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Apple’s iPhone Privacy Stand Draws Tech Industry Support

Apple ‘s ( AAPL )  refusal to give in to federal demands to loosen iPhone security for law enforcement agencies has earned praise from tech industry executives and civil liberties groups. But some politicians and criminal investigators have slammed Apple’s actions, as the privacy vs. security debate rages. A federal judge on Tuesday ordered Apple to provide “reasonable technical assistance” to the FBI to unlock an iPhone belonging to one of the killers in the San Bernardino, Calif., shootings. The order calls for Apple to create software that can get around or disable the security option that erases data from an iPhone after 10 unsuccessful attempts to unlock it. Syed Farook and his wife, Tashfeen Malik, shot and killed 14 people on Dec. 2. The radicalized Muslim couple, described in press reports as supporters of terror group ISIS, later died in a gun battle with police. But late Tuesday, Apple CEO Tim Cook said complying with the court’s order would create a “ dangerous precedent .” The government’s demands threaten the privacy and security of all of its customers, he said. It would create a backdoor for hackers, criminals and government spies to exploit. Among the earliest to support Apple’s pushback to the court order were digital rights groups Electronic Frontier Foundation and Fight for the Future, as well as Edward Snowden, the ex-NSA contractor who revealed the government’s widespread surveillance programs. Also jumping in to support Cook’s message were Sundar Pichai, CEO of Alphabet ( GOOGL ) unit Google, and Jan Koum, Facebook ( FB ) board member and WhatsApp founder. Reform Government Surveillance, a coalition of major online companies, also supported Cook’s actions. Members of the group include AOL, Apple, Dropbox, Evernote, Facebook, Google, LinkedIn ( LNKD ), Microsoft ( MSFT ), Twitter ( TWTR ) and Yahoo ( YHOO ). Officially, though, few companies have issued a public opinion, nor have many tech CEOs. “RGS companies remain committed to providing law enforcement with the help it needs while protecting the security of their customers and their customers’ information,” the group said in a statement . Other groups backing Apple in its stand include the Information Technology Industry Council, American Civil Liberties Union and the Consumer Technology Association. Government Order Seen Opening ‘Pandora’s Box’ “Government should not mandate that technology companies weaken security that has been developed to protect consumers, even when investigating crimes,” Gary Shapiro, chief executive of the Consumer Technology Association, said in a statement. “Granting government such power could open a Pandora’s Box, setting a troubling precedent and weakening security standards that could be exploited by the very people the government seeks to protect our citizens from — terrorists, hackers and foreign governments.” Mark Cuban, billionaire investor and owner of the Dallas Mavericks, defended Apple’s decision in a post on his blog Thursday . He said Apple did the “exact right thing by not complying with the order.” “Every tool that protects our privacy and liberties against oppression, tyranny, madmen and worse can often be used to take those very precious rights from us,” Cuban said. “We must stand up for our rights to free speech and liberty.” Meanwhile, politicians who favor giving the federal government greater powers to combat terrorism spoke out against Apple’s decision to fight the court order. The White House backed the FBI’s demand and court order. Republican presidential candidate Donald Trump sided firmly with law enforcement on the issue. “To think that Apple won’t allow us to get into her cellphone? Who do they think they are? No, we have to open it,” Trump said during an interview on Fox. New York Police Department Commissioner Bill Bratton also backed the feds. “We are increasingly blind for terrorism purposes and for general law enforcement purposes with the new devices and the continuing effort to make them even more secure against even court orders authorizing law enforcement to have access,” Bratton said. The family of a British soldier murdered by Islamic extremists also criticized Apple’s refusal to abide by the court order. Apple is “protecting a murderer’s privacy at the cost of public safety,” Ray McClure, the uncle of Fusilier Lee Rigby, told the BBC. Rigby was off duty when he was killed near his barracks in Woolwich, England, in May 2013. Two men who committed the attack said they were avenging the killing of Muslims by British soldiers.  

Google CEO, Facebook’s WhatsApp Founder Back Apple Over Privacy

Apple ( AAPL ) CEO Tim Cook took a strong stand late Tuesday against government pressure for help in hacking into the iPhone of one of the San Bernardino terrorists. Silicon Valley was relatively muted Wednesday, but Alphabet ( GOOGL ) unit Google CEO Sundar Pichai and WhatsApp founder and Facebook ( FB ) board member Jan Koum both came out in support of Cook’s stand. Pichai defended Apple in a series of Twitter ( TWTR ) posts, saying that “forcing companies to enable hacking could compromise users’ privacy.” 1/5 Important post by @tim_cook . Forcing companies to enable hacking could compromise users’ privacy — sundarpichai (@sundarpichai) February 17, 2016 He added in subsequent Twitter posts that Alphabet’s core Google unit gives “law enforcement access to data based on valid legal orders,” but “requiring companies to enable hacking of customer devices & data” could be a “troubling precedent.” A federal judge on Tuesday ordered Apple to provide “reasonable technical assistance” to the FBI to unlock an iPhone belonging to one of the killers in the San Bernardino  shootings. But Cook said creating an iPhone backdoor would lead to more government demands and provide an opportunity to hackers and criminals. WhatsApp Founder Defends Apple Meanwhile, Jan Koum, founder of WhatsApp, wrote in a Facebook post: “I have always admired Tim Cook for his stance on privacy and Apple’s efforts to protect user data and couldn’t agree more with everything said in their Customer Letter today. We must not allow this dangerous precedent to be set. Today our freedom and our liberty is at stake.” Facebook acquired WhatsApp for $19 billion in 2014. Not surprisingly, Edward Snowden, the ex-NSA contractor who revealed the government’s widespread surveillance programs, also took to Twitter to defend Apple’s Cook. “The @FBI is creating a world where citizens rely on #Apple to defend their rights, rather than the other way around.” The @FBI is creating a world where citizens rely on #Apple to defend their rights, rather than the other way around. https://t.co/vdjB6CuB7k — Edward Snowden (@Snowden) February 17, 2016

Shopify Q4 Earnings Beat, Showing Strength Of Social Marketing

Shopify ( SHOP ) reported better-than-expected fourth-quarter earnings Wednesday morning and provided guidance above expectations, sending the stock upward. Shopify reported revenue of $70.2 million, up 99% year over year and beating the consensus estimate of $61.2 million, as polled by Thomson Reuters. It reported a 1 cent per-share loss, minus items, where analysts had expected a 5 cent loss. The company reported a 3 cent per-share loss in the year-earlier quarter. Shopify stock jumped as much as 21% in early trading in the stock market today , but it pared the advance to a 7% gain, near 22, by midday Wednesday. Shopify raised $131 million with its May 2015 initial public offering that priced shares at 17. Shares popped 55% on their first day of trading and peaked in June at above 42. Shopify provides a cloud-based e-commerce platform that businesses use to build websites and sell goods online and across multiple sales channels, including mobile and social media. Shopify says it was among the first e-commerce providers to add the ability to sell over the leading social media platforms, including Facebook ( FB ) and Twitter ( TWTR ). More than 25% of Shopify merchants have enabled social media selling. In November, Shopify announced a partnership with Facebook that lets shoppers buy Shopify merchants’ products through their Facebook pages. In September,  Amazon.com ( AMZN ) selected Shopify to be its preferred platform for helping small and midsize retailers build and manage online stores. The plan lets Shopify businesses use Amazon’s payment system and other services, part of a plan that Amazon announced a year ago to ultimately shut down its Amazon Webstore business, which provides a similar service. More than 243,000 merchants use the Shopify platform, the company says. For Q1, Shopify expects revenue of $65 million to $67 million, above the analyst consensus of $62.1 million. At the midpoint, that would be a 76% increase from the year-earlier quarter. It expects an adjusted operating loss of $6.5 million to $7.5 million. For 2016, Shopify expects revenue of $320 million to $330 million, where analysts had modeled $286.7 million. “Over the holiday season, our merchants collectively sold almost $3 billion worth of products, a huge increase from the year before,” Shopify CEO Tobi Lutke said in the company’s the earnings release.