What country did this happen in? Soviet Russia? Cuba? Iran?

No the United States of America. Truly chilling.

I'm talking about Silent Circle. see:

https://news.ycombinator.com/item?id=6183059

and

https://news.ycombinator.com/item?id=6183352

If this had been about a gun-making/selling company shutting down its operation because they were afraid the government come to them and force them to violate the privacy of their customers, or for example insert, surreptitiously, some sort of tracking device into the guns themselves, the country (and the mainstream media, by the way) would be UP IN ARMS.

What we need is a "National Privacy Association" like the "National Rifle Association". Celebrity spokespeople, tons of money, lobbying congress, etc.