the gains made over the past year. Jefferies analysts called the new timeline a “blemish,” though they pointed out that the consensus forecast had already been lagging behind the original timeline.

Despite the setback in margin growth, Deliveroo saw growth in gross transaction value (GTV), a key performance metric, which picked up in the second half of 2024. Order growth in the UK and Ireland, Deliveroo’s largest market, also accelerated each quarter. For Q1 2025, Shu expressed confidence, stating that trading had been strong, with no significant changes compared to the latter half of 2024.

To continue growing, Deliveroo will focus on value, its tiered membership programs, and other operational efficiencies. The company also announced its exit from Hong Kong, selling some of its assets to Delivery Hero’s foodpanda after nine years of operations in the region. Shu explained that Hong Kong’s market was particularly price-sensitive, which influenced the decision to exit. This departure will leave Deliveroo operating in seven international markets, in addition to its presence in Britain and Ireland.

UK Launches Inquiry into TikTok and Reddit Regarding Children’s Personal Data Handling

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UK Privacy Watchdog Investigates TikTok, Reddit, and Imgur Over Children’s Data Practices

On Monday, the UK’s privacy regulator, the Information Commissioner’s Office (ICO), launched an investigation into how TikTok, Reddit, and the online image-sharing platform Imgur handle children’s privacy. This probe focuses on ensuring that these platforms are adequately safeguarding the personal data of minors, particularly in light of the growing concerns around digital privacy and the impact of online content on young users.

The ICO’s investigation centers on the use of complex algorithms by these social media platforms, which prioritize content and keep users engaged. While these algorithms help users discover relevant content, they can also expose children to harmful material by amplifying similar content. The watchdog is particularly concerned about how TikTok, operated by the Chinese company ByteDance, uses the personal data of users aged 13 to 17 to suggest content on their feeds.

In addition to TikTok, the ICO is also investigating Reddit and Imgur for how they assess the age of child users. Both platforms, which host a variety of user-generated content, need to ensure they are accurately identifying and protecting underage users, as the use of personal data without appropriate safeguards could violate privacy laws. The ICO has made it clear that if any violations are found, it will hold these companies accountable and seek their input before reaching a final decision.

The investigation follows a previous issue in 2023, when the ICO fined TikTok GBP 12.7 million (approximately $16 million or Rs. 139 crore) for breaching data protection laws by improperly using the personal data of children under 13 without obtaining parental consent. This investigation marks the ICO’s ongoing efforts to ensure that social media platforms adhere to stringent privacy standards, especially when it comes to protecting younger users.