> b. foreign companies did not know they might be able
> to compete simply for privacy reasons.
Tell that to employees of companies such as Airbus... They have always assumed that they were under constant attack from government-level entities, with good reason.
An exception or two to the rule does not invalidate the rule. Most ordinary commercial businesses using US-made devices or online services don't deal with technology their government considers a national asset, and as a result don't have to be as paranoid as Airbus, BAE, Petrobras, etc.