FTC Warns Major Tech Firms on User Privacy Amid International Legal Pressures

On August 21, 2025, Federal Trade Commission (FTC) Chairman Andrew N. Ferguson issued letters to over a dozen major technology companies, including Apple, Alphabet (Google), Amazon, Microsoft, and Meta, emphasizing their obligation to protect the privacy and data security of American consumers, even when facing pressure from foreign governments to weaken such protections. Ferguson highlighted concerns that compliance with foreign laws, such as the European Union’s Digital Services Act and the United Kingdom’s Online Safety Act and Investigatory Powers Act, might lead companies to censor content or weaken encryption measures. He warned that such actions could violate the FTC Act's prohibition against unfair and deceptive practices. The letters also invited the companies to meet with the FTC to discuss how they plan to balance compliance with foreign regulations while adhering to U.S. laws.

The European Union's Digital Services Act (DSA) and the United Kingdom's Online Safety Act are designed to regulate online content and enhance user safety. However, these laws may also encourage content moderation practices that could be perceived as censorship. Additionally, the UK's Investigatory Powers Act has provisions that could require companies to weaken encryption standards, potentially compromising data security.

In his letters, Chairman Ferguson expressed concern that foreign governments' efforts to impose censorship and weaken end-to-end encryption could erode Americans' freedoms and expose them to various harms, such as surveillance by foreign entities and an increased risk of identity theft and fraud. He emphasized that while companies might feel pressured to comply with foreign laws, they are still required to adhere to the FTC Act's prohibition against unfair and deceptive practices. For instance, if a company promises consumers that it encrypts or secures online communications but then adopts weaker security measures in response to foreign demands, such actions could be considered deceptive under the FTC Act.

The letters were sent to a range of companies providing cloud computing, data security, social media, messaging apps, and other services. Recipients included Akamai, Alphabet, Amazon, Apple, Cloudflare, Discord, GoDaddy, Meta, Microsoft, Signal, Snap, Slack, and X.

This development underscores the complex interplay between global regulatory frameworks and the protection of consumer rights. The FTC's stance highlights the potential risks associated with international compliance, particularly when foreign laws may conflict with U.S. standards for privacy and free expression. The situation raises questions about how multinational tech companies can navigate these challenges without compromising user trust or violating domestic laws.

Andrew N. Ferguson has been serving as the 57th chairman of the Federal Trade Commission since January 20, 2025. Prior to this role, he was the solicitor general of Virginia from 2022 to 2024. Ferguson has also held positions as chief counsel to U.S. Senator Mitch McConnell and as a Republican counsel on the U.S. Senate Judiciary Committee. He earned his undergraduate and law degrees from the University of Virginia and clerked for Judge Karen L. Henderson on the U.S. Court of Appeals for the D.C. Circuit and U.S. Supreme Court Justice Clarence Thomas.

The FTC's warning is part of a broader effort by the U.S. government to push back against foreign regulatory requirements that may conflict with American laws and values. Earlier in the week, U.S. officials announced that the UK had dropped its demand for Apple to provide a "backdoor" to encrypted data of U.S. citizens, a request made under the UK's Investigatory Powers Act. This move reflects ongoing diplomatic negotiations to balance national security interests with individual privacy rights.

As multinational tech companies continue to operate across diverse legal landscapes, the challenge of aligning global compliance with domestic obligations remains a pressing concern. The FTC's proactive stance serves as a reminder of the importance of safeguarding consumer rights amidst the evolving dynamics of international regulation.