Apple’s secrecy irks U.S. Congress

“Apple is famous for its veil of secrecy around the new iPads and iPhones. But Sen. John Rockefeller and others in Congress wonder whether the company has more than technological innovations to hide,” Kim Hart reports for Politico. “When Apple didn’t participate in an April hearing on children’s online privacy, the West Virginia Democrat who chairs the Senate Commerce, Science and Transportation Committee, gave voice to his suspicions. ‘When people don’t show up when we ask them to … all it does is increases our interest in what they’re doing and why they didn’t show up,’ Rockefeller said of Apple and Google, which both declined to testify. ‘It was a stupid mistake for them not to show up, and I say shame on them.'”

“While Apple’s success has earned rock-star status in Silicon Valley, its low-wattage approach in Washington is becoming more glaring to policymakers. Despite its increasing influence over consumers’ use of technology — most recently with the iPad and iPhone 4 — Apple has kept a particularly low profile inside the Beltway,” Hart reports. “‘It’s unfortunate because they are a major player in this area, and we are going to continue to have a long, in-depth conversation,’ on these topics, said Sen. Mark Pryor (D-Ark.), who presided over theprivacy hearing, referring to Apple’s empty seat at the witness table.”

MacDailyNews Take: Wonder if they’re really concerned about the lack of Apple’s presence or presents?

Hart continues, “It is one of the few major technology companies not to have a political action committee. While CEO Steve Jobs supported the presidential campaigns of Bill Clinton and Al Gore, he hasn’t been especially active in political fundraising or races. Gore now sits on Apple’s board of directors.

“Compared with other tech giants, Apple’s lobbying expenditures are small,” Hart reports. “In 2009, Apple spent only $1.5 million to lobby the federal government, less than Amazon, Yahoo and IBM. In 2009, Google, for example, spent $4 million, Microsoft $7 million and AT&T $15 million… In the first quarter of this year, Apple spent $560,000 on lobbying, according to disclosure reports. During the same period, Google spent $1.4 million and Microsoft spent $1.7 million. ‘They’ve been very focused on their own innovation, and they don’t have a history of coming to town to get their competitors regulated,’ said Jonathan Zuck, president of the Association for Competitive Technology. ‘But they’re expanding into so many areas that they’re going to find themselves in other companies’ cross hairs, so they probably should be ready to play defense.'”

MacDailyNews Take: Lack of presents, as suspected.

“‘They don’t have the arrogance of Google, nor does Steve Jobs think he’s in the Obama cabinet like Eric Schmidt does,’ one tech industry lobbyist said,” Hart reports. “To handle discussions on the Hill, Apple hired Franklin Square Group, a technology-focused lobbying firm started by Josh Ackil, former White House aide in the Clinton administration and tech adviser to former Senate Democratic Leader Tom Daschle. Paul Margie of Wiltshire & Grannis does much of the company’s work at the FCC. Apple has visited the FCC only four times in the past three years, according to agency records.”

Hart reports, “Apple may be forced to change that strategy as it pushes into new markets.”

There’s much more in the full article here.

MacDailyNews Take: Alternate headline: “Washington insiders concerned about their palms’ lack of Apple grease.”

[Thanks to MacDailyNews Reader “JB” for the heads up.]

128 Comments

  1. Excuse me @stollhow, you are equating Apple to BP? You elude to one similarity but totally neglect to focus on the incredible differences.

    @kent – Liberals do not hate the private sector. Liberals prize justice and human dignity above all. I think SJ fits in that category.

    As far as Apple being the epitome of conservatism, yes, perhaps of the old school conservatism (Barry Goldwater perhaps) but not of the new branch conservatism. The similarities are the difference between Apple and BP.

    I salute Apple for staying out of Washington and say to Mr. Rockefeller that you are the reason the new school conservatism and tea baggers are making any headway. You sir are no democrat but a leach and opportunist who, like many politicians, would serve us all well if you just kept your mouth shut.

  2. Scumbags in our government are just money hungry lowlife that just think they’re the f….kin mafia ………. I say to Apple don’t fall to there tactics if anything give them some old 1st generation Ipod. Recycle one lol

  3. I am so happy that the sentiment from the commenters matches the MDN take, it gives me some faith that maybe we can pull out of this tailspin at some point. I couldn’t agree more.

    How can congress rule over the serfs if the serfs refuse to acknowledge that power? Shame on Apple for not kneeling before the ruling class

    (MDN Magic Word = “free”, how perfect)

  4. If people doubt most of Washington is corrupt, probably at it’s most corrupt ever, watch the movie “Casino Jack and the US of Money.” I knew no good would come from someone promising everything under the moon.

  5. If people doubt most of Washington is corrupt, probably at it’s most corrupt ever, watch the movie “Casino Jack and the US of Money.” I knew no good would come from someone promising everything under the moon.

  6. If people doubt most of Washington is corrupt, probably at it’s most corrupt ever, watch the movie “Casino Jack and the US of Money.” I knew no good would come from someone promising everything under the moon.

  7. If people doubt most of Washington is corrupt, probably at it’s most corrupt ever, watch the movie “Casino Jack and the US of Money.” I knew no good would come from someone promising everything under the moon.

  8. If people doubt most of Washington is corrupt, probably at it’s most corrupt ever, watch the movie “Casino Jack and the US of Money.” I knew no good would come from someone promising everything under the moon.

  9. If people doubt most of Washington is corrupt, probably at it’s most corrupt ever, watch the movie “Casino Jack and the US of Money.” I knew no good would come from someone promising everything under the moon.

  10. If people doubt most of Washington is corrupt, probably at it’s most corrupt ever, watch the movie “Casino Jack and the US of Money.” I knew no good would come from someone promising everything under the moon.

  11. This thread is a very clear indication that something tectonic had happened here at MDN. Neither was MDN’s “take” some thinly-veiled political flame bait (as it often used to be), nor were comments here political slugfest between supporters of Democrats and Republicans. With very few exceptions (which were fairly mild), most comments were united in the (fairly negative) opinion about the American government in general, without specifically isolating one or the other side. This isn’t the first time that an article that comes fairly close to a political subject does not instigate an irrelevant five-page political flame war. Looks like something is substantially changing here, both with MDN’s tone, as well as the participants’ contributions.

    I guess we needed to lose some of the brighter contributors to these forums in order to refrain from inane political shoutouts…

  12. I can see a potential problem for Apple here, and a very big one. American government (specifically, congress/senate) has an immense amount of power. They can easily legislate a company into bankruptcy, even as successful and as powerful as Apple, if they so choose. American politicians are an extremely greedy bunch, primarily because corruption is legal in USA (via lobbying). This give them sense of entitlement, so when they feel they aren’t receiving the massive amounts of cash to which they believe they’re entitled to, they will do whatever is necessary in order to get their expected share.

    It is very unfortunate, but I believe Apple will very soon have to bring their federal government bribes inline with other major players, in order to make sure they are allowed to continue to build “insanely great products”.

  13. Veil of Secrecy???

    How many ‘closed door’ veil of secrecy sessions did these idiots attend doing the people’s business.

    Heck some of these ‘closed door’ meetings became ‘locked door’ meetings where literally Representatives of the people were barred because others had the LOCKS changed!

    Your Chicago Thug-ocracy on STEROIDS! Is it November yet?

    – C2

    http://blogs.abcnews.com/thenote/2009/10/dems-lock-out-republicans-literally.html?cid=6a00d8341c4df253ef0120a6101e59970b

  14. F*#! these politicians! They get these huge benefits and have all these lobbyist meetings and now they’re upset that Apple doesn’t grease them too.
    Guess what, I’m tired of Congress’ secrecy. Let’s have them post their meeting schedules online so we can all see who they’ve got appointments with and then post up video of all these meetings. How would you guys like that kind of non-secrecy?

  15. While it is NOT right, it is a fact of life.

    A perfect example: Microsoft.

    Microsoft did very, very little lobbying in Washington, D.C. in the 80s and 90s. It had virtually no political presence there and gave virtually nothing to political campaigns. Then the anti-trust lawsuits (there was more than one).

    Microsoft changed its tactic. Significantly more lobbying in Washington, D.C. and significanly more given to political campaigns. Note no more anti-trust actions.

    Apple may have to do the same. It’s not right. It shouldn’t even be legal. But it is a fact of life in Washington, D.C.

  16. How in the Hell do you get off comparing Apple to BP? I hope Steve personally opens a can of woopass on you, asshat!

    If Congress wants to look into companies, start with ones WE own, like GM and what became of the EV1.

    And for you pathetic rich people wannabes, stop with the glorification of the almighty dollar. Politicians of any party and the CEOs of US Industry don’t give a shit about you lemming peons. You’re in debt and that’s the way They want to keep it. “You owe your soul to the company store….”

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