One of the biggest problems with the current situation is that US
technology companies have no ability to convince others that their
equipment has not been compromised by a government mandated backdoor.

This is imposing a significant and real cost on providers of outsourced Web
Services and is beginning to place costs on manufacturers. International
customers are learning to shop elsewhere for their IT needs.

While moving from the US to the UK might seem to leave the customer equally
vulnerable to warrant-less NSA/GCHQ snooping, there is a very important
difference. A US provider can be silenced using a National Security Letter
which is an administrative order issued by a government agency without any
court sanction. There is no equivalent capability in UK law.

A UK court can make an intercept order or authorize a search etc. but that
is by definition a Lawful Intercept and that capability exists regardless
of jurisdiction. What is unique in the US at the moment is the National
Security Letter.

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