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Criticism of Apple Inc.

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Apple Inc. has been the subject of criticism and legal action since its founding. This include its handling of issues related to labor violations at its outsourced manufacturing hubs in China, environmental impact of its supply chains, tax and monopoly practices, a lack of diversity and women in leadership in corporate and retail, various labor conditions—notably the mishandling of complaints from women involving sexual misconduct, and its response to worker organizing.

Antitrust and anti-competitive practices[edit]

United States v. Apple is a US lawsuit brought against Apple in 2024. The United States Department of Justice (DOJ) alleges that Apple violated antitrust statutes.[1][2] The lawsuit contrasts the practices of Apple with those of Microsoft in United States v. Microsoft Corp., and alleges that Apple is engaging in similar tactics and committing even more egregious violations.[3] This lawsuit comes in the wake of Epic Games v. Apple and the enforcement of the Digital Markets Act in the European Union.[4]

Apple, Google, and other major technology companies illegally conspired in a "no-poaching" pact to prevent employees from seeking improved compensation, which The New York Times called "embarrassing."[5] A class-action lawsuit was settled for $415 million in 2015.[6]

Intellectual property enforcement[edit]

Apple is litigious in enforcing its Intellectual property (IP) rights through lawsuits and by challenging trademark applications. This was described as bullying by The New York Times. Apple has blocked a trademark of a logo with three interlocking apples used by the Appleton Area School District, a podcast named "Talk About Apples" from an artist in Atlanta, Apple Urgent Care in Riverside County, California, the stage name of a singer-songwriter, "Franki Pineapple,"[7] DOPi, a company that makes laptop bags and phone cases, for the lowercase i, and Woolworths Supermarkets, which shapes their W logo into an apple.[8][9] NBC News referred to the practice as "lunacy."[10] In 2023, Apple attempted to gain IP rights over depictions of apples in Switzerland.[11] Smaller competitors told the United States Congress in 2020 that such "bullying" drives them out of business, stifling competition.[12] The Register wrote in 2006 that Apple "sues itself in the foot" for a lawsuit against a community site for deep linking to the MacBook Pro service manual claiming the site infringed on their IP rights.[13] Apple has persecuted blogs with civil and criminal complaints over IP to maintain its culture of secrecy.[14]

Culture of secrecy[edit]

Employees have criticized Apple's culture of secrecy saying that levels of disclosure create hierarchies of superiority at the company and that the secrecy conflates legally-protected speech such as working conditions with protecting product development.[15][16] They also said it wears developers down and isolates them from their loved ones.[17][18] The strict secrecy drew ire after a worker who lost a device died by suicide.[19][20] In 2017, an Apple engineer was fired after his daughter recorded a video of the new iPhone X in the cafeteria and posted it to YouTube.[21] Apple aggressively investigates potential leaks and prosecutes and litigates against employees who are caught.[22][23][24][25] The NLRB made a statement that Apple's rules and communication around secrecy violate federal labor laws.[26]

The Outline called Apple's culture of secrecy a "needless cult" because they said it doesn't stop anything from being leaked.[27] Apple has passed out misinformation in an effort to find leakers and keep the media unsure of Apple Inc.'s current developments.[28] Apple also orchestrates leaks of information to the public to gauge potential viability of products such as the Apple iPad.[29] The Guardian reported research that shows pre-release information about a product gives people the time and opportunity to consider their purchases carefully, while sudden product launches cause people to make purchases more impulsively.[30][31]

In 2010, a Reuters reporter was assaulted while taking photos outside of a Foxconn plant during an investigation.[32] Later that year, Apple obtained a search warrant to raid a Gizmodo blogger's home in search of an iPhone prototype that was purchased from someone who found it at a bar. The man who found it at the bar was charged with theft.[33] The blogger was cleared of all charges.[34] The New York Times described Apple's response to the events as "churlish."[35] Columbia Journalism Review published an article about Apple's aggressive behavior toward journalists to maintain secrecy, referencing the Gizmodo case, but also three lawsuits Apple filed against bloggers for reporting on leaked trade secrets.[14]

Environmental impact[edit]

Apple has received both praise and criticism for its environmental practices, the former for its usage reduction of hazardous chemicals in its products and transition to clean energy supplies, and the latter for its wasteful use of raw materials in manufacturing, its vigorous opposition to right to repair laws, and the amount of e-waste created by its products.[36][citation needed]

Labor conditions in corporate and retail[edit]

Apple retail employees have unionized or formed work councils around the globe in response to wages, excessive overtime, health and safety concerns, and employee surveillance.[37][38][39] In the United States, the company has faced criticism for what is perceived to be an anti-union stance and stifling worker organizing, resulting in unfair labor practice charges with the National Labor Relations Board (NLRB).[40][41] Some charges have also come from corporate workers,[26] who formed a solidarity union called Apple Together as a "global network of solidarity between [Apple] unions."[42] Corporate employees also spoke out about employee privacy to The Verge.[43]

Apple has been criticized for a lack of diversity[44] and a culture of sexual harassment and mishandling of complaints by human resources and management.[45][46][47] In particular, wage gaps and the failure to promote women into leadership have been criticized since the early 1990s.[48][49][50] In 2022, Apple removed concealment clauses from its employment agreements after a practice of offering severance in exchange for non-disclosure agreements was reported by Financial Times, corroborated by a third-party audit, and reported to the U.S. Securities and Exchange Commission.[46][51][52] Employees remarked that it was a part of Apple's culture of secrecy.[53] A gender pay bias and sexual harassment lawsuit was filed in June 2024 seeking class status.[54]

Labor conditions in supply chain[edit]

Contract manufacturers[edit]

Apple manufactures most of its products in China through partners like Foxconn. Apple's decision to outsource its manufacturing has received significant criticism, due to allegations of poor working conditions, long work hours, and other labor rights violations.[55][56] A total of 18 suicide attempts were recorded at the Foxconn facility in 2010, with 14 attempts resulting in deaths.[57][58][59] At least one suicide was due to the company's culture of secrecy after the worker lost a prototype.[20] The Guardian reported an audit of Apple's supply chain found two-thirds of its factories did not properly compensate its workers, lacked proper safety and environmental credentials, and several instances of 15-year old workers.[60]

Apple, Foxconn and Chinese workers are stakeholders in high-technology production, but relations between the three are perceived by analysts as imbalanced. Apple was able to capture 58.5 percent of the value of the iPhone, despite the fact that the manufacture of the product is entirely outsourced. Particularly notable is that labor costs in China account for the smallest share: 1.8 percent, or nearly US$10, of the US$549 retail price. While both Apple and Foxconn rely on Chinese workers to perform 12-hour working days to meet demand, the costs of Chinese labor in processing and assembly are insignificant in the overall commercial success of Apple. Other major component providers—such as Samsung and LG—captured slightly over 14 percent of the value of the iPhone, while the cost of raw materials was just over one-fifth of the total value (21.9 percent).[61]

In 2020, The Information published "Apple Took Three Years to Cut Ties With Supplier That Used Underage Labor,"[62] an article which detailed the company's reluctance to sever partnerships in their supply chain, even when they violate its ethics policies using child labor.[63]

Conflict minerals and cobalt suppliers[edit]

An Amnesty International report on cobalt mining in the Democratic Republic of the Congo linked Apple to suppliers using child labor, some children as young as seven in 2016.[64] The following year, The Washington Post reported Apple's intention to stop buying cobalt from the region until conditions were improved.[65] Victims of child labor in the cobalt mines attempted to sue Apple and other technology companies, but were dismissed by the courts on procedural grounds.[66] In 2023, an investigation into corporate technology supply chains carried out by The Independent found that Apple was among 400 companies associated with the Responsible Minerals Initiative (RMI) to root out child labor and human rights violations. Issues reported ranged from mines burying workers alive—including children—to sexual assault and birth defects caused by exposure to toxins. RMI said that the audits do not include site visits, despite being aware of the conditions at mines. Siddharth Kara, author of Cobalt Red, told The Independent, "there’s not much happening of any merit to assist the people of the Congo in addressing the human rights and environmental violations taking place every day as a consequence of cobalt mining."[67] The Congolese government threatened legal action against Apple in 2024,[68] later alleging they had evidence linking Apple to conflict areas.[69]

Security practices[edit]

Apple consumers have the perspective that its products are more secure than its competitor's, due to Apple's advertising practices.[70] Apple products are less likely to breached by a hacker or infected by a virus/malware, though this is mainly due to the lack of interest by hackers to attack Apple products.[71][72] A 2006 report by McAfee found a 228 percent increase of the annual rate of vulnerabilities in Apple's products in the period 2003–2005, more than three times that of Microsoft's.[73][74] The public's lack of awareness over the security vulnerabilities of Apple products has created criticism over Apple misleading the public and has been risen over the years.[70][75][76] In 2022, hackers exploited a security flaw that allowed them to take full control of devices—including the Mac.[77] Security experts believe that Apple plays down security concerns,[78] don't pay researchers on par with the industry, and are slow to acknowledge and fix reported security bugs.[79]

CNET said that Apple's delay to fix security flaws puts users at risk and attributed it to the company's culture of secrecy. In 2011, it took Apple nearly three years to fix the vulnerability that led to the exploit of the FinFisher trojan.[78] A security flaw in JAVA took Apple six months to update, far longer than other companies, drawing sharp criticism by experts and journalists.[76][80][81] A security flaw in Find My reported by a former Apple security engineer took five months to be addressed.[82] Apple's AirTag was identified as a stalking vector at the time of their release in 2021, on a much larger scale than similar products from Tile.[83] In 2024, a judge denied Apple's motion to dismiss a lawsuit on behalf of stalking victims who allege that Apple has not done enough to "diminish the ability of stalkers to use AirTags effectively."[84]

Taxes[edit]

Apple has created subsidiaries in low-tax places such as Ireland, the Netherlands, Luxembourg, and the British Virgin Islands to cut the taxes it pays around the world. According to The New York Times, in the 1980s Apple was among the first tech companies to designate overseas salespeople in high-tax countries in a manner that allowed the company to sell on behalf of low-tax subsidiaries on other continents, sidestepping income taxes. In the late 1980s, Apple was a pioneer of an accounting technique known as the "Double Irish with a Dutch sandwich", which reduces taxes by routing profits through Irish subsidiaries and the Netherlands and then to the Caribbean.[85][86]

There is also a decade-long dispute between Apple and the European Commission regarding the tax arrangements between Apple and Ireland, which allowed the company to pay close to zero corporate tax over 10 years.[87]

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