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00:00All these headlines just crossing about Apple's latest response to the government's second response. Give us the highlights . Yeah. So I'm just going through the file right now as you mentioned just cross but it's very interesting what the bell really seems to be shaping up around is the government's contention that this is a legal search warrant for one phone and nothing more. All the court needs to consider is watch before in this specific case. And what Apple continues to maintain is that this isn't one thing and it isn't one specific case that this is opening a door too much of a Pandora's box of lots of issues that relate to privacy and the right of a company to not have to do the work of the government in conducting this search . Now Michelle you know so much about how you know the laws surrounding security and governments around the world your your company operates everywhere. What do you make of the government argument versus Apple's argument because your CEO Matthew Prince recently tweeted I hate to say it but I think the government's legal argument as currently presented is stronger than Apple's . Well Matthew is also a recovering lawyer so that's definitely something he would like to say. You know this is a really hard situation. And you know I think because you're seeing that play out right now in the media. And it's really important understand. On one side the law enforcement agencies need spell to do their jobs. And there are threats every day posed to American citizens and they do need to be said to have tools built to do their jobs. I think everyone can understand that . On the other side you know Apple represents a technology company . They're one of many. And they're saying hey we've created this device that's incredibly personal and has a lot of your personal information on it. And security is fundamental to trust to people using our products and making all of our consumers lives better. And we're going to do anything to undermine the security of that phone. And so it's a really really hard balance to strike. And so it's really you're seeing the crux of the conversation playing out of well privacy versus security. How do the law enforcement law enforcement agencies do their role in a world of encryption. And I think that's really what's hard. And there aren't easy answers to this and I think everyone's you're seeing the conversation play out. Well Apple is giving a straight up answer saying there's no middle ground here. There is no compromise Scott. What do you make of that. Well to me I think it is a huge issue. And I I sort of take Apple's side of it not so much because of the specifics of the case but the way it's being played out. This is such a big issue I think it should be debated in Congress not the government trying to find one little way in through one little case in San Bernardino County which as Apple has said might actually open up a much broader policy going forward. It doesn't set a precedent case it's a case involving a terrorist where 14 people were killed. So what the government yes but I also think they don't have. I think they've said that there isn't any expectation that there's really evidence on this device that would lead them to anything in the future. Well we don't know. Now you know in terms of the relationship with China that's something that Apple tackles in this in this filing saying that the government is misrepresenting that. Michelle you guys have unique information about what the Chinese government actually requires. What he's Apple's relationship with China isn't Nefarious is it suspect. Do they do more for the Chinese government than they do for the US government. Well I think Apple has been very clear saying the allegations made against them by the U.S. government and this have been false and egregious and that's what the evidence suggests. So what what what does Apple do in China. So they they store all their I iCloud data within China. OK. And then they also use the Chinese Wi-Fi protocol to fail to operate within the country of China. So let's take DAX the United States in the nine states . They also store all their iCloud data in the United States and they are mandated by the FCC to use the U.S. Wi-Fi protocol to operate within within the United States. And so they're doing the exact same thing in the US as they're doing in China. And so that's it. And that's where the evidence ends. But beyond that there's no evidence that shows that Apple is giving information over to the Chinese government. And they've they've really shortly said we're not they're just following the laws of operating within those countries. And yet the Department of Justice is saying that Apple has complied seventy five percent of the time to 4000 or some odd requests from the Chinese government. Corey I know you've been taking a closer look at the filing what's standing to you. Out to you. Well I think Apple's contending that the government's asking do is not look into this iPhone but indeed is to rewrite the operating system right a new kind of operating system that Apple doesn't have . That that what the FBI is asking Apple to do is really create something completely new that it violates both Apple's free speech and the way they conduct their business. You know the government's case is that we have actually requested and the courts have approved in previous cases making the telephone company keep certain kinds of registries and keep certain kind of records and yes write certain software to allow us to pursue search warrants and so on. Apple saying they don't want to do that and that apples. The government's demand to write a new kind of operating system. Only specifically Congress has said that it wouldn't have to do .

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Apple vs. FBI: Balancing Privacy and National Security

NEA managing general partner Scott Sandell, CloudFlare co-founder Michelle Zatlyn, and Bloomberg’s Cory Johnson discuss the struggle between privacy and security with Emily Chang on “Bloomberg West.” (Source: Bloomberg)

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