What I don't understand is why Apple is even responding to this absurd demand. Completely banning Apple products in the UK isn't a realistic option for the government, so Apple could simply state openly that it does not cooperate with authoritarian regimes and actively prompt British users via a pop-up to enable ADP to protect themselves from the government.
If apple didn't comply with the Chinese government they'd probably be asked to pack up their suicide nets and find somewhere else with sophisticated manufacturing facilities filled with slaves to make their products.
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