A bad Apple move spoils the karma

One could call it irony, or one could call it timing. As Apple unveiled its new iMac and iPad range this week, along with a new product line called AirTag, it was hit by a ransomware attack from a Russian gang called REvil, which threatened to release stolen blueprints of Apple’s latest products.

The gang claimed it had infiltrated the computer network of a key Apple supplier, Quanta Computer.

During the Apple launch REvil posted blueprints for a new laptop, and said it would post new files until Apple paid a ransom.

As in any thriller worth its salt on Apple TV+ the plot thickened rapidly.

The next day, one of its newly launched products became the pièce de résistance in a US Senate hearing into app stores.

Taking the stand were Kirsten Daru, general counsel for Tile, and Horacio Gutierrez, global affairs chief of Spotify.

Both gave evidence of Apple’s abuse of its power. Tile’s evidence was electrifying, given it had been a pioneer of small tags that could be affixed to objects and tracked on a smartphone app — like Apple’s new AirTag.

The most significant plot twist was not Daru’s description of “Apple’s systemic abuse of its market power and platform dominance that has stifled innovation and competition in this country and around the world”, but that “Tile and Apple originally had a mutually beneficial, symbiotic relationship”.

Tile not only had its app in the App Store from 2013, but Apple even distributed its products in iStores from 2015 — and the App Store often featured it as a top app. In 2018, at Apple’s 2018 Worldwide Developers’ Conference, Tile’s integration with Apple’s Siri voice assistant was featured on stage.

The next year, the relationship began to collapse, as reports surfaced that Apple would release a competing product. Cue ominous music.

“In the midst of planning our Apple store assortment for the 2019 holiday period, we were summarily and without explanation kicked out of all physical Apple stores,” said Daru.

Apple hired one of Tile’s star engineers, who had been on site at Apple for an extended period to codevelop the Tile/Siri integration.

And in the climax of the horror story, Apple introduced a new version of its FindMy app, including “Tile-like features”. It wasn’t merely an app, however. It was installed by default on all Apple phones, and could not be deleted.

Apple also made changes to its operating system that “denigrated” the Tile experience, prompting users to turn off Tile.

Consequently, the unveiling of the AirTag surprised no-one. What did come as a surprise was that Apple chose to launch the device the day before such testimony was due to be heard.

Senator Amy Klobuchar, chair of the hearing, described the launch as “exhibit A”.

The Information news site addressed the obvious puzzle: “Is Apple so arrogant that it thinks it can simply ignore the mounting criticism, coming at it now from all directions? Could the potential revenue from the $29 [R414] devices be worth the scrutiny that Apple is now subjected to?”

Its conclusion was startling: “Apple may have miscalculated.”

Apple did not need to crush the competition to give the AirTag a solid start. The Apple name alone would ensure it would dominate the market. Instead, it went out of its way to be the monster in a movie.

As a result, when REvil launched its raid on the company’s buried treasure, few would have been rooting for the monster — even if it were the lesser of two evils.

Apple did not need to crush the competition to give the AirTag a solid start