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The CSAM scan has been going on for years, at the server.

The Apple issue was Apple doing it on the handset.

Not for E2E, this would mean data could also be decrypted in transit for inspection.

That’s not strictly needed; it could be scanned by the E2E messenger app itself using an offline database of hashes, before sending.

Then it's not server side is it?

Where did any authority say the scanning had to be server-side?