Home Secretary Theresa May said November's Investigatory Powers Bill would make existing surveillance laws more transparent and update them to take into account the growth of online communications.
Rights groups have condemned the draft legislation as an attack on civil liberties, while technology firms have said the plans are ambiguous, compromise customer security and would create a legal minefield.
"It would also likely be the catalyst for other countries to enact similar laws," Apple yesterday said in a document sent to a parliamentary committee scrutinizing the new legislation, British media reported.
The legislation could paralyze 'multinational corporations under the weight of what could be dozens or hundreds of contradictory country-specific laws' Apple's submission continued.