Comment by kbolino

There were two main issues.

1) A lot of these businesses have customers outside the U.S. Those customers, including some foreign governments, did not want their data to be snooped by the U.S. government. The business risk here is loss of customers.

2) There is no such thing as a private backdoor. If one entity (admittedly a very well resourced one) can snoop, so can others. The publicity also entices new players to enter the game. The business risk here is loss of reputation.