The UK government is showing signs that it may withdraw from a growing dispute with the United States over its request for Apple to allow access to encrypted data stored on iCloud by UK users.

The disagreement began when the Home Secretary, Yvette Cooper, issued a notice to Apple in January under the Investigatory Powers Act. This notice, known as a Technical Capability Notice, asked Apple to provide British law enforcement access to encrypted files stored on iCloud. The request led Apple to withdraw its Advanced Data Protection service, a feature that adds an extra layer of encryption, from UK customers. Apple is now legally challenging the UK government’s order.

This move has faced significant opposition in the United States. Senior US officials, including Vice President JD Vance, as well as both Democratic and Republican lawmakers, have criticized the UK’s actions and warned it could hurt tech agreements between the two nations. President Donald Trump likened the UK's demands to practices seen in China, and the US director of national intelligence, Tulsi Gabbard, emphasized that such measures could threaten privacy for Americans.

UK government sources now acknowledge that pressure from the US may force a retreat from the plan. One official noted that the encryption issue was “a big red line in the US” and that there is reluctance to take any step that resembles a free speech challenge. Another official said the Home Office “had its back against the wall.”

Apple’s challenge at the Investigatory Powers Tribunal has gained support from other tech companies, notably WhatsApp, which has agreed to provide legal arguments in Apple’s favor. Civil society groups such as Amnesty International and Privacy International have also filed claims against the Home Office.

The government argues that access to encrypted data is essential for investigating terrorism and child sexual abuse. However, critics, including tech experts and privacy advocates, warn that undermining encryption would weaken security for all users and create vulnerabilities that criminals or hostile foreign actors could exploit. They suggest law enforcement should focus on alternative investigative methods that do not compromise digital security.

As diplomatic pressure mounts and legal challenges continue, the future of the UK’s demand for access to Apple’s encrypted data remains uncertain.