Apple is taking a bruising in Washington D.C. as lobbying effort has yet to ripen

“Apple is taking a bruising in Washington, and insiders say there’s a reason: It’s the one place in the world where the company hasn’t built its brand,” David Saleh Rauf and Jonathan Allen write for Politico.

“In the first three months of this year, Google and Microsoft spent a little more than $7 million on lobbying and related federal activities combined,” Rauf and Allen write. “Apple spent $500,000 — even less than it spent the year before… Unlike Facebook, Google and Microsoft, Apple has no political action committee. And while Google and Microsoft have aggressive news media operations in Washington, Apple doesn’t. That standoffish approach to D.C. may have worked fine in the Steve Jobs era, but the charismatic leader’s death last year left Apple without its reality distortion field.”

Rauf and Allen write, “The company’s attitude toward D.C. — described by critics as ‘don’t bother us’ — has left it without many inside-the-Beltway friends. And that means Apple is mostly on its own when the Justice Department goes after it on e-books, when members of Congress attack it over its overseas tax avoidance or when an alphabet soup of regulators examine its business practices. ‘I never once had a meeting with anybody representing Apple,’ said Jeff Miller, who served as a senior aide on the Senate Judiciary Committee’s Antitrust Subcommittee for eight years. ‘There have been other tech companies who chose not to engage in Washington, and for the most part that strategy did not benefit them.'”

Read more in the full article here.

MacDailyNews Take: Translation: Grease those greedy D.C. palms and life will get easier for you, Apple.

Related articles:
U.S. DOJ bites Apple: The 30% revenue-share model is Apple’s standard practice, not a conspiracy – April 23, 2012
Apple, publishers face class action lawsuit alleging eBook price-fixing in Canada – April 20, 2012
Apple desires federal trial vs. U.S. DOJ over eBook price-fixing – April 18, 2012
Apple vs. Amazon: Who’s really fixing eBook prices? – April 17, 2012
Apple: U.S. DOJ’s accusation of collusion against iBookstore is simply not true – April 12, 2012
Apple not likely to be a loser in legal fight over eBooks – April 12, 2012
16 U.S. states join DOJ’s eBook antitrust action against Apple, publishers – April 12, 2012
Australian gov’t considers suing Apple, five major publishers over eBook pricing – April 12, 2012
DOJ’s panties in a bunch over Apple and eBooks, but what about Amazon? – April 12, 2012
Antitrust experts: Apple likely to beat U.S. DOJ, win its eBook lawsuit – April 12, 2012
Why the market shrugged off the Apple antitrust suit – April 11, 2012
What’s wrong with the U.S. DOJ? – April 11, 2012
Macmillan CEO blasts U.S. DOJ; gov’t on verge of killing real competition for appearance of competition – April 11, 2012
U.S. DOJ hits Apple,major publishers with antitrust lawsuit, alleges collusion on eBook prices – April 11, 2012

45 Comments

  1. I figured this was one area where Cook was guaranteed to be an improvement over Steve. I hoped he would be the right man to recognize Apple’s new place atop the world and expand their operations in DC accordingly. His failure to identify and correct such an important problem is a disappointment.

    1. “His failure to identify and correct such an important problem is a disappointment.”

      Apple can’t correct the problem, which is massive, legalized bribery (“political donations”).

      To correct this, Apple can only shoot their integrity in the head and “play along” like all the other multi-national, multi-billion dollar companies.

  2. This is disgusting. How can anyone read this article and say this is the way things should be? Why do we accept these corrupt practices? Apple’s got the right idea: leave them alone until they do something that’s truly illegal. Otherwise, go screw yourselves. No one should have to bribe Washington insiders just so they can avoid unwarranted attacks. I’m getting ill now…

  3. As far as I am concerned I am totally embarrassed as an American for the bull **** that is going on. Where would this country be right now without the innovations pioneered by Apple. The government is greedy and has no concept of reality in the technological world we live in.

    I only wish that Tim would run for president. At this juncture, there are no viable candidates that do not have a hidden agenda. We are in a very sad state of affairs in America where technology innovation and even free speech is no longer a cornerstone of our rights

    I only wish Steve Jobs (if he was alive) or Tim

    1. Yeah, I can see a gay man from the Bay Area getting the nomination of either major party. Besides, as he is an Auburn fan I have to question his taste and judgement.

  4. DOJ is an oxymoron. Almost makes a body wish that the ice caps would melt just enough to put DC 10 feet below sea level, but that would drowned to many innocent people.

  5. Same old politicians – clueless, greedy, inept and downright dangerous. Just like here in the UK. It makes me sick to my stomach how these utterly soulless scumbags run things.

    I also with Tim would run for President.

  6. This is playing out just as Thomas Sowell described in “Intellectuals and Society”. A regulatory regime itself fosters lobbyists as a consequence to generate or preserve privileged standing. Those who, like Apple, just want to be left alone as long as they work hard and play by the rules, are left at the mercy of that regime. Jobs may have been a social liberal, but to the extent he wanted just to be left alone to succeed or fail by his own efforts, he was every bit a traditional conservative.

  7. I hope Apple continues to ignore Washington. They have a massive PAC and they don’t have to pay us a cent. Once you get into bed with those people, you’re diseased, pure and simple and there is no cure. I sometimes wish that Apple were more vocal about certain issues like Net Neutrality, because lack of Net Neutrality stands to crush Apple profits more than anything else, but it’s been turned into a political ideological battle when it should be a question of fair competition.

    1. As radical as it sounds, I think the US has passed the point of being properly governed by a single Federal Government. I really think the long term trend will be toward a hopefully peaceful breakup of the United States into a couple of nations.

      Probably not in our lifetimes, but maybe.

      1. I think Apple could kill 2 or 3 birds with one stone here. Let them buy Greece, thus finally putting it out of its misery, and stabilizing the world markets, then move the whole Apple operation there, complete with manufacturing facilities. If the US congress still won’t let them alone, then Apple could declare war on the US, quickly surrender, then apply for foreign aid and get an extra few $B for the bottom line each year.

  8. Dewayne you do know that Tim Cook is gay and he can’t get married in most states and he certainly can’t be elected president. Most of the in congressman in Washington won’t even shake his hand or take a picture with him.

  9. A company spends money on lobbying politicians or invests in the products for the people.

    I’d rather Apple not bother with politics. Apple isn’t taking a bruising in D.C. They are standing up when challenged.

  10. You guys can bitch and moan all you want. It is what it is and it sure as hell ain’t changing no time soon, nor will change be spurred by one rebellious company’s refusal to pay when everybody else still does. Cook needs to get with the program and start acting like one of the big boys because the target on Apple’s back won’t be getting any smaller.

    Like Paulie said, “Fsck you, pay me.”

  11. Micrsoft’s anti-trust problems got a whole lot better when they increased their lobbiests from 4 to a hundred or so. It is far easier to bribe someone to NOT do something. Who can prove that? Apple has flashed the cash (100 billion) and politicians smell it. Apple is behind on their protection payments.

  12. How about we just outlaw lobbying for pay completely and start perp walking politicians for sale? I don’t care what party they claim- I’m really tired of a government so obviously for sale and there are plenty who agree.

  13. IMHO, the political system will not again become viable until campaign financing is overhauled. Until we can have Congress focus on the needs of the American people over their “need” to be re-elected, they will continue to spend a lot of their time taking money from special interests.

    Maybe if we had a completely publicly funded program – with everyone getting the same amount to campaign – period (wait, while I get my fire-retardent clothing on….). Apply libel and slander laws to campaign ads – require that they be fact-checked and fact-based (how boring, I know…).

    It will likely never happen because the people taking the money want it to stay the same.

    While I like the founding father’s system of checks and balances to slow down and require compromise in law-making, they did not foresee the modern lobbyist and campaign finance system (I am sure they all collectively turned over in their graves over the Citizens United decision). It is interesting that in Canada, for example, campaigns are about a month long – no continuous campaign mode as in the U.S. In the parliamentary system (I still prefer the U.S. system), the party with a clear majority can actually implement their strategy and get work done (the system’s greatest strength and potential greatest weakness). While I prefer the US Constitution’s approach of slowing the decision-making process down (designed to avoid tyranny of any person or group), right now, getting things done sounds pretty attractive.
    Unfortunately, we have been unable to avoid the tyranny of the powerful – those with the most money.

    1. The founding fathers built a system requiring compromise to move forward (slowly but surely). As many politicians no longer know how to compromise, nothing gets done.

  14. They should pack up and move to another country. How about Canada? Our government is moving right and would certainly discuss taxes. They can still have Branch offices in Cupertino, Luxemboug, Bejing, etc. :-).

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.