12 Apple Employees Arrested for Leaking Confidential Information
Apple has warned its employees that disclosing confidential company information, including plans for future product development, is a serious offense. This warning was published on the company’s internal corporate blog, according to Bloomberg.
Apple is known for its strict protection of corporate secrets, especially regarding upcoming products. For example, if the public learns about the features of a new iPhone model a month before its official launch, it can diminish the “wow factor” of the presentation. This, in turn, can reduce impulse purchases and cost Apple millions in lost revenue. Naturally, any employee who leaks such information faces severe legal consequences, including possible imprisonment.
In a detailed message on its corporate blog, Apple stated that over the past year, it “caught 29 people who disclosed secret information,” and 12 of them were arrested. The message also noted, “These individuals may face significant difficulties finding new employment.” Ironically, leaking this very warning could also result in prosecution.
Notable Leaks and Consequences
Apple mentioned several incidents where information was leaked to the media. One example was a meeting earlier this year where Craig Federighi, Apple’s Senior Vice President of Software Engineering, told employees that the release of some planned iPhone software features would be delayed. This information reached the public, including potential customers, ahead of time—a serious violation by the person responsible, who was subsequently identified and arrested.
Apple also referenced leaks about an unreleased software package containing details about the future iPhone X and new Apple Watch models.
According to Apple, leaking information about a new product can negatively impact sales of current models, give competitors more time to respond, and reduce sales at the launch of the new product. “We want to be the ones to tell customers why our product is great, not have someone else do it poorly,” wrote Greg Joswiak, Apple’s Vice President of Product Marketing.
Industry-Wide Issue
While few tech companies match Apple’s level of secrecy and strictness, others have also fired employees for leaking information. Both Facebook and Google have had such cases. For example, in 2016, Google dismissed an employee for sharing internal forum posts criticizing company management. While it could be argued that the firing was for criticism rather than leaking information, the employee sued Google, claiming his right to free speech was violated under California law and the U.S. Constitution.
At Facebook, the company reportedly monitors employees’ computers and phone calls to catch “leakers.”
Global Perspective
This issue is not limited to the United States. In Russia and other countries in the region, it can be even easier to get fired, as employee rights are often less protected. For instance, Wargaming recently fired two employees simply for posting photos from the office, even though one of them had not signed any NDA. The company explained that the dismissals were due to “violations of corporate rules and ethics,” which restrict employees from sharing information, including on social media.
In Russia, software for secretly monitoring employees is sold openly. This includes tracking all messenger messages, phone calls with automatic speech recognition and keyword search, video surveillance, microphone eavesdropping on PCs, and keyloggers. Employees are often not informed that they are being monitored, and the legality of such actions is questionable.
Legal and Ethical Concerns
According to legal experts, many companies do not clearly define what constitutes a trade secret in their policies. “An overly broad definition of confidential information leads employees to say nothing about their company, even on topics they are allowed to discuss,” comments Chris Baker, an attorney at Baker Curtis and Schwartz. “That’s a problem.”
Ongoing Challenges for Apple
Apple makes every effort to keep its development plans and future products secret, but information continues to leak to the media, driven by high demand. This is not just about public curiosity—it’s also about big money. Information about Apple’s plans is important to investors, as it can affect the company’s stock price. For example, Apple’s market capitalization exceeds that of all Russian companies on the stock exchange combined, and even minor fluctuations in its stock price can mean billions of dollars in gains or losses.
Over the past year, confidential information about the iPhone X, the new Apple TV streaming device, the new Apple Watch with LTE support, a virtual reality headset, new iPad models, software updates, and AirPods headphones has been illegally leaked to the press.