Apple or Google: Who Will Walk the Plank?

(MoneyWatch)  After you've spoken with a number of DOJ prosecutors and SEC enforcement attorneys, one thing becomes clear: They hate being lied to. We're not talking petty annoyance. No, these are people who have been known to go after mendacity with a vengeance suitable to Greek mythology. Businesspeople who technically went afoul of the law and might have pulled through have been brought to the ground because they tried to cover up problems by omitting or misstating what they knew. And that brings us to Apple and Google.

When the FCC asked Google, Apple, and AT&T to answer some questions about the rejection further study of the Google Voice iPhone app, the response was ... interesting. The carrier stated directly that it had no hand in the activity. Apple stated that it had not actually rejected Google Voice; rather, it was still studying it. Google took advantage of federal regulations that allowed it to make answers to that question confidential and not available to the public. But then things changed:

When we submitted our letter on August 21, we asked the FCC to redact certain portions that involved sensitive commercial conversations between two companies -- namely, a description of e-mails, telephone conversations, and in-person meetings between executives at Google and Apple.Shortly afterward, several individuals and organizations submitted Freedom of Information Act requests with the FCC seeking access to this information. While we could have asked the FCC to oppose those requests, in light of Apple's decision to make its own letter fully public and in the interest of transparency, we decided to drop our request for confidentiality. Today the FCC posted the full content of our letter to their website (PDF).

Google's response was as direct and simple as AT&T's: Apple said it rejected the app because Google Voice "duplicated the core dialer functionality of the iPhone," and they didn't want that possibility.

There we have it: Apple claims one thing, Google contradicts, and then Apple reiterated its claim. Someone is lying, and that means that someone will have to pay. A federal agency simply cannot afford to appear a pushover.

I'm putting my money with the many others who think that Google is telling the truth. Trying to bend reality to greater service is an Apple core competency. The question is, did Google take a screenshot of the rejection notice the way at least one other developer has? And even if it didn't, wouldn't the delivery of such a message be documented someplace at Apple? This is likely a question that can and will be settled.

This post starts by asking who will walk the plank. I'm not suggesting that the FCC is going to prosecute Apple, although it probably has the power and the new leadership there might feel it necessary for the agency's public image.

But even if it doesn't, with all the other scrutiny Apple faces, this is going to weigh heavily against it. If you are under investigation my multiple authorities, common sense says don't paint yourself as someone ready to lie when that's like waving a red flag at regulators and prosecutors. Apple has painted itself into a corner, and it's not clear how it's going to extricate itself.

Image via stock.xchng user mrdisaster, site standard license.