Apple and IBM Try to Defy Gravity

December 21, 2018

We find it a bit brazen for IBM to be pontificating about trust after Watson Health’s recent marketing missteps. Still, on her recent visit to Brussels, that company’s CEO joined the chorus criticizing certain other tech giants for violating users’ privacy. Fortune reports, “A ‘Trust Crisis:’ IBM CEO Ginni Rometty Joins Apple’s Tim Cook in Slamming Tech Abuse of User Data.” She even went so far as to suggest the EU strengthen its laws to hold companies responsible for all content that crosses their platforms. We are informed:

“Without naming company names, Rometty pointed to the ‘irresponsible handling of personal data by a few dominant consumer-facing platform companies’ as the cause of a ‘trust crisis’ between users and tech companies, according to an advanced copy of her remarks. Rometty’s comments, given at a Brussels event with top EU officials Monday, echoed recent statements by Apple CEO Tim Coo, who in October slammed Silicon Valley rivals over their use of data, equating their services to ‘surveillance.’…

We also noted this statement:

“Seeking to separate IBM—which operates primarily at a business-to-business level—from the troubled tech companies, Rometty said governments should target regulation at consumer-facing web platforms, like social media firms and search engines.”

Certainly, IBM executives and shareholders would be quite pleased to see regulations focus on consumer-facing companies and away from B2B entities like them. Rometty offers this statement to support her position:

“The power dynamic is very different in the business-to-business markets. Tackling the real problem means using a regulatory scalpel, not a sledgehammer, to avoid collateral damage that would hurt the wider, productive, and more responsible parts of the digital economy.”

Interesting perspective. Cook’s similar criticisms were also made in Brussels, in October. Does he hope to divert attention from Apple app store monopoly concerns? To be sure, throwing shade at the competition can redirect consumer, and regulatory, fury. The pot will always call the kettle black, it seems.

Cynthia Murrell, December 21, 2018

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