The Investigatory Powers Tribunal had dismissed Apple’s legal appeal against a government order requiring it to provide intelligence services and law enforcement with the capability to access encrypted data of Apple users worldwide.
The tribunal has ruled that the case would no longer proceed following a “change in circumstances,” according to court documents obtained by Computer Weekly.
The decision effectively brings Apple’s legal action against the Home Office to a halt, although a separate legal claim brought by campaign groups Privacy International and Liberty is expected to continue.
It comes days after disclosures that the Home Office has issued a new order against Apple to restrict UK government access to encrypted data and messages stored on Apple’s iCloud service only for British users.
The move by the Home Office ends a growing diplomatic row between the UK and the Trump administration over fears that the UK could use the order to access the communications of US citizens.
Claim dismissed
According to a court order obtained by Computer Weekly, Apple and the Home Office have agreed that Apple’s appeal should no longer go ahead.
“This claim is dismissed on the basis of a change in circumstances which, the tribunal has decided, means the claim should no longer proceed,” the order on 6 October stated.
We are gravely disappointed that the protections provided by ADP are not available to our customers in the UK, given the continuing rise of data breaches and other threats to customer privacy Apple spokesperson
Apple did not comment on the withdrawal of its legal case and declined to say whether it would issue a new legal challenge against the Home Office’s revised order.
However, a company spokesperson confirmed that Apple would still not be able to offer its Advanced Data Protection (ADP) service, which it withdrew from the UK rather than comply with the Home Office’s order – to its UK customers.
“We are gravely disappointed that the protections provided by ADP are not available to our customers in the UK, given the continuing rise of data breaches and other threats to customer privacy,” the spokesperson added.
Backdoor order
The row between Apple and the Home Office came after the government issued a secret technical capability notice (TCN) to Apple in January, requiring it to provide warranted backdoor access to messages and data stored by Apple users worldwide.
The notice extended the ability of UK law enforcement to access encrypted data stored by users on Apple’s iCloud to include users of its secure ADP service, which is fully end-to-end encrypted.
The government argued that it needed to be able to obtain warrants to access individuals’ private encrypted data on Apple’s iCloud service, including data protected by ADP, in the interests of national security and tackling crime.
Apple has opposed the order on the grounds that it needs to offer its users the “highest levels of security” for their personal data to protect their privacy and secure them against data breaches and hacking.
The Home Office’s actions sparked a diplomatic row with the US, after the existence of the secret TCN order was leaked to the Washington Post.
US director of national intelligence Tulsi Gabbard publicly raised concerns that the UK’s order against Apple could “undermine Americans’ privacy and civil liberties”. President Donald Trump described the move as “something that you hear about with China”.
Legal action by NGOs expected to continue
A separate case brought against the Home Office by Privacy International, Liberty and two individuals, which challenges the lawfulness of the technical capability notice, is expected to continue.
The IPT has refused an application by the campaign groups to disclose the terms of any revised TCN issued by the government in the light of agreements reached with the US, according to documents obtained by Computer Weekly.
The IPT ruled that although public notices issued by President Trump, the vice-president and the US director of national security implied that the Home Office had served a new TCN on Apple, neither Apple nor the Home Office had publicly confirmed or denied that this was the case.
The IPT is due to hear the case on the basis of “assumed facts” – which allow the case to be heard in open court – in January 2026.
According to the court documents, the TCN allows the interception of communications and multiple categories of data stored in Apple’s iCloud backup service.
It requires Apple to remove electronic protection applied to the data where it is “reasonably practicable” and to provide access to data stored on Apple’s Advanced Data Protection and iCloud services under a warrant.
Bernard Keenan, a lecturer in law at UCL and a specialist in the Investigatory Powers Act, said that the withdrawal of Apple’s appeal by mutual consent, indicated that Apple and the UK government have come to an arrangement acceptable for both sides.
“If reports that the TCN has been limited to UK users are accurate, then the government will have maintained the capability to intercept communications sent or stored via encrypted Apple services in the UK, while Apple will have decided that they are unlikely to win an appeal against an order in those terms in court,” he added.
Apple did not comment on the decision to discontinue its case.
An Apple spokesperson said it was “gravely disappointed” not to be able to offer Apple customers its secure ADP service in the UK.
“Enhancing the security of cloud storage with end-to-end encryption is more urgent than ever before. Apple remains committed to offering our users the highest level of security for their personal data and are hopeful that we will be able to do so in the future in the United Kingdom,” the spokesperson said.
“As we have said many times before, we have never built a backdoor or master key to any of our products or services, and we never will,” the spokesperson added.
ADP protects iCloud data with end-to-end encryption, which means the data can only be decrypted by the user who owns the data on their own trusted devices. Apple, which does not have access to ADP encryption keys, is unable to read messages stored on the service.
A Home Office spokesperson said, “we do not comment on operational matters, including for example confirming or denying the existence of any such notices.”
South Korea’s semiconductor sector, led by giants like Samsung Electronics and SK Hynix, produces about two-thirds of the world’s memory chips. If the Middle East’s supply of chipmaking materials is disrupted, semiconductor production could slow unless alternative sources are found quickly.
The Helium Problem
One material at risk is helium, which is essential in chip manufacturing for managing heat, detecting leaks, and maintaining stable temperatures in fabrication equipment. For many of these uses, there is no real substitute.
About 38 percent of the world’s helium is produced by Qatar, where large extraction facilities are tied to the natural gas industry. This concentration means that disruptions can quickly ripple through the global supply chain.
National oil company QatarEnergy declared force majeure on March 4, after stopping its gas production and downstream operations due to ongoing attacks. Downstream facilities turn gas into other products, including urea, polymers, methanol, and aluminum.
South Korea’s Industry Ministry said the country also depends on the Middle East for 14 other materials in chipmaking, such as bromine and some chip-inspection equipment. While some of these materials can be sourced domestically or from other markets, shifting suppliers in the semiconductor sector is difficult because chipmakers need to test and validate new sources to meet strict purity standards.
Companies say the situation is manageable for now. As reported by Reuters, SK Hynix said it has secured diverse supply chains and maintains sufficient helium inventories, adding that there is “almost no chance” its operations would be affected in the near term.
Contract chipmaker TSMC similarly said it does not currently anticipate a significant impact, while GlobalFoundries stated it is in direct contact with suppliers and has mitigation plans in place.
Stuck in Transit
Even if Qatar’s gas production restarts, the semiconductor industry is vulnerable to disruptions in regional shipping routes. Much of the world’s energy and petrochemical exports from the Persian Gulf pass through the Strait of Hormuz, a key maritime choke point.
If shipping through this corridor is interrupted for an extended period, it could slow the movement of industrial gases and petrochemicals that chipmakers rely on. Disruptions to oil and gas exports from the region have also already pushed global energy prices higher: Brent crude, the European benchmark, is priced at $80 per barrel at the time of publication.
Energy costs are a major factor in semiconductor production. Fabrication plants run large clean rooms that need constant electricity and cooling, so chipmakers are sensitive to changes in global energy prices. Industry representatives in South Korea warned that a prolonged conflict could push energy prices higher, likely leading to higher semiconductor production costs and potentially higher chip prices.
These risks come as semiconductor supply chains are already stretched by growing demand from AI computing. Chip demand from AI data center operators has tightened supply across several electronics sectors, including smartphones, laptops, and automobiles.
A Long-Term Problem
For now, the immediate impact on chip production is unclear. Major chipmakers usually maintain a mix of suppliers and stockpile specialty gases and chemicals to help weather short-term disruptions.
But if instability in the region continues, pressure on supply chains will likely grow. A drawn-out conflict that hits energy infrastructure, export facilities, or shipping routes could slowly squeeze the global supply of materials needed for chipmaking.
This could delay plans by major technology companies to expand artificial intelligence infrastructure in the Middle East. Firms such as Amazon, Microsoft, and Nvidia have been positioning the UAE as a hub for AI computing capacity.
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