The App Association (ACT) which claims to be the leading voice for app developers around the world has conceded that more than half of the organization’s multi-million-dollar budget comes from Apple. Four former employees spoke with Bloomberg on condition of anonymity saying the percentage is much higher (than “more than 50%”), with Apple paying a “dominant behind-the-scenes role in shaping ACT’s policy positions.” Bloomberg also reported on ACT’s amicus curiae brief in support of Apple against Epic Games. Experts believe virtually 100% of all app developers who are aware of Epic Games v. Apple supports Epic.
While Apple is not a member of the App Association, Apple is listed as a sponsor on its website. In addition, Apple is reportedly a major force behind the group’s strategy, demonstrating how large corporations are able to advance their interests amid the power circles in the capital. Other sponsors of the App Association include Intel, Verizon, AT&T, and Verisign. An App Association spokesperson confirmed with Bloomberg that Apple contributes more than half of its total donations. The App Association received approximately $9 million in 2020. The group points out that it represents over 5,000 app makers and connected device companies that form a $1.7 trillion ecosystem in all 435 congressional districts, 27-member states of the European Union, and other countries. In addition, it claims on its website that “As the leading industry voice on the app economy for our members as well as policymakers, we provide resources and tools to help app makers understand the rules, regulations, and best practices that are critical to secure success and consumer confidence.” Here is an opinion piece we found of interest relating to Apple’s behind-the-scenes dominance in shaping the App Association policy positions.
Apple Flexes Muscle as Quiet Power Behind App Group
In an opinion piece “Apple Flexes Muscle as Quiet Power Behind App Group” for Bloomberg, Emily Birnbaum, reporter, examines how the App Association, known as ACT, which brands itself as the leading voice for thousands of app developers around the world, while the majority of its funding comes from Apple Inc. She reports that Apple isn’t a member of the App Association, but it plays a dominant behind-the-scenes role shaping the group’s policy positions. This is according to four former App Association employees who asked not to be named discussing internal matters. Critics note that the association’s lobbying agenda tracks closely with Apple’s, even when this finds it at odds with app developers, the companies that make the individual games and programs that run on Apple’s iPhone and other devices.
ACT spokesperson Karen Groppe declined to say how much of the group’s funding comes from Apple other than to say it’s more than half. Contributions from all donors topped $9 million in 2020, according to the most recently available data from disclosure filings, suggesting Apple makes a multimillion-dollar contribution. Birnbaum reports that the relationship between Apple and ACT illustrates how big companies quietly pour money into outside groups in order to promote their agenda in Washington. She discloses that ACT representatives regularly testify in Congress, file court briefs in defense of Apple’s positions and host annual “fly-in” meetings for developers with lawmakers. Read more on Bloomberg.
Disclosure: Fatty Fish is a research and advisory firm that engages or has engaged in research, analysis, and advisory services with many technology companies, including those mentioned in this article. The author does not hold any equity positions with any company mentioned in this article.
The Fatty Fish Editorial Team includes a diverse group of industry analysts, researchers, and advisors who spend most of their days diving into the most important topics impacting the future of the technology sector. Our team focuses on the potential impact of tech-related IP policy, legislation, regulation, and litigation, along with critical global and geostrategic trends — and delivers content that makes it easier for journalists, lobbyists, and policy makers to understand these issues.
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