Billionaire Thiel Supports Encryption as U.S. Pushes for Access

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(Bloomberg) -- Peter Thiel, the Silicon Valley billionaire and board member of Facebook Inc., pushed back against the U.S. government’s efforts to get technology companies to provide law enforcement access to encrypted communications.

The comments by Thiel, who is among the tech industry’s most vocal supporters of President Donald Trump, emerged Sunday amid revelations of an apparently separate FBI initiative to bolster monitoring of threats via social media.

“We should be supportive of encryption,” Thiel said in an interview on Fox News’s “Sunday Morning Futures” when asked about the Federal Bureau of Investigation bid.

“If you deencrypt everything, maybe stuff goes back to our rivals in China,” Thiel said. “Maybe the FBI gets the information, maybe other people get it. I don’t trust the FBI to keep it protected inside the FBI.”

It’s a somewhat odd contention for Thiel, who co-founded data-analytics company Palantir Technologies Inc. The company works closely with police departments and U.S. government agencies, including the Defense Department, Homeland Security and the Internal Revenue Service.

In July, Attorney General William Barr issued a sharp warning that time may be running out for companies such as Facebook to come to a voluntary agreement with law enforcement over access to users’ messages. Privacy advocates have long insisted that so-called backdoors into encrypted messages would threaten political speech around the world and open communications to access by bad actors.

‘Less Privacy’

“The dogmatic backdoor to encryption that the FBI pushes is something I would disagree with,” Thiel said. Having impenetrable encryption could pose challenges for law enforcement, he said, but accommodating the U.S. demands “also can mean that you have less privacy.”

Thiel was asked about a recent FBI request for proposals from companies for tools that would allow the agency to monitor social media “in order to mitigate multifaceted threats.” But he spoke primarily about encryption that makes private messages readable only to sender and recipient, which has been the focus of years of tension between law enforcement and technology companies because of its use in an array of crimes.

The FBI bid doesn’t require the breaking of codes and is described as a “public records contract.”

FBI’s Bid

The FBI initiative, which was posted in July and was earlier reported by the Wall Street Journal, doesn’t mention Facebook in particular, but comes as the world’s largest social media site is under fire for its handling of users’ information. The pressure culminated in $5 billion settlement with the Federal Trade Commission last month that required the company to keep a tighter leash on its data.