Apple Considers Exiting Canada Over Proposed Bill C-22 Encryption Backdoor
AAPL•A coalition of tech giants and cybersecurity experts warns that Canada’s Bill C-22 encryption backdoor requirements could prompt Apple among others to exit the country and relocate operations. VPN providers Windscribe and NordVPN have already planned to move, raising concerns over capital flight and Canada’s AI hub status.
1. Regulatory Threat from Bill C-22
Canada’s proposed Bill C-22 requires technology firms to enable law enforcement access to encrypted communications, prompting major players such as Apple and Meta to evaluate withdrawal from the market. The mandate has triggered warnings of accelerated capital flight and diminished appeal for cloud, AI, and data center investments in Canada.
2. Implications for Apple’s Canadian Business
Apple’s presence in Canada includes dozens of retail stores, App Store revenue, cloud services, and partnerships with local developers, contributing significant annual sales. Exiting or scaling back operations could disrupt customer access, weaken ecosystem support, and compel Apple to shift investment and infrastructure to more encryption-friendly jurisdictions.
