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Apple Challenges UK Demand For Access To Encrypted User Data

Apple has launched a new legal challenge against the UK government’s attempt to gain access to encrypted customer data, reigniting debate over the balance between privacy, encryption and national security.

At the centre of the case are requests made under the UK’s Investigatory Powers Act, which allows authorities to require technology companies to assist law enforcement under specific legal conditions. Apple confirmed it had filed the challenge but declined to comment further.

A Renewed Privacy Dispute

This latest legal action follows a long-running disagreement between Apple and the UK government over access to encrypted cloud data. Earlier requests reportedly extended beyond British users, prompting concerns in the United States about privacy and the potential reach of foreign government orders.

More recent reports suggest UK authorities are now seeking access specifically to the encrypted data of British users.

Apple’s Position

Apple has consistently argued that weakening encryption would compromise the security of all users. Company executives have repeatedly said Apple will never build a backdoor or universal access mechanism into its products, maintaining that strong encryption remains one of the most effective safeguards against cyberattacks and data breaches.

Earlier this year, Advanced Data Protection (ADP) was withdrawn for new users in the UK following regulatory pressure, while existing users are also expected to lose access to the feature over time.

The UK’s Position

Officials at the Home Office maintain that strong encryption can coexist with lawful access for investigators. According to the department, requests made under the Investigatory Powers Act are intended to support investigations into terrorism, serious crime and child exploitation, while remaining subject to judicial oversight.

A Global Debate Over Encryption

Beyond the UK, the case reflects a broader debate over encrypted communications and digital privacy. Governments continue to argue that access to encrypted data is essential for law enforcement, while technology companies warn that introducing exceptional access mechanisms would weaken security for every user, regardless of where they live.

Shein Targets $25 Billion Valuation In Hong Kong IPO As Growth Slows

Shein is reportedly targeting a valuation of around $25 billion in its planned Hong Kong IPO, a sharp decline from the nearly $100 billion valuation the online fashion retailer achieved in a 2022 fundraising round.

Two people familiar with the plans said the company was likely to target about $25 billion, while another source put the expected range at $25 billion to $28 billion based on the proposed price band.

IPO Valuation Falls Sharply

Shein plans to sell up to 8% of its shares in the offering, according to a person familiar with the plans. At a $25 billion valuation, that would translate into an IPO of as much as $2 billion.

The latest target is also below the $30 billion to $40 billion valuation the company was seeking earlier this month as it began meeting with potential investors.

Founded in China in 2012 and now headquartered in Singapore, Shein sells low-cost clothing to consumers in about 160 countries. The company is expected to launch its long-awaited Hong Kong IPO later this week.

Trade Restrictions Weigh On Growth

Shein’s valuation has come under pressure as major markets tighten rules affecting low-cost e-commerce shipments. The European Union, for example, has moved to impose additional fees on cheap parcels from platforms such as Shein and Temu. EU Tightens Rules On Low-Cost E-Commerce Parcels

In the U.S., the removal of an import duty exemption for small packages has also affected the company. Shein reported a $99 million quarterly loss in the first quarter of 2026 as sales growth slowed, while a one-time accounting charge further weighed on its results. Shein Reports First-Quarter Loss Ahead Of IPO

Investors Question Shein’s Growth Prospects

The steep reduction in valuation reflects growing concerns over slower growth, higher trade costs, regulatory pressure and stronger competition across global e-commerce.

Some investors who reviewed Shein’s recent financial statements or attended IPO presentations told Reuters they were skeptical that the company could return to the growth rates that supported its $98.2 billion valuation in 2022. Shein’s Slowing Growth Tests Investor Appetite

A lower IPO valuation could also affect Shein’s existing investors. Under the terms of its IPO filing, the company may have to issue additional shares to certain pre-IPO investors if its valuation falls below agreed thresholds.

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