Tim Cook discusses taxes before Tuesday’s visit to Congress: ‘Apple does not funnel domestic profits overseas’

Zac Hall

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Yesterday Politico reported that Tim Cook will appear before Congress next week to testify in a hearing regarding how the company is handling its overseas finances and domestic taxes, and today Politico has published a brand new interview with the Apple CEO.

Tim Cook and Apple tend to avoid any public discussion aside from comments during quarterly earnings calls, but it seems the company is on a PR offense leading up to next week’s public hearings.

“We don’t have a large presence in Washington, as you probably know, but we care deeply about public policy and believe creative policy can be a huge catalyst for a better society and a stronger economy.”

Cook went on to defend Apple against any accusations that may come its way next week.

“I can tell you unequivocally Apple does not funnel its domestic profits overseas. We don’t do that. We pay taxes on all the products we sell in the U.S., and we pay every dollar that we owe. And so I’d like to be really clear on that.”

The Apple CEO also noted the company’s $100 million project to produce a Mac line in the United States this year, which the company says will add jobs to the economy. Read more

Following White House statement, lawmakers plan to introduce legislation to legalize cellphone unlocking

Jordan Kahn

Following a statement from the White House on Monday confirming it would support “narrow legislative fixes” to make unlocking cellphones legal again, several lawmakers have announced plans to introduce legislation. According to a report from The Hill, Senate Judiciary Committee Chairman Patrick Leahy and Chair of the Judiciary Committee’s Subcommittee on Antitrust, Competition Policy, and Consumer Rights Senator Amy Klobuchar have confirmed they will introduce bills in support of the legalization of cellphone unlocking:

“I intend to work in a bipartisan, bicameral fashion to restore users’ ability to unlock their phones and provide them with the choice and freedom that we have all come to expect in the digital era,” Leahy said in a statement.

The Judiciary Committee, which handles copyright issues, would likely have jurisdiction over any bill to legalize cellphone unlocking.

Sen. Amy Klobuchar (D-Minn.), who chairs the Judiciary Committee’s Subcommittee on Antitrust, Competition Policy and Consumer Rights, said she plans to introduce her own bill this week.

During a recent panel discussion on Capitol Hill, other lawmakers voiced their support for the legislation, including Representatives Darrell Issa and Jared Polis, while The Hill reported the Federal Communication Commissions’Jessica Rosenworcel “encouraged Congress to re-examine the Digital Millennium Copyright Act.”

The decision was made by the Library of Congress in October to make unlocking cellphones illegal, and that policy officially took effect in January. Following the White House’s statement in response to a petition with over 110,000 signatures, the Library of Congress issued a statement and agreed that “the question of locked cell phones has implications for telecommunications policy and that it would benefit from review and resolution in that context.” Read more

Apple’s court woes: AppleCare in Italy; Motorola, lawmakers grill iOS devs

Jordan Kahn

As we reported earlier this month, Apple was set to appeal a $1.2 million fine imposed by Italian anti-trust authorities Autorità Garante della Concorrenza e del Mercato. The authorities argued Apple is misleading consumers by selling its one-year AppleCare warranties without informing customers of a two-year warranty mandatory by European Union law. Apple officially lost the appeal in court this week, which forced the company to pay the €900,00 fine and alter its AppleCare policies to properly inform consumers going forward. Apple can still appeal the decision, but consumer groups from 10 other countries are also requesting Apple change its policies—indicating this could soon be EU-wide. (via Repubblica.it)

Following the Path incident, a letter sent from lawmakers to Apple in February requested information on how the company collects personal data. The two congressional representatives behind the letter, Henry A. Waxman and G. K. Butterfield, sent letters to 34 app developers requesting similar information. One of the letters was sent to Tim Cook and Apple about the “Find My Friends” app. The letters are requesting that developers answer questions about their privacy policies and how they handle user data. In response to Path, Apple already confirmed, “Any app wishing to access contact data will require explicit user approval in a future software release.”

Earlier this month, we reported that U.S. Circuit Judge Richard A. Posner ruled in favor of Apple’s request to view documents related to the development of Android and the Google/Motorola acquisition. Apple claimed, “The Android/Motorola acquisition discovery is highly relevant to Apple’s claims and defenses.” According to Bloomberg, Apple told the courts last week that Motorola has yet to fulfill the original request, but Judge Posner denied Apple’s request this week and said, “Motorola’s objections are persuasive.” Two patent infringement-related trials between Apple and Motorola are set for June, and Posner warns Apple will have to “narrow its request to a manageable and particularized set of documents” for any future production of data requests.
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