It doesn't feel like it fits easily into an economics template to talk about it as a "market failure." If I turn my head and squint, it looks roughly like "Gov

It doesn't feel like it fits easily into an economics template to talk about it as a "market failure." If I turn my head and squint, it looks roughly like "Government oversight / voluntary manufacturer action to minimize cost due to tragedy of the commons"---the technology makes some forms of crime much cheaper, the government worked with manufacturers (probably with some off-the-books arm-twisting) to alter the technology to minimize its efficacy for a subset of those forms of crime.