Apple is a private company. They don't have to comply with these demands if they don't agree with them.

I'm a Brit and I've advocated that Apple pull out of the UK over this. It annoys me that these companies seemingly have no principles and will just comply with our government's authoritarian demands. As a citizen there's nothing I can do, so it's really annoying that those who could be doing something choose to do nothing for a little extra profit.