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The continuing revelations about National Security Agency spying on sensitive data kept by Silicon Valley companies are feeding fears that Internet companies in this country could suffer billions of dollars in lost business. Following disclosures earlier this year that the National Security Agency’s Prism program had spied on Apple Inc., Google Inc., Facebook and Yahoo Inc., an industry group put the potential cost at up to $35 billion a year by 2016, while an influential tech research firm estimated the damage at a staggering $180 billion a year. And since then, worries about the potential for lost business have stayed high amid the seemingly endless stream of news stories about other NSA snooping.
When it comes to computers, the Obama administration appears simultaneously to be a bungling amateur and a stealthy wizard. The same government that reportedly intercepted the communications of America’s leading consumer technology firms, Google and Yahoo, without leaving a trace is scorned because it can’t build a working federal website for health insurance.