DAVID: APPLE IS NOT OFFICIALLY
AT THE CONSUMER ELECTRONICS SHOW
IN LAS VEGAS THIS WEEK.
BUT THE COMPANY IS STILL
CATCHING THE EYE OF A LOT OF
ATTENDEES, NOT FOR A NEW PRODUCT
BUT FOR A HUGE BILLBOARD THAT
TAKES AIM AT RIVALS LIKE GOOGLE,
AMAZON AND FACEBOOK OVER PRIVACY
AND SECURITY.
THE AD READS, WHAT HAPPENS ON
YOUR iPHONE -- IF YOUR iPHONE
STAYS ON YOUR PHONE.
THE INFORMATION ON YOUR iPHONE
STAYS ON YOUR PHONE.
DOES APPLE TAKE ITS PRIVACY
MEASURES TOO FAR?
LIKE REFUSING FBI REQUESTS TO
UNLOCK THE iPHONE, USED BY THE
GUNMAN IN THE 2015 TERRORIST
ATTACK.
LET'S ASK MICHAEL WITH FORMERLY
WITH THE HOMELAND SECURITY.
IS APPLE PUTTING PRIVACY
CONCERNS AHEAD OF PUBLIC SAFETY?
>> THEY HAVE BUILT THEIR BRAND
ON PRIVACY, THEY HAVE BUILT IT
ON THE FACT THAT YOU CAN USE
THIS SYSTEM AND ALWAYS BE
SECURE.
THERE ARE CASES WHERE YOU KNOW
SOMEONE IS A DRUG DEALER,
SOMEONE IS PLANNING A MURDER, OR
YOU CATCH -- AGENCIES ARE SO
FRUSTRATED THEY CAN'T GET INTO A
PHONE TO PERHAPS FIND
WHEREABOUTS OF A MISSING CHILD.
THERE ARE WAYS WHERE YOU CAN
MAKE A REQUEST TO GET THAT.
THEY ARE SO LOCKED DOWN.
IN CALIFORNIA WHERE THEY HAD THE
TERRORIST EVENT AND THEY WANTED
TO CHECK THE PHONES OF THE
INDIVIDUALS WHO HAD COMMITTED
THE ACTS, THEY COULDN'T GET INTO
THEM.
IT WAS A LEGAL BATTLE.
DAVID: THEY EVENTUALLY FOUND IT
ON THEIR OWN.
>> EXACTLY.
TIM COOK SAYS WE MUST PROVIDE
PRIVACY, IT IS EVERYBODY'S RIGHT
FOR PRIVACY.
THAT'S HIS BRAND.
THAT'S WHAT HE WILL CONTINUE TO
PUSH.
>> JONATHAN HILL, THANKS FOR
BEING WITH US.
ARE YOU TELLING ME IF THERE'S
EVIDENCE OF A SERIOUS CRIME
COMMITTED, THAT A COURT OR A
POLICE OFFICER OR A LAW
ENFORCEMENT CANNOT GET A WARRANT
TO BREAK IN AND EVALUATE A
POTENTIAL SUSPECT'S PHONE?
IS APPLE TAKING IT THAT FAR?
>> HERE'S THE PROBLEM.
YOU MAKE AN ARREST OF AN
INDIVIDUAL.
THEY HAVE A PHONE ON THEM.
THEY'VE COMMITTED A CRIME.
-- I'M SORRY, THEY HAVE BEEN
ACCUSED OF COMMITTING A CRIME.
YOU WANT TO GET INTO THEIR PHONE
AND SEE WHO HAVE THEY CONTACTED,
WHO ARE THEY TALKING TO?
YOU DON'T HAVE THE ABILITY
NECESSARILY TO GET A WARRANT ON
THAT PARTICULAR PHONE.
IN ADDITION TO WHICH THERE MIGHT
BE CIRCUMSTANCES YOU CAN'T GET
TO IT.
YOU CAN MAKE THOSE REQUESTS, BUT
APPLE HAS BEEN VERY VERY TOUGH
IN NOT ALLOWING LAW ENFORCEMENT
TO GET INTO THOSE PHONES.
>> MICHAEL, WE'VE HEARD SO MUCH
ABOUT PRIVACY REGULATIONS IN
EUROPE, AND I KNOW THAT THERE'S
A PROPOSED LAW IN CALIFORNIA
THAT'S VERY SIMILAR, AND I THINK
THERE'S A LOT OF TECH COMPANIES
THAT ARE SORT OF PREPARING AND
ANTICIPATING AT LEAST SOME
VERSION OF THAT.
HOW DOES THIS REGULATION,
PRIVACY REGULATION IN EUROPE AND
WHAT'S BEING PROPOSED IN
CALIFORNIA, HOW DOES THAT PLAY
INTO WHAT YOU ARE TALKING ABOUT?
>> IT BRINGS INTO ACCOUNT IS
FACEBOOK.
ONE OF THE THINGS FACEBOOK IS
DOING RIGHT NOW IS THEY ARE
GOING THROUGH THE POSTS,
SCANNING POSTS OF INDIVIDUALS
AND SEEING WHETHER OR NOT
THERE'S A RISK OF SUICIDE, AND
THEN THEY ARE TAKING THE
INFORMATION IN SOME INSTANCES
AND GIVING TO POLICE SAYING GO
TALK TO THIS INDIVIDUAL AND DO A
CHECK TO SEE WHETHER OR NOT THEY
ARE TRULY AT RISK.
THAT RAISES ALL SORTS OF HUGE
QUESTIONS.
THERE'S NO PERMISSION TO DO
THAT.
THERE'S NO AWARENESS TO DO THAT.
THE QUESTION REALLY BECOMES,
IT'S HEALTH INFORMATION SO WE
HAVE HIPA, AND THAT DOESN'T
APPLY.
THE RIGHT TO BE FORGOTTEN NOW
WILL APPLY TO A WHOLE BUNCH OF
WAYS THAT WE AMERICANS DON'T
NORMALLY ACCEPT CONTROLS ON.
>> IF I CAN JUST ASK YOU ONE
QUESTION ABOUT THIRD PARTY APPS,
THAT SEEMS TO BE THE MAJOR
ISSUE.
ONCE YOU HAVE PEOPLE BUYING
THESE THIRD PARTY APPS FROM THE
APPLE iTUNES STORE, I FEEL LIKE
THAT PRIVACY ARGUMENT JUST GOES
OUT THE WINDOW.
WHAT DO YOU THINK?
>> WELL, YOU KNOW, IT'S AMAZING
BECAUSE OF WHAT AMERICANS PUT ON
TO NET THEMSELVES.
I'VE ALWAYS SAID WE'RE SO
CONCERNED WHEN WIKILEAKS
HAPPENED AND WE HAD ALL THIS
GOVERNMENT INVOLVEMENT WITH OUR
DATA, WE WERE CONCERNED ABOUT
THE GOVERNMENT HAVING IT.
WE WILL PUT STUFF ON THE NET,
GOOGLE EARTH, WE KNOW WHAT'S
GOING ON IN OUR BACKYARDS.
SO IT SEEMS THAT'S OKAY, BUT AS
SOON AS GOVERNMENT GETS
INVOLVED, NOBODY WANTS TO HAVE
IT.
I THINK GDPR IS CHANGING THAT
DYNAMIC.
A LOT OF THINGS FACEBOOK WANTS
TO DO IN EUROPE, THEY HAVE SAID
NO YOU CAN'T DO THAT.
I THINK THAT'S WHERE THE DEBATE
WILL CONTINUE TO GO.
PEOPLE ARE BEGINNING TO WAKE UP
TO THE FACT THAT THEIR DATA MAY
NOT BE SAFE.
THAT'S THE OHR ASPECT OF IT.
-- THAT'S THE OHR ASPEC
-- THAT'S THE OHRS SPEC
-- THAT'S THE OHRS
-- THAT'S THE OHR -- THAT'S THE
OTHER ASPECT OUT THERE.
DAVID: IT'S EASY FOR US TO
DISCUSS THESE PROBLEMS AND
POSSIBLE SOLUTIONS WITHOUT ANY
KIND OF TERRORIST ATTACK RIGHT
HERE RIGHT NOW.
ISN'T IT POSSIBLE THAT IF THERE
IS GOD FORBID ANOTHER TERRORIST
ATTACK OF SOME KIND,
PARTICULARLY ON THE
INFRASTRUCTURE, SOMETHING THAT
YOU LOOK AT ALL THE TIME, THAT
CHANGES THE WHOLE DYNAMIC AND
WHAT IS CONSIDERED A TOTAL
PRIVACY MATTER NOW BECOMES A BIG
PUBLIC SECURITY MATTER LATER.
>> IT ABSOLUTELY DOES.
IT RATCHETS UP THE PRESSURE FOR
ANY OF THESE COMPANIES TO
BASICALLY RELAX THEIR PRIVACY
REQUIREMENTS AND LET PEOPLE GET
INTO THE INFORMATION THEY NEED.
THERE'S ANOTHER SINISTER ASPECT
TO THIS, THAT IS THE
WEAPONIZATION OF SOCIAL MEDIA.
YOU TAKE APPS LIKE WHAT'S APP
WHICH HAS BEEN UTILIZED IN INDIA
IN THE WAY IT CAUSED DEATH OF
SEVERAL INDIVIDUALS AS A RESULT
MISINFORMATION.
THERE HAVE BEEN INSTANCES IN
BRAZIL.
THE CONTENT IS ALSO A PART OF
THE PROBLEM.
YOU KNOW, HERE'S A STAGGERING
STATISTIC.
BY 2020, THERE WILL BE 6 BILLION
SMART PHONE USERS.
AND 3 BILLION SOCIAL NETWORK
USERS.