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Intelligence agencies still represent corporate interests, but SV companies are relatively new and haven’t had the decades of influence in government that most big companies have had. So I think it’s more accurate to think of this as a battle between old entrenched corporate interests, and new corporate interests who want their share of the pie. It’s currently in SV’s interest to support certain security measures because (a) their profits depend on people’s willingness to give up their data, and (b) personal information has become a valuable commodity which they don’t want to give up for free (as with PRISM).
It certainly is a sad state of affairs. We need collective action, but not of the sort Microsoft is calling for.