Apple Encryption Game Theory
After the 2015 San Bernardino attack, the FBI wanted Apple’s help in unlocking the attacker’s iPhone so that they can proceed with their investigation. However, Apple refused to do so, fearing that creating a backdoor into one encrypted iPhone would lead to abuse of the technology and possibly the invasion of privacy for everyone who owns a smartphone. This added to the national debate surrounding surveillance versus right to privacy that has been at the forefront of discussion since Edward Snowden leaked classified NSA documents a few years ago.
The article states that the game theory aspect of Apple’s dilemma is related to consumer confidence in the brand. As iPhone users watch the FBI, one of the most elite domestic investigation bureaus in the world, struggle to unlock an iPhone, they become more confident that their phone cannot be decrypted and thus is safe, reinforcing Apple’s brand as one that values your privacy. Plus, watching Apple stand up to the federal government in this privacy case shows consumers that Apple is willing to fight the government in order to protect users’ privacy. However, complying with the government’s request and, even if they do not implement it, simply acknowledging that there is a possible backdoor into a locked iPhone is enough to ruin consumer confidence in the brand. As people become more reliant on their smartphones and store more personal data in them, confidence in data protection is key to ensuring that people remain loyal to your brand.
However, there is also an argument on the other side in which people say that Apple should comply with the federal government as the investigation involves terrorism and thus national security. A component of this argument is that the right to privacy does not matter as much as much as public safety, and people who are not criminals should have no problem with the government being able to access their smartphones. To these people, Apple’s pushback may seem belligerent and, to some extent, anti-patriotic as they perceive Apple as a stubborn multi-billion dollar corporation that is putting its own interests over national security.
Now the game theory comes in as Apple is given two choices: to resist the government’s efforts to unlock the attacker’s iPhone or release a firmware that allows them to do so. As we have demonstrated in class with the game theory tables, each action has its payoffs, positive or negative, among the proponents of Apple’s pushback and its opponents. As we have seen, Apple’s expected payoffs in, at least publicly, protesting against the government’s requests are higher than the payoffs in complying, thus causing them to choose to take that path of action. Apple realized that a huge majority of their consumers value their phones privacy and would not want the federal government to be able to access them, so to keep the consumers’ confidence in their brand, Apple picked the strategy of resistance.
Game Theory and Apple's Encryption Challenge