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Joan Braddi

From: Joan Braddi


T o : _
Subject: Re: Feedback from Sundar on Dell

Let's discuss next week. We wish to move away from custom start pages so I don't like keeping this
option. Dell only care about money anyway and our problem is we have been paying them too much.

Let‘s strategize next week on what we really want from Dell, then we will work on how to “sell" to Dell.

Thanks
Joan

*From*: Jim Kolotouros Sent*: Friday, February 18, 2011 08:04 PM *To*:
Jim Holden Joan Braddi ‐ *Subject*: Feedback from Sundar
on Dell

hello Joan & Jim,

I spoke with Sundar and solicited his thoughts on Dell yesterday. He had some high level feedback:

1) Pursue Chrome as default aggressively


2) Potentially focus on the market we are most sensitive to: US3) Google.com as the homepage 4)
With respect to IE not pre-Ioaded, he wanted more detail on whether that option was available to
OEM‘s. I shared the feedback from Toshiba with him (it is below) and he is thinking about it. His initial
preference was to not include IEin the pre-Ioad and pursue a Chrome-only deal.
5) If IEis pre-Ioaded, include Google Toolbar.

My thoughts on this are below:

1) I agree... focus on Chrome as default


2) I agree... potentially expand to include Japan 3) This is a non-starter for Dell. They will insist upon a
customized homepage, and I think offering iGoogle from the start would be more productive.
4) & 5) I think a “Chrome only" approach is one that Dell cannot seriously consider. Between the
feedback their President, Consumer & Small Business gave Sundar last year and the feedback from
Toshiba below, it sounds like it is important for IEto be pre-Ioaded. Knowing this, pre-Ioading IEas
non-default and including Google Toolbar for IEwould be my recommended path.

thanks, JimEK

NNNNNNNNNNNNNNNNNNNNNNN \

Feedback from Kevin Johnson @Toshiba: "Yes, you can ship a PCwith no IEinstalled and the
é€oeea€ on the task bar would be removed. DOJ allows this.
Problem is that some of the base operations use IEas a default setting within the utility and Chrome
does not work with many Windows sites. I love Chrome, but still leave IEon my personal system for
some sites that are not Chrome ready."

GOOG-HJC-00013117
GOOGLE - CONFIDENTIAL TREATMENT REQUESTED
Question #1) How dowe make sure we are the leader in search in 2007? What are the new
innovations in search, new algorithms, new content? Will universal search work? How do we
deal with the problem of "proliferating verticals?" How will we index and handle all the
personal and user generated content that is so hard to rank? What information do we not have in
our search index and how will we get it?

Bill Brougher, Ben Gomes, Sepandar Kamvar, Marissa Mayer, Udi Manber, Bindu Reddy, Amit
Singhal, Johanna Wright

Summary

We believe that Google will remain the leader in search in 2007. This year, however, we must
take steps to strengthen our position in the years to come. Specifically, we must:

0 Focus on core search and continue to allocate 35% (1/2 of 70%) of engineering new hires
to search in order to keep momentum.
0 Create a mechanism that provides for aided exploration for users that have trouble
formulating their queries.
0 Commit to reinvention -- accept that we will make some user experience mistakes but
that mistakes are important asthey indicate a lack of fear of change and, hence, are a sign
of progress and prevent staleness.
0 Build on growing momentum around universal search through increased staffing and
tactical execution.
o Invest in ranking excellence of a two-tiered index where ' _ i s the large volume
low quality tier.
0 Doing different ”operations" on results seems very compelling (see on a map, sort by
price) but requires structure, the technology to extract it for web content, and an
infrastructure to support it. This is a hard problem and we are not focused on it or
organized around it, particularly in the case of extraction. We need to organize and staff
this effort in 2007 such that we either achieve success or understand with reasonable
certainty that it is not feasible in the short term.
0 Identify key vertical growth areas and build strength into our core search to support these
functions ‐‐ identified asparticularly important are people, products, and local.
0 On the whole, we feel the growth of sites like MySpace and YouTube puts the search
business in jeopardy. To secure a safe position in that environment, we should strive to
be the search medium for those areas (video, social nets) and also provide some
community interaction and entertainment within our core products aswell (CCC and
iGoogle).
0 Turn having the largest user base into an unfair advantage by building out technology that
improves linearly with user base size -- initiatives that have this property include: using
toolbar data for personalized search, integrating recommendations, question/answering,
and creator/trust rank.
0 Identify local markets where we are likely to fail in search. Our analysis leads to the
conclusion that Arabic, Thai, India, Egypt, Israel, Spanish, and Turkish in particular are
at-risk markets. Staff people to analyze, correct, and focus on these markets

GOOGLE - CONFIDENTIAL TREATMENT REQUESTED GOOG-HJC-01099367


Continued investment in search guality

Observation: We have many promising ranking initiatives underway for the coming year.
Recent gains indicate there is significantly more possible on core ranking. Initiatives include:

. Continued investment in our core ranking via query and document understanding.
. Continued investment in user signals, like clicks. Our search users create the first level of
network effect for search quality and we are investing in this heavily.
. Hard queries: Queries for which users are frustrated even when they have told Google all
they could, there is a strong effort to improve user experience for such queries.
0 Query structure analysis: identify different types and look at past usage of those queries
to improve ranking
0 Suggestions for popular queries
. Rankboost: continue developing our learning system to take human rating data as input
and predict new ranking signals
0 L o w link and small corpus ranking: important for integrating new deep web and mom &
pop and international content
. Non-web ranking in preparation for universal search: improve and standardize ranking
for other properties by applying tried and true web search techniques, augmented with
domain information
. Continued work on personalization.

Remedy/Initiative to address: Situation doesn’t merit remedy. We have built good momentum
here through increased allocation and effort. We should continue to allocation 35% of new
engineers to Search Quality (half of 70%).

Observation: Oflen users do not look for something specific, do not know how to formulate
their query, or do not even know what they're looking for. We will also need to provide an
exploration mechanism for concepts. Consider the query [proper spacing in documents] we could
suggest to the user [line spacing] which will give much better results, and this direction is part of
our query refinement effort. In addition, a better, and much more difficult solution, will be to try
to really understand topics in both web pages and queries. The Prose project started in this
direction with fixed attributes, user contributed labeling, and few selected domains. We will need
to extend it web wide.

Remedy/Initiative to address: Add query refinements to popular and hard queries, and
experiment with other ways to help users formulate the right query.

A commitment to reinventing ourselves

Observation: The threat of becoming "our father's Oldsmobile" is very real and, due to the
accelerated timeline of the web, it won't be along the same timelines (i.e. a generation), it will
happen in a matter of years. On the whole, we have become too conservative and anti-change.
There have been many observations of this trend ‐‐ tremendous pushback from Googlers on

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small changes like the more box, resistance to things like left nav because they seem big but not
compelling enough, etc.

Remedy/Initiative to address: In order breakthrough this, we have to be comfortable with


reinvention and change for changes sake. To do this we need to set aggressive goals around user
experience changes - even if the changes made are ultimately mistakes - the beauty of running a
service is that we can revert those changes or iterate to something new quickly.

Steps to make Universal Search successful

Observation: One of the largest points of user confusion or frustration is not knowing what
content we have and how to get it.

Observation: With the deployment of librarian and superroot aswell as with a strong team
staffed, for the first time ever universal search seems realizable.

Remedy/Initiative to address: Don't let the perfect become the enemy of the good.
Much progress has been made in the past year, but for this project to seem like a reality, the team
must focus on an initial launch and then iterate. We will place t w o stakes in the ground to iterate
upon. These launches should happen quickly, ideally in Q4 'O6, allowing for continued
improvements in 2007.

1. Launch a version of the infrastructure project that will enable universal search in the long
run: data updated via Librarian to '_ and - l a y e r s , merged via a
supperroot and support 100% Web QPS. This launch uses conservative ranking and UI in
order to get out the door and not disturb our users.

2. Launch UI and ranking changes for news, local, and images integration. Differential UIs
for news and local and increased coverage of the images onebox UI will allow users to
start interacting with and seeing the benefits of Universal Search. This launch will also
enable us to start seeing how users interact with the product changes and help to drive our
direction moving forward.

Observation: To improve comprehensiveness and support Universal Search we plan to grow


Teragoogle. We will expand the index to include more content and search ' n every
query. We will refresh it weekly significantly improving our age distribution and enabling better
fall through from the base index when new content is added to base. There are operational
changes that will need to occur in our indexing and serving infrastructures to accommodate this,
Also, ranking is not as mature and refined in _ a s it is in 1- However,
Teragoogle can not do several ranking operations that are necessary for maintaining a state-of‑
the‐art ranking system. Therefore, we will need to keep critical corpora in Mustang to maintain
our lead in core properties.

Remedy/Initiative to address: Invest in ranking excellence of a two-tiered index. A richer


index, Mustang, for advanced ranking operations to maintain our lead in core areas like web

GOOGLE - CONFIDENTIAL TREATMENT REQUESTED GOOG-HJC-01099369


search, and a cheaper index, Teragoogle, which does not provide the same quality as a richer
index but is less expensive for serving everything.

Deeper understanding of structured data

Observation: To enrich search, we must develop a deeper understanding of structured data and
the powerfiil operations that having structured data can make possible for our users. Operations
like attribute search over jobs, real-estate and personals as well as the ability to slice and dice
existing data based on location, price and date.

Observation: We have fledgling extraction efforts underway right now, but not enough of a
focus to take all of our petabytes of unstructured data and successfully extract structure.

Observation: This is a hard problem. It is not clear that it is solvable. Our current staffing and
organization, however, is sparse enough that it is hindering our ability to assess feasibility.

Observation: We need a way to store and manipulate a massive amount of structured data.
Currently that infrastructure is thought to be Google - but ]- is not ready for many of the
requirements that will be placed on it by the extraction efforts above or the search needs.

Observation: For Google - t o be successful and to surface on Google.com with any


frequency, we must focus on quality.

Remedy/Initiative to address: Fund and organize to succeed in data extraction efforts. Given
that the vast majority of our data is unstructured to provide great attribute search we need
comprehensiveness. We will first assess the feasibility of extracting location, time and price as
they will affect about 20-25% of the queries on Google.com. We also need to decide what
infrastructure should hold structured data if and when we are capable of extracting it. Finally,
we must get search quality engineers staffed on the task of ensuring quality in Google - a n d
in extracted data. Key issues to address are attribute convergence and normalization.

Improving web search in high-growth areas that are weak on Google today

Better name search Explosive growth of Use SPDs to acquire content. Pay
MySpace (2B pvs/day) social networking sites to enable
crawling. Develop an ads product
whereby people can submit their
names to appear on Google

GOOGLE - CONFIDENTIAL TREATMENT REQUESTED GOOG-HJC-0109937


2) Better product search High commercial value Focus on quality and coverage
(10-12% of searches) within Google -and web
ranking
3) Build an Fast growth in real estate Combine user interface. Enable
understanding of and compelling users to generate content where it
local and real estate opportunity to enhance does not yet exist online
into Google local
4) Enhance experience Drive too much traffic to Focus on quality and coverage
of job related queries competitors monster and within Google - and web
on Google hotjobs ranking
5) Improve spammed High revenue area with Improve understanding of spam
travel queries poor quality search signal and how they affect this
results area
3. The third prong falls to the CCC team where they need to succeed in social networking
(Orkut?)
4. We need to integrate the CCC products as well as more serendipity into our search
experiences. We believe that iGoogle, Desktop, and OneGoogle are all good first steps.

M
Observation: Google has more users than any other search engine by a large margin. If we
could find a way to improve search that scaled linearly, or even better exponentially, with the
size of the user base, we could harness an unparalleled advantage.

Remedy/Initiative to address: The best way to find such an advantage is to invest in and
explore areas where this kind of finding seems possible.

0 Use more pervasively the data that we have available to us, including toolbar and Orkut
data. We have a huge number of users and a huge amount of data generated every day
that could improve search. We continue to worry about privacy, implications,
perceptions, coverage, but we’ve talked about it for years and we should use toolbar data
much more pervasively in 2007.
0 Build out recommendations based on user data/behavior. Search is really about
recommendations. Even some of our non-search-based products are essentially
recommendation engines (News, Desktop, iGoogle). If we can harness signals from user
behavior into coherent recommendations, we should be able to build an unsurpassed
recommendation engine. In order to do this, we will deploy the generic
recommendations infrastructure that the personalized search team has built across various
product suites.
0 Invest in question-answering. Question-answering remains a highly volatile, highly
opportunistic space. We anticipate many changes in this industry in the coming months.
If question-answering takes o ff on in the global market (we can note it already has in
Asia), the best question-answering network will be the one with the most users
participating and the best sense of user reputation. Our user base and network effects
leave us well-positioned. The MUSE project extends the traditional question answering
model by adding syndication, one of our core strengths. Questions and answers will be
posted on relevant search results, but they will be also syndicated to relevant publishers
(using an AdSense-like matching technology) and shown all over the web. Publishers
will gain relevant interesting content that will attract users, and they will gain traffic
generated from us. We will gain access to users who are more likely to be familiar with
the questions. Reputation management will be a core part of this effort.
0 Develop creator-centric ranking and browsing of user-generated data. For ranking and
discovery of user-generated data, we will develop a ranking of content creators and will
integrate this ranking asa signal into core search.
0 Increase the number of signed-in users and the amount of data per signed-in user in order
to broaden the impact of the above three initiatives. Currently, our guarantees of
transparency, security, and control allow us only to personalize the Google experience for

GOOGLE - CONFIDENTIAL TREATMENT REQUESTED GOOG-HJC-0109937


those users who are signed in. Today, 8% of results pages are from signed-in users. We
plan to increase the number of signed in users with both internal and external strategies.
Internally, we plan to (a) experiment with a tiered login system and (b) continue to invest
in products that will incent people to both sign in for search such as iGoogle and Google
Notebook and bring their data online where it is accessible and searchable by them such

which we believe will double the number of signed-in searches on googlecom [2] and
allow us to provide a higher quality of search and recommendations due to the extent of
personal data available. An interesting case study is the impact of orkut.com on the
number of Brazil signed-in searches. In June of this year, 1% of queries on

googlecombr come from signed-in users, as compared to 8% from the next highest
domain, googlecom, and 5.2% from googlecomin (also a country with high orkut
usage).

Which international markets are in trouble?

Observation about content: In Korea the ratio of pages in our index to active internet users is
8:1, whereas in the US the ratio is well over 100: 1. This relative lack of content created an
opening for Naver to seed the search market with Knowledge Search content. Our analysis
shows risk the same thing happening in smaller markets including Arabic markets, India and
Thailand.

Remedy/Initiative to address: Address lack of content by building systems to encourage


generation of content in small markets ‐ Arabic markets, India, and Thailand. Our search
ranking algorithms are not useful unless there is enough content to rank to have a broad interest
search engine. We estimate we need about 200 million documents to return quality results, about
the size of the Google News archive search index.

Observation about coverage: We lose in markets where we don't achieve comprehensiveness.


Better coverage than allowed Baidu to get a foothold in China in 2001-2004. Our crawl analysis
indicates that we have a similar lack of coverage in Spanish speaking countries and in Turkish
speaking countries (See appendix International Content Analysis).

Remedy/Initiative to address: Expand coverage in Spanish and Turkish.

Observation about language specific changes: Yandex beat us in Russian because they had a
better understanding of the language, Reinforcing this theory, we saw a small change focused on
improving morphology grow our market share from 15% to 22%. This highlights the importance
of excellent understanding of the language and good language tools.

Observation about focus: We risk losing in markets where we aren’t paying attention. For
example, last year at this time we were #1 in q u p t . Today we are #2 to Yahoo!. This has
happened because in the past year they had people working on Egyptian and we did not. Similar
things are happening in Israel.

GOOGLE - CONFIDENTIAL TREATMENT REQUESTED GOOG-HJC-01099373


Remedy/Initiative to address: The Search Experience Specialist Program (SESP) program will
identify and employ have native speakers in different countries to send us feedback on Search
Quality and UI.

GOOGLE - CONFIDENTIAL TREATMENT REQUESTED GOOG-HJC-01099374


References

[ l ] Kamvar, Schlosser, Garcia‐Molina. The EigenTrust algorithm for reputation Management in


peer-to-peer networks
(http://scholar.googlecom/ scholar?hl=en&lr=&cluster=120963 269947097 10049 )

[2] At approximately 300mm pageviews per day (extrapolated from


http://www.facebook.com/jobs_engineering.php), facebookcom has almost as many pageviews
asgooglecom results pages (from
https://www.corp.google.com/~logs/newreports/google/2006/l0/2l/gwshtml). If 10% of those
pageviews result in a query, then we will have doubled the number of logged in page views.
Furthermore, a facebook acquisition would allow our own users to search over a large repository
of personal information that google currently does not have access to.

Appendices

Appendix: Vertical Analysis

People search and social networking is the fastest growth area on the internet right n o w with
MySpace as the clear leader. MySpace has 2B daily page views and accounts for 11% of Google
traffic up from 4% in January, and [myspace] has surpassed [ebay] in the volume of queries

"googling" someone to find out more. This points to Google's ubiquity and the idea if people do
not know where to goto find information, they should go to Google. In the fiJture, we do not
want users "myspace" people for more information. Google should host all information about a
person, including myspace info.

Product search also represents an area of concern. While we have a high percent of googleicom
query volume, 10-12% and the most comprehensive data‐set (250 M products) for products, we
are sorely lagging behind on product search. eBay and Amazon are the leaders in this category
with more than 400 M/searches per day. Becomecom and eDeals are fast growers in this
category quickly surpassing Froogle (Forbes ‐ add to sources). Looking at category growth
numbers from comscore, retail remains one of the largest categories.

Real Estate is a fast growing vertical and there is no clear winner in this space as yet but Century
Remax and Century21. C21 grew 454% in page views but only l% in unique visitors from Mar‑
Sept 2006, Remax grew 270% in PV, 2% in U V. So both sites were high growth in that people
were looking at a lot of pages -- probably folks looking to purchase RE before interest rates rose
any further or people looking to sell before the predicted downturn ‐‐ but not a lot of new
eyeballs (Fiona Lee’s report & ComsScore data)

Myspace page view growth reaches 2B


1 year chart from Alexa Internet shows MySpace reached 2 billion page views in October 2006.

GOOGLE - CONFIDENTIAL TREATMENT REQUESTED GOOG-HJC-01099375


Daily Pageviews {per million}
ZGET':

253,00G

"2013 r: J an Apr Jul


malaise Alexa

Almost 11% of traffic to Google.com was previously at MySpace

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mm mm.

Social networking traffic growth Via Google Trends

10

GOOGLE - CONFIDENTIAL TREATMENT REQUESTED GOOG-HJC-01099376


yahoo s$ebay yspace fiamazon fiyoutube

) M’i‘ovwwmvifl“""""“’7“W~""‘"’MW\*"’W‘$"“A' $”\M~“‘“MJW/‘M"~
__,_¢~.;, _v xfiwum.oVr-v‘ng‘N;-.M~1fiw¢f"m"?
wt fi'fl.“x T. '
“ w w w “ . w .

Internationally popular communities sites follow this growth curve, examples are [orkut] and
[bebo]
orkut

ll

GOOGLE - CONFIDENTIAL TREATMENT REQUESTED GOOG-HJC-01099377


Example 2 [bebo]

, ebo

Entertainment, Real Estate, Finance, and Local continue to have high growth and large
numbers of visitors

US Category Growth by Unique Visitors, S e p t 2005-Sept 2006

160 7 n Sep-05 [3 Mar-06 I Sep-OG

12

GOOGLE - CONFIDENTIAL TREATMENT REQUESTED GOOG-HJC-0109937


US Category Growth by Page Views Sept 2005-Sept 2006
60
|:| Sep-05 I2] Mar-06 I Sep-06

50

40

30

20

"6
6
6&‘2‘
0°<0

World wide:
US Category Growth by Page Views Sept 2005-Sept 2006
60
|:| Sap-05 IE] Mar-06 I Sep-06

50

40

30

20

13

GOOGLE - CONFIDENTIAL TREATMENT REQUESTED GOOG-HJC-0109937


US Category Growth by Page Views Sept 2005-Sept 2006

ElSep-OS El Mar-06 I Sep-06

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Appendix: Universal Architecture

important that this project get staffed and underway soon.

14

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Universal serving diagram
GWS

Web 48
+ images

cluster boundaries

Universal Datacenter: TeraGoogIe


Mustang instant + static
blimpie +
news, blogs, video, local books, old blogs, groups.

GEEK
5 clusters
2K machines /
non-web docs s t o r e dIn
same clusters as Blimpie

Librarian

International M a r k e t Share

0 Russia: significant product improvements to core search and more aggressive localization
of products has yielded improvements to search market share (9/2005: Yandex 47%,

0 Japan: Google products & shareimproving. (1/3 of >“all’*< Google mobile page views n o w
come from Japan, followed by US (l/6), Google Maps Japan PVs has doubled from
8M/day to l6M/day in the past 3 months. Trails only US. Search share is flat.) Partner
network under serious threat by YahoolJapan and impending launch of M S N AdCenter.
(Lost Excite and Biglobe was a difficult renewal) M S N will likely offer large guarantees.
0 China: market share slipping further; 2005 (Baidu: 48%, Google 33%), 2006 (Baidu:
62%, Google 25%), source: CNNIC, Annual China Search Engine Report, 2005/2006
0 Korea: Naver (65%) and Daum (l9%) dominate the search market with
Google far behind (<2%); source: Korean Click

15

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From: Neal Mohan _ on behalf of Neal Mohan
Sent: Tuesday, February 09, 2010 12:28 AM
To: Henrique DECastro
Cc:

Subject: Re: Fwd: Fw: 2/1 ‐ AdX Follow‐up

+Scott since he understands this issue the best and is leading our agency demand-side platform (aka bidder)
strategy...

Thanks for raising this issue, Henrique. I am glad that we are following up on the various action items that
came out of our strategy deep dive with Vivaki back in December. Around this specific issue...

1) Fundamentally, we should have agency-level attribution through to AdX. Right now of course this happens
at the aggregate level as you describe based on what bidders like Invite are contractually obliged to tell us. I
will discuss how we will address this in the fiJture further down in the note.

2) A couple things to note that I want to make sure we are all on the same page on however:

a) This is N O T the top priority from an AdX (or Google agency spend) standpoint. There are several other
issues on sales and product that are actual gating factors to spend on AdX right n o w that we must address
urgently and that the teams are working very hard on. This is not a gating factor to spend on AdX for Vivaki
(or any of the other agencies for that matter right now).

As discussed today, we can go over the top 5-10 gating factor type issues in next week's GFM. There are
several on the product, services and sales sides that are bigger than this one right now.

b) This is N O T the top priority from a Vivaki standpoint either. As we covered in the sessions with them back
in December, there are several other product (and inventory) enhancements they would like to see on AdX that
will actually increase spend. This is not one that will grow their spend. Curt Hecht reiterated all these points
with me again last week when I saw him at anindustry event. We are working on those other roadmap items to
continue to increase their spend over time (which is already ahead of what they had committed to in our deal).

3) Yes, we should build a bidder and this has been part of our strategy for 2010. But this reporting issue is not
the primary benefit of owning our o w n bidder of course but will be a nice side effect. The primary benefits on
having a bidder are eliminating the disintermediation risk and substantially increasing display spend with
Google from agencies (through the combined use of D FA - bidder - AdX), However we are in the early days
here asyou note - the teams are just getting staffed up. We are looking at options to accelerate this (potentially
through M & A for example).

4) Until we have o u r o w n bidder, there are ways we will address this issue but each option has some strategic
implications for us. We can ask Invite to append it to every response on the real‐time bidder (however we are
still dependent on them reporting on this accurately just like we are today and therefore may be the WRONG

GOOGLE - CONFIDENTIAL TREATMENT REQUESTED GOOG-HJC-02079164


way to implement a solution). I realize that you suggest this option for speed reasons perhaps but it may not be
a good idea from a Google standpoint.

The better answer may be to have them respond to our real time bidder call with parallel responses for each of
their clients but of course the bidders are reluctant to do this (extra work, they become a pass through, etc). We
can mandate this but it will take a while for them to negotiate with us how to do this and then implement. In
any case, the prod / eng team is working on how we will address this in the short-term.

Let me know if you have any further questions.

- Neal

On Mon, Feb 8, 2010 at 10:14 AM, Henrique DE Castro ‐ w r o t e :


Susan, Bellow the issue I mention on the GFM call today regarding Agencies. The teams are on the ball but there is a lot
to fix....Henrique

Situation:
1- AdX is currently unable to track agency spend if the agency in question uses a 3rd party bidder. All networks are
moving towards 3rd party bidders globally and we will lose all visibility of agency spend on AdX once this happens
(because the bidder (not the agency) becomes the buyer in our reporting systems)
2 - Currently, an AdX-linked agency deal e.g. Publicis' Vivaki, requires a signed letter from any 3rd party bidders stating
what the agency's AdX spend was for the previous quarter. This is not an acceptable or scaleable solution for further
global deals being discussed with Omnicom, WPP, Aegis etc. due to the rebate sums involved
3 - This is also now a very real technical blocker to renegotiating and increasing the scope of the Vivaki AdX deal for 2H
2010 to include additional KPIs for accelerating investment and adoption: (1) additional outperform incentive, (2) incentive
to activate strategic publishers, (3) EMEA accelerator. The inability to track spend blocks all of these more expansive
dimensions.
4 - As GCN spend migrates to AdX, we may also see GCN display revenue drop with no corresponding increases visible
elsewhere
5 - At the broadest level, without visibility on agency investment, we face being dis-intermediated/marginalised and our
ability to address under-investment and other opportunities is challenged.

What's needed:
1. Media Platforms build a solution to allow the bidder to pass AdX variables naming the buyer (i.e. VivaKi, OMG Trading
Desk, Havas..) plus deeper details on the trade (e.g. publisher, market, advertiser...) This would not only assist with
revenue tracking but would also allow us to invoice the Trading Desk or the agency directly. This is probably the preferred
solution forthe bidders as it would potentially allow them to continue using their own AdX seats. Howeverthis is not
currently on the AdX product roadmap.
2. ‐ Or... Google builds its own bidder - which is on our roadmap but is unlikely to deliver before end 2010. However, this
wouldn't solve the problem for agencies who decide not to use our bidder.
3. - Or... 3rd party bidders are forced to use the relevant agency's seat on the AdX for their bookings rather than their own.
Howeverthis requires the bidders to make technical changes to their products & is therefore not likely to be in place
before Q3.

We urgently need to make the decision regarding whether we press for the delivery of the technical solutions from either
our product teams or those ofthe third parties. The longer we leave this, the harder it will become to implement ‐ and our
inability to track AdX will hinderthe global display deals currently being negotiated.

From. Susan Wo CICkI


To: Nikesh Arora Neal M o h a n _ ; Henrique DE Castro
Sent: Mon Feb 08 12:55:14 2010
Subject: Fwd: Fw: 2/1 - AdX Follow-up

GOOGLE - CONFIDENTIAL TREATMENT REQUESTED GOOG-HJC-02079165


this seems like a pretty detailed update on AdX. Thanks for sending. It looks like we have a clear list of what
needs to be fixed from product/eng and the we need to keep the same people on it.

Susan

---------- Forwarded message --‐---‐--‑


From: Henrique DE Castro _
Date: Wed, Feb 3, 2010 at 10:09 PM
Subject: Fw: 2/1 - AdX Follow-up
T o : _
Quick update following GFM questions raised on AdX and also some oof the key AdX issues. I personally review AdX
progress with Lexi/Laurent/Scott Spencer for an hour weekly. Henrique

From: Lexi Reese


To: Henrique DE Castro < ; Eileen Naughton _; Barry Salzman

Henrique, Eileen, Barry,

Follow-up to the meeting from earlierthis week: attached is a summary of v2 versus v1 spend (many thanks to Kristin
and David for their help with this).

0 37% of clients are spending 100 - 200% of v1 levels


014% of clients are spending 50 - 100% of v1 levels
0 49% are spending <50% of v1 levels

Reasons for low spend are mixed, and we are still investigating. but some contributing factors include:.

o inventory matching problems - V1 AdX Buyers are not easily able to find the same anonymous inventory in V2;
we are diagnosing this, but it seems to be related to a) an issue discovered today regarding incorrect set-up for
permissioning remarketing on sellers b) RTB adoption still limited
oAdWords not able to supplement parity due to an ad server logic issue in which AdWords buyers aren't
considered for ad units that are listed with different minimum CPMs for branded and anonymous
inventory (spend inhibiting for some of our biggest sellers like NBC and About.com)
o personnel changes - a finance glitch stopped orders from AdX buyers this weekend. This was resolved quickly
and didn't impact spend in a material way, but it did raise a flag to certain buy-side contracts (i.e., Vivaki, Ad.com,
Cossette, MIG) that were not correctly uploaded into the system by AdX employees who recently left Google. We
are correcting this in orderto make sure these buyers can spend, which should raise the volume on AdX sellers.

Our focus actions are:

1. SELL - migrations, new accounts, specifically focused on high value (go/adxhighvalue)


2. ACCELERATE SPEND - undertake proactive programs on the buy side: a) stimulate buying from migrated
buyers by actively helping v1 buyers find the inventory they were successful on; b) begin to form a RTB task
force to better understand how this type of buying is happening, and what needs to be done to drive spend
3. DEEPEN OPTIMIZATION CAPACITY ‐ design/execute significant optimization effort to ensure buyers and
sellers are transacting to potential
4. HIRE - hire to ensure sufficient coverage for key accounts

GOOGLE - CONFIDENTIAL TREATMENT REQUESTED GOOG-HJC-02079166


5. RESOLVE BUGS - manage accounts carefully to uncover bugs/escalate/resolve with cross-functional teams as
quickly as possible.

Pls. let us know if you have questions/thoughts.

Lexi

On Mon, Feb 1, 2010 at 10:36 PM, Lexi Reese _ wrote:


Hennque‑

As requested, attached is a summary of key punch list items (both open and closed).

In real time, this is how we track these things (with notations on when things have been resolved - and there’s a lot of
that!):

In addition to the cross-functional commercialization meeting where we discuss these things, we are adding a weekly NA
management touchbase to make sure me, Scott, Eyal, Kate (sales, product, engineering, services) are communicating
well about those issues that impact our biggest clients and we're working towards speedy resolution.

We are still working on an analysis of v1 to v2 spending by sellers so we can identify who is meeting, exceeding, lagging
v1 spend. Should have that to you by EOD tomorrow.

We‘ll also put all relevant AdX material for our Monday management calls (which we'd like to move to every other week) in
the go/adx‐sales microsite so it's a little easier to access.

Pls let us know if you have questions,

Lexi

ps - you specifically mentioned the following issues; here is update on these with the # corresponding to the priority on our
original punch list

0 BUY SIDE ‑
o# 2 - B O O M - Boomerang - targeting - available as of 1/29
o#4 - API testing beginning this week on 4 buyer clients including Criteo
- Based on these tests, we will come up with a list of "gating criteria" that we need to solve for
before API is generally available to all clients
oADSENSE INVENTORY - We now have access to 80% of available AdSense inventory , which translates
to approximately 60% of total AdSense
- available = tiers 1 - 6, display-enabled, not opt'd out of AdX 3PAS
o SELL-SIDE
o#1 UI DELIVERY ERRORS - Sell-side UI error message has been fixed (the #1 issue on our sell-side
punch list)
o#3 ARC - Sales team is leading meetings with the PM in ARC to a) train the team on existing functionality
so we can trouble shoot appropriately, b) answer questions on specific client feedback (prioritized on
punch list)

GOOGLE - CONFIDENTIAL TREATMENT REQUESTED GOOG-HJC-02079167


Susan Wojcicki
VP, Ads Product Management

GOOGLE - CONFIDENTIAL TREATMENT REQUESTED GOOG-HJC-02079168


Product Search
collaborative p r o d u c t p l a n

Principles)

Google as the web's best (easiest, fastest, most trustworthy, most comprehensive)
place to start shopping for anything
0 not j u s t where to buy, but also what to buy
Goal: Provide a better experience for product queries on Google, growing the
number of product queries on Google
Acquire, clean, normalize, rank product data not j u s t f o r use on product search,
but also Google.com search results and ads
Vast majority of users from google.com, but a vertical dedicated to organizing the
world of products for sale must exist
All products, all locales, all languages

google.com integration as a foundation rather than an afterthought


meet quality issues head-on as a primary focus: search quality, exposurequality,
normalization quality, feed quality, attribute quality...
start small, managable and successful (most popular and easiest product verticals,
online merchants only, in US English) but plan f o r much broader scope
aggressively acquire and use vertical-specific product catalog data where available;
best-effort algorithms for long tail
start f r o m search use cases and build out toward browse use cases eventually
start from 'where to buy' use cases and build out toward 'what to buy' use cases
eventually
start from online inventory and build out toward local inventory (from big chains)
start in US English and build out toward global eventually
feed Checkout ecosystem because the more we know about merchants, the better
job we can do
separate infrastructure from user experience

Assemble the right cross-functional team to create a successful product


Build EMG trust by quickly executing on set of Checkout-related enhancements
and minor UI improvements to the existing Froogle site ‐ see ( 3 ) below for
mocks and details
Begin determining how we want o u r feed specifications to change
Begin executing on the short‐term sales strategy articulated by Vince & team to
increase coverage of good quality Checkout-enabled items
0 Checkout merchants in Base (lowest-hanging fruit)
0 Base merchants in Checkout (some integration pains)
0 Go after top merchants in neither Base nor Checkout by vertical
- SKU coverage
- Merchant quality
- "Must-have" brands

Medium-term focus
. Great quality exposure of a Product Search experience f o r consumer
electronics and media ( b o o k s , CDs, D V D s , g a m e s ) q u e r i e s on
g o o g l e . c o m . This could b e via onebox, megaonebox, blended results, o r
whatever. Don't worry much about other verticals at this point.
a Data acquisition
- Acquire catalogs (CNET, I n g r a m , Muze, sources of UPC info, etc):
human task - Content team.
- Acquire buying guides for consumer electronics and media:
human task? S u p e r high precision needed.
- Acquire reviews for consumer electronics and media: Seed with
sites chosen by humans?
- Acquire tax tables from merchants and third parties
- Acquire shipping tables from merchant and third parties
- Create n e w feed specs for consumer electronics and media
products. Use catalogs to suggest fields.
- Feed quality
- Merchant credit card verification
- Images
n Infrastructure and search quality
- EvaI framework
- Universal search infrastructure work
- Product ranking work
- Google.com triggering conditions ( n o t j u s t when to trigger, but
which experience to trigger - navigational vs. category, etc)
- Evals galore
a Data understanding
- Normalize offers into the ground-truth product buckets
mentioned in the catalogs: precision m o r e important than recall.
- Categorize offers into the ground‐truth category hierarchies
mentioned in the catalogs
0 UI and features
- Begin work on n e w XFE‐based frontend
- Determine reasonable ways to expose a Product Search
experience on google.com for these product verticals. See some
toy mocks for product-navigational queries and t o y mocks f o r
category queries
- Define preliminary UI for "category" pages (Products >
Electronics > Digital Cameras) and "product" pages (Products >
Electronics > Digital Cameras > Canon Digital Rebel).
- Checkout integration tasks
- Tax/shipping/availability
- Buy from a Google page
- Fraud, popular items, etc
0 Improved snippets and result diversity on Google.com results pages for
commerce queries

GOOGLE - HIGHLY CONFIDENTIAL GOOG-HJC-O3 119815


Later ( b u t still really important)
Next several high-impact verticals.
Revive structured data crawl for offers.
Reintegrate local data.
Work on best-effort normalization algorithms f o r long-tail.
Work on best-effort categorization algorithms for long-tail.
I n t e g r a t e attribute extraction efforts such as Merlot.
Invest m o r e in webpage understanding to improve coverage of reviews, buying
guides, etc.
Build out better browse functionality on the vertical.
0 Integration with other Google properties
. Internationalization

3 Details about short-term release


- Goals: Streamline interface, drop features with low usage and/or quality,
debrand, enhance with Checkout, build team momentum and executive trust
. Methodology: Update existing CFFE
. Mocks (but see "Does not include" section below)
. Changes include:
a Replacing the Froogle logo with a Google logo pointing to google.com
and eliminating/replacing all other mentions of the Froogle n a m e
a Replacing Froogle green colors with Web Search blue colors throughout
0 Moving the block of refinements to the bottom of the page
a Removing the Checkout restrict from the block of refinements and
putting it at the top of the page with the alternative, m o r e aggressive U1
0 Removing Local integration
0 Removing Grid View
0 Ensuring the Checkout restrict and Stores restrict at the bottom of the
page play together correctly
0 (Maybe) adding promo badges beneath results from Checkout merchants
for non-Checkout users
. Does not include:
0 Ta x and shipping estimates
0 Ability to change shipping options
0 Buy buttons on results page
. Ti m e l i n e
0 Rough demo in corp: Friday 3/16
0 Persistent demo in prod: Thursday 3/29
0 External launch: Wednesday 4/14 (debranding m a y slow us down due to
dependencies on GWS)
. Marketing plan for rebranding ( To m to insert)

4 Open questions
D a t a a c q u i s i t i o n a n d q u a l i t y ( O w n e r s : Vince, K a r e n , C y n t h i a / B e n i t a , Tim/
Yu k a r i )
Base T e a m S u m m a r y in bold; B a s e Te a m members individual i n p u t in various
colors.

0 What % of our product listings in Base today currently come from Checkout
merchants? (i.e. if we restrict to Checkout only, how much of t h e product index

GOOGLE - HIGHLY CONFIDENTIAL GOOG-HJC-O3 I 19816


are we losing?) How does the raw number of unique offers compare to
competitors such as Amazon, eBay, Yahoo Shopping and shopping.com?
. How shall we get rid of spam in Base? Can we simply do a merchant credit card
verification?
0 Base R e s p o n s e S u m m a r y : CCverification w o u l d d e fi n i t e l y h e l p ,
although it won't completely end spam/abuse.
o No. Credit card verification is not enough. With identity theft increasing,
its very easy for people to get a hold of other people‘s credit card
number and verification processes.
0 More than one verification- There needs to be more than one w a y to
verify identities to eliminate spam.
0 Better aggregation of merchant reviews from review sites; give greater
prominence to user reviews; make it easy to View and rate merchants
based on buying experience
., A lot of spam we receive comes from single item posts. We‘ve developed
signals that address this issue, but we really need to move to an account
review system.
0 We make the system t e d easy. Some fitzancial verification is good, but
m a y not work for a d m e r c h a n t s , t n that case, and I firmiv believe Base
shouid be free, we should have them p u t clover“; a smaii deposit
{SSSWMG} that wiii refunded after they meet some quality rank. Satisfied
sates, saies, months active, etc.
0 I think credit card verification would be great. It won't be enough to
completely r i d Base of spam, but it'll likely help immensely to combat
fraud, and y o u r simple spammer isn't going to have access to a huge
array of stolen identities. Perhaps cross-breed with Checkout and require
people to have an active credit card or bank account registered in their
Checkout account. This would create m o r e Checkout sign-ups, too, and
likely inspire people to sell their items using Checkout.

- What % of Checkout merchants currently give us data feeds via Base?


., Base Response S u m m a r y : Unknown, b u t moving forward, we
w o u l d l i k e t o c o m e u p w i t h a w a y t o fl a g a n d m e a s u r e .

- What % of Base merchants are Checkout‐enabled?


0 B a s e R e s p o n s e S u m m a r y : 1 3 % ( = 8 4 5 4 t h i r t y - d a y a c t i v e CBG
e n a b l e d merchants/65038 t h i r t y - d a y a c t i v e m e r c h a n t s ) .

- What changes should we make to our baseline Product feed spec? Should we
really create another one, or can we simply accept a competitor's feed format
t h a t the merchant will already have ready?
0 B a s e R e s p o n s eS u m m a r y : S u p p o r t f o r a l t e r n a t i v e f o r m a t s i s g r e a t
f o r t h o s e w h o w a n t i t . H o w e v e r, c h a n g e i s c o s t l y a n d c o n f u s i n g
f o r providers; we have to be w a r y about making drastic changes
t o t h e c o r e s p e c i fi c a t i o n .
> If the idea is to gain large merchants, then perhaps it would make sense
to come up with a system that is easier for them to submit the same
feed format to us to put online
If we choose to do a different feed format, we should make it easier for
merchants to do this through some tool that we provide.
a The easier we make it for o u r customers, the better.
a The better quality data we can get f r o m o u r customers in the most
efficient w a y, the better.

GOOGLE - HIGHLY CONFIDENTIAL GOOG-HJC-03 119817


0 While it is a competitor's feed format, this doesn‘t mean its bad. We
need to look at the best w a y for them to give us content as well. And of
course we want to get better data than our competitor, so if possible, we
can use a similar format, but revise it a little so its google specific and
gives us better quality and more structured information to return the
best search results for users.
0 Change is hard and confusing for providers. Just changing from Froogle ‑
> Base specs took a long t i m e . Keep our specs the same unless there's
strong case for change.
0 I m p r o v e Store Connector to better handle competitor feeds (eBay,
Yahoo, Amazon and in that order of importance). Promote Store
Connector more once it’s more polished.
o Definitely keep the same specs, but we should expand to include
additional types of feeds. We constantly get people uploaded eBay /
Yahoo store export files or shopping.com files. We should write the
software to include these as well. If anything, we should be embracing
a n y kind of upload and normalizing it on our end... make it as easy as
possible for the providers and they will come to us.
0 More formats = better. While I ‘ m sure that some of them would be a
nightmare to program for, I bet a lot would be pretty simple to adapt
into formats that we already accept. At the very least, a tool to convert
other formats to our formats would be great. ( I m p o r t a file, select
"convert Bizrate to Base", g o ! )
o I think making m o r e changes will j u s t confuse o u r providers even m o r e .
O u r spec is already pretty complex. I think we should provide tools that
converts other competitors“ format into Google Base format supported
format.

. How granular a product vertical deserves its own feed spec? Consumer
electronics? Cell phones? How m a n y feed specs do we need to do a good job on
consumer electronics and media? Who creates feed specs? An ops team of
"product vertical specialists"?
0 B a s e R e s p o n s eS u m m a r y : M o r e g r a n u l a r i t y i s b e t t e r f o r u s , b u t
w e s h o u l d n ' t o v e r w h e l m o u r m e r c h a n t s w i t h choice. T h e m o r e w e
c a n automate verticalization on o u r end, t h e b e t t e r.
"the more granuiar the better. "that way we see. trigger more mear‘rir’rgrai
fitters for specific product searches
= We shoots ioeir at most popaiar prodect searches o r ; torrijiiéase/izroogie
and s t a r t f r o m there
Coosos’rer eiectror’zécs .. “i“‘yf, e y e p i a y e r i y g fi , Camera, Camcortfier, audio
piayers, phones, ceii phases, video g a m e s , home theater systems, ifiifififxs,
computers, préeters, car stereo, {2335 devices
{bps team cart create feed specs
area be abie to categorize items better if we have o u r providers seiect
“sobwerticais” t é p e e r Prodects ieeteae of barrier; them type irz whatever
they warzt fie “prodec‘twtype” attrébete.
0 Up to this point, granularity is (supposed to be) achieved with attributes
instead of verticals. For example, a merchant can supply "Cell phones"
for the "product__type" attribute.
a The issue is that providers don't really supply very useful information for
the "product_type" category. However, with a extremeley granular
system, where do items such as "iPod accessories" fi t in? I think it could
be useful to have specific feed specs but enforce our “required“
attributes m o r e strictly (i.e reject feeds with incorrect product_types,
etc).
a If we're moving to a normalized system, categorizing products should be
relatively easy depending on the catalog data that we have. We could
have a pretty nice hierarchy set up. Things don't HAVE to only be in one

GOOGLE - HIGHLY CONFIDENTIAL GOOG-HJC-03 119818


category, either. Headphones can be in "Consumer Electronics - - > iPods
- - > Accessories" AND "Consumer Electronics - - > Audio - - >
Headphones".

. Do we need product specialists to help compile lists of good graduation gifts,


Valentine's day gifts, etc?
0 B a s e R e s p o n s e S u m m a r y : H u m a n s c a n a d d value, especially as
w e ' r e b u i l d i n g o u t t h e f e a t u r e . H o w e v e r, w e s h o u l d n ' t b u i l d
features dependant on human s u p p o r t .
0 I strongly believe some form of editorial intervention would provider a
superior overall experience than focusing just on search. For example:
We can compile weekly lists of “top Google Checkout deals“ and other
types of recommendation lists.
0 Or regularly "feature" a small‐medium merchant to provide exposure and
build a sense of community or at least put a human face on things.
0 One great feature of Amazon is that it provides a useful recommendation
list based on items you've purchased before. Clearly, we won't have a
history of users purchasing history, but we could provide some kind of
"top selling" products list, which would definitely help improve the overall
search experience for users (plus, those t o p sellers are more likely to be
trusted providers).
5 { t h i n k puttmg acme person ore the task of compiling iists of “good“ items
forks away from the oath that Google oormai takes. I w o u i d rather see
an automated view of popeiar items or bedding treads ~ a zeitgeist for
produets. Humao involvement wooid be at a metamievei to choose which
categories to use.
0 How much data do we have on our users? Do we keep track of the ads
that we serve for them? How much search data do we keep on them? We
might very easily be able to do an Amazon-like product recommendation
based on all the information we already have.
0 We cae Seek at what were tee m o s t ooeuiar modest searches on googie
for ease seasoe {fie-“faster. graduatiee, jeiy are, Christmas, veieetiees day,
e t a } arid we Wiii tie aeteseatieaiiy aeie to generate a iist of {sweeter gifts
{with some hemaa i a t e r v e o t i o n j

- What should be our product hierarchy? Can we reuse a competitor's hierarchy or


do we need our own?
0 Base Response S u m m a r y : W e should g o w i t h t h e m o s t w i d e l y
u s e d h i e r a r c h y.
o I know there isn't a set standard product hierarchy that exists (espeically
with the various information we g e t from third-party providers), but we
should go with the most widely used categorization. Amazon would
probably be a safe bet, especially since they‘ve put a lot of research
behind their hierarchy.
0 There must be some industry standard for product hierarchy that we can
use. if not, we shouid m o v e towards creating a stafidard product
hierarchy. test resort Amazon.
0 Amazon‘s hierarchy would be the best to c o p y, in my opinion. It‘s easy to
follow and v e r y, very well-defined.

o How much human involvement do we need supervising normalization and


categorization algorithms?
0 B a s e R e s p o n s eS u m m a r y : T h i s h a s t o b e a u t o m a t e d , w e u s e d t o
categorize manually a n d it didn't w o r k (even w i t h a m u c h smaller

GOOGLE - HIGHLY CONFIDENTIAL GOOG-HJC-03 119819


i n d e x ) . O u r u s e r s can p r o v i d ea g r e a t " r e v i e w " f o r c e t o h e l p u s
here.
I don't know a lot about algorithms, but from what I do know, we
shouldn't need very much if the algorithm is designed correctly. Moving
back to the old system of manually categorizing e v e r y product that
comes in would N O T be a good thing.
While I agree that this should be done automatically, I remember
Froogle's clustering and the nightmare that was. If the normalization is
not done right, then it creates a huge headache for ops. Having most
things done automatically but giving ops a tool ( o r information to give to
CPs -‐ “put this UPC in y o u r item”) to assist with the outliers would be
optimal.

0
B a s e R e s p o n s e S u m m a r y : W e h a v e a n i n s t o c k fi e l d - - w e s h o u l d
use i t .
The listsited number of merchants that do have good inventory
information an?! likely be hesitant to give as this data. Insteck is a vaiee
that we are iikeiy to g e t better data for. We couid adapt this sort of
attribute to find out if they have nothing in stock. limited avaiiabiiity, or
a lot of stock. If it has Eimited avaiiability, we can attract users to eheck
the metci‘iants site.
Exact inventories, like those needed for full checkout integration, will be
next to impossible to g e t , especially for brick and mortar stores, which
m a y only update their online inventories on a daily basis or so. A

a
Base Response S u m m a r y : There a r e tables t h a t exist on multiple
s i t e s . F o r s h i p p i n g r a t e s , w e n e e d t o b e c a r e f u l because t h e y a r e
negotiated c o m p a n y rates. We probably should be on p a r w i t h
Amazon.
Saies tax table mapped t o zip «code from t a t e r } : ‑
http:waw.eclipse.intuit.com/solutions/adv/tax.asp
USPS Shipping tables: http:[Lpe.usp_s_.gov/text/dmm300/
ratesandfees.htm
UPS are available starting at page 20: http:[/www.ups.com/media/en,£
2007 retail r s g p d f
DHL and FedEx are probably available on their site, b u t I couldn't find
them with a quick browsing.
We need to keep in mind, though, that although tax rates are standard,
shipping rates are NOT. Just because USPS says it costs “blah" to ship an
item, that doesn't mean that the store isn‘t charging ”blah+$20“ or
offering free shipping. Most shipping information should come directly
from the companies themselves with the o p t i o n of using customizable
shipping calculators.
0 From GPS: focus on big chain merchants (e.g. Best B u y, B&N, . . . )
rather than one-off small businesses
0 Base R e s p o n s e S u m m a r y : Going a f t e r l a r g e r merchants is t h e
fi r s t s t e p . To g o a f t e r t h e l o n g - t a i l w e ' l l need t o have a n easier
w a y t o p r o v i d e t h i s data.
0 Small merchants need an easier way to submit their data to us. If we
can help bridge that information gap for them, we can get their content
easier.
0 Large merchants also need an easy to way to give us data, but they will
have a tech team responsible for doing this or a tech person.
0 We shouid push the intuit initiative and iarge chains to get this data ma
iot of good data couid be extracted from new esters of Qoickoooks. We
could also parteer with a site iike n e a r b y n o w t o m o r t r y t o repiicate what
they have.
a Add a iiait sémiiar to as f
"this iénk sttooid say sometiziog ii “ t i s t y o u r oredocts o gamete.”

- To what degree do we need to involve humans in judging data quality?


5 Base Response S u m m a r y : H u m a n s can a d d a great deal of value
t o a h e a v i l y a u t o m a t e d / o p t i m i z e d s y s t e m ( e . g . w e b search a n d
SQE). H o w e v e r, t h e fi r s t s t e p i s w o r k i n g t o w a r d s a s y s t e m a n d i s
o p t i m i z e d a u t o m a t i c a l l y.
a H u m a n s will be involved in data quality proportional to the ability of
technology to meet the desired level of data quality. They will bridge the
g a p between what the automated systems can accomplish and the goal.
It is my opinion that it is n o t possible to completely r e m o v e humans
from the process, but that a system where a relatively small number of
humans control powerful tools for data quality and perform higher level
(“account“ level to meta level) analysis is optimal.
o Humans need to be involved in judging, but humans are also bias and
inconsistent. The better we can regulate, streamline, and automate
things based on effective signals, the better.
a Humans judging data quality is limited as well because it takes us m o r e
time and can be inaccurate across different people
0 We should leave the manual judging to the very top cases where a
human is needed.
0 Members of the Base Ops team has made a significant impact on data
quality thus far. Human judgment is often necessary to determine
spammy affiliate networks or sites, spammy IPs, etc. There's also no
(good) landing page checking tool yet. Need to ensure correct prices,
descriptions, working links, etc.
0 We can probably shift a tot of quality checks to an automated system. A
iot of o a r current efforts are stéii oattero based which a comeoter snooid
take care of.
0 With better metcnant duality signals, we couid wipe out a lot of p o o r
duaiity items. integration with Checkout data and AdSense data wooid
be huge.
0 Many affiliate and dropship sites would be difficult to detect
automatically. With any sort of creativity, people could bypass most
automatic detections that we come up with. Considering that one of the
most frequent complaints about Froogle and likely the top reason it‘s not
being used is that it has low quality results, we should do whatever it

GOOGLE - HIGHLY CONFIDENTIAL GOOG-HJC-03 119821


takes to keep quality as high as possible. I don't believe humans can be
taken out of the equation. Both reactive and proactive measures should
be taken.
I agree with Marc that a lot of affiliate and dropship sites will be very
hard to detect automatically. We need human to detect if they are the
rightful content owner or they are just an affiliate uploading and earning
commission. Also some policy violations such as borrowed content will be
hard to detect automatically, and will need human enforcement.
0

0
B a s e R e s p o n s e S u m m a r y : Please r e f e r t o t h e t a b l e i n t h e
following trix
0
http:Utrix.corp.goog|e.com[

a
B a s e R e s p o n s eS u m m a r y : M e r c h a n t s a r e n ' t c l e a r o n a t t r i b u t e s
( t h e i r v a l u e and/or h o w to u s e t h e m ) because we a r e n ' t clear on
t h e m i n t e r n a l l y. I f w e could d e m o n s t r a t e t h e i r p o w e r i n o u r
r e s u l t s , t h e i n d u s t r y w o u l d f o l l o w.
Probably because of a (perceived) results vs. effort analysis. If a
company thought that they would a receive a "significant" number of
sales (whatever that means to them) by following o u r advice, then I
think they would do it. Companies seem to have no trouble adapting and
bending over backwards to be a part of Google.com because they realize
the importance. With product search to date, the pay off for merchants
has been low, with some exceptions, especially in cottage
merchants.?data??
Communication‐ We change o u r required attributes frequently, and then
change the type of data values in these attributes frequently.
Communication to our users needs to be solidified and defined. Us asking
them for information and stressing its importance one month, and then
us asking for different or revised information another month, is not
effective in communicating standards and what needs to be done on the
user and in order to achieve search results.
Attributes are a nuisance at times and hard to correctly format. They all
have different formatting requirements, different character limits, and
these are all very specific. While we see the point of this and why its
necessary, perhaps we can explore a different and m o r e effective way to
get the same kind of information from users‐ Without having to be so
particular in how users manually submit their data to us.
Most product data is tacked in an unstructured f o r m a t , i t ‘ s too much
effort to poi? this out consisteetiy. We need to gather better product data
from manufacturers or whoiesaiers. I ' m not sure how much vaiue
merchants add to the duality of the data.
Upload process is v e r y confusing already for m a n y small merchants, and
making drastic changes is j u s t beyond their means. Most of them really
only upload right now because it's A) Free and 8) Google. If we really
want to succeed, we need to make it as easy as possible for them to get
products live, make updates, etc.
What should we do about merchants who want to upload but use third party redirects for
tracking? Policy question

Is there anything we can do to improve our exposure via onebox in the short
term?
What do we need for a search quality evaluation framework?
What kinds of signals from Checkout would be very useful in ranking?
What are the m a j o r hurdles in google.com integration?
What is a reasonable approach for product normalization in the long tail?
What is a reasonable way to do product categorization for the long tail? (One of
the Risk engineers has a preliminary approach with promising results)
How to address the problem of attribute extraction
., S o m e existing efforts at Google
To what degree should humans be involved in feed understanding efforts?
What feed understanding metrics should we track?
What ranking metrics should we track?

Should we develop our own, new frontend or rehabilitate CFFE or ASFE?


How exactly does the ASFE change ranking? How is it different from CFFE?

What would be the impact on eBay and Amazon if we were to cannibalize their
traffic from ads/search?
What would be the reaction
What is the 5 2 5 opportunity?
How might our ads business need to change to accommodate Product Search?
How would merchants/the industry react to Google selling from Google pages /
disintermediation?
How would merchants/the industry react to Google asking to place a consistent
UI element (e.g. Checkout "add to cart" button) on the merchant site?
What are the next countries in which we should expand?
What metrics could we use to measure the success of Product Search driving
Checkout vs competitors (both retailers and aggregators/agents) like Amazon or
eBay? Possibilities (old):
a Product Search merchant page clickthroughs vs. 'product page' views on
a competing site (probably impossible to get good stats)
0 # conversions generated by Product Search merchant page clickthroughs
vs. units sold on a competing site
0 GMV generated by Product Search merchant page clickthroughs vs. sales
on a competing site
0 Product Search resultspages vs. resultspages on a competing site
(probably impossible to get good stats)
0 Product Search searches vs. searches on a competing site
., Product Search user sessions vs. user sessions on a competing site

Shall we eventually accept jobs or services for sale? Cars? ( u g h )


0 Base Response S u m m a r y : We need to g e t retail products r i g h t
b e f o r e w e t r y t o i n c o r p o r a t e r e l a te d verticals.
o No. Or at least, job/services/vehicles/housing/etc. differs enough from
product search (and online purchasing) to be kept separate.
o I t h i n k we should get online products right. Then move on to cars. E
think it wiii be much more chaiieaging to get good structured data for
jobs and services.
0 Also, Services and Jobs are very location-dependant. You can't ship a
house‐cleaning service. These should probably be more tied in to a
"Local / Maps“ effort, down the road.
o earaoatwo to predoizts, F;thirst joos and ears we? 3363 easier to ée’zeéement.
Usetoé attrfiiautes are iéméted for jobs are? e a t s , so we e a t ; jest some up
with orze feed sees for e a s t } . if we eae émeiement etedoets, we sheets? ioe

séece etiees teed to vary eased es the seoee “for each; setviéze.

. We have a results page. What other page types will we need? Product reference
pages? Category pages? "Comparison matrix“ pages? Others?
0 B a s e R e s p o n s e S u m m a r y : S t a r t w i t h a g o o d results p a g e . Review
pages for the long term.
a We m a y need more pages in the future, such as review pages- and
organizing this in a better way than our competitors obviously.
a We should provide any necessary information in one place for our users,
but also, we don‘t want to have our users going to multiple places to find
information. It should be centralized and organized, and if that involves
adding in m o r e pages, then we should make sure its done effectively.
a In Google fashion, its good to do the basic and necessities first in terms
of things needed and then examine closely what the market wants and
what its telling us. It will also be helpful to look at market trends from
similar product searches to see what they are offering their users and
what their users are saying about their product features.
0 Related searches- if someone is searching for a wii, the main results they
get should be wii‘s, but there should be the option for the user to also
look at wii accessories (games, remotes, etc.) The user shouldn‘t have to
search AGAIN for wii‐related things. So here, the way we organize
related searches for the product is important.
a User‐submitted reviews / ratings would also be nice, and probably a
highly‐requested feature.
0 New pages might not be necessary beyond the search results page.
Perhaps plus-boxes in results f o r ratings and product details? A "more
info" link that fills the right side of the page with information about that
product?

- Do we need to maintain the ability to display non-Product structured data on


google.com?
0 B a s e R e s p o n s e S u m m a r y : Ye s , i f w e c a n g e t t h i s r i g h t f o r o t h e r
v e r t i c l e s a s w e l l , i t w o u l d b e a h u g e w i n f o r t h e c o m p a n y.
a Yes, it‘s probably a good idea to maintain this ability. You never know
when you might need it and how the information could benefit things
down the line. If y o u can get people to send y o u structured data, that is
a good thing.
a Yes, especially since we spent so much effort acquiring well‐structured
content (especially housing, vehicles)
o Definitely. Even though it’s a small 0/0 of what we receive, any t i m e we
can improve the quality of data on our flagship product, that‘s a good
thing.
0 Yes, yes, yes! The vision of - i s amazing. If t h e execution can be
pulled o f f right (housing gets close to i t ) , it will be a very powerful
feature that differentiates us from our competitors.

GOOGLE - HIGHLY CONFIDENTIAL GOOG-HJC-03 119824


. For what product verticals should we even bother attempting to normalize
product offers? (No sense in normalizing flower bouquets...)
0 B a s e R e s p o n s e S u m m a r y : We s h o u l d o n l y n o r m a l i z e p r o d u c t s
w i t h u n i q u e i d e n t i fi e r s ( S K U s , I S B N s , B a r c o d e s ) e t c .
0 The obvious ones: electronics, books/ magazines, media, home and
garden, toys, sporting goods. Some that don't make as much sense:
jewelry, antiques / furniture.
., Should normalization be tied to vertical or ratherjust to the products
themselves? We should get as much normalization information as we can
get and use it wherever we can fit it. If there ARE a few standard flower
bouquets, then by all means normalize them ( i f I just want to buy a
dozen red roses, why shouldn‘t I be able to see that in a normalized
view?).
0 We should only normalize products with unique identifiers (SKUs, ISBNs,
Barcodes) etc.

0 Ultimately, what features should distinguish Google Product Search from its
competitors?
., Base Response S u m m a r y : If o u r goal is to be as good as Amazon,
l o o k a t A m a z o n a n d s e t t h a t a s t h e b e n c h m a r k i n search result,
s p e e d , q u a l i t y, p e r s o n a l i z a t i o n , t a x / s h i p p i n g , e t c .
0 google.com intergration
0 speed ‐ pages load faster
0 quantity - m o r e products, m o r e sellers, m o r e data, etc. "a marketplace
that sells everything to everyone everywhere".
0 quality ‐ better data, less spam
0 UI and organization‐ we have m o r e data, but when we display it to o u r
users it needs to appear simple and streamlined. Users shouldn‘t be
overwhelmed when they conduct product searches. It needs to be easy
for them.
a fraud‐ little or * n o fraud. Related to quality.
0 Personalized search‐ this can play a role for users looking f o r certain
products. We should customize it for our users with product search as
well.
a Internationalization‐ we should give o u r users the ability (eventually) to
search for products in certain languages and have results returned to
them in certain languages. Perhaps having a translator service available
so users could seamlessly translate pages in english to their language
and vice versa if needed. Ultimately, we should make internationalization
a way to condense currency/language barriers to the market so its really
o n e market for everyone. This would potentially involve establishing
relationships between world banks, etc, and would mess in with policies,
but if we are able to do this for our users, we'd be the first.
a Market research: Study o u r customers and the industry. We are lucky in
the fact that we won't be the first to do product search. Amazon came
before us. We should look at the strengths and weaknesses of already
existing product searches and use it to make ours stronger and better.
We should use o u r predecessors as an example and take advantage of
the fact that we can learn from what they are doing and we can learn
from their users.
0 Product Search is v e r y, v e r y well done on o u r competitors' sites. We
should put a huge concentration on getting the most information we can,
since that is one of our biggest advantages. A fast, Googley interface and
instant purchase with Checkout will also help. First, we should
concentrate on getting up to the same level as o u r competitors, though ‑
tax/shipping, ratings, etc.

. What are the biggest issues in internationalizing the product?

GOOGLE - HIGHLY CONFIDENTIAL GOOG-HJC-O3 119825


B a s e R e s p o n s e S u m m a r y : Lack o f p e o p l e s u p p o r t i n t h e n e w
m a r k e t s - t h i s include CSRs, a n d p e o p l e w h o c a n s h a p e t h e
p r o d u c t f o r t h e m a r k e t ( r e s e a r c h local l a w s , create a p p r o p r i a t e
f e e d s p e c i fi c a t i o n s , e t c . )
inertia: no one ever internationalized Froogle beyond DE and UK.
deadlines came and went each year like the seasons. The question is if
we can pull our resources together in a more timely fashion and stick to
our deadlines.
support: quality (how easy to use, how reliable, etc.) of product will
determine amount of support needed. will have to coordinate support
activity over multiple offices.
- We need to make sure we streamline processes and trainings
across offices for the product. This needs to be done ahead of
time and not progressively as the launch in another country
occurs.
multi‐language helpcenter
international laws. how do foreign countries classify Checkout? avoid any
applicable PayPal pitfalls.
US outcome: How things go in the US is very important. If the product is
unstable (bugs all the time) and not defined in its vision and direction,
this will be a problem when we want to launch it in other countries.
Internationalized launches should n o t necessarily be Checkout‑
dependant. When are we going to have Checkout in China? Who knows,
but I'll bet lots of Chinese want to buy stuff, and the faster we can get an
efficient and quality product search engine i n t o that market, the better.
Checkout integration, which I ' m sure has many more legal hoops to
j u m p through, can come later.

0
consistent cart appearance &| checkout UI from merchant pages
o add-to-cart &| checkout from google.com pages
n
tax and shipping estimates
o inventory
o trusted seller stuff
ability to change shipping options
Ability to purchase multiple items with checkout
o Internationalization
o User flexibility: People are fickle. Shopping online is n o t as easy
sometimes because your sale is generally final, returning things is a pain
b/c it involves shipping, you m a y have clicked on or selected the wrong
size, etc. The ability to go back and edit an order after you have
processed i t . A lag t i m e (maybe 15 minutes or something else) where
you have a grace period to cancel an order and n o t worry that y o u r
credit card will still be charged, or change y o u r shipping address, or
change the color of the shirt y o u r ordered. And a grace period f o r the
seller to also make changes, if needed, to the order. Google can help
faciliate this for users and put them in more direct contact with
merchants. For example, buy.com and amazon allow y o u to cancel
orders up until the t i m e they are shipped. This might n o t be as feasable
with Checkout, but it should be our goal.
Communication: Facilitate communication between the buyer and seller.
Enable chat perhaps to discuss orders if necessary- this would involve
the opt in on the buyer and seller sides.
Contact: Providing all o u r users with a valid contact from whom they are
buying. How many times do y o u have to search for a contact address or
phone number to call. If Google can put this up front f o r users, this
would save some time for customers and help us gain more trust from
users.
o Merchant / Product ratings and reviews.

What is the relationship between the Product Search organization (in eng, ops,
sales, marketing, ...) and the Base organization?
Staffing! See the Staffing trix sheet

% English google.com queries that are commerce‐related [appears to be 5‐8%,


based on looking at random Google.com queries]
distribution of commerce-related English query types on google.com [looks like
roughly equal category and navigational queries, plus some brand queries and
store queries]
% google.com queries that are commerce-related in {de,fr,es,nl,it} [need help
from language specialists]
t o p 100 froogle standalone queries [mostly consumer electronics]
daily # of clicks sent to merchant sites from checkout-enabled items on froogle
[ m a y not be logging this currently, j e f f to estimate from froogle coverage]
daily # of clicks sent to merchant sites from all items on froogle [about 1M daily]
proportion of google.com users with a (US?) location in their cookie (so we can
calculate shipping) [looks like 1.1%]
proportion of google.com users with a Checkout account
histogram of # pages seen for users with merchant clickthroughs
histogram of # pages seen for users without merchant clickthroughs
clickthroughs on froogle onebox toplink vs. smaller links below
usage of refinement links [see below]
Initial team staffed
Clear product definition and short- and medium-term mockups created and
agreed upon by key parties
(separately) Launch "Checkout products" onebox for existing Checkout users
First set of changes to existing Froogle site: clean up UI, Checkoutify
Launch de/rebranding changes and do press cycle when FFE and utilities are
repaired to previous quality
Demonstrate inclusion of Checkout quality signals into ranking and normalization
for product‐navigational queries and category queries in the t o p 3 product
verticals, e.g. consumer electronics, books, music.
Demonstrate good quality ranking and normalization for product-navigational
queries* and category queries in the top 3 product verticals, for USA, for online
merchants (and large chain merchants with local outlets?)
Create simple product reference pages for all products; good quality for top 3
product verticals (all web resources pertaining to the product; reviews if possible
(but capacity to collect reviews depends critically on normalization quality)
1% google.com traffic to Product Search index
[Universal search integration] Demonstrate good quality exposure for product‑
navigational and category queries in the top 3 product verticals (100%
google.com traffic to Product Search index)
Demonstrate inclusion of Checkout quality signals into ranking and normalization
for next N product verticals
Demonstrate good quality ranking, normalization and product reference pages
for next N product verticals...
Demonstrate good quality exposure for next N product verticals...
[Repeat f o r all product verticals we identify]
. [Repeat for all international markets we understand]
0 Additional vertical features...
* Note: Choice of whether to focus initially on product-navigational queries or category
queries to be made on basis of google.com and froogle.com query analysis and technical
feasibility. Category queries m a y actually be easier in product verticals with catalog
information.

Louis/Louis s t a f fi n g e s t i m a t e s [ t o b e i n c o r p o r a t e d ? ‑
Jeff]
. Base team is about 25 engineers. It takes probably about that number for the
basic mechanics, acquisitions, searching, multiple frontends, and production
work, and it takes up to two times as many for the machine learning/
classification/cluster work.
0 Current team is in MV. Could identify parts that can be done remotely.

. D a t a A c q u i s i t i o n ( 3 ) (Feed system): must scale, be maintainable. Backwards


compatible data format, merchant push, much later maybe g e t data from crawl.
Must support at least sub ls inventory updates. Currently long chaing of
processe, need shorten and add directly to the repository, rather than many
steps.
- Feed f r o n t e n d ( 3 ) Merchant must b e able t o m a n a g e their feeds, m a n a g e
attributes, etc. PFE does this, but is heavy, based on ads code, etc.
. R e p o s i t o r y ( 3 ) Bigtable used for user interaction, a replica that is used for
annotation and cleansing and to build Mustang repositories. Most work here is
probably production work, keeping it up, etc.
- P r o d u c t S e a r c h S y s t e m ( 6 ) attribute based search, browsing, multiple
catalogs. Using mustang is mostly sufficient, j u s t n o t very fast. Need to
massively improve quality to j u s t match everybody else's. 20 people 1 y e a r
(Joel)
D histograms + accurate counting, fast. Mustang can't do this
0 ranking/selection rules
0 behavioral ranking/selection
o grouping of results
. diversity
- S h o p p i n g f r o n t e n d ( 6 ) O n t o p o f product search system, needs t o support
browsing of categories, parametric search, product and merchant reviews,
recommendations Generally support of user interaction. C u r r e n t Froogle code
does a lot of postprocessing of Mustang results. Base has a lot of strangeness,
too, and is very general, but looks m o r e modern. Need to rewrite the whole
thing. Frontend should n o t do very much, and m a y be different for different
categories.
. Annotations, A n a l y s i s & C l e a n s i n g ( 5 0 ? ) (Udi thinks this requires 50 people,
with 5 we fail, n o t worth doing if only with 5. Udi also thinks this is the main
part; everything else is limited by data quality.). These initiatives can be done in
parallel, and in different locations. This teams controls mostly how fast we can
roll out f r o m selected large merchants only to smaller merchants, and lower
quality data.
0 category classification. Which node in taxonomy.
o catalog mapping. Which canonical item something belongs to.
o attribute extraction
a spam
0 catalog/attribute fodder
. To o l s ( 3 ) Need internal toolsets for all of these for manual editing, fodder
approval, training set editing, quality eval, etc. Some of them external, too

GOOGLE - HIGHLY CONFIDENTIAL GOOG-HJC-O3 119829


Can e.g. do this manually for x queries that cover y% of search traffic
temporarily.

checkout), displaying reviews, etc.


R e c o m m e n d a t i o n e n g i n e : People who bought this also bought this, y o u r
friends bought this, etc.

5November 2006 gJan 2007

Tr a f fi c f r o m o n e b o x ( 8 2 % ) d o m i n a t e s s t a n d a l o n e t r a f fi c ( 1 8 % )
0 . 3 4 m e r c h a n t clicks p e r F r o o g l e r e s u l t s p a g e ( s u r p r i s i n g l y h i g h ‑
probably 'info' clicks m o r e t h a n purchase clicks)
Median u s e r session l e n g t h o n c e on a results p a g e is 1 ( m e a n 1 . 7 3 )
S o m e commerce-related queries m u c h m o r e popular t h a n t h e t o p
onebox-generating q u e r y do n o t generate oneboxes
S p o t checks suggest onebox triggering is n o t v e r y reliable (about
~ 6 0 - 7 5 % o f t h e t i m e f o r a given English q u e r y )
We s h o w 86°/o o f F r o o g l e o n e b o x e s t o E n g l i s h t r a f fi c b u t f r o m s p o t
checks, o n l y a b o u t ~ 6 0 ° l o o f t o p o n e b o x g e n e r a t i n g q u e r i e s c a m e i n
English, so possible int'l exposure opportunity

GOOG-HJC-03119830
9,780,358 onebox impressions with English displaylang ( 8 5 % )
1,710,835 onebox impressions with German displaylang ( 1 5 % )

To p query generating a onebox impression was [nintendo ds] which was searched
13,247 times, 6345 with English displaylang ( 4 7 % ) , 1688 in French ( 1 3 % ) , 1435 in
Spanish ( 11 % ) , 1397 in German ( 11 % ) , 562 in Dutch (40/0). Similar distributions for
the rest of the t o p 10 queries generating a onebox impression (the queries came in
English, German, Spanish, French, and Dutch, in that order).

Of 6345 onebox impressions for English traffic we generated a onebox only 3658 times
(58%).

Alas, [nintendo wii], which was searched 25,154 times, and [wii], searched 57,185
times, did not trigger oneboxes at all.

To p 10 queries containing wii vs. t o p 10 queries containing wii and generating a onebox:

GOOGLE - HIGHLY CONFIDENTIAL GOOG-HJC-O3 I 1983 1


If we use a hit to " / " , frghp, or a onebox clickthrough as a p r o x y for a
user session and assume standalone users and onebox users have similar
session lengths (allowing for the initial h i t to " / " ) :
mean session length is 1.73 pages starting from
a results page. (Note there will be some sessions much longer than 3 but
no sessions shorter than 1, so given the mean of 1.73 the median must be
1. Makes sense that this distribution is highly skewed.)

F r o o g l e issues
Product normalization ‐ hurts popular queries like [ w i i ]
Ranking - hurts popular queries like [ w i i ]
Refinements (wireless routers don't have MB, and Volts is hard to argue for when the
values are things like 3-8, 70-175, etc.)
Lots of Froogle merchants using a fake picture that says ”No image"
No notion of how much shipping is
No notion of when something might arrive
No notion of what checkout logo means
Local results have very low coverage, aren't normalized with online results
Sparse reviews
No help figuring out what to buy

[wii] is a disastrous query due to product normalization / accessory


issues‐‐ as of Feb 24 2007, the first actual Wii console is on page 4 and
the next is on page 7, then the next on page 9. That is, sorting by
relevance (default) gives you 3 legitimate results in the first 90, a 9 7 %
irrelevance rate. Sort‐by‐price‐descending turns out to be the only way to
find the actual wiis. See 214 local results for wii gives a bunch of
useless crap, but now in Richmond. Ads are relevant: one ebay landing page
with tons of spam and other user generated crap for $0.01 one from
Iowestdeal.com which has the wii in stock. On Amazon, [wii] gives great
results: the actual wii is first, the wii remote controller is second, the
wii nunchuck controller is third, and zelda: twilight princess is fourth.

Base Te a m C o m m e n t : Maybe we can penalize peripherals and accessories by giving


lower rankings. For example, if they specify the product_type of "game accessories" etc.
we can give a multiplier less than 1 and penalize their rankings.

Data

C u r r e n t Base feed specification


Whale/Froogle C o n s u m e r Front End PRD 2005

B a s e Te a m Additional C o m m e n t s - R a n k i n g Merchants B r a i n d u m p :
overall rank = (pagerank) + (% items with rich attributes/information) + (ratio of
"good/bad" Checkout transactions) + (add-to-cart conversion rate) + (unique content
i.e. titles/descriptions/Ianding page URLs) + (upload/refresh frequency) + (merchant
rating scores) ‐ (# of bad offer complaints) ‐ (eBay i t e m s ) *

*subtract from overall rank if items are mostly eBay because a c o m m o n complaint is eBay items dominate
search results. A lot of merchants/users searching on Base want to AVOID eBay.

total number of clicks, history on Base/Froogle (doesn't have to be linear - step function)

Learn from other products like news - marking sites as golden and super golden
We can maintain a list of trusted aggregators

GOOGLE - HIGHLY CONFIDENTIAL GOOG-HJC-O3 119833


Demotion of provider sites that have bad content
Number of attributes
% of errors in a file (how well formatted their file is)
diversity of payment options - wider variety = trusted providers
uniqueness of items could be factored in - eg: braided cable knit poncho
Digg it - you can rate it after you buy it, integrate it with GAIA

GOOGLE - HIGHLY CONFIDENTIAL GOOG-HJC-O3 119834


Here is a draft of our search narrative. I've left it as text for now rather than putting it into a presentation, but tried to
include whatever relevant data we would want to use to explain and justify our areas of strategic focus. We can
discuss this in more depth and iterate in our meeting at 11.

I've included the attached slide (it was created for our quarterly board of directors presentation) because we can
reuse the precision graph in our search narrative preso to highlight Bing's progress on core ranking.

Kavi

SEARCH NARRATIVE

THREE AREAS OF FOCUS


1- New UI

verticals/modes (SSFE). Show a left side panel so that can provide tools to allow users to slice and dice. Make
searching faster and allow slice-and-dice of results.

Major projects in this space


- Single Search Front End
- Skunkworks
- Search as you type
‐ Search as an app

Why:
Search is about more than just web pages. There is a lot of media. There are entities and attributes, not just web
pages. We want to push the envelope in a very core way to the user experience.

Competition:
Bing has differentiated by innovating on the look/feel. Flashy home page, left panel. Yahoo has also added a left
panel. Google needs to become a leader in Ul innovation.

Metrics:
It's the UX for our company's core product. It affects all users. There is nothing more core to our business from a
metrics perspective.

2) CORE RANKING

What:
Accelerate progress improving our search results precision. People should find what they were looking for in the first
search result for head queries and long-tail queries.

Why:
Google leads competitors. The is our bread-and-butter. Our long-tail precision is why users continue to come to
Google. Users may try the bells and whistles of Bing and other competitors, but Google still produces the best
results. As soon as this ceases to be the case, our business is in jeopardy.

GOOGLE - HIGHLY CONFIDENTIAL GOOG-HJC-03 815 864


Competition:
{; Bing has recently made clear, significant progress on ranking bringing the two search engines closer to parity. It is
5 critical to redouble our efforts to maintain our lead.

Metrics:
‘ [include precision graph. See attached ppt]

3) KEY GENRES

What:
Historically, Google has focused primarily on general ranking algorithms and UI. Three years ago, with universal
search, a shift was made to increase our ability to provide new types of media in search results.

About one year, we began investing heavily in vertical-based improvements beyond universal. Staffed up ranking
teams to improve shopping results, began rich snippets. More recently added focus on people.

Major projects/genres and metrics:


- Universal (50%): TV/videos (17%+), local (13%), shopping (6%)
[Provide some stats on universal usage, impact on users?]
Video has grown heavily in recent years.
TV is increasingly online and is an important growing space as well
- People (potentially 4%) / social (potentially 20% or more)
- Entities/shallow verticals (6% today, potentially as big as universal)
Show stats on reviews experiment and clear positive impact on users. Slide 4 here
- Onebox (3%)

Why:
This is the next frontier for search. Vertical search is of tremendous strategic importance to Google. Otherwise the
risk is that Google is the go‐to place for finding information only in the cases where there is sufficiently low
monetization potential that no niche vertical search competitor has filled the space with a better alternative.

Competition:
Many, many strong niche players. Amazon (shopping), Yelp (local), Kayak (flights), Hotelscom (hotels), Edmunds
(cars), AllRecipes (recipes),

In addition, Bing has explicitly made improving verticals a key part of their strategy to beat Google. Offer cashback
(shopping), purchased Farecast (flights), partnered with Wikipedia (reference), Wolfram (calculations and facts), and
built verticals for events and recipes. More verticals on the way.

On the people/social front, Facebook is executing well. Becoming a major platform to find information using friends
and colleagues rather than web pages.

GOOGLE - HIGHLY CONFIDENTIAL GOOG-HJC-O3 815 865


Some considerations for your slides:

first - define verticals. are these things like travel and real estate (big multi-percent chunks of our traffic) or are they
things like sports, recipes, celebrities (special interest). how are they different from horizontals - corpora that have
broad coverage by topic but are restricted by characteristics such as content type (books, video), user generation
(blogs), or fee (premium)

i'll assume we want to talk about verticals, large and small, and not horizontals. what is the real threat if we don't
execute on verticals?

(a) loss of traffic from googlecom because folks search elsewhere for some queries
(b) related revenue loss for high spend verticals like travel
(0) missing oppty if someone else creates the platform to build verticals
(d) if one of our big competitors builds a constellation of high quality verticals, we are hurt badly

some possible approaches

(1) form teams to go after top verticals. con: we can't put 1000 people on travel like expedia. we should still do it for
some areas where search is an application like real estate

(2) heavy investment in onebox. if the top verticals are at the top of the pyramid, use a deliberate onebox approach
to go after the middle and bottom tiers of the pyramid using google and third party oneboxes, respectively

(3) build a syndicated search platform for others to build major verticals. if we can‘t build the next expedia, let others

(4) let *anyone* create a vertical (guha's path). addresses (d) above

(5) define key result page templates for main vertical query types and let seti decide which template to show. each
page has web results and a big custom onebox section full of stuff we think is useful

(6) let user communities build their own searches (community rollyo) and share them. links to relevant vertical
searches/fiIters/views/restricts appear on the left hand side or as chameleon suggestions

(7) automatically build these filters by identifying similar user groups and tracking their behavior, tailoring result sets
for that user group and then providing a link to that result type set when someone in that user cluster comes along

GOOGLE - HIGHLY CONFIDENTIAL GOOG-HJC-0413 7557


From: Salar Kamangar
To: Jeff Huber
Sent: Wed, 1 Feb 2006 14:23:12 ‐O8OO

_
Subject: Fwd: Youtube, Yahoo, Pure Digital video communities

fyi -- if you have any thoughts on this let me know, but i want to be
aggressive about deals that make google the default place to store
photos and videos.

‐‐salar

FonNarded message -------‐‐‑


‐‐‐‐‐‐‐‐‐‐
From: Susan W o j c i c k i _
Date: Feb 1, 2006 12:35 PM
Subject: Re: Youtube, Yahoo, Pure Digital video communities
To: Peter Chane

Feikir-Iikhil
Cc: Hunter Walk

Doig -

Bhatla _,
J e n n i
, Sean Dempsey '_
f e r
Jeremy
Cosmos
Nicolaou _ David Jeske _, Salar
K a m a n g a r ‑

salar is interested in pursuing or finding out more so lets bring them


back to talk,

susan

On 2/1/06, Peter C h a n e _ wrote:


> More details on this oppty (and adding Salar). I talked to Jonathan their CEO this morning:
>
> - If we pass the deal will go to Yahoo or Youtube. Yahoo wants to create a Yahoo branded camera and
have a Yahoo video storage service on the backend. Youtube wants to use the deal to add more users to
their service (their goal is to make a MySpace like service but focused around video).
>
> ‐ Pure Digitial estimates 10‐20M videos uploaded in the first year; 2-4x that if we do a Google branded
camera. Most of the videos are SOsec-Zmins long and shot my consumers mostly mom's.
>
> - They are ok if the videos are private for 30 days and then are either converted to public or are purged
from our system. They dont care about DVD burning; private is the only key feature requirement for
them.
>
> ‐ Looking for a 2 yr deal with an upfront payment to Pure Digital in the millions of dollars.
>
> Send any more thoughts in email about your thoughts on this deal. I'II schedule a quick mtg to discuss.
>
> P.
>
>
>
>
> On 1/27/06, Hunter Walk _ wrote:
> > Pure Digital relationship is a great strategy for FIickr of Video, but that doesn‘t seem to be our initial
vision. We’re focused on videos that have some broad public good, more so than hosting everyone‘s
personal video content (caveat that i can't always tell you where the dividing line is between the two). All i

GOOGLE - HIGHLY CONFIDENTIAL GOOG-HJC-04189233


know is that video with broad public interest is likely to not be exclusive to any one service ‐ i.e. if I've
made a great travel video I‘m going to post it to Yahoo, Google, whatever video service in order to
maximize distribution and monetization.
>>
> > WRT YouTube, i'm just not as bullish about buying them for their community. They have a great set of
tools, but i think their community is based on the popularity of video identified by David, 2/3rds of which
could not exist within Google Video today. YouTube's value to us would be a smart team and a platform
we could build from (maybe enough to justify an acquisition on its own), but would we really be able to
preserve their community once we start reviewing and pulling copyright or inappropriate content? If
anything, that's likely to cast a poor light on Google.
>>
> > hw
>>
>>
>>
>>O 1/27/06,
n David L e e ‐ w r o t e :
> > > i'm not convinced that youtube won't sell. although they're not interested in a quick flip i think they'd
be open to listening to what we could offer and how we could help them achieve their vision and
objectives. we'd have to sell it to them, though.
>>>
>>>
>>>
>>>O 1/27/06,
n Peter C h a n e ‐ w r o t e :
> > > > Youtube isn‘t up for acquisition; they want to get to the $500M+ MySpace valuation before selling.
Until then I'm trying to figure out a way for us to work with them (Jeske I want to introduce you to the team
there).
>>>>
> > > > Our primary objective with video is to get more of it online. It comes online for multiple reasons.
Some like CBS/NBA comes online with distribution/monetization. Other content comes online if there's a
community around it.
>>>>
> > > > I think Google needs to support both models although it's not clear that the Video team should
build both.
>>>>
> > > > P_
>>>>
>>>>
> > > > On 1/27/06, Jennifer Feikin ‐ N r o t e :
>>>>
> > > > > thx peter. i think before we do deals with puredigital or youtube, we first need to have a clearer
strategy of where we're headed. what are our plans to host both premium and uploader content in a way
that works for both groups, and for users seeking each? then i think we should acquire youtube, but pass
on the pure dig deal. here's why...
>>>>>
> > > > > to date, our mission has been to host all video. we‘ve gotten push back from users and content
owners that you can't find the premuim content, and that they'd like to see the premium content
separated. the community of uploaded content could work as a separated sort of world as well, with
rankings, community features, etc. so how will we address each type of content, what community
features do we want to have for each, and UI, and how will we combine the two in one product yet keep
them separate enough to meet all these needs. they are different experiences -- one is about purchasing,
one is about community/coolness/sharing with friends, etc.
>>>>>
> > > > > the group's overwhelming concern when we first talked to pure digital a while back was that
we’d be innundated with a lot of home video. then we‘d really be the world's largest home video site, as
eric likes to say. 2M videos a year on top of our current 350K videos makes us have a lot of home
videos.

GOOGLE - HIGHLY CONFIDENTIAL GOOG-HJC-04189234


>>>>>
> > > > > i think perhaps a better route to take would be quickly figure out the strategy of how to work with
both types of content in the ideal ways, and then to acquire youtube. youtube has some great community
features and they are ahead of us in the area of community. they'd supply us with the community and UI
they've built, and we'd supply them with audience and scale. then, if they do a deal with pure dig, we'll
get it anyway.
>>>>>
> > > > > i'd be inclined to pass on the pure dig deal right now (also b/c we don't have a private log in or
sync right now, and our engineers need to focus on other major product issues right now). but i'd pursue
an acquisition of youtube. and set a clear strategy of how we will keep thes two worlds of premium and
uploader somehow separate but together.
>>>>>
> > > > > thx
>>>>>
> > > > >
>>>>>
> > > > > On 1/26/06, Peter Chane < _ > wrote:
> > > > > > Pure Digital is the company that makes the disposable and one time use video cameras sold
at retail. I ran into their CEO today and he said they are close to signing a deal with Yahoo or Youtube to
host their videos. They prefer to work with Google Video but we‘ve been lukewarm on the idea to date. I
have a feeling that a deal is imminent. At their current sales rate their users will generate about 2M
videos a year (our index today is about 350k). Not sure how many of the videos from Pure Digital users
will be public vs private.
>>>>>>
> > > > > > Pure Digital is responsible for 15% of the video cameras produced in the world right now.
Over time they expect that their technology will be in every still camera manufactured. Today the
cameras are sold to individuals not professionals.
>>>>>>
> > > > > > We need to decide if we want to do this or not. If we do it we‘ll need to build features to
support sync from these cameras to Google Video. And we‘ll need to support a private video with
invitations to others users who can view the videos.
>>>>>>
> > > > > > I feel this deal is very compelling for a video site that is community based (youtube and what
yahoo is building). We're planning adding community features but what Pure Digital needs is a step
beyond what we’re planning in q1. However a deal like this seems like a powerful way to kickstart a
Google Video community. If we pass on this deal we could always index the content via RSS feeds from
Yahoo or Youtube but we'll miss out on the community building.
>>>>>>
> > > > > > I'd like to understand what folks think about this oppty.
>>>>>>
> > > > > > Thx,
> > > > > > P_
>>>>>>
>>>>>>
>>>>>>
> > > > > > -‑
> > > > > > Peter Chane
>>>>>>
> > > > > > Senior Business Product Manager
> > > > > > Google Video, http://video.google.com
>>>>>
>>>>>
>>>>
>>>>
>>>>
>>>>

GOOGLE - HIGHLY CONFIDENTIAL GOOG-HJC-04189235


> > > > -‑
> > > > Peter Chane
>>>>
> > > > Senior Business Product Manager
> > > > Google Video, http://video.google.com
>>>
>>>
>>>
>>>
> > > -‑
> > > David S. Lee
> > > Principal | New Business Development
> > > Google Inc. | 1600 Amphitheatre Pkway, Mountain View, CA 94043
>>>

>>
>>
>>
> > --
> > Hunter Walk

> > ‑
> > Business Product Manager, Google
>>

>
>
>
> __
> Peter Chane
>_
> Senior Business Product Manager
> Google Video, http://video.google.com

GOOGLE - HIGHLY CONFIDENTIAL GOOG-HJC-04189236


From: Larry Page _
T0: Eric Schmidt _
Sent: Wed, 8 Feb 2006 13:13:40 ‐0800
Subject: Re:FW: outube
Cc: fi . - - e Sergey B r i n ‑
Doesn't seem crazy to me...

‐L

On 2/8/06, Eric Schmidt _ w r o t e :

Wouid you Iike us to proceed? Eric

From: Saiman Ullah _


Sent: Wednesday, February 08, 2006 9:19 AM
To : Eric Schmidt
Cc: David Drummond; Peter Chane; Sean Dempsey
Subject: Re: youtube

based on sean's discussions with them and their VC (Sequoia) we think it will cost about $50M.

Salman

On 2/7/06, Eric Schmidt _ w r o t e :

can I get a quick analysis of the likely cost of acquiring youtube? Eric

GOOGLE - HIGHLY CONFIDENTIAL GOOG-HJC-04189246


From: "Eric Schmidt" _
T0! ”Sean Dempseym _
Cc: “Salman U I I a h " ' _ “David Drummond'" _
_ ”Sergey Brin'" _
Subject: RE: youtube
Sent: Mon, 13 Feb 2006 16:17:50 -0800

”thanks. Qéeaae dc figure out a way tar as ta t’taip them achieve thaés" uéaian, We we??? be parauéng them as an
acquisition” Eric

From: Sean Dempsey


Sent: Monday, February 13, 2006 12:54 PM
To : Eric Schmidt
Cc: Salman UIIah; David Drummond; Iarry@goog|e.com; Sergey Brin
Subject: Re: youtube

I spoke with youtube on friday, over the weekend and this morning. the net is that they want
something in the $500M range, something like "the myspace deal".

We had planned to meet in person this morning but when I floated a potential range up to $200M
to test whether this myspace comment was real, they decided it wasn't worth having the meeting.

The decision was apparently made by the 3 person board, which includes the _ a t
_ a n d another advisor. we believe the founders own >50% of the company.

So they are incredibly optimistic about their future. They are still planning to send us thoughts
on how we could work together commercially which we’ve asked them for.

On 2/8/06, E r i c Schmidt _ wrote:

Please proceed to meet with youtube to discuss a serious offer from Google to acquire them.

My concerns are mostly about their reliance on copyrighted information and we should model their
growth etc.

Our primary goal is to get the entire team and leadership .. we will need much more firepower to do
everything we want to do.

After you have a meeting with them please let me know likelihood/price etc. and at that point I will talk
with Moritz as well.

GOOGLE - HIGHLY CONFIDENTIAL GOOG-HJC-04189250


Thanks Eric

Sean C. Dempsey
Principal, Corporate Development

GOOGLE - HIGHLY CONFIDENTIAL GOOG-HJC-04189251


From: "Susan W o j c i c k i " _
To: "Jonathan Rosenberg" _
Sent: Mon, 1 May 2006 22:15:11 ‐0700
Subject: Re: FW: youtube?

I was surprised he just noticed. I guess I should send him competiitor updates more regularily.
We have been focused on them for the last few months.

Susan

On 5/1/06, Jonathan Rosenberg <_ wrote:

Just that youtube kicked our butts.

From: Susan Wojcicki _


To: Jonathan Rosenberg_
Sent: M o n May 01 22:06:36 2006
Subject: Re: FW: youtube?

So what did Eric say today at emg about Video. B i l l mentioned it was discussed.

thx,
Susan

On 5/ 1/06, Susan Wojcicki _ wrote:

We did look into them at the time and talk to them. They didnt want to be acquired and
talked about a SOOM valuation.

Susan

/ Jonathan R o s e n b e r g _ < m a i l t o ; _ >


O 5n1/06,
wrote :

A hauntingly poignant email...

---------- Forwarded message ---------‑


From: Salman Ullah <_ m a i l t o _>
Date: Nov 10, 2005 9:5U AM

GOOGLE - HIGHLY CONFIDENTIAL GOOG-HJC-04189266


Subject: Re: youtube?

yep- sean is on this. although product folks seem reluctant.

On 11/9/05, Jeff Huber <‐ < m a i l t o _ > wrote:


Fyi...

> I think we should look into acquiring them...note they were recently funded by Mike
>
>
e t ‑
>-L

Forwarded message ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‑
‐‐‐‐‐‐‐‐‐‐
From: Larry Page _
Date: Nov 8, 2005 3:02 PM
Subject: Fwd: youtube?
To: David Drummond < , Megan Smith
r m e i u o ‐ >> , < >, Sergey Brin
Peter Chane

< ‘ < m a i l t o : _ > Jonathan


, Rosenberg <
<mailt0 _ >, Eric
Schmidt <_ < m a i l t o : _>

I think we should look into acquiring them...note they were recently


funded by Mike at Sequoia.

-L

---------- Forwarded message ---------‑


From: Jeff Huber < _ < m a i l t o : _>
Date: Nov 8, 2005 2:58 PM
Subject: Fwd: youtube?

A recent thread (below) on YouTube ( em:re1f’f'wwzezflatmatesmew


< § e t t 3 fff w w w m o w v v v v v v v v v v v v v tettaif/éefé 0x52Fill/52Fwwwevomgbc,<.:of“e§§f£e2E-3 > ), and
potential acquisition.

Here's more info on them:

GOOGLE - HIGHLY CONFIDENTIAL GOOG-HJC-04189267


rm if/wwwsiiimgrbeat.comfentriee/E‘ifiifif1 iii}?5v<>atubc arré the m a r t -' ‘f , ai fathershtmfi

"“ s w w w «fowl acomzizrii’sazmfiéé/ fihtt ésifzisi'ifisi552§’*5z§>27§‘wwwsi lieonbcaeadmit/$2Eisentriesgiéfi


ETfoéiér‘SSf/é2f‘ll(Ef2>2§“07‘§é;2Eveuttshe aradthe m a m ai fathersttrné>

‐Jeff

---------- Forwarded message ---------‑


From: J e f f H u b e r < ‐ < m a i l t o z _ >
Date: Nov 6, 2005 10:20 PM
Subject: Re: youtube?
To: Peter Chane < _ < m a i l t c _>
Cc: Susan Wojcicki < _ < m a i l t o : _ > Salman
,
Ullah
<_ m a n t o : ‐ > > Sean, Dempsey
< _ , Jeff Donovan
- ‐ < m a fl t o : ‐ >
Except that YouTube is ~here (Palo Alto), and Revver is farther away (NY).

I think we should talk to them, if nothing else to make it more


expensive for Yahoo. They'll also eventually need a monetization/ads
model, so should use ours instead of anything from Yahoo ( i f they
don't go acquisition soon, and we maintain reasonable relations with
them).

‐Jeff

O 11/6/05,
n Peter Chane < _ < m a i l t o : _>
wrote:
> i was thinking about pitching it to our M & A group. however i dont really
> know their talent pool well and their systems wouldn't be valuable to us.
> they aren't doing anything on their site where i say ”wow they have some big
> video brains there."
>
> and their content quality is worse than ours. they seem focused on the home
> video/community space while we want to be more like itunes/TV and include
> monetization and higher value content.
> if we pick them up it would be defensive vs yahoo but there are 20 more
> sites like this that yahoo could g o out and buy. w w w r e v v e m o m
<htt’ szwwaaadmit),com/er?‘fsaflikéfa; fiber {fisfif‘fifésfi$9432 fi v w w r e w e r u c o m , > is the

GOOGLE - HIGHLY CONFIDENTIAL GOOG-HJC-04189268


> latest..
>
>
> On 11/6/05, JeffHuber < _ >wrote:
> > Is there any interst in acquiring them? We obviously know Mike Moritz
> > and Roelof Botha reasonably well. Guesstimated price tag would be
> > $10-15M.
>>
> > They're obviously pretty passionate about the space, and it would be
> > nice for y! not to have them...
>>
> > We’d also get whatever assets & deals they've assembled so far.
>>
> > -J eff
>>
>>
> > On 11/6/05, Peter Chane < > wrote:
> > > we haven't talked to them; last we heard they took $5m from Sequoia and
> were
> > > thinking about a acq with Yahoo.
>>>
> > > We have all of their features in our q4 plan and almost all of them are
> > > already mocked up and ready to go. we're constrained on UI/j ava
> development
> > > resources. Luckily Nikhil is pitching in to help on some things but we
> have
> > > 1.5 engineers working on U1 things and that is slowing us down.
>>>
> > > i think if we had one more good java/ui engineer we'd be kicking butt
> vs
> > > youtube.
>>>
> > > P,
>>>
>>>
> > > On 11/6/05, JeffHuber < _ > wrote:
> > > > Just curious ‐- have we talked to the YouTube guys about coming here?
> > > > They're cranking interesting features a lot faster than we are, but
> > > > don't likely have a backend that will scale or plan to make money.
> > > > We, otoh, have those.
>>>>
> > > > It looks like it's mostly ex-PayPal guys, and they're local (Palo
> Alto):
>>>>
>>>>
>>>

GOOGLE - HIGHLY CONFIDENTIAL GOOG-HJC-04189269


V gm;
m n 3 h 7 a fi i fi é i fi s § € % § § } i i E l Z é fi E Q Q E i fi t a n k c v u x w d fi fl fi E k fi fi fi u b c w M fi fi o i t i n e m a , 3 3 £ fi > >
>>>>
>>>>
> > > > If we don't do something w/ them, we do need to do something to
> > > > seriously rev up our feature rate.
>>>>
> > > > (btw, heres the 're1ated pages' link in caribou for this thread -‑
> > > > Em; 7:V'Oicsbcrs 'ieiv"'\fid00/)
fi m x w u w w w fi o @ b u m y m i m t t h fl n r % fi fi iZ E Q s Z % 0 n a b a r s n e t a fi i s s h x fi x m i , o fi fi >
>>>>
>>>>
> > > > - k fl
> > > >
> > > >
> > > >
> > ‐‐‐‐‐‐‐‐‐‐ m e m w d m w w g ‐‐‐‐‐‐‐‐‐‑
> >
> > > > From: JeffHuber <‑
> > > > Date: N o v 6, 2005 1:35 PM
> > > > Subject: more.
> > > > To: Peter Chane <‑
>>>> WWw
>>>>
> > > > G m d fi m m fi M u a m g m m m m m m b m e a m M W m n g m d w m m t
> > > > fi n G m n g M w . Y m fl d m h w a b m m h fi N m e m m m fl d fl M M n m e
> > > > m w m fi m g F m e m m m e n
>>>>
>>>>
>>>

w i t hEglf{3351553size

> > > > ("cross bar" being one of the better ones)
>>>>
>>>>
>>>>GWmnwhmmammmmmmWMthemmmemMmedwmewe
> > > > could get their stuff?
>>>>
>>>>
> > > > And could we get all the "best" commercials like at AdCritic

GOOGLE - HIGHLY CONFIDENTIAL GOOG-HJC-04189270


> > > > ( hit 2551¥¥¥W18<§CE‘liifiififfiiflf
<htt’ asf fifiww. were; a l e x c m i u r l ‘ fi a E } & < iiifliértt 2533/53 53>33/521594532PWWW.aéeriticfio“£13332 l? > )?
>>>>
> > > > And could we get all the superbowl commercials from the last, say, 25
> > > years?
>>>>
>>>>
> > > > Btw, the "recently viewed" feature on youtube seems like a useful &
> > > > trivial evolution of "random".
>>>>
> > > > Favorite video of the day:
> > > > litany[fwwwyoutuhc«com/watcl‘l. rah ..?‘v:=:=P:; IuLF‘h’I’IEI
<5??? zirwtmv graniteccm/url‘j3asarrrfiéia 32215323 333535353452 f'ii’sfilikvwwo otaW’beconfiéE Pwarcir 333
33235 i £13,313 it? 33333 i u is ii'fv 0 ti E>
>>>>
> > > > which has n o w inspired impersonation:
> > > > hit tsffw‘mv ffitsitiéfifififi'm Watch, '

mLiM>

> > > > 3111 >zsff§vwiaz fetatuhcbafmrrfwaieis, fish f???


<2??? 13: mosite.comfurl‘?sar=zlf}&t Ihéép "15335; 133 A352 33, \,
3178533533333 5353; ifiigasaiof‘fii >
>>>>
>>>>
> > > > -J eff
>>>>
>>>
>>>
>>>
> > > --
> > > Peter Chane
>>>
> > > S e n i o r B u s m e s s Product Manager
> > > Google Video, hit 15WErr/Ecolf>irroif§gafcorrr 41173 tilt/ff” xvégiifaxfmrsfii w o m b
>>
>
>
>
> __
>
> Peter Chane
>
> Senior Business Product Manager
> Google Video, hit :,r"',,f"vidc0.(zooelmzom <Iitt' rf/vidco.mealccomb

GOOGLE - HIGHLY CONFIDENTIAL GOOG-HJC-04189271


Susan Wojcicki
VP, Product Management

Susan Wojcicki
VP Product Mana ement

Susan Wojcicki
VP, Product Management

GOOGLE - HIGHLY CONFIDENTIAL GOOG-HJC-04189272


From: David T h a c k e r ‑
To: "'Goku| Rajaram'“ ‑
Cc: “Richard Holden'“ V , "'Saiar Kamangar'" _ ”David
Friedberg‘"
Subject: RE: 3rd parties Eric discussion: 3rd draft.
Sent: Wed, 31 May 2006 10:04:18 -0700

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From: Gokul Rajaram


Sent: Tuesday, May 30, 2006 11:17 PM
To : David Thacker
Cc: Richard Holden; Salar Kamangar; David Friedberg
Subject: Re: 3rd parties Eric discussion: 3rd draft.

This is a good point. One of the biggest issues with Atlas is that since they are a public company
with the highest valuation of *any* Internet company (20K revenues), doing a deal will be very
very expensive for us. Once we do a deal with Atlas, we will have to pay through the nose for a
future deal with D C L K should we decide to do so. E M G wont be happy paying 2X Google's
multiples! II

the other issue is that Atlas doesnt have DFP. Even though we have GFP, it will take years
before we penetrate really major publisher installations. Working with D C L K could really
accelerate this. (assume we could make D C L K take a rev-share on remnant ad revenue, instead
of ad-serving revenue; this could be a win-win).

The final issue is that Atlas has very poor international coverage, vis-a-vis DCLK. D C L K is
super‐strong in EU and APAC, per Tim. This is important to us.

I do like Atlas more than D C L K from a pure technology perspective, but the costs could be

GOOGLE - HIGHLY CONFIDENTIAL GOOG-HJC-04189277


prohibitively high. E M G has already shot-down Atlas in Jan, maybe we can bring it to them
again.

Gokul

O 5/30/06,
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From: Gokul Rajaram


S e n t : Tuesday, May 30, 2006 10:30 PM
To : Tim Armstrong; Richard Holden; Nikesh Arora; Susan Wojcicki; Salar Kamangar; Nat Criou; David
Thacker; Rohit Dhawan; Satya Patel; Rajas Moonka; Bismarck Lepe; David Friedberg
Subject: 3rd parties Eric discussion: 3rd draft.

Hi guys,

I had a chance to touch base 1:1 with Tim, Susan and Salar today, and also discussed the preso
with a couple of other folks. Thanks everyone for your comments - I've incorporated them
into the preso.

M a j o r changes f r o m v2:

1. Slide 21: new slide defining the "CMO Dashboard" (Richard ‐ you might want to review this
slide).
2. Slide 11: Bottom-up computation of incremental revenue. Still waiting for some additional
data from Ching on our image ad pageviews + Yahoo data.
3. Slide 17 and 18: Reformatted to be consistent with slides 15 and 16.
4. Slide 23 and 24: Added a couple of slides about the D C L K proposal.

GOOGLE - HIGHLY CONFIDENTIAL GOOG-HJC-04189278


What's left:

1. Work with David F on more definition of D C L K deal terms, D C L K versus Atlas; what
D C L K has been up to in the past year, etc.
2. Get data from Tim on D FA impressions served, DFP impressions served, Atlas impressions
served.
3. Flesh out bottoms‐up revenue forecasts.
4. Incorporate second round of feedback :)

Thanks in advance for your comments and feedback!

Gokul

GOOGLE - HIGHLY CONFIDENTIAL GOOG-HJC-04189279


From: Larry P a g e ‑
To: David Drummond
Sent: Mon, 23 Jan 2006 06:12:14 ‐0800
Subject: Fwd: [Idea 3753] Partner/Acquire YouTube Before the Competition

Where are we at on this?

---------- Forwarded message ---------‑


From: D a n O ' C o n n e l l ‑
Date: Jan 22, 2006 10:54 PM
Subject: [Idea 3753] Partner/Acquire YouTube Before the Competition
To: ideasa(L‘googlceom

We should look to either strike a significant partnership with YouTube or simply acquire them
before someone else (namely Yahoo!) does. Yahoo's been on a tear of late acquiring some very
interesting and popular sites such as Flickr and deiiécir‘ms ‐ it would make sense with our release
of Video for them to look in this company’s direction. They also just so happen to be down the
street in San Mateo.

According to a Nielsen/NetRatings YouTube had more than 3 million visitors in December


(triple the amount from November) - they get an estimated 20,000 new videos a day with users
watching some 10 million. They're really the Flickr of Video with an almost identical interface
that users love.

A second option would be to overhaul the UI for Video and finally depart from our standard
interface with something similar to Lighthouse? It's apparent that users really want to tag,
comment and share.

Rate this idea:


5) Great idea! Make it so.
4) Very good idea.
3) Definitely has potential.
2) May not be worth the effort.

Ski the ratiw are? raise m e it} the ideas M e s s a g e iioaré

GOOGLE - HIGHLY CONFIDENTIAL GOOG-HJC-04262320


From: Jeff Huber ‑
To: Alan Eustace - w V
Sent: Fri, 21 Sep 2012 00:46:19 -0700
Subject: Re: URGENT - Naming - Strategy Issue - Vertical Search
Cc: Susan Wojcicki - Nikesh Arora , Lorraine TwohiII

A n d y R u b i n
Reehel Whetstone
' _
- _ - Larry Page -‑

A few thoughts -‑

l. I fully agree that we can & should to have a common infrastructure/repository and query
model for all basic structured data, and be able to do compound queries across it

2. That said, some very valuable data will never be fiilly modelable in a general structure (e.g.,
flight+fare searches are np-hard, maps geometries/ vectors), and will require unique structures

3. The open web that we knew & loved is going away, and being replaced with a siloed world
on both the web and mobile where companies don't want to make data externally searchable
because they want users to be in their brand experience and/or they want to have a commercial
relationship for access to their data; some of these are sufficiently concentrated that we either
need to submit to a monopoly supplier, or commit to generating/maintaining our o w n data

4. Much data in the real world is dynamic and changes rapidly; the common repository and
ranking is a part of the equation, but success requires engaging users, businesses, and other
ecosystem participants with incentives that make sense to provide, update, and curate the
underlying data, and we need to have data pipelines to ~instantly normalize and update data
(e.g., volcanoes don't change very frequently, local businesses change at ~20%/yr)

5. How the experience is optimized and presented matters a lot, and the experience varies by
context; we need to have better browse and session-based experiences -- where either there isn't
any query (and we recommend or provide a browse start point), or the initial query narrows the
data set that can then be navigated by facets & filters. User expectation is shifting from links to
answers being OK to users wanting the answer directly (or the most direct/efficient way to get
it).

6. While I agree we shouldn't do verticals generically, there are a set of areas that are pretty
fundamental to users day‐to-day experiences and needs, and are very, very valuable -- online
shopping for goods and services (7% of total commerce and growing), local search 20% of
desktop intent and 40% of mobile intent), and travel (>10% of our current revenues,
global market); if we don't have experiences in these areas that are compelling compared to
increasingly concentrated and branded alternatives, we risk losing relevance overall (e.g.,
Amazon is increasingly becoming the place you search for things and Google is the place you
search for information). In these areas, the killer app is the the overall experience from intent to
fulfillment (i.e., Amazon isn't winning because they have better search or a more general
infrastructure, they're winning because the net experience from intent to fulfillment is much
better). We don't have to own everything and we can work with partners, but our bar has to be a
great end-to-end experience instead of j ust handing users off.

GOOGLE - HIGHLY CONFIDENTIAL GOOG-HJC-04276684


-J eff

On Fri, Sep 21, 2012 at 12:04 AM, Alan Eustace _ w r o t e :


Crawling is just one approach to structure. For example, Youtube watches, Gmail, search
logs, Chrome tab data, Android call data, etc will give us information that no other site has
about the entire process of where the best kite boarding sites are, what you need to do to plan
the trip, what times of the year are best to go, what equipment to bring, where to rent, what
the temperature is, first-hand reports of being their, pictures, what your friends say, what the
experts say. That experience cannot be replicated by verticals. We have that data. I might
not be able to book a hotel, but I can create a great experience that drives traffic to the best
sites to answer the detailed questions or handle booking. We don't need to o w n everything.
Using the data we already have, there is a good chance that we know you are moving,
changing jobs, having a baby, getting married, etc, and we can really help you with the
queries that you should have asked but didn't. We have a value proposition that nobody else
has. The technology is not quite there, but it is getting really, really close.

On Thu, Sep 20, 2012 at 11:48 PM, Susan Wojcicki _ w r o t e :


I think the issue is more complicated than crawling those remaining 30% of the web. There
are too many special purpose sites that offer great SEARCH experiences within their area of
expertise and users are willing to go their directly. eg searching for a hotel on Bookingcom
for example, reserving a restaurant with OpenTable for example. I don't think crawling those
sites will mean we offer comparable experiences to help me actually find a hotel or booking
a table.
We need to distinguish between looking for facts, and taking a commercial action. I agree
your solution will work for facts, but not for commercial transactions.

On Thu, Sep 20, 2012 at 11:40 PM, Alan Eustace _ w r o t e :


We absolutely need to create ecosystems that encourage 3rd parties to give us data, or to
mark up pages so that we can get the structure as we crawl, or to find ways to get users to
give us that data directly, or to use search history and chrome logs to get that data. I
believe this is an easier problem than building verticals. For example, 70% of all the pages
that are viewed have special purpose markup that the sites added to help Google understand
the structure of the content, so that we can better direct traffic to those sites. I don't believe
we have pushed hard enough, and because of that, we are making enemies of sites that
could be friends.

GOOGLE - HIGHLY CONFIDENTIAL GOOG-HJC-04276685


On Thu, Sep 20, 2012 at 11:30 PM, Susan Wojcicki _ w r o t e :
I agree with what you are saying IF the information is available on the web and not in
silos, closed databases on other sites.
Restaurants in Palo Alto is not the same as comparing cars, or finding car insurance or
finding which hotels are available on specific dates and at what prices; restaurants in Palo
Alto is based on info that is on the web so we can search and compare it, the other
experiences have the information in proprietary databases where different companies have
added value by gathering that information.

On Thu, Sep 20, 2012 at 11:12 PM, Alan Eustace _ w r o t e :


Yo u know my position.
I don't think we want to fight amazon on their turf by building and branding a single
purpose experience by a separate team. The same goes for Yelp and Local. What we
need is to have the underlying data in the same format and data store, and support
operations and user experiences that work across all of them. We should build an
interface that makes it as easy to compare products asit is to compare hotels, or resorts,
or flights, or hiking trails, or wedding site locations, or colleges.
Yahoo in 1998 was on top of the world, with a huge fraction of all the traffic on the web.
They built narrow verticals in finance, news, autos, etc, but they lost to search engines
and the web. Finding great content is more important than owning all content. What
google needs is deep generic experiences in a general infrastructure, where the addition of
data defines the experience, rather than teams writing special purpose code.
Restaurants in Palo Alto requires the same infrastructure and ranking as volcanoes in
Italy. What we need to do is to use the collective searching experiences of all our users to
predict what will be valuable to users across all domains, and guide them to the right
places on the web. This is also the right data for Google Now, and for building great
browsing experiences.

OMon,
n Sep 17, 2012 a1:43
t PM, Nikesh A r o r a _ w r o t e :
Folks:
I am keen to have a conversation where we align the strategy we have on the new sets of
products we are launching ‐ which are more vertical searches. We are being asked for
names for:
‐ Hotel Search/ Finder
- Travel
- Autos
- Finance
- Shopping

GOOGLE - HIGHLY CONFIDENTIAL GOOG-HJC-04276686


While i have a view across them, i am more keen to ensure that we have a common point of
view on these, and answer the questions consistently.
Q. Why are we doing this?
Q. What is the organic vs advertising model on these?
Q. What is the future advertising model against these searches? Going from CPC to CPA?
Q. What is the principle we are applying to the UI in each of these cases?
Q. How do we plan to scale these around the world?
Q. Do these have landing pages? Or are they part of the "evolution of search"? Do they need to
have individual names, and individual launch times?
Q. Are these new "mobile apps" - are they integrated into GMS - or are they part of Google
Now?

I think someone needs to be responsible - i think its somewhere between Susan/Alan/Jeff - and
we need to be able to have a common point of view, also think Andy needs to agree from
a mobile point of view.

We should get in a r o o m and agree this ‐ we are being asked to name these things, think naming
isnt the issue ‐ the issue is alignment on strategy, this will make Rachel's life easier as
well.

GOOGLE - HIGHLY CONFIDENTIAL GOOG-HJC-04276687


Message

From: Omella Indonie ‑


Sent: 6/20/2015 11:49:28 PM
Philipp S c h i n d l e r ‐ Joan Braddi _
To:
cc:
Subject:
‐ _ -
Quick update on feedback from AT&T on search

Hi Philipp and Joan

Wanted to just share the feedback we just got from AT & T regarding Googlecom as the default browser. As
you know, we have been pushing hard on compliance of our contract which states that by July 1st they must set
the default browser homepage on Android devices to either (a) point to att.net powered by Google, or (b) point
to Googlecom. As it stands now, the att.net portal is powered by Yahoo search.

We are making positive progress asyou can see from what they just sent us below. We will update once
implemented.

Thanks

Omella

We will make Google.com the default browser home page for devices that enter our lab after June 30, 2015. In parallel,
we will keep working on an att.net solution that includes Google Search with the understanding that we will be able to
switch to that solution once it becomes available.

For clarity, there are devices that entered lab before June 30th that will launch after July 1“ and will still have att.net as
the default home page. Per the contract language below, the current att.net home page is still permitted on those
devices without impacting AT&T's search payment eligibility.

GOOGLE - HIGHLY CONFIDENTIAL GOOG-HJC-04297908


Re: ERB:
Subject: Re:
Subject: fron‑
ERB: SPAM from Confidential
From:
Received(Date):
"
Received(Date): Mon,
a
"Eddy Cue"
Mon, 30
30 Aug
m e +0000
Confidential
Aug 2010

2010 21:05:24 +0000
To: "Patrice Gautier" Confidential
Date:
Date: Mon,
Mon, 30
30 Aug
Aug 2010
2010 21:05:24 +0000
+0000

Let's prioritize
Let's prioritize this as it really solves a
asit a big
big problem.
problem. I think customers
customers will understand even
understand even
without seeing
seeing all of
of them.
them. If
If I search for the 49ers
49ers and
and get NFL app I will understand.
NFL app understand.

Sent from my iPad


iPad

On Aug
On 30, 2010,
Aug 30, 2010, at
at 10:18
10:18 AM,
AM, Patrice Gautier
Patrice Gautier w r - t ewrote::
Confidential

- o - the ddifficulty
yep i f fi c u ] for a understandin_ why
a user is understanding results are
wh all these results showing up
are showin_ thou_ .. ponfq
u though..
Confidential

Andrew:
Andrew: Confidential

-P

On Aug 29, 2010,


Aug 29, 2010, at 4:01
4:01 PM,
PM, Eddy Cue
Cue wrote:

This guy
, has
has aareall
really good
00d idea!
idea! | Confidential
Confidential
Confidential
Eddy
Eddy

On Aug
Aug 29,
29. 2010,
2010. at 12:55
12:55 PM,
PM, Phillip
Phillip Shoemaker wrote:

Privileged and Confidential


Privileged and Confidential

Yes, we instituted
Yes, we Step 1I last
instituted Step last week.
week. We
We will work with the developer to determine an
to determine an
deadline.
appropriate deadline.

thanks Phil.
Phil.

On Aug
On Aug 29, 2010, at
29,2010, at 12:50
12:50 PM,
PM, Philip
Philip Schiller wrote:
wrote:

Privileged
Privileged and CConfidential
onfidential
My suggestion:
suggestion:

Step 1:
Step accept no
I: accept no more app submissions
more app submissions to the app store from this developer
app store
Hopefully
Hopefully we
we have
have done that and told them

Step 2:
Step 2: We
We give them aa reasonable deadline to
reasonable deadline to dramatically reduce
reduce the number apps or they
number of apps
will be kicked out
bekicked out of the store
store

HIGHLY CONFIDENTIAL --- SENSITIVE


SENSITIVE BUSINESS
BUSINESS INFORMATION
INFORMATION HJC-APPLE-007673
HJC-APPLE-007673
On Aug
Aug 29,2010,
29, 20l 0, at 12:46
12:46 PM,
PM Phillip
Phillip Shoemaker wrote:
Privileged
Privileged and
and Confidential
Confidential

We've
- v had
as. an
u ongoing
- l : i n _ relationship company-
relationship with the company Confidenti , as
asthey intend
intend onon creating
creating
_ Confidential for store. We've been
or the store. been having
having this ongoing
ongoing conversation with them to to
consolidate
conso I ate their apps, but I've
e i r apps. I've discovered that they're still submitting
submitting apps
apps at
at the same time.
the same time.
This has
has got to stop, as
to stop. as they are
are spamming
spamming the
the store. See the
store. See the following
following link:
link:

Confidential
Confidential

We called them again last


last week to discuss
discuss this, and this is the
this, and the response
response we got back.
back. While
While I
believe the developer still needs
believe needs to comply andand consolidate
consolidate their apps,
apps, he
he has some interesting
has some interesting
data, especially with regards
data, regards to to his
his attempt at
at consolidation.
consolidation. I'm sending this
I'm sending this out mainly so
mainly so
Matt and
and team can see
see if
if there's something
something they can get from this with regards
regards to
to
on the App Store.
discoverability on Store.

Phillip
Phillip

Begin
Begin forwarded message:
message:
From: .
From: Confidential
Confidential
Date: August 26.
Date: 26, 2010
2010 11:18:03
11:18:03 AM AM PDT PDT
To: Richard
To: Richard Chipman
Chipman Confidential
Subject: Re: Your App Store
Subject: Re: Store submisslon
submission Confidential foriPad
f o r lPad

Richard,
Richard,

thanks again for your call,


call, and
and thank you for your invitation
invitation to
to email you my
my point
point of view
on this.
Onthis.

You state that one


You state one of the reasons
reasons I need
need to consolidate my
to consolidate my maps
maps into
into less apps is
less apps is findability
in
in the app store.
store.

I couldn't agree more. app store is such a


more. The app a huge
huge success
success with developers
developers that finding
finding an
an
app is
is indeed
indeed aa problem.
problem. From
From my
my sales
sales numbers and a
numbers and a statistical analysis
analysis I've done, I see
I‘ve done, see a
a
of things that are
couple of are relevant to this discussion:
discussion:

1)
I) people
people don't use google to find apps.
use google apps. If
If they did,
did, I would see
see it in the traffic on
on my
my
website. Apple hashas apparently done an
an excellent job with the appapp store
store and
and people
people don't look
elsewhere
elsewhere for their app
app needs.
needs. A big
big factor is
is the app
app store icon
icon on device of
on each device of course,
course, but
it's an important point
it's an point to
to make anyway.
make anyway.

2)
2) people
people use
use the
the top-25 lists
lists in the app
app store. see a
store. I see correlation between
a direct correlation between maps
maps
appearing
appearing in the
the top-25 lists
lists and my downloads.
downloads. Both
Both the
the most popular,
popular, and the recent apps
apps
list are a big influence on sales.
list are a big influence on sales.

3)
3) If
If people find what they're looking
people don't find looking for in the top 25
25 lists,
lists, they use
use keywords.
keywords.

-- SENSITIVE
HIGHLY CONFIDENTIAL -‐ SENSITIVE BUSINESS
BUSINESS INFORMATION
INFORMATION HJC-APPLE-007674
HJC-APPLE-007674
And
And this is
is where things
things get interesting.
interesting. Bear
Bear with me
me for aa while while I first talk about
consolidation, I'll
consolidation, I'll get back to
to keywords
keywords in aa while.
while. You've asked me
You've asked to consolidate.
meto consolidate I have
have
done so.
so, as
as you know,
know, in this app:
app:

Confidential
Confidential

I've
I've invested
invested considerable effort in this app
app - I want it to succeed,
succeed, because
because ofof aa few simple
simple
reasons: app is easier to maintain
reasons: one app maintain than lots,
lots, and
and the odds that I get returning
the odds retuming business
business
from anan app
app that has
has many in-app sales options
in-app sales options are
are bigger than with aa single
single stand-alone
stand-alone
map,
map, where people
people have
have to go back to the
to go app store
the app store for another map.
map. I've
I've invested
invested time
time in
developing
developing the app,
app, money in getting
getting the server storage
storage and
and bandwith
bandwith to deal with the
to deal
downloads, and time in uploading
downloads, and uploading the 700 in-app
in-app purchases.
purchases Count about 55 minutes
minutes for aa
completed
completed map
map to upload
upload the database to to my sewer
server and enter
enter all the
the information
information in the
iTunes database, and
iTunes Connect database, and you see this isn't
you see something I did
isn't something did just to please
please you.
you. I want this
this
to work,
work, because
because if
if it
it works,
works, it's
it's not just better
better for Apple.
Apple. It's
It's better
better for me
me as
as well.
well.

The initial download numbers


initial download numbers reflect my my earlier point
point about the top 25
25 new apps
apps list. The
list. The
later
later sales numbers also reflect
numbers also reflect my
my point about the keywords:
keywords: when not not in the top-25
top-25 list,
list,
people
people use
use keywords, and they are
keywords, and are not
not finding
finding the consolidated
consolidated app.
app. People
People looking for. say,
looking for, say,
"Ibiza" are
"Ibiza" are finding a lot
finding a of stufl'
lot of stuff ‐- but
but not
not the consolidated app, even though it is
consolidated app, is indeed
indeed
relevant toto the search.
search. Sales
Sales numbers
numbers areare less
less than 25%
25% of what it should
should bebe when I compare
compare
it to the stand alone apps.
apps.

So, how to
So, to fix this? Unfortunately,
Unfortunately. the only one
one who can really fix this is
is Apple.
Apple. I'll
I'll explain
how, and I would
how. and would love
love to
to be
be proven wrong on this by somebody suggesting
proven wrong suggesting another solution.
another solution.

Confidential
Confidential

Confidential That way,


way. no
no matter how small aa town,
town, if
if I have
have a map it. people
map for it, people will find
find
it.
it. In fact,
fact, there are a
there are a number
number of cities that I have
have no
no competition for in the
the iTunes
iTunes store, and
store, and
people
people areare downloading
downloading those cities
cities as
as stand-alone
stand-alone apps,
apps. but not in the
the consolidated
consolidated app. The
app. The
search algorithm needsneeds to return
return the consolidated
consolidated appapp for those cities,
cities, or people
people willleave
will leave
the app
app store
store thinking
thinking there's no
no map
map at all
all if
if I'm
I'm not
not allowed to
to have stand-alone apps.
have stand-alone apps.

Another way to
to fix it
it is
is to
to change the category
category structure.
structure. II willlimit
will limit my
my remarks
remarks to
to the
"Travel" category
"Travel" cate_o for now,now. you'll
ou'll have
have to
to get
et feedback onon the categories from other
the other cate_ories
developers.
develo-ers. Confidential
Confidential

Confidential
Confidential

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are other points
There are points that need
need to to be
be made.
made. The "findability"
"findability" problem
problem in in the app
app store
store has
has a a
lot of
of causes,
causes, and asas you rightly state
state the
the number
number of of apps
apps is one
one of
of them.
them. But
But there's
there‘s more.
more.
There is a huge
is a huge amount of. of, pardon
pardon my my french,
french, crap in the app store. Flashlights,
app store. beer-tilting
Flashlights. beer-tilting
apps, pull-my-finger
apps, pull-my-finger apps,apps, etc. Yes. most
etc. Yes, most of them are are free,
free, but
but they make
make it extremely
serious apps
diffcult for serious apps to do do something
something free. Case in point,
free. Case point. my
my consolidated app app isis free,
free. and
and
contains zero
contains zero maps
maps after download (but (but it does show onlineonline map
map images,
images, soso it isn't
isn‘t blank).
blank).
I've
I've seen negative
negative feedback in the app store
the app store and
and one-star
one-star feedback because
because people
people found out out
that the actual in-app
in-app purchase
purchase of of the maps
maps isn't
isn't free.
free. The expectations for a a free
free app
app areare
utterly tainted by allall the free gimmick apps apps out there, and you'd find
there, and find me cheering loudly
me cheering loudly if if
Apple
Apple were to to clean those
those up.
up. What I could do do is
is make
make the
the consolidated app app non-free
non-free and and
allow one
one free in-app download, let
in-app download. let the
the user
user pick aa map,
map, but
but I would
would require
require API support for
this to
to prevent people from deleting
prevent people deleting the app,app, reinstalling
reinstalling it,
it, and downloading another free
and downloading
map.
map. Again something
something that Apple would have have to change
change for me metoto work.
work. And even if if you did
you did
so, there would still be
so, be the keyword
keyword problem.
problem.

Then there's the


the requests
requests by
by users.
users. You're
You're telling
telling me
meto to stop
stop uploading
uploading apps,
apps. but
but what do
do I
tell people
people who email meme with requests? Some of
requests? Some of these
these requests
requests have
have become
become best-sellers
best-sellers for
me, and I1 get a
me, and a few every week.
week. If
If you want,
want, I can send
send you some
some email addresses of
email addresses of people
people
who have
have been
been very
very happy with my support
support of
of their requirements.
requirements.

I understand
understand you cannot talk about future changes changes to the way thethe appapp store
store works.
works. I expect aa
lot of
of efi'ort
effort is being
being put in things I see see only rumors
rumors about - perhaps
perhaps I will know more more after
the September 1I event.
event. This probably means means you
you cannot tell meme if if the above suggestions are
above suggestions are
even considerd,
even considerd, let alone accepted
let alone accepted or rej ected by Apple.
rejected Apple. This may put put you,
you, or even both
both ofof
us
us in aa bit of an
an awkward
awkward situation in this discussion.
discussion, because
because I may be be urging
urging for things
accepted or rej
already accepted ected. I1can
rejected. can let you know
let you know that anything
anything I amam told
told of future
future changes
changes in
any Apple
Apple product
product I consider to to be
be confidential andand under
under non-disclosure,
non-disclosure. eveneven ifif not
not
directly told by an Apple employee.
by an employee. If If it helps
helps the
the discussion for you you I am
am willing
willing to sign aa
non disclosure on
non disclosure on this subject.
subj ect. I also
also realize
realize that if
if you cannot
cannot dodo such a a thing
thing you're also
also not
not
going to be able
going be able respondto respond at all to this paragraph.
paragraph. That's fine,
fine, I just want you to
to know the
the
option is
is there.
there.

As to your question on how far down I would be be willing


willing to consolidate:
consolidate: down to a number
to a
that is as low as
is as as possible.
possible. If
If the findability of of the 700 City Maps
the 700 Maps I mention above is
mention above is fixed,
fixed, ifif I
see sales
see sales go
go up
up to numbers
numbers that match the sales of the standalone
the sales standalone apps.apps, I will immediately
start removing
removing lots maps from the app
lots of maps app store.
store. The less
less apps
apps I have
have toto maintain,
maintain. the
the better it
is for me.
me. In an
an ideal world. that number
ideal world, number would be one. It's
be one. It's likely that there's aa small set of of
best sellers where it would make sense to keep
make sense keep the stand
stand alone
alone versions along
along with thethe
consolidated app,app, but then you're talking
talking numbers
numbers lower
lower than 50or 50 or 100
100 or so.
so. We'll cross
cross
that bridge
bridge when we we get there.
there. The first thing
thing that needs
needs toto be
be done
done isis that people
people will
actually find andand download
download the the 700
700 City Maps
Maps app.
app. The next thingthing after
afler that,
that, but that's
probably in-line
in‐line with your
your other cleanup
cleanup work in the app store,
app store. is is that the image
image ofof aa free
free app
app
needs to improve
needs improve - but that's far less urgent
less urgent than the problem
problem that people are
people are currently not
not
finding
finding the app.
app.

And
And in closing,
closing, I would really
really hope
hope that this is a simple
is a simple fix
fix on
on your end:
end: Confidential

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Confidential

Richard,
Richard, please
please feel free to give me
to give me any feedback at
at all,
all, and
and feel free to
to have
have people
people in your
team do the same.
same. I want the same thing as Apple
thing as Apple here,
here. but
but it looks
looks like
like I've
I've done
done on my end
end
everything that can
everything can be done.
be done.

Confidential
Confidential

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Subject: Re:
Subject: Re: NYT article
NYT article
From: "Peter Oppenheimer"
From: "Peter Oppenheimer" Confidential

Received(Date):
Received(Dale): Fri,
Fri, 16
16 Mar
Mar 2012
20I2 17:08:11 +0000
I7:08:Il +0000
To:: "Eric
To "Eric G
Gray" r aConfidential
y ' ‑
Cc: "Dean Migchelbrink"
Cc: “Dean Migchelbrink" Confidential "Eddy Cue"
Cue"
_ ' C h r "Chris
Confidential i s Keller"
Keller" Confidential

Bcc:
Bcc: ""Peter
P eOppenheimer"
t e r O p p e n Confidential
h e i m e r ‑
Date:
Date: Fri,
Fri, 16
16Mar
Mar 2012
2012 17:08:11
I7:08:Il +0000
+0000

Dean,
Dean,

Can you send


Can send something
something that shows for the last
last few months
months our write-offs for fraud that we
we are
are
getting for charge backs
getting backs and
and the level of refunds
level of refunds we are
are doing
doing for customers.
customers.

Peter
Peter

Eric,
Eric,

What would we we need


need to do
do to provide
provide better
better responses
responses to developers?
developers? In thinking
thinking about this,
this, we
we
should not
not let
let this sentiment become
become fact by virtue of our not
not responding
responding to developers,
to developers,
especially if
if we demonstrate that this is
we can demonstrate is not
not accurate.
accurate. To the is. we
the extent that it is, we need
need to fix
fix it
as we did more
just aswe more than a a year ago
ago when ran
ran into
into problems.
problems. This is very strategic to us, and we
us, and we
want
want to
to be
be bullet proof.
proof.

Peter
Peter

On Mar 15, 2012, at 9:47


15, 2012, 9:47 PM,
PM, Eric
Eric Gray wrote:
wrote:

Peter,
Peter,

We've
We've repeatedly answered this question andand haven't
haven't yet identified
identified aa case
case where there is is an actual
an actual
issue.
issue. The perceived difference is
perceived difference always associated with develo
ISalways developers
- -rs who have
have si significant
ficant levels
levels
of
f refunds
refun- and
= . the associated
. socia -.. timing
timin of
ofssuch
ch refunds.
refun- 1 Confidential
Confidential

Confidential
Confidential
Vulillu.11%41
v‑

In response to the point that we don't provide good support. We intentionally reply with a
standard and rather vague response that the reporting is not intended to reconcile due to timing
differences and we do not individually investigate each inquiry, but instead review enough of
them to ensure both the daily / weekly reporting and the monthly financial reporting continue to
be reliable for their intended purposes. We have good user guides and FAQ's that would allow
one to reconcile things. Confidential
Confidential t never seem like a great investment, but we could re-consider.

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I had
had heard
heard from PR
PR that this was coming,
coming, and
and it is
is unfortunate as the issue
unfortunate as issue is
is very small as
as aa
percentage of
percentage of our business
business and impacts
impacts aa very small percentage of our developers.
percentage of developers.

We are making
We are making great progress
progress on anti-fraud measures
measures right
right now and have
n o w and have aa very comprehensive
comprehensive
strategy that we are in the early stages
we are stages of
of executing
executing on.
on.

Thanks

Eric
Eric

On
On Mar
Mar 15, 2012, at 9:21
15, 2012, 9:21 PM,
PM Peter
Peter Oppenheimer wrote:

Eric
Eric and Dean,
Dean.

This just posted


posted from the New York Times.
Times. I know we are
are working
working on the customer account
fraud points
points made
made in the article but I have
have not
not heard of the
heard of the developer payment concerns below
payment concerns
one cites in the millions).
(which one millions). Here
Here is
is the
the relevant section:
section:

One successful
successful American
American game developer,
developer,
condition of anonymity for
who spoke on condition
fear of retribution
retribution by Apple,
Apple, said
said he
he started
started
to notice
notice discrepancies in payments
payments last
last
summer. The developer said
summer. said his
his team had
had
sent multiple
multiple e-mails to Apple,
Apple, but
but that it
had n
had not addressed whether the missing
o t addressed missing
payments were a result of fraud.
fraud. Over the
last year, the gap has
has amounted mill ions
amounted to millions
of dollars,
dollars, according
according to internal
internal documents
provided by the developer.
provided developer.
little action
With little Apple, sorne
action from Apple, some
affected have banded
affected developers have banded together.
together.

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Chinese developer,
One Chinese developer, CocoaChina,
CocoaChina, has
has
created an antifraud alliance of roughly aa
an antifraud
dozen developers.
developers.
While many of of the affected
affected consumers and and
developers said
said they did
did not
n o t blame
blame Apple
for their misfortunes,
misfortunes, nearly all all said
said the
company could
could be be more
m o r e responsive,
responsive, andand
noted
noted that itit lacked
lacked even
even aa dedicated
dedicated phone
phone
line to deal with complaints.
line complaints.
"Apple wants to pretend
“Apple pretend that everything
everything is
is
magic,"
magic,” said
said Alex Stamos,
Stamos, co-founder of
iSEC Partners,
iSEC Partners, aa security firm.
firm. "They need
“They need
to admit that their products
products can
can be
be used
used by
bad people
bad people to do bad things. "
bad things.”
What is going on here?
going on here? Why are developer inquires
inquires not
not being
being answered?
answered?

Peter
Peter

For Apple, Pressure Builds


Apple, Pressure Builds
Over App
A p p Store Fraud
Store Fraud
By EVELYN
EVELYN M.
M. RUSLI
RUSLI and
and BRIAN
BRIAN X.
X.
CHEN
CHEN

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In aa little
little over an hour, Ryan
an hour, Ryan Matthew
Matthew
Pierson racked
Pierson racked up $437·71
$437.71in iTunes
iTunes
charges for virtual currency
currency that hehe could
could
use to buy guns,
use nightelubs and
guns, nightclubs and cars
cars in
iMobster,
iMobster, a a populariPhone
populariPhone game.
game. One
problem: Mr.
problem: Pierson, aa technology writer
M r . Pierson,
Texas, has
in Texas, has never played iMobster.
played iMobster.
"This was fraud,”
“This fraud," said
said M
Mr. Pierson,
r . Pierson,
recalling
recalling the November incident.
incident. GG“II woke
up, checked
up, checked my e-mail,
e-mail, and
and I could
could see
these purchases
purchases happening
happening in realreal time.
time.”"
Mr. Pierson raised
M r . Pierson raised the issue
issue with Apple and
and
bank, and
his bank, and the problem
problem was
was eventually
resolved.
resolved. But his
his experience is hardly
unique, as reflected by hundreds
unique, asreflected hundreds of online
complaints saying
saying that Apple's iTunes
Apple’s iTunes
Store, and
Store, and in particular its
its App Store,
Store,
which the company
company portrays as as the safest of
shopping environments,
environments, is n not so secure.
o t so secure.
The complaints come from consumers like like
Mr. Pierson, who say that their accounts
M r . Pierson, accounts
have been
have been hijacked
hijacked or that some
some apps are
apps are

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falsely advertised.
advertised. And
And they come from
creators of apps,
creators of apps, who say
say they are
are having
having to
to
deal with fraudulent purchases
purchases that drain
drain
and resources.
their time and resources. Software makers
makers
also complain that competition
also complain competition in the App
Store has
Store has become
become so brutal that many
so brutal
companies resort
resort to artificially inflating
inflating
their popularity rankings to grab attention.
popularigg,rankings attention.
It's aa change for Apple,
It’s Apple, which was
once
once criticized
criticized for its
its micromanaging
micromanaging of the
Store. Now the problem
App Store. problem isis not
n o t too
much control, but too
much control, little.
too little.
"This kind
“This kind of thing just happens
happens any time aa
platform is successful,”
platform successful," said
said David
David Edery,
Edery,
chief executive
executive of Spry Fox,
Fox, aa small
small
software company that sells gamesgames in the
Store. “People
App Store. "People start flooding into
into it
it
and
and itit starts
starts to get crazy.”
crazy. "

The App Store offers more


more than 600,000
600,000
applications iPhones, iPads
applications for iPhones, iPads
and iPod Touches,
and M Touches, and
and has
has already
generated billions
billions in revenue
revenue for Apple and
and

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its developers. That makes
its developers. makes it
it both
both the best
best
deal going
going for software makers
makers and
and
consumers,
consumers, and
and also a hulking
hulking target for
looking to manipulate
those looking manipulate the system and
and
cheat people.
people.
Apple declined
declined aa request for an
an interview,
interview,
said in a statement that it was
but said was working
security. It
to enhance security. It advised
advised customers
whose payment information had
paymentinformation had been
been
stolen to change their iTunes
stolen iTunes passwords
passwords
and
and to contact
contact their financial institutions.
institutions.
In the shadowy world of hacking,
hacking, it's
it’s often
often
unclear
unclear how
how criminals get iTunes
iTunes
passwords or credit cardcard information.
information. But But
the App Store,
Store, and
and Apple's
Apple’s broader iTunes
iTunes
Store, have
Store, have become
become playgrounds
playgrounds for illicit
illicit
transactions. And the Web is rife
transactions. rife with App
Store scams.
Store scams. On Chinese
Chinese online
marketplaces, like Taobao or DHgate,
marketplaces, like DHgate, some
sellers are offering
offering access to iTunes
iTunes
accounts for as little as
as little as $33.
$33· One seller on
DHgate, for instance,
DHgate, instance, has sold 56
has sold 56 iTunes
iTunes

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accounts
accountsfor less
less than $35 each,
each, promising
promising
thousands of dollars in “credit.”
,G
credit. "

There are services that claim to generate


codes for iTunes
iTunes gift cards, and forums that
cards, and
explain use prepaid
explain how to use prepaid Visa cards to
get free App Store
Store purchases.
purchases.
The scale of the problem
problem is difficult to
Apple s cooperation,
gauge without Apple’s cooperation, though
though
there is Widespread
widespread anecdotal
anecdotal evidence,
evidence,
even Apple's o
even on Apple’s own site. On
w n site. On one Apple
GG.
support forum,
forum, a thread titled “iTunes
1Tunes
store account
store hacked, there are
account hacked,” "
are some
some
1,370 replies,
1,370 replies, starting
starting in November
November 2010
2010
and extending to Thursday.
and extending Thursday. Last
Last week,
week,
more
more than
than 100
1 0 0 people
people onon Twitter who said
said
they were iTunes users complained
iTunes users complained about
stolen funds.
stolen funds.
Last month,
Last Daniel Saewitz,
month, Daniel Saewitz, a
a 20-year-old
20-year-old
Syracuse University
Syracuse student, was charged
University student, charged
$81
$81 for purchases
purchases related
related to a
a Chinese
iPhone game.
iPhone game. He alerted Apple and
He alerted and
changed
changed his
his iTunes password. But
iTunes password. 24 hours
B u t 24 hours

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later, he
later, said, his
he said, account was
his account was hacked
hacked
again.
again. In an an e-mail,
e-mail, Apple said it was
refunding
refunding Mr. Saewitz's money,
M r . Saewitz’s money, but
but added
added
that itit was
was making
making an exception its usual
exception to its usual
rules.
rules.
For
For developers,
developers, the scams can
can cause big
big
headaches,
headaches, eating
eating up resources and
resources and
damaging
damaging their reputations.
reputations. Several
Several game
makers China, where many of the hacks
makers in China, hacks
appear to originate, said they had
originate, said had lost
lost
hundreds
hundreds of thousands of dollars because
because
of fraud.
fraud.
Hoolai Game,
Hoolai Game, a a Beijing-based
Beijing-based developer
that introduced
introduced an an iPhone
iPhone app last
last year,
year,
looked at its
looked monthly payments
its monthly payments from Apple
and
and found that they were were roughly
roughly 20
20 to 50
50
percent less
percent less than the sums u m of the daily
reports it gets from the company.
reports it company. Hoolai
Hoolai
and
and others say they believe
believe these missing
missing
payments are
payments are fraudulent transactions that
are wiped out by Apple.
Apple.
More
More troubling for developers is that

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consumers
consumers whose accounts
accounts have
have been
been
improperly charged often
often blame
blame the game
makers.
makers. The reviews
reviews in the App Store
Store for
Kingdom Conquest, from the Japanese
Kingdom Conquest,
game giant Sega,
Sega, include
include dozens from
incensed
incensed users
users who accuse Sega of robbing
accuse Sega robbing
them. Sega, which first noticed
them. Sega, noticed aa burst of
fraudulent transactions last summer,
summer, is still
still
problem, according
working on the problem, according to Ben
Ben
Harborne, a
Harborne, a brand
brand manager at the
company.
company.
"
We are very worried about reputation,”
reputation,
,G
“We
said
said JJian Huang, the president of Hoolai,
ian Huang, Hoolai,
hopes to introduce
who hopes introduce aa game
game in the
United States later
United States year. “We
later this year. "We have
have no
no
way toto tell the customer
customer that we're
we’re victims
too.
too.”"
One successful
successful American game developer,
developer,
who spoke on condition of anonymity for
fear of retribution
retribution by Apple,
Apple, said
said he
he started
started
to notice
notice discrepancies in payments
payments last
last
sunlnler. said his
summer. The developer said his team had
had

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sent multiple
multiple e-mails
e‐mails to Apple,
Apple, but that it
had nnot
had addressed whether the missing
o t addressed missing
payments werewere a result of fraud.
fraud. Over the
last year, the gap has mill ions
amounted to millions
has amounted
of dollars,
dollars, according
according to internal
internal documents
provided by the developer.
providedby developer.
little action
With little Apple, some
action from Apple, some
affected
affected developers have
have banded
banded together.
together.
Chinese developer,
One Chinese developer, CocoaChina,
CocoaChina, has
has
created an antifraud alliance of roughly aa
an antifraud
dozen developers.
developers.
While many of of the affected
affected consumers and and
developers said
said they did
did not
n o t blame
blame Apple
for their misfortunes,
misfortunes, nearly all all said
said the
company could
could be be more
more responsive,
responsive, andand
noted
noted that itit lacked
lacked even
even aa dedicated
dedicated phone
phone
line to deal with complaints.
line complaints.
"Apple wants to pretend
“Apple pretend that everything
everything is
magic,"
magic,” said
said Alex Stamos,
Stamos, co-founder
co‐founder of
iSEC Partners, a security firm.
iSEC Partners, firm. "They need
“They need
to admit that their products
products can
can be
be used
used by
bad people
bad people to do
do bad things. "
bad things.”

HIGHLY CONFIDENTIAL ‐-- SENSITIVE


SENSITIVE BUSINESS
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INFORMATION HJC-APPLE-007737
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One problem,
problem, MMr. said, is that
r . Stamos said,
iTunes
iTunes customers use use a single account and
and
password to access all
password all Apple services.
services. For
For
example, same login
example, the same login can
can be
be used
used to
download
download aa $1
$1 game
game or buy aa $$2,000
2,000
laptop through the Apple Store app.
laptop He
app. He
said
said that Apple could
could adopt a two-step
method like
verification method like Google's. For
Google’s. For
example,
example, if a user
if a user wanted to log
log in to the
iTunes store on aa new device,
iTunes device, Apple could
could
send
send aa message
message to his iPhone containing
his iPhone containing aa
code,
code, which hehe would enter
enter to verify his
his
identity.
identity.
Some App Store problems
problems are the fault of
the developers themselves - ‐ including
including
those who makemake itit harder for consumers
consumers toto
trust the store by cheating
cheating the system.
system. The
easiest ways to fifind
n d new
n e w apps are Apple's
Apple’s
Top 25 lists for different categories,
25 lists categories,
including most downloaded.”
downloaded." But But some of
GG
including “most
those downloads may not n o t be
be generated
generated by
real people.
real people.

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BUSINESS INFORMATION
INFORMATION HJC-APPLE-007738
HJC-APPLE-007738
Walter Kaman,
Kaman, an an independent
programmer, said
programmer, said he
he was disheartened by a
was disheartened a
phone
phone callcall from aa service that offered
offered to
put
p u t his
his game in the Top 25. 25· He said
said the
promoter,
promoter, whom he declined to name
he declined name so
so as
as
not
n o t to attract
attract clients to the service, had
service, had
hired someone to build
hired someone build an army of software
"bots " that automatically download
“bots” download apps
and
and drive up their rankings.
rankings. The company
wanted $5,000 for this service,
service, said
said Mr.
M r.
Kaman, who declined.
Kaman, declined.
Mr. Edery of Spry Fox said
M r . Edery said his
his company
was approached
was approached in October by aa fi firm
r m called
called
GTekna, which offered to push
GTekna, its apps into
push its into
25 for $$10,000.
the Top 25 10,000. Chang-Min
Chang-Min Pak, Pak,
GTekna's chief executive,
GTekna’s executive, said
said in anan
interview this week that it stopped
stopped offering
offering
such
such aa service because
because Apple reminded
reminded
developers in February that it it was not
not
allowed.
allowed.
Then there are the customers who have
have
been tricked into
been downloading apps that
into downloading

HIGHLY CONFIDENTIAL ‐-- SENSITIVE


SENSITIVE BUSINESS
BUSINESS INFORMATION
INFORMATION HJC-APPLE-007739
HJC-APPLE-007739
are n
not
o t what they seem to be.
be. Apple has
has
strict guidelines for developers,
developers, and
and it
it has
has
tools and
and human reviewers to screen
human reviewers apps.
screen apps.
But
B u t bad
bad ones do
do slip through.
through. One $2$2 app,
app,
example, promises extra virtual coins
for example,
for people
people playing
playing the game DragonVale.
DragonVale.
But
B u t when customers download
download the app,
app, no
coins appear.
appear. The app has has received
received dozens
of one-star
of one-star reviews customers
reviews from customers
complaining that it is
complaining is aa seam and should
scam and should be
be
removed.
removed.
John Casasanta, owner of
John Casasanta, of the iPhone
iPhone app
studio Tap Tap Tap,
Tap, said
said the issue
issue of
developers manipulating
manipulating the App Store Store
remained unaddressed. “Apple
G,
remained largely unaddressed. Apple has
has
been doing
been doing the barest minimum
minimum to keep keep
these things under control,
control, because
because from
their perspective,
perspective, there's
there’s simply n not a
ot a
problem, Mr.
problem,” "
said.
M r. Casasanta said.

HIGHLY CONFIDENTIAL ‐-- SENSITIVE


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INFORMATION HJC-APPLE-007740
HJC-APPLE-007740
Begin

From:
Subject:
Subject: Fwd:
Subject:
From:

Date:
Fwd: App Store

To::
To
Date: Wed,

Begin forwarded

F
Cook"
From: "Tim Cook'

Wed, 10

Subject: App Store


Store Problem

"Cue Eddy"
"Cue E d
10 Oct 2012

forwarded message:
message:

r
Store Problem
Date: October 9,
Date:
o
Problem
_ Confidential
"Philip S
dconfidential
_, "Philip
00:33:15 +0000
2012 00:33:15

Confidential
Problem
9, 2012 3:06:05 AMPDT
AM PDT
+0000

m
y ' c h
Schiller"


i l Confidential
l e r ' _

T
TO: o
Confidential

Dear
Dear Mr.
Mr. Cook,
Cook.

Il was hoping
hopin,' you
ou might
mi u t be able to stimulate
be able stimulate the resolution
resolution of a a problem
nroblem in the
the Mac app store.
Mac app store.
My app,
My app Confidential was approved for
was approved for sale
sale on
on the
the
app store
app store on
on September
eptem-er 13th.
13- . Thee problem
p r o em isISthat
at thee app is virtually invisible
[5Virtually on the
invisible on store
the store
because searching for
because searching f o rit by keyword
keyword or even
even by name
name yields no no results.
results.

I've gone through the


I've gone the proper channels andand have
have been told
told that the iTunes
iTunes Connect team
team is
is
"diligently working
working to
to resolve
resolve this issue"
issue" however
however the problem
problem was reported on September 17th
reported on 17th
and
and there has
has apparently been
been no status updates
no status updates or visible
visible progress since then.
progress since then.

This issue
issue has
has turned what would have
have been
been aa big
big launch
launch opportunity for our cocompany
n a n and
and
software into
sofiware non-event. At
into aa complete non-event. rate we
this rate
At this be better
may be
we may p u l l i n g fi
01? pulling Confidential
better off
from the app
app store
store and going
going back to selling directly from our
to selling our web site.
site, where wewe sell many
many
times more
more copies per day and
and aren't limited by sandboxing
limited sandboxing and and other app store rules.
app store rules.

I'm
I'm hoping
hoping that you are
are willing
willing to
to intervene
intervene and increase
increase the
the priority
. riority of resolving
resolving this
this problem
believe is
which I believe is a matter fixing
simple matter
a relatively simple fi x i n ‐ n n y
Confidential the search index.
entry in the index.
Going without the increased
Going sales from being
increased sales being on the app
app store
store has
has been an unexpected
been an unexpected blow to
our small company.
our company.

It may be relevant that Confidential is. I believe. the| Confidential |to be sold on the ann
store. Confidential

Confidential

Sincerely,

Confidential

Confidential

-- SENSITIVE
HIGHLY CONFIDENTIAL -‐ SENSITIVE BUSINESS
BUSINESS INFORMATION
INFORMATION HJC-APPLE-007767
HJC-APPLE-007767
Confidential

Confidential

HIGHLY CONFIDENTIAL --- SENSITIVE


SENSITIVE BUSINESS
BUSINESS INFORMATION
INFORMATION HJC-APPLE-007768
HJC-APPLE-007768
Subject: Fwd:
Subject: Fwd: App Store
Store Search
Search Changes (iOS)
Changes (iOS)
From: "Philip Schiller
From: "Philip Schiller"11 Confidential
Received(Date):
Received(Date): Fri, 06 Nov 2015
Fri, 06 03:24:39 +0000
2015 03:24:39 +0000
To::
To Cue"
"Eddy Cue" Confidential Fischer"
. "Matt Fischer"
1 Confidential I,"Phillip Shoemaker"
"Phillip Shoemaker"
1 Confidential L"Ron Okamoto"
"Ron Okamoto"‐ Confidential 1. "" C.K.
CK.
mm '
Haun" Confidential

Cc:
C c: "Greg Joswiak"
"Greg Joswiak" Confidential
Confidential "Brian Croll"
, "Brian Croll" Confidential
Confidential
Date:
Date: Fri, 06 Nov 2015
Fri, 06 2015 03:24:39+0000
03:24:39 +0000

FYI
F YI

Begin
Begin forwarded message:
message:

From:
From: Confidential
Confidential

Date:
Date: November
November 5,2015 at 7:32:41
5, 2015 at 7:32:41 PM EST
EST

To: Philip
To: Philip Schiller Confidential

Subject: App Store


Subject: Store Search
Search Changes
Changes (iOS)
(iOS)

Phil,
Phil,

The App Store


Store Search changes
changes introduced
introduced earlier this week made
made finding quality apps even
apps even
harder than it was.
harder was. As you know,
know, most
most non-VC
non-VC backed companies that are
backed companies are trying
trying to make
make money
selling apps,
selling apps, do
do rely on
on search for app
app discoverability.
discoverability. The app economy is
app economy such, that it is
is such, is not
possible to advertise
possible advertise your way into
into profits,
profits even
even at scale. Quick and relevant
at scale. relevant search is
is vital.
vital. It's
It‘s
never been
never been perfect,
perfect, but
but the latest
latest changes made
made bad worse. Here's
bad situation worse. Here's an example:
an example:

Consider TTweetbot fforr Twi


Twitter.r. As know. this isis an
As you may know, an incredibly popular
popular and well made
made
app. If
app. if you go
go to
to the
the App Store
Store on on your iPhone and search
iPhone and search for "twitter",
"twitter", Tweetbot never
never shows
shows
up. apps that do
up. The apps do show up
up now, often times have
now. ofien have nothing
nothing to do with Twitter,
to do Twitter, for example.
example,
emoji
emoji apps,
apps, wallpaper apps
apps etc.
etc. Further,
Further, the apps
apps that do
do appear at at the
the top, are often
top, are abandoned
often abandoned
apps that are
are no
no longer
longer maintained,
maintained, for example.
example, meets;
Tweeter (at #10).
#IO). This is a horrible
is a app, with
horrible app.
horrible
horrible ratings
ratings that hasn't
hasn‘t been
been refreshed 2008.
refreshed since 2008.

This is obviously just one example,


example, but
but it demonstrates the essence
essence of
of the
the problem.
problem.

apps have
Our apps have literally been obliterated from search.
search. We
We used
used to
to rank high
high on
on our target
target search
terms,
terms. and we
we have
have been updating
updating our apps
apps regularly
regulme for the
the past
past 77 years. These recent
years. These recent App Store
App Store
changes have
changes have effectively put
put us
us out
out of business, overnight.
business, ovemight.

Regards,
Regards,

HIGHLY CONFIDENTIAL --- SENSITIVE


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BUSINESS INFORMATION
INFORMATION HJC-APPLE-007816
HJC-APPLE-007816
Confidential
Confidential

HIGHLY CONFIDENTIAL --- SENSITIVE


SENSITIVE BUSINESS
BUSINESS INFORMATION
INFORMATION HJC-APPLE-007817
HJC-APPLE-007817
Subject: Sad iOS
Subject: iOS App Developer
Developer
From:
From: Confidential
Confidential

Received(Date): Tue, 03
Receivetl(l)ale): Tue, 03 Oct 2017
2017 14:58:35
I4158235 +0000
+0000
To
To:: Confidential
Confidential

Date: Tue, 03
Date: Tue. 03 Oct 2017
2017 14:58:35
14:58:35 +0000
+0000

Hi Mr. Cook,

I'm ~confidet one of two guys who left Confidential


Confidential We raised
money and built a product people seem to be getting excited about!

Unfortunately, we have a problem. In the iOS App Store, searches for Confidential
Confidential ~and other variations and and exact matches do not show our product in the
first ~100 results. I've written to developer support multiple times, and while they are
responsive, nothing changes in the result queue. I understand that your algorithm
weights different factors, but for an exact match to (effectively) be absent is very
surprising and upsetting.
We o n
We went to #1 on Confidential two _
two weeks ago and and have
have had but every
attention, but
had some attention,
exposed to new
time we get exposed new users,
users, we hear
hear "we
"we can't
can‘t find your app
app on the
the App Store."
Store."
Providing a
Providing a direct link doesn't seem
seem to help
help ‐- people
people use
use the App Store
Store to find apps, and
find apps, and
an app
if an app isn't
isn't discoverable,
discoverable, it simply
simply will not
not be
be found, downloaded,
downloaded, and
and adopted.
adopted.

I'm writing to you


I'm you because
because this going
going to kill
kill our startup.
startup. We believe we're really
We believe really
innovating - building
innovating building an
an app that provides
provides value inin a
a new
new way. But we simply cannot
way. But cannot
succeed if we can’t
succeed can't be
be searched
searched on your store.
store. This is sad for us,
is sad us, but also sad
but also sad for the
iOS ecosystem.
iOS ecosystem.

reading,
Thanks for reading,

Confidential
Confidential

HIGHLY CONFIDENTIAL ‐-- SENSITIVE


SENSITIVE BUSINESS
BUSINESS INFORMATION
INFORMATION HJC-APPLE-008115
HJC-APPLE-008115
Subject: Re:
Subject: Re: Warren arguments
arguments
From: "Kristin Huguet" Confidential
Received(Date): Tue, 12
Received(Dale): Tue, 12 Mar
Mar 2019
2019 20:49:10 +0000
20:49: I0 +0000
To: "Steve Dowling" Confidential
Date: Tue, 12
Date: Tue, 12 Mar
Mar 2019
2019 20:49:10
20:49: [0 +0000
+0000

Agreed on all.
all.

O n 12,
On Mar
Mar 2019, a
12, 2019, t PM,
at 1:48
1:48 D o w l Confidential
Steve Dowling
PM, Steve i n g _wrote:
ate:

I agree
1 agree with your points
points but
but I also
also don’t
don't want our
our arguments
arguments to get too
too narrow.
narrow. We should
should just
point out what Warren and
point out and the
the press aren't thinking
press aren’t thinking through -
‐ and counter or anticipate
and counter anticipate their
arguments:
arguments:

We are not a
We are a monopolist -
‐ that's
that‘s shown by
by market
market share -
‐ despite
despite our size
size

The App Store


Store has
has created i2m
j ojobs
b s in every state
state (how many
many in MA?
MA? IA?
IA? NH?)
NH?)

How dodo we
we handle competition with our own apps?
handle competition apps? We don't do
We don‘t do things like
like pushing
pushing down
down
results, etc., as
results, etc., Google (one
as Google (one of
of her real
real targets)
targets) has
has

etc.
etc.

So, I think this is more


So, more of
of a
a legal argument than an
legal argument an App Store issue.
App Store issue.

O n 12,
On Mar
Mar 2019, a
12, 2019, t PM,
at 1:34
1:34 PM, Kristin H u g e Confidential
Kristin Huguet r ‐ n o t wrote:
e :
We'll
We‘ll work through it but just an
butjust an FYI.
FYI...

Begin
Begin forwarded message:
message:

From: Kristin
From: Kristin Huguet
Huguet Confidential
Subject: Re:
Subject: Re: Warren
Warren arguments
arguments
Date: March
Date: March 12.
12, 2919
2019 at 1:22:39
1:22:39 PMPM PDTPDT
To: Tammy Levine
T0: Tammy Lew'ne Confidential
Cc: Fred
Cc: Fred Sainz
Sainz _, Confidential , Tom
Tom Neumayr
Neumayr <_
<_
Confidential
Confidenth

Tammy,
Thanks Tammy,
I feel like
like the first 33 out
out of
of 4 of
of these are wrong.
these are wrong. Because
Because we dodo have
have native
native apps, don't think
apps, I don‘t
we
we can say our appsapps don‘t
don't come
come pre-loaded
pre-Ioaded and you can’t
can't remove
remove them. The reason
them. The reason our
aren't on the app
services aren‘t app store
store is because of the
because of the native apps.
native apps.

I think we're
we’re better served looking at the
looking at success of
the success of developers
developers and
and the
the thriving
thriving businesses
businesses ifs
it’s
created.
created.

HIGHLY CONFIDENTIAL --- SENSITIVE


SENSITIVE BUSINESS
BUSINESS INFORMATION
INFORMATION HJC-APPLE-011034
HJC-APPLE-011034
O Mar n
On Mar 12, 9a
2019,
12, 20I , tPM,
at 12:20
12:20 P Tammy
M Levine
L e v i n ewrote:
wrote: Confidential

Hi Fred,
Hi Fred,
Further to Dowling‘s
Further Dowling's comments about being
being prepared
prepared for the Elizabeth
Elizabeth Warren,
Warren. below
initial arguments in support of the App Store.
are some initial Store. LMK next
next steps
steps and
and how
how II can
can
further.
support further.

not monopolistic
Apple is not monopolistic

·- The App Store


Store gives users more choice,
users more not less
choice. not less because
because Apple apps
apps are not pre‑
are not pre-
loaded on the iOS.
loaded iOS.

-· Users
Users have
have the freedom to individually
individually select which
which apps
apps they wish
wish to download
download
from the App Store.
Store.

-· Apple Apps pass


pass through the same review and
and approval process as all
approval process 3rd party
all 3rd party
apps.
apps.

Many Apple services


services such as Apple Music
such as Music and
and Apple News
News are
are not on the App
not on
Store.
Store.

The App Store


Store is vast, and thrives as a result
vast, diverse and result

-· Apple apps
apps represent
represent 0.0001
0.0001%
% of all
all apps on the App Store
Store (311
(311 of 2 million).
million).

·- The App Store does not


Store does not subordinate the exposure
exposure of 3rd
3rd party apps.
apps.

-· If Apple apps are featured in


are featured in App Store
Store marketing,
marketing, itit is for their quality,
quality, relevance
relevance
and appropriateness.
and appropriateness.

Expanding App Store


Expanding Store software
software download guidelines could harm
guidelines could harm
consumers (store
consumers (store within a store)
within a store)
·- The App Store is the single
Store is single safest way to protect
protect consumers
consumers that are downloading
downloading
software.
software.

-· Downloading
Downloading unverified
unverified software
software outside of the App Store introduces risk to
Store introduces
consumers, and
consumers, and is
is therefore
therefore not
not allowed.
allowed.

HIGHLY CONFIDENTIAL --- SENSITIVE


SENSITIVE BUSINESS
BUSINESS INFORMATION
INFORMATION HJC-APPLE-011035
HJC-APPLE-011035
We may
may also
also want to note that the obvious alternative
to note alternative to Apple releasing
releasing its
its apps
apps via the
Store is
App Store is to pre-load
pre-load the software on
on the products
products in the iOS.
iOS. This approach
approach would
clearly be
clearly even more
be even more problematic.
problematic.

HIGHLY CONFIDENTIAL --- SENSITIVE


SENSITIVE BUSINESS
BUSINESS INFORMATION
INFORMATION HJC-APPLE-011036
HJC-APPLE-011036
Subject: Default
Subject: apps in iOS,
Default apps iOS, iPadOS
iPadOS issue
issue
From:
From: Confidential
Confidential
Received(Date): Tue, 18
Received(Date): Tue, 18 Jun 2019
2019 13:55:02 +0000
13:55:02 +0000
To::
To Confidential
Confidential
Date: Tue, 18
Date: Tue, 18 Jun 2019
2019 13:55:02+0000
13:55:02 +0000

Iii
Hi Cra ig,
Craig,

I1am
am very excited about
about iPadOS.
iPadOS. Great work to you and
and your whole team for putting
putting this
this
together.
together. Yay! That, files app
Yay! That, app and
and the app
app switching
switching is just too
isjust too good.
good. My favorite
favorite is the
the small
keyboard
keyboard on iPadOS.
iPadOS. Thank you so so much!
much! I've one more
I've one more request.
request. Please
Please think about this one
one too.
too.

Everyone
Everyone cancan change default email and and browser
browser apps
apps on their MacOS
MacOS butbut why can't they choose
choose
it on the iPhone
iPhone and iPad?
iPad? All my emails and browsing
my emails browsing history are not available
history are available on my
my iPhone
iPhone
and iPad
iPad because of this issue.
because of issue. I've trying to get some help
I've trying help on this for 10
10years without any
resolution.
resolution. You agree
agree that it is
is very important
important have
have consistency for a
a pleasant experience.
experience. It is
is
one of the
the top Lund's
Lund's usability maxim
maxim as as well.
well.

suggested bv your support team, I've


As w I've removed
removed the app on
the default email app on my iPhone/iPad,
iPhone/iPad, soso
every-time I accidentally click on an
an email link,
link, it takes me to the
meto app store
the app store to
to download thethe
app. There
email app. There are
are many times you cannot even copy the email address
address and soso it takes a long
takes along
and painful
painful procedures just to email someone.
proceduresjust someone.

After more
more than 1010years and
and persuading
persuading many-many people
people to switch
switch over to iPhones,
iPhones, I had
had to
to
finally give
give up
up last
last January and
and move
move to
to android just because
because I wanted toto use "3rd-party" email
use "3rd-party“ email
app by default on
on my
my iPhone.
iPhone. I can
can deal with that,
that, but
but I1really do
do not want to give
give up
up my
my iPad
iPad for
just this request.
request.

Can you please


Can please look into and provide
into this and a way to
provide a and browser
to change default email and apps on
browser apps on
iPadOS at least.
iPadOS at least. II think itit will make
make many many many customers
customers very very happy.
happy. Please!
Please!

Thanks,
Thanks.

Confidential

HIGHLY CONFIDENTIAL --- SENSITIVE


SENSITIVE BUSINESS
BUSINESS INFORMATION
INFORMATION HJC-APPLE-011074
HJC-APPLE-011074
Subject: Default
Subject: Default App Policy
Policy
From:
F mm: Confidential

Received(Date): Thu, 15
Received(Dale): Thu. IS Aug
Aug 2019
2019 15:55:50 +0000
15:55:50 +0000
To::
To Confidential "Craig Federighi"
"Craigrederighi" Confidential
Date: Thu, 15
Date: Thu. IS Aug
Aug 2019 15:55:50
15:55:50 +0000
+0000

Hello Gentleman,
Hello Gentleman,

I have
have been a
a long
long time Apple products
products user.
user. My family loves
loves the
the Apple products
products and
and the
the
incredible
incredible value they add to
to our day to
to day lives.
lives.

One thing
One thing that I strongly believe
believe Apple can improve
improve asas far as
asthe
the iphone\ipad
iphone\ipad user
user experience
experience is
is
concerned is letting
letting the users
users choose their default apps.
apps.

At this time there are


are so
so many apps that Apple provides out of the
provides out the box which have great
have great
alternatives
alternatives on the appstore. To name
the appstore. name aa few:
few.

Mail
Mail Client, Music. Reminders,
Client, Apple Music, Reminders. Apple
Apple Maps, SIRI, Messages,
Maps, SIR], etc.
Messages. Camera etc.

If
If Apple believes
believes that they make
make the
the best apps
apps in the respective
respective categories why not
not let
let users
users
choose what they feel is
choose is the best. At this
the best. this point I cannot
cannot have Google Maps
have Google as my default maps
Maps asmy maps
app, or I cannot slide
app, slide left
left on lock screen andand launch
launch Halide
Halide Camera app
app instead
instead of default
camera.
camera.

I ama
am a big
big time advocate of freedom of choice.
choice. And I feel there is some
some scope
scope of improvement
improvement
for Apple with its app policy.
its default app policy.

Thank you again


again for making
making such wonderful products.
products.

Confidential
Confidential

HIGHLY CONFIDENTIAL --- SENSITIVE


SENSITIVE BUSINESS
BUSINESS INFORMATION
INFORMATION HJC-APPLE-011075
HJC-APPLE-011075
Subject: Re:
Subject: Re: Next steps on
Next steps on Apple
Apple & Baidu
Baidu partnership
partnership
From: "He,Helen" <
From: "Heflelen" Confidential
Received(Date):
Received(Dale): Wed, 03 Jun 2015
Wed, 03 2015 04:31:25 +0000
04:3 I :25 +0000
To::
To "Brian C
Croll" r o Confidential
l l " ‑
Cc: "YeeWee Koh"
Cc: "YeeWee Koh" _ Confidential ""Fang.Yimin"
-,l , ‘ 'u'1"
Confidential ,"Daniel
"Daniel Suen"
sum" ‐ " Confidential
p h ,"Phil
u
Sch1iller
Sc er"" I Confidential

Date:
Date: Wed,
Wed. 0303 Jun 2015 04:31:25
2015 04:3 I 125 +0000
+0000

Brian*
Bn‘an‘

itIt has
has been
been a while since
since my colleagues and
and II visit you Apple's campus.
you at Apple's campus. II will
will be travelling
travelling in Bay Area
in Bay
with my
with my colleagues
colleagues during
during the
the week
week of
of June
June 22nd
22nd and and would
would like
like to meet you
to meet you for
for foliow-up
follow-up discussion.
discussion.

iI would appreciate
appreciate if you could
could let
let me
me know
know your preferred
preferred time
time of June
June 22nd
22nd week.
week. My colleagues
colleagues and
and II
are looking
are looking forward
forward to seeing you
to seeing you again.
again.

Regards,
Regards.

Helen
Helen

F r oTimmCook
From: mrlncook‑ Confidential

Date: Wednesday.
Date: Wednesday, August 6,
6, 2014 at 3:47 AM
AM

To:: --u.Romn-‑
To "Li,Robin" Confidential

Cc: HAIWEN
Cc: HAIWEN HE
HE ‐. Confidential , Phil
Phil Schiller Confidential , Bn‘an
BMan
C
Croll r oConfidential
l l _ , YeeWee
e e " e e Kohl
o h
Confidential ‑
Subject: Re: Next
Subject: Re: Next steps
steps on Apple & Baidu
Baidu partnership
partnership

Robin,
Robin.

Thanks for visiting with me.


me. i'd
I'd like
like Apple
Apple to have
have a deeper relationship
relationship with Baidu and
with Baidu and II think some
some of the
the
items below are
items are great starts.
starts. Here
Here isis the
the status of a
a few of the items:
items:

1.
1. Search Both iiOS8
Search - Both and Yosemite
0 8 8 and Yosemite will
will include
include Baidu
Baidu as the default search engine. Both
search engine. Both operating
operating
systems are
systems are available
available asas a
a developer
developer release
release today and will
today and will become
become available
available to our customer
to our customer base
base in
in the
the
Fall.
Fall.

2. input
2. Input method-
method- iiOS8 enable Baidu
0 8 8 will enable Baidu to have
have significant capability with extensions, such
with extensions. as Baldu's
such as Baidu's
input method.
input method.

3. Map
3. Map App- Eric
Eric Albert from Eddy Cue's
from Eddy team is
Cue‘s team is in
in China
China this week and
and I've
I've asked him to contact you
asked him you to
to
begin an
begin an investigation.
investigation. Please
Please put
put him
him in
in touch
touch with the person on
the right person on your side
side and
and we will
will assess
assess this
this
opportunity.
opportunity.

-- SENSITIVE
HIGHLY CONFIDENTIAL -‐ SENSITIVE BUSINESS
BUSINESS INFORMATION
INFORMATION HJC-APPLE-011083
HJC-APPLE-011083
4. APP Review
Review Fast can set up a
Fast Track- We can a process
process where Baidu
Baidu could
could send
send us a beta
us a beta app
app for review
review
and this can
and can often
often speed up
up the process.
process.

I'm assigning
I'm assigning two key contacts
two key contacts for Baidu and both
Baidu and both of them
them can
can help
help manage
manage through
through Apple:
Apple: YeeWee
YeeWee Koh
Koh
from our Beijing
from Beijing office
office and
and Brian
Brian Croll
Croll from
from Cupertino. Both are
Cupertino. Both are a
a part
part of Phil's
Phil's team.
team. YeeWee
YeeWee will
will
engage Brian
engage Brian where needed
needed and
and II am asking both of them
asking both them to reach
reach out and
and introduce
introduce themselves.
themselves.

Finally, we
Finally. are looking
we are looking at your positioning
positioning service.
service.

Best,
Best,

Tim
11m

On Jul 25.
On Jul at 11:42
2014. at
25,2014, AM, LLRobin
11:42 AM, Li,Robin - _ wConfidential
r o t wrote:
e :
Tim.
Tim,

IItt was great tto catch u


o catch upp with
with you morning
you this m and
orning a n d find
fi n d we
w e share
share many common
common views.
views.

lI want to make
make sure
sure that we follow up on some
some of the ideas
ideas we discussed.
discussed. Specifically,
Specifically, It
It would
would bebe
make progress
great to make progress in the
the following
following five areas
areas of cooperation. Please designate
cooperation. Please designate someone
someone on
contacting person.
Apple side as the contacting person. OnOn Baidu side. our chief strategy officer Helen
Baidu side, Helen He
He will
will serve
serve
as the
as the point
point of
of contact.
contact.

1.
1. Search: Baidu
Search: Baidu has the
the best
best and
and most popular Chinese
Chinese search engine.
engine. It would be great to set
Baidu as the default search
Baidu search engine search. mobile search
engine (browser default search, search APP)
APP) ffor
o r all
all Apple
Apple
devices in China.
devices China.

2.
2. Input Method:
Input Method: Baidu
Baidu has
has the best
best and most
and m popular Chinese
o s t popular Chinese input
input method(particularly
method(particularly among
among
Apple users). It would
Apple users). would be
be great to set Baidu
Baidu IME
IME as the input methods ffor
the default input o r all
all Apple devices
Apple devices
in China.
China.

3.
3. Map APP: It would
Map be great to set
would be set Baidu
Baidu Map
Map APP as
as the default mapping
mapping application
application for
f o r (or
(or
pre-install in)
pre-install in) all
all Apple China.
Apple devices in China.

4.
4. Positioning Service:
Positioning Service: II recommend
recommend Apple to use
use our positioning
positioning API are the
API as we are the most
most
popular, most
popularI accurate. and
most accurate, and most
most reliable one in China.
reliable one China.

5.
5. APP Review
Review Fast
Fast Track:
Track: Baidu
Baidu ofiers
offers many
many services
services to Apple users
users in the form
form of ms
iOS APPs.
APPs.
It would be great to set up a fast track for the review
would be review process
process for Baidu
Baidu APPs.
APPs.

Beside tthe
Beside above, Apple
h e above. Apple aand Baidu have
n d Baidu have many other mutually benefiting
benefiting cooperation
cooperation
opportunities, such as integrating
opportunities. integrating Baidu's
Baidu's leading
leading Chinese
Chinese voice
voice recognition
recognition technology into
into Siri,
Siri.
Siri uses
Slri uses us as the backflll
backfill search
search engine,
engine, and utilizing Baidu's personal
utilizing Baidu's personal cloud services
services inside
inside
China. II look forward
China. forward to a long
long and
and fruitful
fruitful relationship
relationship between
between our companies.
companies.

HIGHLY CONFIDENTIAL ‐-- SENSITIVE


SENSITIVE BUSINESS
BUSINESS INFORMATION
INFORMATION HJC-APPLE-011084
HJC-APPLE-011084
Robin
Robin

HIGHLY CONFIDENTIAL --- SENSITIVE


SENSITIVE BUSINESS
BUSINESS INFORMATION
INFORMATION HJC-APPLE-011085
HJC-APPLE-011085
Subject: Re:
Subject: Re: Reuters: to introduce
says to
Reuters: Opera says introduce faster browser
browser for iPhone
iPhone
From: "Phillip Shoemaker"
From: "Phillip Shoemaker" Confidential

Received(Date):
Received(Dale): Wed,
Wed, 10
10 Feb
Feb 2010
2010 16:12:32 +0000
10:12:32 +0000
To::
To "Natalie Harrison"
"Natalie Harrison" Confidential
Cc: Schiller" I
Cc: "Phil Schiller" Confidential 1, "Greg
"Greg Joswiak"
Confidential ,"Eddy
,"Eddy Cue"
Cue" 12: 1 "Ron
"Ron Okamoto"
Okamoto"
Confidential 1,"Katie Cotton"
J'Katie Cotton" Confidential I, "Natalie
"Natalie
Kerris"
Kerris" , _Confidential
- T r u1,"Trudyd y Muller"
Muller" Confidential

Date:
Date: Wed,
Wed, 10
IO Feb
Feb 2010
2010 16:12:32+0000
16:12:32 +0000

It is
is unlikely that this Opera release
release is
is using
using our webkit,
webkit. which isis required
required for all
all browsers
browsers on on our
platform.
platform. Usually
Usually we give non-compliant
we give non-compliant browsers
browsers aa quick rejection,
rejection, but in this case I'll
this case I'll bring
bring it
to the ERB
ERB when the app app gets submitted (and
gets submitted (and give PR
PR a a heads-up).
heads-up).

On Feb
On Feb 10,
I0, 2010, at 7:
2010, at 7:111I AM,
AM, Natalie
Natalie Harrison
Harrison wrote:

FYI
FYI Opera Mobile
Mobile has
has issued
issued aa press
m e g release
release inviting
inviting media to see
see 'an exclusive preview of Opera
'an exclusive
Mini
Mini for iPhone'
iPhone' at Mobile
Mobile World Congress.
Congress. They claim the browser
browser is up
up to six times
times faster than
than
Safari and
Safari and can
can cut
cut data traffic by up
up to 90 percent.
percent.

Opera co-founder Jon von Tetzchner says:


says: “We
"We have
have not submitted it yet to
to the Apple
Apple App Store.
Store.
However,
However, we
we hope
hope that Apple
Apple will not
not deny their users a choice
users a choice in Web
Web browsing
browsing experience."
experience."

Reuters
Reuters

Opera says to introduce


introduce faster browser for iPhone
iPhone

http://www.reuters.com/article/idUSLDE6190JO20100210
hmzl/www.regters.Qm/article/idUSLDE6l901920100210

Wired

Opera Mini on iPhone


Mini on iPhone Next
Next Week

http://www.wired.com/gadgetlab/2010/02/overa-mini-on-iphone-next-week/
hr ://www.wi ml /2010/02/ -mini n-i hon next-week]

PC World
PCWorld

Opera to
to Reveal
Reveal Alternative
Alternative IPhone
lPhone Browser
Browser Next
Next Week

http://www.Dcworld.com/article/188990/overa
://www rI ' I ”88990! r to reveal
rev alternative
rn tiv iphone
i h n browser
b r next
n x week.html
khunl

Natalie Harrison
Natalie Harrison

PR
iPhone PR

HIGHLY CONFIDENTIAL --- SENSITIVE


SENSITIVE BUSINESS
BUSINESS INFORMATION
INFORMATION HJC-APPLE-011207
HJC-APPLE-011207
mobile:
mobile: Confidential

| Confidential

www.apple.com
www.gggle,com

-- SENSITIVE
HIGHLY CONFIDENTIAL ‐- SENSITIVE BUSINESS
BUSINESS INFORMATION
INFORMATION HJC-APPLE-011208
HJC-APPLE-011208
Subject: Re:
Subject: Re: Facebook and
and Apple
Apple
From: "Steve Jobs"
From: "Steve Jobs" Confidential

Received(Date):
Received(Dale): Fri, 09 Apr 2010
Fri, 09 00:35:58 +0000
20l0 00:35:58 +0000
"Ron 0
To:: "Ron
To k a m o t o
Okamoto" Confidential ' _
Cc:
Cc: "Scott Forstall"
Forstall" I Confidential ,"Philip Schiller"
,"Philip Schiller"
Confidential
Confidential
Date:
Date: Fri, 09 Apr 2010
Fri, 09 00:35:58 +0000
2010 00:35:58 +0000

I'd
I'd suggest we just cut Joe o
off
f f from now on.

On Apr 8,
On 8, 2010,
2010, at
at 5:25
5:25 PM,
PM, Ron Okamoto wrote:
Ron Okamoto

Steve, Scott
Steve. and Phil,
Scott and Phil,

Some additional
additional background:
background: Earlier
Earlier today Joe spoke to the
Joe spoke the press and was critical of
press and of our new
PLA and Objective
PLA Obj ective C.
C. I called Ethan
Ethan Beard and Henry
Beard and Henry Moissinac
Moissinac atat Facebook
Facebook andand told them we
we
were not
not happy with this because
because it was not the first time he's done this
he's done this and
and it does not publicly
reflect on our partnership.
reflect well on partnership. I reminded
reminded them that we do not
we do not have
have Apple employees blogging
Apple employees blogging
and talking
and talking to the press
press being critical about Facebook.
being openly critical Facebook.

sent me
Joe sent an email
mean email after the press story hit explaining
press story explaining why he
he was "upset".
"upset", and
and it looks
looks like
like Joe
Joe
has been
has been working on aa cross
cross compiler.
compiler.

- Here's a copy of
Here's a of the email
email he
be sent me:
me:

"Hi Ron,
Ron.

iPhone OS 4.0 looks


iPhone OS amazing and
looks amazing a n dI] really want to develop
develop for it.
it. That's why I was aa bit
bit upset
upset to
to
read
read that the
the updated agreement requires
updated SDK agreement requires writing apps directly in Objective-C/CH
writing apps Objective-C/C++ or or
JavaScript, banning
JavaScript, cross-compilers.
banning cross-compilers.

Last
Last time we
we met
met you
you asked that I contact you
you directly ifif I have
have an
an issue
issue with Apple,
Apple, and
and I
definitely have
have issue
issue with this.
this. It appears
appears to
to be
beaa purely strategic limitation at
limitation aimed straight at
Adobe.
Adobe. To accept this limitation
limitation you would have
have to
to convince yourself that Objective-C
Objective-C and
and
are the best programming
JavaScript are programming languages
languages available,
available, which I don't believe
believe they are.
are. A big
big
part
part of the reason
reason I stopped writing
writing iPhone
iPhone apps
apps is
is that I find Objective-C
Obj ective-C to be
be very unpleasant
to work with.
to with.

When last
last we
we met I was considering
considering developing
developing aa Facebook iPad app. The reason
iPad app. reason I decided not
not
to was because
because I wanted toto focus on
on my
my other proj ect, and my
project. my other proj ect was a
project a new UI
programming
programming language
language I'm developing which is cross-compiled
I'm developing cross-compiled to to high
high performance
performance C C and
and
Objective-C. I had
Objective-C. had planned
planned to
to use
use this language
language to
to make developing iPhone
make developing and iPad
iPhone and iPad apps
apps for
Facebook 8a much
much more and fun process.
more efficient and process. Frankly,
Frankly. I think the
the language
language I'm
I'm creating
creating is
is
leagues
leagues better than Objective-C,
Obj ective-C, so
so it's
it's unfortunate
unfortunate that you
you would stifle
stifle innovation
innovation in
programming languages
programming languages just to
to keep
keep crappy Flash
Flash ports out of the
ports out the App Store.
Store. Not all cross‑
Not all cross-

HIGHLY CONFIDENTIAL --- SENSITIVE


SENSITIVE BUSINESS
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INFORMATION HJC-APPLE-011253
HJC-APPLE-011253
are going
compilers are going to produce
produce low quality apps.
apps.

I hope
hope that you and
and your peers
peers would be
be willing
willing to
to discuss this new policy and consider reasons
reasons
why it could do
do more
more harm to
to your platform
platform than good.
good.

- Joe

- Here's
Here's what was reported
reported earlier today:

Joe Hewitt
Hewitt vocal again.
again.

Silicon Valley Insider


Silicon

http://finance.yahoo.com/news/Facebooks-iPhone-Am)Maker-Is-siliconallev-
hmJ/financeyahoo.com/news/Facebooks-iPhone-AgpMaker-ls-siliconallg‑
3738774059.html?x==0&.v==2
3738774059. html?x=0 .v=2

Facebook's iPhone App-Maker Is


Facebook's iPhone "Angry" About Apple's New
[3 "Angry" New SDK

Nicholas Carlson, On
Nicholas Carlson, On Thursday April 8,
8, 2010,
2010, 4:47 pm
pm

Hewitt. the guy who made


Joe Hewitt, Facefik's very popular iPhone
made Facebook's iPhone aDD, is "angry"
gap, is "angry" about
about
changes Apple made
changes made today to it's
it's iPhone software developers' kit (SDK).
iPhone software (SDK).

Reached
Reached by email,
email, Joe told us
us he's "unhappy" about aa new
he's "unhappy" new rule
rule forcing developers to use
forcing developers one
use one
programming
programming language, Obj ective-C, to write iPhone
language, Objective-C. apps.
iPhone apps,

" So much
"So much for programming
programming language
language innovation on the iPhone
innovation on iPhone platform,"
platform," Joe
Joe tweeted
tweeteg earlier
today.
today.

He sent
sent us
us this passage
passage from the SDK:
SDK:

Applications
Applications may only useuse Documented
Documented APIsAPls in the
the manner
manner prescribed
prescribed by
by Apple and must
Apple and must not
not
use
use or call any private
private APIs.
APls. Applications
Applications must
must be
be originally written in Objective-C,
Obj ective-C, C,
C. C++,
0 + , or
as executed by the
JavaScript as the iPhone OS WebKit engine,
iPhone OS engine, and
and only code
code written in C.
C, C++,
C H , and
Objective-C may compile
compile and
and directly link against the Documented
Documented APIs (e.g.,
(e.g., Applications
Applications that
link to
to Documented
Documented APIs through an an intermediary translation or compatibility layer
layer or tool are
are
prohibited).
prohibited).

We asked Joe this makes


makes him
him "angry" (as he
"angry" (as he wrote in aa now deleted tweet), and he
tweet), and he explained:
explained:

Apple has always banned


has always banned "virtual
"virtual machine"
machine" languages,
languages, presumably for performance
performance reasons,
reasons,
which was understandable.
understandable. However,
However, there are
are an
an increasing
increasing number of cross-compilers
number of cross-compilers that
allow translating
translating from oneone language
language to Objective~C,
Objective-C, which allows
allows performance
performance to still
still be
be very
good while allowing
allowing developers to use a language
to use a language they prefer
prefer to Objective-C. Apple is now
to Objective-C. Apple is
banning
banning those as as well,
well, which means
means developers who don't enjoy working
working in Objective-C
Objective-C have
have no
no
choice if
if they want to
to write aa native
native iPhone app.
iPhone app.

HIGHLY CONFIDENTIAL --- SENSITIVE


SENSITIVE BUSINESS
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HJC-APPLE-011254
Back on Twitter,
Twitter, 19;
Joe went on, "l‘m
mm gn, "Tin upset
upset because
because frankly I think Objective-C
Objective-C is
is mediocre and
mediocre and
was excited about using
using other languages
languages to make
make iPhone
iPhone development fun
fun again."
again."

We're tempted to wonder if if this change


change will make
make its
its platform
platform less
less popular with developers.
developers. But
But
we
we won't,
won't, because,
because, for better or worse,
worse, when a
a platform
platform can
can present so many attractive
present so attractive users
users the
the
way Apple's iPhone call, developers
iPhone can. developers tend to get in line
line --
‐ no
no matter
matter how much
much they don‘t
don't want to.
to.

From: Joe
From: Joe Hewitt
Hewitt Confidential

Date: April
Date: April 8.
8, 2010 4:53:58 PM
2010 4:53:58 PM PDT
PDT

To: Ron
To: Ron Okamoto
Okamoto ‐ Confidential , Scott Forstall
Forstall
Confidential

Subject: and Apple


Subject: Facebook and

Gentlemen,
Gentlemen,

I just received a call from a


received a a VP at
at Facebook asking me
Facebook asking metoto stop
stop making comments about
making critical comments about
your new SDK agreement
agreement in public.
public. They seem to be be worried that it night
might jjeopardize
eopardize
Facebook's
Facebook's relationship
relationship with Apple.
Apple. If so, that would be
If so, be unfortunate,
unfortunate, since
since my
my opinions are
opinions are
clearly my own and
my own and not
n o t Facebook's.
Facebook's.

Still, I am
Still, am sure you understand
understand why I amam being critical. I am
being critical. am aa computer programmer and you
are harming
are banning my craft. I love
my craft. love your products
products and Il have
have every reason
reason to
to believe
believe iPhone/iPad
iPhone/iPad will
dominate in the marketplace,
soon dominate so shouldn't I be
marketplace. so be upset
upset that aa huge
huge segment ofof the mobile
mobile
market
market will be
be discouraging
discouraging innovation
innovation in the field of
of programming
programming languages?
languages?

I am
am sure
sure your view is is that if
if you can stomp
stomp out Flash
Flash and Android,
Android, the
the world
world will bebe aa better
better
place,
place, and I'm
I'm inclined
inclined to agree with you,
to agree you, but I would prefer to
to help
help you
you win that war byby making
making
great developers
developers tools to help people make
to help people make great iPhoneiPad apps.
iPhone/iPad apps. I can't fight with
with you if
you if
you're using
using legalese as a
legalese as a weapon.
weapon,

-- Joe
Joe

CONFIDENTIAL -‐
HIGHLY CONFIDENTlAL -- SENSITIVE
SENSITIVE BUSINESS
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INFORMATION HJC-APPLE-011255
HJC-APPLE-011255
Subject: Re:
Subject: Re: NYT editorial board
NYT editorial board - right
right to
to repair
repair
From:
From: "Lori Lodes"
Lodes" Confidential

Received(Date): Sat, 06
Received(Da|e): Sat. 06 Apr 2019 21:26:06 +0000
2019 21:26:06 +0000
To::
To "Steve Dowling"
"Steve Dowling' Confidential
Cc:
cf: "Kristin Huguet"
Huguet" Confidential ,"Keri
," Keri Fulton"
Fulton"
Confidential 1
Date: Sat, 06
Date: Sat, 06 Apr 2019 21:26:06 +0000
20l9 21:26:06 +0000

Here's a proposed revised


Here‘s a revised version based on Tim’s
Tim's feedback,
feedback, let us
us know what you think and
we'll send back.
we’ll back.

"At Apple,
Apple, customer satisfaction and safety are our top priority.
satisfaction and priority. We work hard
hard to provide
provide
customers access
our customers access to safe andand reliable
reliable service when
when their Apple products
products need
need
repair. In
repair. In the last
last two years alone,
alone, we've quadrupled number of locations
quadrupled the number locations offering
offering
iPhone screen
iPhone screen repairs.
repairs. There are
are now
now nearly 5,000 locations
locations worldwide, owned and
worldwide, owned and
operated by
operated by third
third parties.
parties, offering
offering repairs
repairs by
by trained
trained technicians
technicians who use parts
who use parts certified
certified
for safety and
and quality.
quality. We are continuously evaluating programs and
evaluating our programs and we are
are
committed to
committed to making
making service
service more
more convenient
convenient for
for our customers."
customers."
O n5 , a t
On Apr 5, 2019,
20l9, at 4:04 PM,
PM, Lori
Lon' Lodes
Lodes _ wConfidential
r o t wrote:
e :
It would be
be reactive depending on how we
reactive depending we feel the piece comes out.
piece comes out.

The quote looks good, updated


looks good, updated the questions. Also,
the questions. Also, I'm
I ' m working
working with AppleCare to get US US
specific numbers
numbers but I don’t
don't think we've
we’ve released
released those before so may want
before so w a n t to keep
keep to
worldwide.
worldwide.

Apple, customer satisfaction


At Apple. satisfaction and
and safety are our top priority.
priority. We work hard
hard to provide
provide
customers access
our customers access to safe and
and reliable
reliable service when
when their Apple products
products need
need
repair. In
repair. In the last
last two years alone.
alone, we've quadrupled the number
we’ve quadrupled number of locations offering
locations offering
iPhone screen repairs.
lPhone screen repairs. There are
are now more
more than 5,000 locations
locations worldwide offering
offering
repairs by
repairs by trained technicians who use use parts
parts certified
certified for safety and quality. We
and quality. We are
are
continuously evaluating
continuously evaluating our
our programs
programs andand we
we are
are committed
committed toto making
making service
service more
more
convenient for
convenient our customers.
for our customers.

Lori
Lori

O npr 5
On Apr
A , ata 3:51
5, 2019,
2019. t PM,
3:51 B o w l i nConfidential
Steve Dowling
PM. Steve g ‐ w r o wrote:
te:
Is
Is this for use
use in the editorial,
editorial, or reactively afterwards?
afterwards?

How about:
about:

Apple, customer satisfaction


At Apple, satisfaction and
and safety are our top priority.
priority. We work hard
hard to provide
provide

-- SENSITIVE
HIGHLY CONFIDENTIAL ‐‐ SENSITIVE BUSINESS
BUSINESS INFORMATION
INFORMATION HJC-APPLE-011550
HJC-APPLE-011550
customers access
our customers access to safe
safe and
and reliable
reliable service when their Apple products
service when products need
need
repair. In
repair. In the last
last two years alone,
alone, we've quadrupled
quadrupled the number
number of locations offering
locations offering
iPhone screen
iPhone screen repairs.
repairs. There are now more
more than 5,000 locations
locations worldwide offering
offering
repairs by
repairs by trained technicians who use use parts
parts certified
certified for safety and quality. We
and quality. We are
are
continuously evaluating
continuously evaluating our programs and we are committed to making service
programs and we are committed to making service more more
convenient for
convenient for our
our customers.
customers.
O n5
On Apr , ata3:22t PM,
5, 2019,
2019, PM, Lori Lodes _ w r o t wrote:
Lori Lodes e :Confidential

The editorial is
is running
running in Sunday's
Sunday’s paper
paper but is slated to
is slated to post online at
post online at 77or
or 8
8 tomorrow
morning.
morning. It will come
come out in support ofof a
a national
national right
right to
to repair standard for consumer
repair standard
products.
products. The focus
focus is
is not
not Apple
Apple but
but it will use
use us
us as an example
asan example to help
help make
make the case.
case.
II think our response should focus
response should focus onon what we're doing to
we‘re doing to give customers more
give customers options.
more options.
AppleCare hashas validated the stats.
the stats.

"It' s important our customers can easily access


“It’s access safe and effective repairs
and effective repairs for the products
products they
rely on
on every day.
day. For
For instance,
instance, in the
the last
last two years,
years, we've quadrupled
quadrupled the
the number
number of places
places
call go for screen repairs.
our customers can repairs. There are now more
more than 5,000
5,000 options
options for a customer
customer
to go
go for a
a repair
repair that will be
be done safely, with genuine Apple
done safely, Apple parts and performed
parts and performed by a a trained
technician.
technician. We'll
We’ll keep
keep reviewing
reviewing our repair
repair programs
programs to
to provide customers with more
provide customers more
service options that maintain
convenient service maintain the integrity of the product and user privacy.
.,
product and privacy.“

There's other projects


There’s projects we could bring
we could bring up
up to
to show our growth but I think we
we may need
need to
to wait
for an
an exec conversation Lisa is scheduling for next week.
is scheduling week. For
For instance,
instance, the
the Genuine
Genuine Parts
Parts
program
program leaked
leaked to
to Motherboard our expansion to
Motherboard or our to another 763
763 Best
Best Buy stores in the
Buy stores the US
US over
over
the next couple
couple of
of months.
months. Worth noting,
noting, Best Buy
Buy would like
like to make
make this
this announcement at
the end of May.
May.

I '‘lll l send
send a
a heads
heads up
up about the
the piece to Jeff, Lisa,
piece to Lisa. Joz.
Joz, Kaiann,
Kaiann. Tara B
B but
but let
let me
meknow what you
you
think about the general framing.
framing.

Lori
Lori

O n3
On Apr , ata2:52t PM,
3, 2019,
2019. PM, Lori Lodec _ w
Lori Lodes r o t wrote:
Confidential e :
Kaiann spoke on
Kaiann spoke on background
background to Appelbaum about his
his editorial which is
is now running
running in
Sunday's paper but
Sunday’s but he
he needed
needed to file tonight.
tonight.

In general, his
[11 general, his questions focused on how widely available
available our repairs
repairs are
are -‐ he
he spoke to aa
Nebraska
Nebraska legislator
legislator who sponsored
sponsored legislation
legislation aa couple of years ago
ago and
and noted
noted her
her closest
AASP is is two
two hours away. Besides
hours away. questions around
Besides questions around accessibility of
of repairs,
repairs. he asked about a
he asked a
claim we
we made around the Nebraska
made around Nebraska legislation
legislation about hacking.
hacking

Kaiann did a
Kaiann did a great job and emphasized the need
need for a
a thoughtful approach to repair
repair policy
because of how important it is
because of is to balance customer safety with access
balance customer access to
to more
more convenient
repairs.
repairs.

-- SENSITIVE
HIGHLY CONFIDENTIAL -‐ SENSITIVE BUSINESS
BUSINESS INFORMATION
INFORMATION HJC-APPLE-011551
HJC-APPLE-011551
Because
Because ofof the direction of
of his questions, we
his questions, we may want to consider telling
telling him
him about our pilot
Genuine Parts
Genuine Parts Repair
Repair program to underscore
underscore how we are prioritizing
we are prioritizing making safe and
making safe and high
high
quality repairs available to
repairs available to more customers in more
more customers more places
places than ever before.
before. We
We also
also learned
Ieamed
today that starting
starting next week we'll be expanding our footprint with Best
be expanding Best Buy
Buy from 229 stores
229 stores
as AASPs to about 1,000.
certified as 1,000. Both
Both of
of these
these points could be
points could be provided
provided on background
background and and
could help differentiate how we're
help difi'erentiate we’re handling
handling repairs
repairs versus the
the farming
farming industry.
industry.

Let
Let us
usknow what you think.
think.

Lori
Lori
On Apr 3,
On 3, 2019, at 1:30
2019, at 1:30 PM, Steve Dowling
PM, Steve Bowling Confidential wrote:
ete:

I'm
I ’ m fine with Kaiann.
Kaiann.

O npr 3
On Apr
A , a
3, 2019,
2019. t PM,
at 1:00
1:00 PM, Lori L o d e Confidential
Lori Lodes s _ w r o wrote:
te:
Lisa
Lisa is
is willing
willing to do it but
to do but is
is traveling so if
traveling so if we're
we‘re not able to
not able to have
have her do it in the next
her do next hour,
hour.
we'll need
need for someone
someone else
else to brief
brief him
him on background.
background. Joz recommends
recommends Kaiann
Kaiann to
to cover the
basics of safety and
basics of and our overall repair program.
program.
Make
Make sense?

Lori
Lori

On Apr 3,
On 3, 2019, at 9:24 AM,
2019, at Steve Dowling
AM, Steve Dowling Confidential wrote:
wrote:

If
If we
we are comfortable making
making that pledge, sure. We
pledge, sure. should show that it fits with our overall
We should overall
approach.
approach.
On 3, at
On Apr 3, 2019,
2019, at 9:20
9:20 AM,
A M , Lori L o d e s _ w r o wrote:
Lori Lodes te:
Confidential

Absolutely, we'll highlight the safety piece


Absolutely, we’ll am sending
piece and am sending Pierce's
Pierce’s tweet.
tweet. Are
Are you okay
with a
a proactive
proactive point about us
us working
working for customers to
to have
have more
more options to safe
safe and easy
repairs?
repairs?

O Apr
On n3 , a
3, 2019,
2019, t AM,
at 9:08
9:08 D o w
Steve Dowlingl
A M , Steve l Confidential
i n g _ wrote:
wrote:

If it's
If it's for the editorial page,
page. I assume
assume wewe can provide
provide him
him with our high-level
high-level point
point of view
on background
background andand refute
refute any suggestions that wewe design
design for obsolescence.
obsolescence. I1would suggest
broader points
points that emphasize
emphasize safety over economics:
economics:
- Look at at what happened
happened when 3 a Wired reporter
reporter tried to open hishis iPhone
iPhone with aa screwdriver
- Explosions
Explosions happen at at landfills
landfills and recycling centers all
recycling centers all the
the time
time because
because of
of improper
improper
disposal of electronics
electronics
- Anecdotally,
Anecdotally, many
many of thethe safety incidents
incidents reported
reported with mobile
mobile phones are related
phones are related to
to faulty
repairs
repairs

O Apr
On n 3 , a
3, 2019,
2019, t AM,
at 9:03
9:03 AM, Lori [ o d
Lori Lodes e sConfidential
‐ w r o twrote:
e :
He
He asked about the glass
glass repair based on
repair based on this August rumor
rumor

CONFIDENTIAL -‐
HIGHLY CONFIDENTlAL -- SENSITIVE
SENSITIVE BUSINESS
BUSINESS INFORMATION
INFORMATION HJC-APPLE-011552
HJC-APPLE-011552
piece:
piece:hhttps://bgr.com/2018/08/22/iphone-screen-repair-simply-mac-officiall
'/ rc m/ 018/08/2 i h n r ~r ' r ‐ i m I ~m fi'i i /.
We
We thought mentioning
mentioning the genuine
genuine parts
parts pilot
pilot could help
help us
us with the public
public narrative as
narrative as
as with ongoing
well as ongoing right to repair
repair legislation.
legislation. GA was supportive
supportive but we could keep
we could keep it to
to
how we
we simplified fixing since we
fixing screens since discussed it with media
we already discussed media last
last year
year and
and our
overall approach to repairs.
On Apr 3,
On 3, 2019,
2019, at
repairs.
at 8:36
8:36 AM, Steve Dowling
AM, Steve Bowling wro-e: Confidential wrote:

I worry that we
we are
are making some big
making some big assumptions
assumptions here.
here. Is Binyamin
Binyamin Applebaum even
following the AppleCare developments?
AppIeCare developments?

O n3
On Apr , a
3, 2019,
2019, t AM,
at 7:28
7:28 AM, Lori L o d e ‐ w r o twrote:
Lori Lodes e:
Confidential

Joz doesn't feel totally comfortable


comfortable but
but will do.
do. He
He asked about Susan Prescott speaking
Prescott speaking
instead.
instead.
For
For the messaging,
messaging, wewe want to frame all of
frame all of the
the sporadic news
news from AppleCare positively
under
under one narrative
narrative to
to show that we
we are exploring how to
are exploring give our customers even more
to give more
affordable and
options for afi'ordable and accessible
accessible repairs.
repairs.

The three proof


proof points we'll use
points we’ll use to
to show our ongoing
ongoing efforts
efforts to
to make
make repairs
repairs as accessible
asaccessible
and easy
and easy for customers
customers as
as possible
possible while maintaining
maintaining privacy and
and product safety:
safety:

1.
I. The recently leaked Genuine Parts
leaked Genuine Parts Repair
Repair program
program to
to make
make authentic Apple parts
parts
available to more
more trained technicians.
technicians.

2. Our recent
2. recent expansion of Authorized Service
Service Provider
Provider Network and how we
Network and are
we are
making
making the repairs
repairs simpler ‐- for instance,
instance, no
no longer
longer requiring specialized equipment
requiring specialized
for screen repairs.
repairs.

3. New policies
3. policies for easier battery repairs
repairs and replacements.
replacements.

We
We will tread lightly asit
as it relates
relates to
to commenting
commenting on on the
the Right
Right to
to Repair
Repair legislation and
reinforce
reinforce that we are updating
we are our programs
updating our programs regularly while also
also working
working with our
our trade
trade
associations to make
associations sure any
make sure any legislation
legislation takes
takes into account privacy and
into account concerns.
and safety concerns.

While
While this interview will need
need to happen
happen at the same
same time as the exec discussions
time as discussions over our
broader repair strategy,
strategy, we
we think this will strike
strike the right
right tone and that we'll
tone and we’ll be
be able
able to get
to get
buy in on the approach from GA,
GA, PM,
PM, and AppleCare.
AppleCare.

Let us
us know if
if you think this makes sense and
makes sense and if
if you're
you’re okay with Susan
Susan speaking
speaking on
on
background instead.
background instead.

Lori
Lori

Sent from my iPhone


iPhone

HIGHLY CONFIDENTIAL --- SENSITIVE


SENSITIVE BUSINESS
BUSINESS INFORMATION
INFORMATION HJC-APPLE-011553
HJC-APPLE-011553
On Apr 2,
On 2019, at
2, 2019, at 1:48 PM, Steve
1:48 PM, Steve Dowling
Dowling _ w r o t e
wrote::
Confidential

I think it's
it's worth giving
giving him a high-level
him a briefing. I doubt our recent documentation is
high-level briefing. is an
an
issue here, but I could be wrong.
issue here, but could be wrong. We should have
should have a ready answer
answer for Joz
102 just in case.
case.
On Apr 2, 2019, at 1:46
2, 2019, 1:46 PM,
PM, Lori L
Lori Lodes o d e
Confidential _
wrote:
wrote:

Appelbaum was writing


writing for tomorrow but,
but, thankfully,
thankfully, got pushed
pushed back to Thursday. The
to Thursday. The
piece
piece is
is using
using Warren's
Warren's new right toto repair
repair for agriculture
agriculture to talk about the
the broader
broader right
right
to
to repair
repair effort and
and plans
plans to
to use
use Apple as a symbol in that fight.
Apple asa fight

We're
We’re meeting
meeting with everyone
everyone shortly about the
the overall strategy and
and then I'll connect with
I’ll connect
Joz.
102.

Appelbaum has,
has, of course, iFixlt and
course, talked with iFixIt and others.
others.

Lori
ori

On Apr 2,
On 2, 2019, at 10:29
2019, at 10:29 AM, Kristin Huguet _
AM, Kristin wConfidential
r o t wrote:
e :
The larger
larger issue
issue is that our strategy around all of
around all of this is unclear.
unclear. Right
Right now we're talking
talking
of both
out of of our mouth
both sides of mouth and no one is clear on where
where we're
we’re headed.
headed. Lori
Lori will check
in with NYT
NYT andand 102
Joz and
and circle
circle back.
back.

Sent from my iPhone


iPhone

On Apr 2,
On 2019, at
2, 2019, at 10:24
10:24 AM, Steve Dowling
A M , Steve Dowling _ w r o t wrote:
e :
Confidential

We
We should get him on the
him on the phone
phone with Joz or Phil.
Phil. Is
ls he
he writing on specific right to
writing on to repair
legislation,
legislation, or the issue
issue in general?
general?
O n 2,2 2019,
On Apr , a
20I9, t AM,
at 10:21
10:21 AM, Lori [od
Lori Lodes e sConfidential
‐ w r o twrote:
e:
Binyamin
Binyamin Appelbaum is is writing on right
writing on right to repair
repair for NYT editorial board.
NYT editorial board. I can call
him to get more
to get more information
information but we‘re
we're still not
not clear on evolving position.
on our seemingly evolving position.
We
We have
have aa meeting
meeting with AppleCare,
AppleCare, PM,
PM, GA later
later today and
and then expect aa meeting
meeting with
Lisa and
and Jeff later
later this week.
week.

Let me know what you think makes


makes the
the most sense.
most sense.

Lori
Lori

-- SENSITIVE
HIGHLY CONFIDENTIAL -‐ SENSITIVE BUSINESS
BUSINESS INFORMATION
INFORMATION HJC-APPLE-011554
HJC-APPLE-011554
Subject: Right
Subject: Right to
to Repair
Repair Update
Update
From:
meme "Lee L o d e - ‑
"Lori Lodes" Confidential

Received(Date): Sat, 30
Received(Dale): Sat, 30 Mar
Mar 2019
2019 15:17:06 +0000
15:17:06 +0000
To:: "eves
To "Steve Dowling"
newline" Confidential

Cc: "Kristin Huguet"


Cc: “Kristin Huguet" Confidential I,"Keri
"Keri Fulton"
1701100"
Confidential
Date: Sat, 30
Date: Sat, 30 Mar
Mar 2019
2019 15:17:06+0000
15:17:06 +0000

Dowling,
Dowling,

In addition
addition to the Genuine
Genuine Parts
Parts Purchaser
Purchaser program detailed in the
program detailed the leak to
to Motherboard
Motherboard
yesterday,
yesterday, iMac
iMac manuals
manuals became available on Apple.
became available com on
Applecom on Wednesday without any sort of
clearance. This follows
clearance. a roll
follows a roll out earlier this month on a
month on a repair policy change allowing AASPs
change allowing AASPs to
repair
repair iPhones
iPhones that have
have non-Apple
non-Apple replacement
replacement batteries
batteries that also
also was not
n o t flagged for PR.
PR

now. itit'ss pretty clear things are


Right now,
Right are happening
happening in aa vacuum and
and there
there is not an overall strategy.
not an strategy.
Plus,
Plus, with one hand
hand we are making
we are making these changes
changes and
and the
the other is
is actively fighting
fighting Right
Right to
to
Repair
Repair legislation
legislation moving
moving in 2020 states
states without real
real coordination for how updated
updated policies could
policies could
be
be used
used to
to leverage
leverage our our position.
position.

Here's a quick rundown


Here's a a few more
rundown with a of what we
more details of we know about:
know about:

-• Genuine
Genuine Parts
Parts Repair:
Repair: The program that leaked
leaked to
to Motherboard
Motherboard is is in its
its early stages
stages with
12 repair
12 repair companies in Europe
Europe or Asia offering
offering Apple authorized products
authorized products for out of
out of
warranty repair 60 more
repair and about 60 more in the works; including
including several in the US.US. Unlike
Unlike
AASPs,
AASPs, we're notnot managing
managing these companies but they have
these companies have access to our parts,
parts, tools and
trainings. Originally, we
trainings. Originally. we thought it made sense to
made sense to roll out in early fall
roll out once there
fall once there was aa US
US
business
business on board.
boards

• Manuals:
0 Manuals: The Environmental
Environmental Technology team team who manages
manages the EPEAT
EPEAT certification
process
process posted
posted the iMac
iMac repair
repair manuals
manuals this week with plans
plans to release
release manuals
manuals for Macs Macs
and portable
portable products
products in May
May or June and a a desire
desire to
to release
release an
an iPhone
iPhone repair
repair manual
manual at
at
some point.
some point. The team failed toto receive clearance across
receive any clearance across the
the various teams.
teams. Sandy GreenGreen
thinks we
we should consider taking
taking down the manuals;
manuals; however,
however. wewe think if it‘ss important
important to
to
have
have aa decision about what our strategy is and execute against that direction.
is and direction. We We have
have one
one
reporter
reporter inquiry from a
a freelancer who writes
writes for iFixit and has had pieces
iFixit and has had pieces run run in the New
York Times and Popular Science.
Popular Science.

• Mobile
0 Mobile Repairs:
Repairs: Later
Later this fall,
fall, AppleCare
AppleCare is
is planning
planning to roll
roll out a
a new service
service that will
bring
bring repairs customers. This
repairs directly to customers. This will be
be through Verizon
Verizon or another business
business with
large
large reach
reach and will include authorized parts.
include authorized parts.

-- SENSITIVE
HIGHLY CONFIDENTIAL -‐ SENSITIVE BUSINESS
BUSINESS INFORMATION
INFORMATION HJC-APPLE-011774
HJC-APPLE-011774
We've across teams and
We’ve engaged across and it's
it's clear no one is
no one on the same
is on same page and have
page and have a a different
version of events. We are working
of events. working to schedule a
to schedule a meeting
meeting with AppleCare,
AppIeCare, PM,
PM, GA for early next
next
week to see
see if
if there are
are answers
answers to these questions so
these questions so we call figure
we can out the right
figure out right messaging
messaging and
and
PR strategy:
strategy:

-• What is our repair strategy?


repair strategy?

-• Do
Do we believe it'
we believe it‘ss important
important to get ahead
ahead of any additional
additional regulations
regulations about repair options
repair options
in Europe
Europe or right
right toto repair
repair legislation
legislation in the
the US?
US?

-• Are we
we comfortable releasing
releasing our repair
repair manuals
manuals for all products
products moving
moving forward?
forward?

-• Do we
we want to promote
promote the Genuine
Genuine Parts
Parts Repair
Repair program as
as part of our ongoing
part of ongoing effort to
our customers
give our customers more choices?
more choices?

-• How should
should our public position on Right
position on Right to
to Repair
Repair change
change to
to take
take into
into account the
the updates
updates
we are making
we are making - should we
‐ should we connect the dots
dots or try to keep everything separate?
keep everything separate?

Lori
Lori

HIGHLY CONFIDENTIAL --- SENSITIVE


SENSITIVE BUSINESS
BUSINESS INFORMATION
INFORMATION HJC-APPLE-011775
HJC-APPLE-011775
S ubje ct: Re
Subject: Re:: Apple PR
P R Conta
Contact ct
m e : Dbe
From: ck
DbeckConfidential
Confidential
Re ce ive d(Date ):Thu, 01 N
Received(Date)EFhu, Nov
o v 2018 05:05:24 +0000
To:
To : "S te ve Dowling"
"Steve Confidential
Dowling'COflfidential
Cc: Zita Confidential
Date
Date:: Thu, 01 N Nov
o v 2018 05:05:24 +0000

Tha nks , SSteve.


Thanks, te ve . WE
We
’ll follow up with Amy.

S e nt from my iP
Sent hone XS Ma
iPhone M axx on iOS 12
12

On
On Oct 31, 2018, aatt 21:51, SSteve
te ve Dowling
Confidential
Dowlconfidential wrote :
wrote:

S orry. We aare
Sorry. re just
jus t sslammed
la mme d with eearnings
a rnings aand
nd the product la unche s . Mos
launches. Mostt of the teams
ofthe te a ms aare
re on the
roa d.
road.

P le a s e reach
Please re a ch out to Amy Be
out to s s e tte . SShe
Bessette. he sshould
hould have
ha ve bandwidth
ba ndwidth but will ne e d to
need to be
be brought up to
to
sspeed.
pe e d.

Tha nks
Thanks

On Oct 31, 2018, aatt 6:35 P M, Zita


PM, Confidential
z:Confidential wrote :
wrote:

Hi S te ve aand
Steve nd Doug,
Doug,
Ama
Amazonzon is is looking
looking to ha ve aa conve
have rs a tion with us on the P
conversation PRR re la te d to our
related o u r de a l aas
deal s ssoon
oon a s
pos s ible . The y too a
poss1ble. They too are just re jus t trying to formula
formulate te the right
right way message o u r deal and timing.
wa y to me s s a ge our de a l a nd tin
The
They y aare
re aaware
wa re aand
nd ssensitive
e ns itive to us ha ving eearnings
having a rnings ttomorrow
o m o r r o w..

This conve rs ta ion be


converstaion twe e n us
between us will be time ly, sstarting
be timely, ta rting Frida y Amazon
Friday Ama zon pla ns to sstart
plans ta rt the cle
cl a n up
proce s s aand
process nd will sstart
ta rt to re je ct aa hundre
reject ds of
hundreds re s e lle rs who aare
ofresellers re sselling
e lling Apple products on or
Ama zon toda
Amazon today.y. (The
(They y aare
re nnot
o t aauthorized
uthorize d resellers
re s e lle rs by Apple sso o Ama
Amazon zon aagreed
gre e d to ga te the m )
gate
The
Theyy think tha
thatt will trigge
triggerr pre
presss s sso
o want
wa nt to aalign
lign with us on the message
me s s a ge eetc.
tc.

P le a s e le
Please lett me know whom the y sshould
they hould work with . II aa m
m ha ppy to provide that
happy tha t pe rs on aar.n upda te
person
on
on our
our nneew w aagreements
gre e me nts aass well.
we ll.

Tha nks !!
Thanks
Zita

Be gin forwa rde d me sss


forwarde s aage:
ge :

From: "Downer, Steve" Confidential


COHfidential
Subject: Apple PR Contact
Date: October 31,31. 2018 at 6:21:47 PM PDT
To: "_Confidential
To: " Confidential

HIGHLY CONFIDENTIAL -- SENSITIVE BUSINESS INFORMATION


INFORMATION HJC-APPLE-012149
" To r q e r s o n . Lori" Confidential
Cc: "Torgerson, Confidentia‘ ,, "Kroon,
"KFOOH, Catie" <
<‑
Confidential

Hi Zita,
Zita,

Per
Per discussion, can you please connect Lori and Catie with the appropriate PR
contact at Apple who would be familiar with the new program on Amazon?

-Steve

Downer|| Director, Consumer Electronics | Confidential


Steve Downer
|| www.amazon.com
www.amazon.com ||

HIGHLY CONFIDENTIAL -- SENSITIVE BUSINESS INFORMATION


INFORMATION HJC-APPLE-012150
S
Subje ct: Amazon
Ama zon
m e : "Nick Le
From: Leahy"ConfidentiaI
a hy" Confidential
Re ce ive d(Date ):Tue , 06 N
Received(Date)EFue, Nov
o v 2018 17:34:32
17:34:32 +0000
To:
To : "S te ve Dowling"
"Steve Confidential
Dowling'ConficIential
Cc: "Amy Burke -Be ssse s e tte Confidential
"
Confidential
Date
Date:: Tue
Tue,, 06 N
Nov
o v 2018 17:34:32
17:34:32 +0000

Dowling,

Some more detail on the Amazon deal in the works and the media approach. The deal
will put our full product line (with the exception of HomePod)
HomePod) for sale on Apple's official
store on Amazon. Currently we sell Mac, AirPods and various accessories.

As part of the deal Amazon will clear out all of the unauthorized resellers of our
products, some of which are counterfeit. This should begin later this week. According to
Amazon PR this is “tens of thousands” of resellers. Once the seller notifications go out,
Amazon expects press inquiries within hours. Their plan is to work these inquiries on
background, explaining they’re continually refining their marketplace.

They’ll also prepare a reactive statement about the additional Apple products that
speaks to their excitement to offer customers more choice this holiday season. I suggest
we offer a similar reactive statement.

Waiting on Amazon to send through their draft statements and Q&A and will come back.
Nick

HIGHLY CONFIDENTIAL -- SENSITIVE BUSINESS INFORMATION


INFORMATION HJC-APPLE-012151
HJC-APPLE-012151
Subject: Fwd:
Subject: Fwd: A Mom's
Mom's Plea
Plea Re:
Re: Apple Crackdown on Parental
Apple Crackdown Control Apps
Parental Control
From: Cook" -
From: "Tim Cook" Confidential
Confidential >
Received(Date):
Received(Dale): Wed, 05 Jun 2019
Wed, 05 2019 19:01:44 +0000
19:01:44 +0000
To::
To Schiller" <
"Phil Schiller" Confidential

Date:
Date: Wed, 05 Jun 2019
Wed, 05 2019 19:01:44
19:01:44 +0000
+0000

Begin
Begin forwarded message:
message:

From:
From: Confidential

Subject: Mom's Plea


Subject: A Mom's Plea Re:
Re: Apple Crackdown
Crackdown on Parental
Parental Control
Control Apps

Date: 5, 2019
Date: June 5, 2019 at 11:38:40
11:38:40 AM
AM PDT
PDT

TO: Confidential

Dear
Dear Mr. Cook,
Mr. Cook.

As the mom
mom ofof two
t w o teenage daughters, I am
teenage daughters, am deeply disturbed by the practices
practices of
of technology
companies firmly aimed
aimed at keeping people,
at keeping people, including kids. hooked
including kids, hooked on apps and devices.
on apps devices. As
As I'm
I’m
sure you're
sure aware, multiple,
you’re aware, credible research
multiple, credible research studies have
have shown the detrimental effects
effects of too
much
much screen time on on children and
and teenagers.
teenagers.

Several months
months ago,
ago, I attended
attended a
a private
private panel
panel in Los
Los Angeles hosted
hosted by Common
Common Sense
Sense Media,
Media,
featuring
featuring Tristan Harris
Harris from the Center for Humane
Humane Technology and and tech
tech journalist Kara
Swisher, which detailed some
Swisher, some of
of these disturbing
disturbing practices.
practices It was encouraging to see
was encouraging see high-level
high-level
executives from YouTube, among other media
YouTube, among and technology companies
media and companies in attendance
attendance and
and
participating in conversations around
participating around how
how to ensure responsible,
to ensure responsible, consumer-first practices
practices in these
these
industries.
industries.

I, therefore, was
1,therefore. shocked to
was shocked to read
read the
the recent
recent NY Times
piece, https://www.nvtimes.com/2019/04/27/technology/apple-screen-time-
piece. h :/ n ' . m/2019/04/27/ hn l le‐ reen‐ti e‑
trackers.html?searchResultPosition==1, detailing
ti'ackgrshtmflsearghRfltPositionzl,
from its
its
apps, based
apps.
App Store. I learned about,
Store. learned about.
based on an
an earlier NY
detailing Apple's
and
Times article.
NY Times
Apple’s recent
subsequently subscribed
subscribed
article, which provided
refine
recent removal
removal of parent
to Confidential
suggestions on e
provided suggestions
ine
effective
controls apps
narent controls
of
of the
apps
removed
removed
‘ ective tools
tools for
parents
parents toto monitor and
and control their children‘s
children's screen
screen time.
time.

-Confidential
h a hass been anan excellent tool and
and one
one that offers
offers a
a great
great deal of customization and
and other
features that encourage
encourage my daughters to learn
learn to moderate
moderate their screen time.
time. I am
am deeply
disappointed that you
you have
have decided to
to remove
remove this app
app and others
others like
like it,
it, thereby reducing
reducing
access to much-needed
consumer access much‐needed services to keep safe and
keep children safe and protect
protect their mental
mental health
health
and well-being.
well-being.

As
As I listened
listened to this morning'
moming’ss NPR story, https://www.npr.org/2019/06/05/729892505/feds-look-
NPR story. h s://www.n r.or 0l9/06/05/729892SOS/feds-look‑

-- SENSITIVE
HIGHLY CONFIDENTIAL -‐ SENSITIVE BUSINESS
BUSINESS INFORMATION
INFORMATION HJC-APPLE-012247
HJC-APPLE-012247
into-big-tech-firms-for-anti-competitive-behavior,
intgjgig‐tgfl‐finns‐fgrigg-Qmmtig’yg‐bghavigr, about
about the
the FTC's
FTC's Bureau
Bureau of Competition
Competition
investigating to squelch competition in favor of their own services.
investigating tech companies efforts to services, I
couldn't help
couldn’t help but think of Apple's
Apple’s removal
removal of parent controls apps
parent controls apps asan
as an example
example of
unscrupulous
unscrupulous behavior
behavior that runs counter
counter to consumer protection.
protection.

Our family of four are


are devoted Apple customers.
customers. Collectively,
Collectively, we
we own 4 iPhones,
iPhonec. 22 iPads,
iPads. 22
iMacs, 3 MacBooks,
iMacs, 3 and 2
MacBooks, and 2 Apple devices. We
Apple TV devices. subscribe to iCloud
We subscribe iCloud storage
storage and
and Apple
Apple Music.
Music.

I want to be very clear with you that I have


have never felt such outrage
outrage at Apple asas I do right
right now.
now.
How aa company the claims to value its customers can behave
its customers behave in such aa reprehensible and self‑
reprehensible and self-
serving way makes
serving makes me allegiance to Apple and
me question our allegiance and its
its products.
products.

When children's health


health is at stake,
is at stake, Apple should dodo the right
right thing.
thing. You, as its
You, as its leader,
leader, should do
should do
the right
right thing.
thing. I hope
hope you will reconsider
reconsider this decision and restore
restore these
these vital consumer
protection tools to the App Store and do
App Store do more
more toto protect
protect young
young people
people from the detrimental
effects of
effects of technology.
technology.

Sincerely yours,
yours,

Confidential
Confidential

HIGHLY CONFIDENTIAL --- SENSITIVE


SENSITIVE BUSINESS
BUSINESS INFORMATION
INFORMATION HJC-APPLE-012248
HJC-APPLE-012248
Subject: Re: MI)M?
Subject: Re: MDM?
From: Confidential

Received(Date): Tue, 04 Jun 2019


Received(Dale): Tue, 2019 17:02:31 +0000
17:02:31 +0000
To::
To "Bill Havlicek"
Havlicek" < Confidential
Cc:
C u4 Confidential
~ ‐ > - Confidential
Date: Tue, 04 Jun 2019
Date: Tue, 2019 17:02:31
17:02:31 +0000
+0000

Hi Bill, so just following


Bill, sojust following up,
up, I[just
just read
read the new 5.5
5.5 guidelines for the the
the MDM
MDM use..
use. WOW!
WOW!!! I
cant believe
believe how much money that costed us us in the 66 months
monflts and Apple "Changed their mind
Apple “Changed mind“
"

on the usage?
usage?

As
As aa company that got
got booted
booted from your store, then spent aa little
your store, little over 30k in re-developing
re-developing the
the
app with your team
team helping
helping us
us write the code to
the code to make
make it compliant.
compliant, to to Apple nowjust
now just saying
saying you
can use
use MDM again.. I1 mean WOW talk about death to a
M D M again. a small company likelike ours trying
trying to make
make
a difference in screen time
a time health
health for kids.
kids. Especially knowing
knowing we we never went to
to the
the media
media or
brought this to
to any legal
legal and gov attention
attention. I feel like
like we
we were
were just spit out for playing
playing by
by the
the
rules.
rules.

Is there any help


help with this massive loss that Apple
massive loss Apple can help
help us out with?
us out with?

I1amso
am so disappointed in this reversal of decision with really nothing
reversal of nothing much
much changing
changing from the the
side as
developer side as far as
as the technology goes.
goes. From
From the guidelines
guidelines we just have
wejust have to list
list the
the reason
reason
for using
using MDM
MDM andand assuring
assuring we are not storing
we are storing or selling
selling the data...
data. .. which from thethe very
beginning
beginning we complied to these new standards
we complied standards that Apple set,
set, before
before these
these rules
rules were even set..
even set.
we
we never
never collected any data other than a a Childs
Childs name
name and how many steps steps they took (which
(which
erased ooff
ff our server every night at midnight)
night at midnight)

Please
Please help
help

.· We
We complied
complied with all
all this prior to being
being banned
banned from
from the store and
and rebuilding
rebuilding
our
O l l ' app with your NEVPN
NEVPN compliancy

-· 5.5 Mobile
Mobile Device
Device Management
Management

Mobile Device
Mobile Device Management
Management Apps that offer Mobile Mobile Device
Device Management
Management (MDM) (MDM)
services must
services must request
request this capability from Apple.Apple. Such apps may only be offered
Such apps offered byby
commercial enterprises
commercial enterprises (such
(such as
as business
business organizations.
organizations, educational institutions,
educational institutions,
agencies), and
or government agencies). and in limited
limited cases.
cases, companies
companies using
using MDM
MDM for parental
parental
control services.
control services. You
You must
must make
make aa clear declaration
declaration of what user data willwill be
be
collected and
collected how itit will
and how will be
be used
used on
on an
an app
app screen
screen prior to any user
prior to action to
user action to
purchase or otherwise use use the service.
service. MDM
MDM apps must not
apps must not violate local
local laws.
laws.
offering MDM
Apps offering MDM services may not
services may not sell, use, or disclose
sell. use, disclose to third parties
parties any data
purpose, and
for any purpose. must commit to this in their privacy policy.
and must policy. Apps
Apps that do do not
not

-- SENSITIVE
HIGHLY CONFIDENTIAL -‐ SENSITIVE BUSINESS
BUSINESS INFORMATION
INFORMATION HJC-APPLE-012273
HJC-APPLE-012273
comply with this guideline
guideline will
will be removed
removed from
from the App Store
Store and
and you
you may
may be
be
removed from the Apple Developer
removed Developer Program.
Program.

Confidential
Confidential

President
President

Confidential
Confidential

Confidential
Confidential

Confidential
Confidential

Onw
o Jun 4 .av t z s o m w e wrote:z
n 4, 2019,
2019. at 7:50 AM, Confidential

Bill, Good
Bill, Good Morning,
Morning,

I was just reading an article


reading an article in
in the NY times
times that Apple is
is now allowing
allowing MDM
MDM apps
apps in the
App Store for consumer use?
App Store use? Can you please
please confirm that this is the
the case?

Confidential

Confidential

Confidential

Confidential

Confidential

HIGHLY CONFIDENTIAL --- SENSITIVE


SENSITIVE BUSINESS
BUSINESS iNFORMATION
INFORMATION HJC-APPLE-012274
HJC-APPLE-012274
S ubje ct: P
Subject: le a s e He
Please lp with our
Help o u r App
From:
m e ; Confidential
Re ce ive d(Date ):Thu, 17
Received(Date)E[‘hu, 17 JJan
a n 2019 16:13:56
16:13:56 +0000
To : Confidential
To:
Date
Date:: Thu, 1717 JJan
a n 2019 16:13:56 +0000
201916:13:56

Eddy,
Eddy,

Afte r my phone ca
After ll with Bill
call Bill Ha vlice k on Tue
Havlicek s da y, I kknow
Tuesday, n o w my eemails
ma ils aare
re re a ching yyou
reaching o u aand
nd your
de pa rtme nt. I aa m
department. m hoping tha t you ha
hoping that ve read
have re a d our
o u r is s ue where
issue whe re your
your App De ve lopme nt Te
Development chnica l
Technical
S upport De
Support pa rtme nt has
Department ha s he lpe d us code our
helped upda te d aapp
o u r updated pp to comply with Apples
Apple s ne
n ewwNNONE
ONE
MDM
M D M complia nce aand
compliance nd yet
ye t the aapppp was
wa s sstill
till re je cte d. The aamount
rejected. mount of mone y aand
ofmoney nd time tha
thatt was
wa s
sspent
pe nt working with youryour De ve lope r S
Developer upport De
Support pa rtme nt aand
Department nd hours of coding aand
ofcoding nd imple me nting
implementing
NEVP N ssolution
the NEVPN olution Apple provide
provided d us to use
us e aandnd ce rtifica te aauthentication
certificate uthe ntica tion to ma ke our
make our VVPPN
N
work, knowing
knowing eexactly
xa ctly what
wha t our
o u r aapp
pp doe s , only to be
does, be re je cte d by Apple ssaying
rejected a ying “we
‘We don't ssupport
upport
P a re nta l Control Apps aanymore”
Parental nymore ” -‑

The origina
originall App cos
costt us
us in eexcess
xce s s of 200k to build
of200k build tha
thatt was
wa s aapproved
pprove d by your de pa rtme nt whe
department whenn
we we
we re us
were ing MDM.
using

- We followe
followedd Apple
Appless MDM
M D M docume nta tion/guide line
documentation/guide liness aand
nd cre a te d code that
created tha t fa lls in your
falls your
guide line s provide
guidelines d.
provided.

- We inve s te d more
invested more mone
money y into the aapp
pp with n
neew
w fe a ture s aand
features nd updates
upda te s which were
we re aagain
ga in
aapproved
pprove d by your
your de pa rtme nt
department

- We took on aa National
Na tiona l P TA pa rtne rs hip aas
TA partnership s our
o u r ssolution
olution wa
wass aa ssolution
olution that
tha t ma de ssuch
made uch aan
n impa ct
impact
on
on sschools
chools aacross
cros s the country.
country.

- AdditionalUpdates
Additiona l Upda te s were
we re ma de aand
made nd aapproved
pprove d

- We were
we re aadopted
dopte d by us e rs /pa re nts /s chools aand
users/parents/schools nd imple me nte d aafter
implemented fte r sspending
pe nding 100k
100k on aa N
NPPTA
TA
pa rtne rs hip for ma
partnership rke ting to sschools
marketing chools aand nd parents
pa re nts aaround
round the country.

The
Thenn With the la te s t upda
latest update te to our
o u r aapp,
pp, Apple rejected
re je cte d our
o u r aapp,
pp, sstating
ta ting that
tha t MDM wa s no longe
M D M was longerr
aallowed
llowe d aand
nd tha
thatt we
we would have ha ve to imple me nt aa ssolution
implement olution without using us ing MDM. AfteAfterr aa fe
feww back
ba ck
aand
nd forths
forths,, we we
were re dire cte d to Apple DTS where
directed whe re we we re passed
we were pa s s e d to Quinn
Quinn who ove overr the pe riod
period
of ove r aa month
ofover month aandnd ha lf he lpe d us
halfhelped us de ve lop the functiona
develop l NEVP N ssolution
functionalNEVPN olution that
tha t we re ce ntly
we recently
ssubmitted.
ubmitte d. Re je cte d aagain.
Rejected ga in.

How
H o w Ca
Can n this be
be?? How
H o w ca n the aapp
can pp that
tha t your own
o w n DTS te a m participated
team pa rticipa te d in building
building to re s olve
resolve
re je cte d MDM
the rejected M D M is s ue be then
issue the n rejected?
re je cte d? NEVPN
NEVP N was
wa s the proposed
propos e d ssolution
olution made
ma de by your
your
de pa rtme nt.
department.

We sspent
pe nt aan
n aadditional
dditiona l 30k+ in this fix jus t to be
fixjust be told “we
‘We no longe
longerr ssupport
upport P a re nta l Control
Parental Control

HIGHLY CONFIDENTIAL -- SENSITIVE BUSINESS INFORMATION


INFORMATION HJC-APPLE-012286
Apps ” which, in your App S
Apps” tore , you sstill
Store, till have
ha ve parental
pa re nta l control aapps
pps that
tha t aare
re purchasable
purcha s a ble aand
nd
downloa da ble tha
downloadable thatt us
usee MDM
M D M aand
nd eeven
ve n ssaya y in the de s cription they
description the y use
us e MDM. (Kids Lox)
(KidsLox)

P le a s e help
Please he lp us
us out here
he re aand
nd he lp me
help me unde rs ta nd aa little more cle
understand a r than
clear tha n the aanswer
ns we r we re ce ive d
received
from Bill “S orry, there
‘Sorry, the re is nothing I ccaa nn do”
is nothing

IIunderstand
unde rs ta nd tha
thatt yyou
o u aare
re aa very
ve ry high
high up eexec
xe c aand
nd VP
VP aatt Apple.
Apple . And
And I kknow tha t my la
n o w that s t 3 eemails
last ma ils
tha t we
that re aaddressed
were ddre s s e d to youyou ha ve been
have be e n aanswered
ns we re d by your
your te a m members,
team me mbe rs , but I aam m really
re a lly hoping
hoping to
ha ve aa conve
have rs a tion aand
conversation nd hope fully come
hopefully come up with aa re s olution tha
resolution thatt works for bothboth of us in re
ofus ga rds
regards
ma tte r. IIreally
to this matter. re a lly do nnot wa nt to take
o t want ta ke this is s ue to press
issue pre s s or pursue
purs ue aa le ga l confronta
legal tion, but aa
confrontation,
ssmall
ma ll compa
company ny like ours e lve s was
ourselves wa s just
jus t highly impa cte d by the
impacted theses e recent
re ce nt aactions.
ctions . IIwould
would pre fe r to
prefer
work with Apple in aa ssolution
olution ke e ping its high
keeping high reputation
re puta tion sstated
ta te d in aarticles
rticle s like :

https ://www.the
://www.thegua rdia n.com/te chnology/2018/ja n/09/a pple -childre
guardian.com/technology/2018/jan/09/apple n-pa re nta
-children-pare l-tools -controls -‑
ntal-tools-controls
iphone -a ddiction-cla ims -ope
-addiction-claims n-le tte
-open-le tterr

We would love to continue to work with Apple with our o u r Goya -Move ssolution
Goya-Move olution in aaddition
ddition to a
couple of othe r ssolutions
ofother olutions that
tha t we have
ha ve that
tha t would put
p u t Apple on the fore front of Digita l We ll-
ofDigital 11‑
Be ing aand
Being nd brought to the top aas s aa compa
companyny that
tha t ca re s aabout
cares bout Digita
Digitall He a lth when
Health whe n it pe rta ins to
pertains
Childre
Children.n.

Be ing aa National
Being Na tiona l P TA
TA P a rtne r, Im ssure
Partner, ure tha
thatt Ca lS TRS aand
CalSTRS nd JJana
a na P a rtne rs would aappreciate
Partners ppre cia te the
ssolutions
olutions tha
thatt we aare
re trying to work with Apple

Looking
Looking forwa rd to your
forward your prompt
prompt re ply
reply

Confidential

President

Confidential

Confidential

HIGHLY CONFIDENTIAL -- SENSITIVE BUSINESS INFORMATION


INFORMATION HJC-APPLE-012287
Subject: Re:
Subject: Re: Apple Cracks Down
Down on
on Apps That Fight
Fight iPhone
iPhone Addiction ‐- The New
New
York Times
From:
F r o m : "Tor Myhren"
Myhren" << Confidential
Confidential >

Received(Date): Sat, 27
Received(Daie): Sat, 27 Apr 2019
2019 15:08:22
15:08:22 +0000
+0000
To::
To "Michael Lewis"
“Michael Lewis" <4 Confidential
Confidential >

Cc: 1‘ Confidential
Confidential ' ,< Confidential
Confidential F>,"Jared Gosler"
> ."Jared Gosler"
1_’ Confidential Kennedy" 1‘‑
,"Magdalen Kennedy"
k"Magdalen Confidential J>

< _ Confidential
" S >,"Scott Miller"
c o w m e r " < Confidential ‐ >
Date: Sat, 27 Apr 2019
Date: Sat‘ 2019 15:08:22
15:08:22 +0000
+0000

This quite
quite incriminating.
incriminating. Is
Is it true?
true?

> On
> On Apr 27.
27, 2019.
2019, at 8:03 AM, Michael Lewis
AM. Michael Lewis ‐>
< Confidential > wrote:
wrote:
>
> https://www.
> nytimes.com/2019/04/27/technology/apple-screen-time-trackers. html
https:/Iwww.nytimes.com12019/04/27/technologylapple-screen-iime‐trackers.html

-- SENSITIVE
HIGHLY CONFIDENTIAL -‐ SENSITIVE BUSINESS
BUSINESS INFORMATION
INFORMATION HJC-APPLE-013175
HJC-APPLE-013175
S ubje ct: S
Subject: a fe WiFi
Safe WiFi// SSmart
ma rt Family
Fa mily
From:
m e ; Confidential
Re ce ive d(Date ):Tue , 09 Oct
Received(Date)EFue, O c t 2018 12:13:28
12:13:28 +0000
To:
To : "P hil S
"Phil chille r" Confidential
Schiller" Confidential
Cc: "Doug
"Doug Be ck" Confidential
Beck"Confidentia|
Date
Date:: Tue , 09 Oct 2018 12:13:28 +0000
Tue,090ct201812:13:28

P hil,
Phil,

IIwrite
write to request
re que s t your pe rs ona l eengagement
personal nga ge me nt aandnd inte rve ntion on two is
intervention s ue s of
issues s ignifica nce to the
ofsignif1cance
our
our work toge the r a nd our
together and o u r ongoing re la tions hip.
relationship.

Firs t, aas
First, s you
you mmaayy be aaware,
wa re , aafter
fte r eextensive
xte ns ive dis cus s ions aand
discussions nd eescalations
s ca la tions with your
your te a m, Ve
team, rizon
Verizon
ha s m
has meett continue
continued d re s is ta nce aand
resistance nd be e n force
been forcedd by Apple to remove
re move aa cus tome r-focus e d ca
customer-focused pa bility
capability
to block aad d tra cking from Ve
tracking rizon
Verizon’s S a fe WiFi aapplication.
Safe pplica tion. This is is dis a ppointing to Ve
disappointing rizon, aass
Verizon,
this fe a ture has
feature ha s be e n a popula
been popularr sservice
e rvice with our
o u r cus tome rs , aand
customers, nd dis a bling it will ca
disabling us e confus
cause confusionion
aand
nd conce
concern. rn.

The SSafe a fe WiFi aapp pp provide


providess cons ume rs the choice to
consumers to imple
implementme nt the importa
important nt privacy
priva cy
prote ctions of
protections o f a VP
V PN N aand
nd aadd tracking
tra cking blocking. The aad d tracking
tra cking blocker
blocke r fe a ture is
feature is compa ra ble to
comparable
eexisting
xis ting aad d tra cking blocking
tracking tha t cons
blocking that ume rs fre
consumers que ntly use
frequently us e when
whe n brows
browsing ing the web.
we b. Like othe
otherr
aapps,
pps , SSafea fe WiFi eextends
xte nds this protection
prote ction to brows
browsing ing aand
nd aapps
pps on thaemobile
the
’s mobile
us e r de vice . The
device.
fe a ture is
feature is only eenabled
na ble d by the cons ume r, reflecting
consumer, re fle cting our
o u r sshared
ha re d de s ire to provide cons
desire ume rs choice
consumers
in de te rmining the
determining ir le
their ve l of
level priva cy protection.
ofprivacy prote ction.

We do n not be lie ve our


o t believe our S a fe WiFi aapplication
Safe pplica tion viola te s Apple
violates ’s policie s , be
Abpflfolicies, ca us e no unauthorized
because una uthorize d
aactions
ctions aare
re de fa ulte d in the aapplication,
defaulted pplica tion, aand
nd the eend
nd u usseerr is
is fully informe
informedd on the benefits
be ne fits aand
nd
impa cts aassociated
impacts s s ocia te d with invoking
invoking this importa
importantnt privacy
priva cy protection
prote ction ca pa bility.
capability.

While my te a m aand
team nd IIdis
dis aagree
gre e with Aptsledemand
Apple
’s de ma nd to remove
re move the aad d tracking
tra cking blocke
blockerr fe a ture
feature
from Ve rizon’s S
Verizoris a fe WiFi aapp,
Safe pp, eespecially
s pe cia lly give
givenn the numerous
nume rous eexamples
xa mple s of othe r aapplications
ofother pplica tions
curre ntly offe
currently ring ssimilar
offering imila r functiona lity in the App S
functionality tore , we ha
Store, ve ne
have ve rthe le s s made
nevertheless ma de that
tha t ma te ria l
material
modifica tion to our
modification o u r ssolution
olution ‐– one that
tha t we be lie ve unfa
we believe irly aand
unfairly nd unnecessarily
unne ce s s a rily pre ve nts aa priva
prevents cy
privacy
prote ction our
protection o u r cus tome rs de
customers s ire .
desire.

HIGHLY CONFIDENTIAL -- SENSITIVE BUSINESS INFORMATION


INFORMATION HJC-APPLE-013212
In aaddition
ddition to the dis conne ct be
disconnect twe e n our
between two te
o u r two a ms for S
teams a fe WiFi, my team
Safe te a m ha
hass aalso
ls o made
ma de me
aaware
wa re of
o f a ne
n ew
w conce rn re
concern ga rding our
regarding our S ma rt Fa
Smart mily aapplication.
Family pplica tion.

Ve rizon’s S
Verizon’s ma rt Family
Smart Fa mily aapplication
pplica tion provides
provide s parents
pa re nts or gua rdia ns with aa long
guardians long lis
listt of cros s -OS
ofcross-OS
be ne fits including
benefits including loca tion aalerts,
location le rts , blocking
blocking of ha rmful conte
ofharmful nt, management
content, ma na ge me nt of a pprove d
ofapproved
conta cts , sscreen
contacts, cre e n time limits
limits,, aand
nd aappropriate
ppropria te downloa ding of
downloading a ge aappropriate
ofage ppropria te aapplications.
pplica tions .

This va lua ble ssolution


valuable olution le ve ra ge s Apple
leverages A p’s’ l MDM
e D M ca pa bility (a
capability nd ssimilar
(and imila r ca pa bilitie s from Google
capabilities Google))
in ssupport
upport of the s e fe
ofthese a ture s . My te
features. a m was
team wa s recently
re ce ntly aadvised
dvis e d by Apple thathatt M
MDM D M ssupport
upport would
be re move d from our
removed o u r aapplication.
pplica tion. S hould Apple ma
Should inta in tha
maintain thatt position,
pos ition, it would ssignificantly
ignifica ntly
pre judice S
prejudice ma rt Fa
Smart mily
Family ’s curre nt aand
current nd future ca pa bilitie s for Apple de
capabilities vice s .
devices.

Give
Given n the we ll-re ce ive d be
well-received ne fits of
benefits o mSema
a rrtt Family,
Fa mily, I rreeque
quest s t tha
thatt your
your teams
te a ms work dire ctly with
directly
mine to find
find aa worka
workableble ssolution
olution that
tha t will ma inta in the
maintain these s e importa
important nt fe a ture s within S
features ma rt Family
Smart Fa mily
for the Apple eecosystem
cos ys te m now
n o w aand
nd on aa go-forwa
go-forward rd ba s is .
basis.

While we re cognize Apple


recognize ’s inte re s t in aa well-ordered
interest we ll-orde re d eecosystem,
cos ys te m, Apple
’s re ce nt aactions
Aispiecent ctions ssuggest
ugge s t
aa pe rilous aabsence
perilous bs e nce of colla bora tion aand
ofcollaboration nd common
common ssense.e ns e . For
F o r eexample,
xa mple , we we re re
we were ce ntly force
recently forcedd to
sseek
e e k re vie w by your
review your App Re vie w Boa
Review Board rd of nons eensical
o f a nons ns ica l aand
nd aarbitrary
rbitra ry requirement
re quire me nt thathatt Verizon
Ve rizon
ma ke SSmart
make ma rt Fa mily aavailable
Family va ila ble to non-Verizon
non-Ve rizon ssubscribers.
ubs cribe rs . EveEven n aa curs ory unde
cursory rs ta nding of
understanding tha t
ofthat
sservice,
e rvice , aas s we ha ve eexplained
have xpla ine d to your
your te a ms , re
teams, ve a ls that
reveals tha t the sservice
e rvice is
is funda me nta lly tied
fiindamentally tie d to our
our
ssubscriber’suse
ubs cribe rs ’ us e of
o f oour
u r ne twork. Yet,
network. Ye t, eeven
ve n upon
upon “a ppe a l”, Apple ha
“appeal”, hass rejected
re je cte d SSmart
ma rt Fa mily on
Family
tha t ba
that s is .
basis.

Be yond the
Beyond s e re
these ce nt dis
recent conne cts between
disconnects be twe e n our te a ms , IIbelieve
o u r teams, be lie ve our
o u r product groups
groups neneede d to work
toge the r more
together more colla bora tive ly, aand
collaboratively, nd in the sspirit
pirit of pa rtne rs hip, on cus
ofpartnership, tome r-frie ndly aapproaches
customer-fiiendly pproa che s to
aapp
pp sstore
tore policies
policie s aand
nd importa
important nt aapplication
pplica tion eenablement
na ble me nt fe a ture s that
features tha t aare
re in the be s t inte
best re s ts of
interests
our
o u r cus tome rs .
customers.

To tha
thatt eend
nd aand
nd aass two orga niza tions committe
organizations committed d to re a l cus
real tome r choice aand
customer nd gre a t cus
great tome r
customer
eexperience,
xpe rie nce , I'd
I'd like to ssuggest
ugge s t that
tha t we
we gegett aa ssmall
ma ll group of s e nior le
ofsenior a de rs toge
leaders the r to dis
together cus s how
discuss
be s t to a void s ome of the mos t re ce nt dis conne cts de s cribe
best avoid some ofthe m o s t recent disconnects described above, so that d a bove , s o tha t we ca
can ensure we aare
n e ns ure re
both well
both we ll pos itione d to ssupport
positioned upport aa compre he ns ive eengagement
comprehensive nga ge me nt aand nd ssupport
upport mode
modell that
tha t puts our
our

HIGHLY CONFIDENTIAL -- SENSITIVE BUSINESS INFORMATION


INFORMATION HJC-APPLE-013213
cus tome rs ' ne
customers' e ds firs
needs firstt aand
nd fore mos t in aall
foremost ll of
o f oour
u r future
firture aactivities
ctivitie s together.
toge the r.

I llook
o o k forwa rd to hearing
forward he a ring your thoughts on SSafe a fe WiFi aand
nd S ma rt Family,
Smart Fa mily, aand
nd how be s t to ge
best gett the
te a ms toge
teams the r to re -a
together lign on our
-a1ign o u r future
fiiture eendeavors
nde a vors toge the r.
together.

Re ga rds ,,
Regards

Confi
l

S e nt from my Ve
Sent rizon iP
Verizon ad
iPad

Ve rizon -‐ m
Verizon aking5G im
making5G pos s ible to ignore
impossible ignore

HIGHLY CONFIDENTIAL -- SENSITIVE BUSINESS INFORMATION


INFORMATION HJC-APPLE-013214
Subject: Re:
Subject: Re: From
From aa young
young Parent -Ref'
-Ref ' Purging
Purging rivals'
rivals' in NYT
From: "Philip Schiller"
From: "Philip Schiller" < Confidential >
Received(Date):
Received( Date): Mon,
Mon, 29
29 Apr 2019
20 l 9 19:20:26
19:20:26 +0000
+0000
To::
To Confidential

Bcc: "Philip Schiller"


Bcc: "Philip Schiller" <4 Confidential
Col'lfidemial >
Date: Mon. 29
Date: Mon, 29 Apr 2019 19:20:26
19:20:26 +0000
+0000

Confidential
Confidential

you for considering


Thank you considering using
using Apple's products
products and
and for your email.
email.

iI would like
like to assure you
you that the App Store
Store team has
has acted responsibly in
acted extremely responsibly in
this matter,
this helping to
matter, helping to protect our
our children
children from
from technologies that could
technologies that could bebe used to
used to
violate their privacy and
and security.
security. After you
you learn
learn of some
some of the facts II hope
hope that you
you
agree.
agree.

Unfortunately the New


Unfortunately New York Times article
article you reference
reference did
did not
not share our complete
complete
statement, explain the risks
statement, nor explain risks to children
children had
had Apple notnot acted
acted on their behalf.
behalf. Apple
has long
has long supported
supported providing
providing apps on on the App Store,
Store, that work like
like our ScreenTime
feature, to
feature, to help
help parents
parents manage
manage their
their children's access to
children’s access to technology
technology and
and we will
we will
continue to encourage development of these apps. apps. There are many great appsapps for
parents on
parents on the App Store.
Store, like
like “Moment
"Moment - Balance
Balance Screen
Screen Time”
Time" byby Moment
Moment Health
Health and
and
"Verizon
“Verizon Smart Family" by Verizon Wireless.
Family" by Verizon Wireless.

However, over the last


However, last year we became
became aware
aware that some parental
parental management
management apps apps
using a technology called
were using called Mobile
Mobile Device
Device Management
Management or "MDM”
"MDM" and installing an
and installing an
MDM Profile
MDM Profile as a method
method to limit and and control
control use devices. MDM
use of these devices. MDM is a technology
that gives
that gives one party
party access
access toto and control over many devices,
and control devices. it was
was meant
meant to be used
be used
by a
by a company
company on on it’s
it's own
own mobile
mobile devices
devices as
as a
a management
management tool,
tool, where
where that
that company
has a right to all
has all of the data andand use
use of the devices.
devices. The MDMMDM technology is not not
intended to
intended to enable
enable aa developer
developer to to have
have access
access to and control
to and control over consumers' data and
consumers' data and
devices, but
devices, but the apps
apps we removed
removed fromfrom the store did
did just that.
that. No
No one,
one, except
except you,
you,
should have unrestricted
should have unrestricted access
access to to manage
manage your child's device.
your child’s device, know
know their
their location,
location.
track their
track their app
app use,
use, control
control their mail accounts.
their mail accounts, web
web surfing, camera use.
surfing, camera use, network
network
access, and
access. and even
even remotely
remotely erase
erase their devices.
devices. Further,
Further, security research
research has
has shown
shown
that there is risk that MDM MDM profiles
profiles could be used
used as as a technology for hacker
hacker attacks by by
assisting them in installing apps for malicious purposes on users'
assisting them in installing apps for malicious purposes on users' devices. devices.
When the App Store team investigated
investigated the use
use of MDM
MDM technology by by some developers
some developers
of apps
of for managing
apps for managing kids
kids devices
devices and
and learned
learned the
the risk
risk they create to
they create to user privacy and
user privacy and
security,
security. we asked
asked these developers to stop using
using MDM
MDM technology in in their apps.
apps.
Protecting user privacy
Protecting privacy and
and security is paramount in the Apple
secun'ty is ecosystem and
Apple ecosystem and we have
have
important App Store
important Store guidelines to not allow apps
apps that could pose a threat to consumers
could pose consumers
and security.
privacy and security. We will to provide
will continue to provide features,
features, like
like ScreenTime, designed to
ScreenTime, designed to
help parents
help manage their
parents manage children's access
their children’s to technology
access to technology andand we
we will
will work with
work with

HIGHLY CONFIDENTIAL --- SENSITIVE


SENSITIVE BUSINESS
BUSINESS INFORMATION
INFORMATION HJC-APPLE-013221
HJC-APPLE-013221
_
developers to offer many great apps
technologies that
technologies

Thank you,

Phil
Phil

From:

Dear
you,

Subject:

Dear Tim

Until
to iphone
that are safe

From a young
Subject: From

Date: April
Date:

rTO:
April 29,

o
safe and

Confidential
apps on the App
private for
and private

Parent ~Ref
young Parent

29, 2019
2019 at 9:58:33 AM


I am an Apple customer from India.

Until 2017 I was an


SE.
iphone SE.

As I was battling
India.

an Android phone
phone user,
for us
us and

Confidential

-Ref'' Purging

as I kept
user. asI
Store for these uses.
App Store
and our children.

Purging rivals'

AM PDT
PDT
children.

NYT
rivals' in NYT

kept looking
looking for a

battling my decision to jump over to Apple ecosystem,


Govt when requests
requests were
were made
made to

weaken the encryption system

That was the Moment


system ..

Moment I made
made the
the decision and
uses, using

a compact
using

compact phone

ecosystem, you stood

came into
and came into iPhone
iPhone world.
world.
phone the
the search led

stood strongly against


led me

against US
me

A year ago,
ago, I got upset as SE‘s
upset as SE's brand
brand new version never came, However
never came, However I took asa
as a change
change that
cannot be stopped.
be stopped. Obviously there are multitude reasons
are multitude reasons why a Manufacturer would
a Manufacturer would

not
n o t continue with a
a range of product.
range of product.

I ama
am a parent, we have
parent , we have two
two kids, 4 & 7.
kids, 4 7. My wife owns an an Android, a happy
Android, a android user.
happy android user. In
recent
recent weeks we
we were discussing to get
were discussing get iphone
iphone for her
her too so we
too so can be
we can be in same
same ecosystem
ecosystem thus

start using
start using apps that would become
become useful
useful for us in managing
usin managing household activities.
household activities.

One of the points


One of points that made
made me support this approach was,
me support was. the
the ability to secure
secure the phones of
phones of
by parent,
children by parent, i.,e
i.,e Parent
Parent controls which I could
could easily download
download knowing
knowing Apple's
Apple's app
app
approval process
approval process is stronger
stronger

than Android.
Android.

And now,
now , I read
read this article
article in NYT
NYT where it is
is upsetting
upsetting to
to read
read that :: ( rPurging
'Purging Rivals'
Rivals',. Jack
Nicas
Nicas The NewYorkTimes.
NewYorkTimes. 29 29 April 2019).
20I 9).

-- SENSITIVE
HIGHLY CONFIDENTIAL -‐ SENSITIVE BUSINESS
BUSINESS INFORMATION
INFORMATION HJC-APPLE-013222
HJC-APPLE-013222
1)
I) In the ambition
ambition to win over parental apps, you are
parental control apps, are unethically
unethicalIy killing entrepreneurs and
killing entrepreneurs
small business.
business.

2)
2) in this greed
greed,, Apple is
is making
making kid's safety a
a collateral damage.
damage.

]I have
have put
put the decision
decision on hold
hold and
and I am
am even
even considering
considering returning
returning to
to Android,
Android, of course
course aa
iphone
iphone buyer of SE
SE won't affect your bottom-line,
bottom-line, I hope
hope as
asaa person who stood
stood up
up ethically for
the customer's privacy you would value our Children's safely too.
Children's safety too.

I hope a review process


hope a process in light
light of
of the article
article that appeared
appeared in the newspaper
newspaper would correct the
unethical and Unsafe
unethical and Unsafe practice
practice Apple is carrying
carrying out with blind
blind ambition.
ambition.

Best
Best regards
regards

Confidential
Confidential

Truth is a
a pathless
pathless land
land

HIGHLY CONFIDENTIAL --- SENSITIVE


SENSITIVE BUSINESS
BUSINESS INFORMATION
INFORMATION HJC-APPLE-013223
HJC-APPLE-013223
Subject: R e m
Subject: Re: Confidenti parental
-arental restriction
restriction app
a ‑
From:
From: Confidential
Confidential

Received(Date): Sun, 28
Received(Dale): Sun, 28 Apr 2019 12:49:32
12:49:32 +0000
+0000
To:: "Philip
To "Philip Schiller"
Schiller" < Confidential >
Date: Sun, 28
Date: Sun, 28 Apr 2019 12:49:32 +0000
12:49:32 +0000

Mr Schiller,
Schiller,

Thanks for your reply.


reply. We should acknowledge
acknowledge that Apple
Apple has
has been aware
aware that these apps
apps were
were
using
using MDM
MDM for a a long
long time, and continued to
time. and approve them to stay in the
to approve the App Store.
Store.

Mobile
Mobile device management (MI)M) is EXACTLY what many parents
management (MDM) parents need
need to control
control their kids
kids
devices. Please
devices. Please restore
restore this functionality that has
has existed for years.
years. Screen Time is
is much
much less
less
effective "watered down“
effective and “watered down" in comparison
comparison.

My son doesn't get “screen"screen time limits"


limits". HeHe has
has to do his
to do his work to
to be earn access
be eam access to
to his
his game
game
apps each day.
apps day. 30mins
30mins of of work grants him
him 30mins on his apps. Or 45mins
his apps. 45mins etc.
etc. This is not
something he
something he requests
requests - ‐ it is something
something I initiate
initiate and
and enable from my device thanks to
my device to OurPact
OurPact
and its
and its use
use of MDM.
M D M The other option is is to
to physically
physically take away and
and give
give back the phone each
phone each
day. MDM
day. M D M is a software
is a software solution that isis better
better than physically taking
taking away the phone and
phone away and
giving it back.
giving back. If If we
we cannot have
have robust control of of our children's iPhones
iPhones once again, we
once again, we will get
them anan Android instead so that we
instead so we can once
once again have
have that control.
control.

Please allow parental


Please parental control
control software to
to use
use MDM.
M D M This is just asimportant
as important ascorporations
as corporations
using
using MDM
M D M for their employees.
employees. One
One could even
even argue
argue that it's
it‘s more
more important
important than the reasons
reasons
corporations have
corporations have for using
using MDM.
MDM. Our children's
children’s health
health is stake.
is at stake.

Thank you.
you.

On Apr 27,
On 27, 2019, at 6:30
2019, at 6:30 PM,
PM, Philip
Philip Schiller < Confidential > wrote:
wrote:

Confidential
Confidential

Thank you for being


being aa customer
customer of
of Apple's
Apple’s products and for your email.
products and email.

I1would like
like to assure
assure you
you that the
the App Store
Store team
team has
has acted
acted extremely responsibly in this matter,
matter,
helping to protect
helping our children from technologies that could
protect our could be
be used
used to violate their privacy and
and
security. After
security. Alter youleam
you Ieam of some
some ofthe
of the facts I hope
hope that you agree.
you agree.

Unfortunately the
the New York Times article article you reference
reference did
did not share our complete
not share complete statement,
statement,
nor explain the risks
nor risks to children had
had Apple not acted
acted on their behalf.
behalf. Apple
Apple hashas long supported
long supported
providing apps on
providing apps on the
the App Store,
Store, that work like our ScreenTi
like our ScreenTime feature, to
me feature, to help
help parents
parents manage
manage
children's access to
their children’s to technology andand we
we will continue
continue to encourage
encourage development of these
apps. There are
apps. are many great
great apps
apps for parents
parents on the
the App Store.
Store, like "Moment - Balance
like “Moment Screen
Balance Screen
Time" by
by Moment
Moment Health and “Verizon
Health and "Verizon Sman
Smart Family"
Family” by
by Verizon Wireless.
Wireless.

-- SENSITIVE
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INFORMATION HJC-APPLE-013251
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However,
However. over thethe last year we became aware that some
became aware some parental
parental management
management apps apps were using
using a
technology called Mobile
Mobile Device
Device Management
Management or “"MDM'
M D M ” and
and installing
installing an
an MI)M
M D M Profile as aa
Profile as
method
method to limit and control
limit and control use of these
use of devices. MDM
these devices. MDM is aa technology that gives one one party
access to and
access and control over many devices.
devices, it was meant to be be used
used by
by aa company on on ifs
it's own
mobile devices as a management
mobile devices as a management tool, tool, where that company has a right to all of
has a right to all of the data and use
and use ofof
devices. The MDM
the devices. MDM technology is not intended
intended to enable aa developer to have access to
have access to and
and
control over consumers' data and devices,
control devices. but
but the apps
apps we
we removed
removed from the storestore did
did just that.
that.
No one, except you,
No one, should have
you, should have unrestricted access to
unrestricted access to manage
manage your child’s
child's device,
device, know their
location,
location. track their app
app use,
use, control their mail accounts, web surfing
mail accounts, surfing, camera
camera use,
use, network
access, and
access, and even remotely erase
erase their devices.
devices. Further,
Further, security research
research has shown that there
has shown there is
is
risk that MDM
MDM profiles
profiles could
could be
be used as a technology for hacker
used asa attacks by
hacker attacks assisting them in
by assisting
installing apps for malicious
installing apps malicious purposes
purposes onon users' devices.
users' devices.

When the App Store team investigated


investigated the
the use of MDM
use of M D M technology by some developers
by some developers ofof apps
apps
for managing
managing kids and learned
kids devices and Ieamed the risk they create
create to
to user
user privacy and security, we
and security, we asked
asked
these developers to stop using
using MDM
MDM technology in their apps.
apps. Protecting
Protecting user
user privacy and
and
security is paramount
paramount in the
the Apple ecosystem
ecosystem and
and we
we have
have important
important App Store
Store guidelines
guidelines to not
not
allow apps that could pose a threat to consumers
pose a consumers privacy and
and security.
security. We will continue to
provide
provide features,
features. like ScreenTime, designed
like ScreenTime, designed to help
help parents
parents manage
manage their children's
children' s access
access to
technology and wewe will work with developers to offer many great apps on the App
many great Store for these
App Store these
uses,
uses. using
using technologies that are
are safe and
and private
private for us
us and our children.
and our children.

you,
Thank you,

Phil
Phil

From: Confidential

Date:
Date: April 27,
27,2019 8:05:21 AM
2019 at 8:05:21 AM PDT
PDT

To:
T o
Confidential

Subjectz-parental
Subject: Confidential parental restriction
restriction app

Mr Cook,
Cook,

]I ama
am a parent of 3 3 young children. Apple
young children. Apple recently enabled
enabled screen
screen time restrictions
restrictions on iOS,
iOS, which
which
was a a great development. However,
_reat development. However. Apple then removed
removed several apps apps from the App Store such as
Store such as
Confidenti which have
have much
much more advanced options
more advanced options not available in iOS
n o t available Time. As
iOS Screen Time. result.
As aa result,
for many parents
parents who used
used confidenti we
we have
have LOST
LOST many restrictions
restrictions options that we we had
had
before. It is
before. is ironic
ironic that Apple's
Apple's actions
actions through removal
removal of this app have
this app have resulted
resulted in the
the loss
loss of
many
many parental controls such as
parental controls as remote
remote locking
locking and unlockin of
and unlocking of apps.
a- us. I amve
am very familiar with with
ScreenTime functions,
ScreenTime functions. and
close.
close.
and they simply do
do not replicate
n ot replicate whagfloffers.
what Confidential ~ offers. Not
Not even
even

Please allow-
Please allou Confidenti to continue
continue offering
offering its services on iOS.
its services iOS. It is used
used my many thousands of
of
iOS
iOS uses.
uses. You have
have taken away
away capabilities
capabilities that are
are simply not offered on
not offered on iOS.
iOS.

-- SENSITIVE
HIGHLY CONFIDENTIAL -‐ SENSITIVE BUSINESS
BUSINESS INFORMATION
INFORMATION HJC-APPLE-013252
HJC-APPLE-013252
Thank you.
you.

Confidential
Confidential

HIGHLY CONFIDENTIAL --- SENSITIVE


SENSITIVE BUSINESS
BUSINESS INFORMATION
INFORMATION HJC-APPLE-013253
HJC-APPLE-013253
Subject: Re:
Subject: Re: Parental controls
Parental controls
Fro
From:
m 3 Confidential
Confidential

Received(Date): Sat, 27 Apr 2019


Received(Dale): Sat, 22:48:06 +0000
2019 22:48:06 +0000
To:: "Philip
To "Philip Schiller"
Schiller" < Confidential
Date: Sat, 27
Date: Sat, 27 Apr 2019 22:48:06 +0000
2019 22:48:06 +0000

Phil‑
Phil-

Your explanation is very convenient,


convenient, for Apple to completely dominate the
the parental controls
parental controls
market with aninferior
an inferior product.
product.

I have
have already reached
reached out toto both of my Senators about this monopolistic,
my Senators monopolistic, opportunistic power
power
grab by
grab by Apple.
Apple. It is
is not right.
right. I have also written a
have also a letter
letter to the
the editor at the
the Washington post,
post.
which willlikely
will likely be
be published
published next week.
week. Next week I will contact the Govemor’s
Governor's office of the
the
state of Califomia
state California

Surely Apple do better than this.


Apple can do this. If
If this issue
issue not
not corrected,
corrected, we
we will sign up
up for an
an android
phone next time.
phone time. Please,
Please. try to help
help your customers.
customers, rather
rather than just your pocketbook.
pocketbook. Thank you.
you.

Confidential

end of the world.


What the caterpillar calls the end world, the Master
Master calls butterfly.
calls the butterfly.

Richard Bach
- Richard Bach

On
On Apr 27,
27, 2019, at 3:38 PM,
2019, at PM, Philip
Philip Schiller < Confidential > wrote:
wrote:

Confidential

Thank you for being customers of


being customers of Apple
Apple and for your email.
email.

I would like
like to assure
assure you
you that the App Store
Store team
team has
has acted
acted extremely responsibly in this matter,
matter,
helping to protect
helping our children from technologies that could be
protect our be used
used to violate their privacy and
and
security. After you
security. youleam
learn ofsome
of some ofthe
of the facts I hope
hope that you agree.
you agree.

Unfortunately the
the New York Times article
article you reference
reference did not share our complete
not share complete statement.
statement,
nor
nor explain the risks
risks to children had
had Apple not acted on their behalf.
not acted behalf. Apple
Apple has
has long
long supported
providing apps
providing apps on the App Store.
Store, that work like ScreenTime feature,
like our ScreenTime feature. to help
help parents
parents manage
manage
their children’s
children's access toto technology and
and we
we will continue
continue to encourage development of these
to encourage
apps. There are
apps. are many great
great apps
apps for parents
parents on the
the App Store.
Store, like "Moment -- Balance
like “Moment Screen
Balance Screen
Time" by
by Moment
Moment Health "Verizon Smart Family"
Health and “Verizon Family" by Verizon Wireless.
Wireless.

However,
However. over the last
last year we became
became aware
aware that some
some parental
parental management
management apps
apps were using
using aa
technology called
called Mobile
Mobile Device
Device Management "MDM' and
Management or “'MDM' and installing
installing an
an MI)M
MDM Profile as aa
Profile as
method
method to limit
limit and control
control use of these
use of devices. MDM
these devices. MDM is aa technology that gives one
one party
party

-- SENSITIVE
HIGHLY CONFIDENTIAL -‐ SENSITIVE BUSINESS
BUSINESS INFORMATION
INFORMATION HJC-APPLE-013265
HJC-APPLE-013265
access to and control over many devices,
access devices. it was meant
meant to be
be used
used by
by aa company on on ifs
it's own
mobile devices as
mobile devices as a
a management
management tool,
tool, where that company has a right to
has a all of
to all of the data and
and use
use of
of
the devices.
devices. The MDMMDM technology is not intended
intended to
to enable aa developer toto have access to
have access to and
and
control over consumers' data and and devices,
devices. but
but the apps
apps wewe removed
removed from the storestore did
did just that.
that.
No one,
No one, except you, should have unrestricted access to manage
you, should have unrestricted access to manage your child's device,
child’s device, know their
location,
location. track their app
app use,
use. control their mail
mail accounts,
accounts. web surfing.
surfing, camera use,use. network
access, and
access, and even
even remotely erase
erase their devices.
devices. Further,
Further, security research
research has shown that there
has shown there is
risk that MDM
M D M profiles
profiles could be
be used as aa technology for hacker
used as attacks by assisting
hacker attacks assisting them in
installing apps for malicious
installing apps malicious purposes
purposes onon users' devices.
users' devices.

When the App Store


Store team investigated
investigated the
the use of MDM
use of MDM technology by some developers
by some developers of
of apps
apps
for managing
managing kids and learned
kids devices and learned the risk they create
create to
to user
user privacy and security, we
and security. we asked
asked
these developers to stop using
using MDM
M D M technology in their apps.
apps. Protecting
Protecting user
user privacy and
and
security is
is paramount in the
the Apple ecosystem andand we
we have
have important
important App
App Store
Store guidelines
guidelines to not
apps that could pose
allow apps pose a threat to consumers
consumers privacy and
and security.
security. We will continue to
will continue
provide
provide features,
features. like ScreenTime, designed
like ScreenTime. designed to
to help
help parents
parents manage
manage their children‘s
children's access
access to
to
technology andand we will work with
with developers to offer many great apps on the App App Store
Store for these
these
uses,
uses, using
using technologies that are
are safe and
and private
private for us
us and our children.
and our children.

Thank you,
you,

Phil
Phil

From: Confidential
Date: April 27, 2019 at 10 04 02 AMPD'l
To: Confidential
Subject: Parental controls

Hi Mr. Cook-
I just read in the New York Times about how Apple is forcing parental control apps out of
business. We have been using contidentia and it has made our family life much much better.

Our kids still use


kids still use their phones,
phones, but with appropriate
apprOpriate limits. The research
limits. The research on Device
Device use
use clearly
shows that limiting device use
limiting device use leads
leads to
to happier kids.
kids.

Please,
Please, Mr. Cook, either drastically improve
Mr. Cook, improve the
the Apple
Apple parental controls (which
parental controls (which are
are almost
completely unhelpful currently) or let
unhelpful currently) let the others live
live again.
again. Thank you.
you.

Confidential

What the caterpillar calls the end of the world, the Master calls the butterfly.

Richard BGCh
- Richard Bach

-- SENSITIVE
HIGHLY CONFIDENTIAL -‐ SENSITIVE BUSINESS
BUSINESS INFORMATION
INFORMATION HJC-APPLE-013266
HJC-APPLE-013266
Apple Need to Know Confidential '

MEMORANDUM
Date:
Date: January 31, 2017

To: Antitrust File

From: Deena Said, Antitrust Compliance Officer

Subject: Section V.H of Final Judgment

Pursuant to Section V. H H of the Final Judgment, Apple’s Antitrust Compliance Officer shall furnish to the
United States and the Representative
Representative Plaintiff
Plaintiff States on a quarterly basis electronic copies of any non-
non‑
privileged communications with any Person containing allegations of Apple’s non-compliance
non‐compliance with any
provisions of this Final Judgment or violations of the antitrust laws.
laws.

For the period October 11 to


to December 31, 2016 (roughly Apple’s First Quarter), Apple did not
n o t receive
any new allegations of Apple’s non-compliance
non‐compliance with any provisions of the Final Judgment or violations
ofthe
of the antitrust laws.
laws.

In
In previous reports,
reports, II have provided letters from Spotify alleging anti-competitive
anti‐competitive behavior on the part
of Apple as
as well as
as Apple’s response.
response. II am now providing a letter sent by Apple’s General Counsel to
Spotify’s General Counsel, explaining that Apple had discovered, once again, that Spotify was not not
complying with the App Store rules.rules. Spotify’s General Counsel responded to this letter on November 21,
2016.

HIGHLY CONFIDENTIAL -- SENSITIVE BUSINESS INFORMATION


INFORMATION HJC-APPLE-013578
October 28, 2016

Horacio Gutierrez
General Counsel and Secretary
Spotify USA Inc.
45 w. 18th Street
7th Floor
New York, NY 10011

Dear Horacio,

It pains me to have to write this letter. I had hoped that we had resolved the issue of Spotify’s
compliance with our App Store rules when Apple approved Spotify’s most recent app update.
On the surface that app appeared to comply with Rule 3.1.1, a rule we have discussed with your
team at length. Unfortunately, aswe have lately discovered, the new app does n o t comply
with Rule 3.1.1 ‐ it merely disguises that non‐compliance in a way that makes it difficult for our
reviewers to detect. Apple has gone above and beyond to explain its rules to Spotify, spending
inordinate time and resources with your team to insure that you are given every opportunity to
conform your app ‐ just as every other app developer has done. We have provided multiple
opportunities for you to address those issues, including expedited review of Spotify’s most
recent submission. Despite all of this effort it appears that Spotify is attempting, once again, to
receive specialized and privileged treatment.

As you must be aware, Spotify’s current app directs users to link out of the App Store and go to
Spotify’s website for all commercial transactions. The app presents an ad to users acquired via
Apple‘s App Store that encourages the user (at the conclusion of their free trial period) to click
on the ad and be directed to Spotify's website to pay for Spotify’s premium service. As you and
the entire Spotify team know, because we have explained it to you repeatedly, this violates Rule
3.1.1.

Spotify is once again using the App Store asa means to attract potential subscribers while at
the same time ignoring the rules of the App Store. As I have stated before in correspondence
with you, ifa developer is selling digital content from within its app then it must use in-app
purchase. If a developer chooses not to use in‐app purchase, it is free to do so. A developer is
also free to sell traditional content such as music (including via subscription) outside of the app
and then offer consumers a way to access that content from within app. What a developer
cannot do is seek to use its iOS app asa marketing tool to redirect consumers outside of the
app to avoid in-app purchase. This fundamentally undermines the App Store business model.

Apple
1 Infinite Loop
Cupertino. CA 95014

T 408 996-1010
F 408 996‐0275
www.apple.com

HIGHLY
HIGHLY CONFIDENTIAL -- SENSITIVE BUSINESS INFORMATION
INFORMATION HJC-APPLE-013579
I

It is unfortunate that Spotify has decided to willfully and deliberately violate our rules once
again. Spotify must immediately bring its app into compliance by removing this latest feature
and any other feature that violates our rules. As has been the case throughout this process, we
remain available to answer any questions you may have about those rules. The required
changes to your app are easy to implement and can easily be explained to your team.

Apple has treated Spotify in a fair and transparent matter throughout this process. However,
we cannot allow Spotify to ignore rules that apply equally to all other developers. If our rules
change I will let you know at once but for now, and in the future, if Spotify wishes to continue
to utilize the App Store, it must follow the rules that apply to every other app developer. Your
failure to do so will result in removal from the App Store. I remain hopeful that we can finally
move past this issue.

Kind Regards,

Bruce Sewell
Vice President and General Counsel
Apple Inc.

HIGHLY
HIGHLY CONFIDENTIAL -- SENSITIVE BUSINESS INFORMATION
INFORMATION HJC-APPLE-013580
@ Spotify®

November
November 21,
21, 2016
2016

Bruce
Bruce Sewell,
Sewell, Esq.
Esq.
SVP,
SVP, General
General Counsel
Counsel and
and Secretary
Secretary
Apple Inc.
Inc.
11 Infinite
Infinite Loop
Loop
Cupertino,
Cupertino, CA
CA95014

Dear
Dear Bruce:
Bruce:

II w
was
a s surprised by your October
by your October 28
28 letter.
letter. Considering
Considering that Apple twice twice approved the latest
latest
versions
versions of of our
o u r app,
app, we
we thought wewe had
had moved
moved past
past these
these issues
issues and
and the
the sorts
sorts of
of threats
threats
your
your letter
letter makes
makes against
against us
us and
and our
o u r users.
users. Since
Since it
it appears
appears we
we have
have not
n o t and your team
and your team has
has
a e the
n o w taken e remarkable
e a ab e step e off revoking
e g aapprovala ffor SSpotify’s
f previously
e aapproved
ed aapp
and,
and, once
once again,
again, threatening us with removal
removal of our
o u r app
app from
from the
the App Store,
Store,II would
would like
like to
set
set the
the record
record straight.

FFirst, you say


a thata SSpotify’s f ccurrent
rrent app di ec users
app ”directs e to link o u t off the
he App
A Store
S e and g to
and go
SSpotijjl's
if website
eb i e for
f all
a l l ccommercial
mme cial transactions.”
an ac i n That That is
is not
n o t true.
true. Our
Our app
app does
does not
n_ot include
include
aa link to SSpotify’s
f a e fflow, aand
payment d SSpotifyf is in no way a violating
a g Apple’s
A e A App SStore e
rules.
rules. Instead,
Instead, Apple seems seems intent
intent on
on preventing
preventing Spotify
Spotify from
from communicating
communicating with its its
customers,
customers, even via e-mail
even via e-mail outside
outside the
the app
app itself.
itself. Plainly,
Plainly, there
there isis no
no legal
legal or
or contractual
contractual
ba
basis ffor A
Applee to interfere
e fe e with aapp de e e right
developers' g to d ec aand
directly d ffreely
ee ccommunicatecate
with their
their customers,
customers, especially in in aa case
case like
like this where
where the communication
communication takes place
outside
outside the
the app
app itself.
itself.

Second,
Second, youyou suggest
suggest that
that Spotify somehow misled Apple into i n t o approving
approving its its app.
app. But you
B u t you
know thatthat when
when our
o u r app
app was
w a s approved back
back in Septembe
September, it w aas submitted
b ed aat your team’s
ea
express
express invitation
invitation and
and with aa specific request
request to
to update specific features;
features; it was
it w a s not
not
conditioned uponupon any
any change in the operation
operation of the app
app or anyany other commitment
commitment on the
part
p a r t of Spotify. It is clear
clear from
from our
o u r correspondence on thisthis topic
topic over
o v e r the
the last
last several
several
months that a SSpotify’s
f position has a bee
been cclear
ea aand
d ccompletely
e e ab aboveeb a d aand
board, d that
a it has
a
not
n o t change during thethe app
app review
review and
and approval process.
process.

A
A e U
le's a a ed C
Unwarranted a
Com laints Ab
About SS o t if 's C e A
Current A

Your e e aand
Yo u r letter dA e A
Apple's App Re e Tea
Review Team ccomplain a thata our A a e the
App violates e App
A SStore e
e in t w o ways:
rules a (1) beca e wee serve
because e e aan ad
ad ffor SSpotify’s
f fa a that
family plan a d e n o t link to
does
any
any external
external purchase mechanisms;
mechanisms; and
and (2) because
because of an off-platform email
email to Spot f
Spotify’s
users.
users. Ne e violates
Neither ae A e rules.
Apple's e

HIGHLY CONFIDENTIAL -- SENSITIVE BUSINESS INFORMATION


INFORMATION HJC-APPLE-013581
HJC-APPLE-013581
é Spotify®

SSpotijjl's
if Fa il Pla
Family Ad
Plan Ad

On November 2,
OnNovember 2, yyour
o u r review
review team
team revoked
revoked approval of
of our
o u r app
app and
and informed
informed us
us that
that an
an ad
ad
ffor SSpotify’s
f P e
Premium ffor Fa a violates
Family plan ae R e 3.1.1. The
Rule The ad
ad shows
shows three
three screens.
screens.

‘ S W “ ° ” 3 7 * 3 5 ° “ ' - - Sum-n v m y $ 3 5 “ » - - s i i i i i i a 20:23 1 3 5 m »

( Resolution Center fa < “smut-m Camp, Q < Resommn C a m e , 4.“

If
If aa u see r selects
e ec the he “Learn
Lea M e b
More" button, the he u see r is d ec ed to aa “walled-off"
directed a ed- ff web-page
eb-page
that provides information ab about SSpotify’sf d c
discounted ed FaFamily P a SSpotify
Plan. f specially
ec a
designed this walled-off web-page to
this walled-off to comply with the App Store
the App Store rules. As such,
rules. As such, the
the ad
ad does
does
n o t link to S f web-based
Spotify’s eb-based payment
payment flow fl o w nor
n o r does it
it provide information
information about how to to
cha e the
purchase he Fa
Family P a IIt is n o t possible
Plan. b e ffor a u see r to navigate
a ga e to SSpotify’s
f web-based
eb-based
payment
payment flow fl o w from
from the
the site. See https://www.spotify.com/us/watch-now/family-learn-
site. See h t t s: w w w. s o t i .com us watch-now famil -learn‑
more/.
morez. The The ad ad neither li k
neither ”Iink[s] o u t to eexternal
e al mechanisms”
echa i for
for purchase (former RuleRule
11.13) nor di ec
n o r ”direct[s] ccustomers
e to purchasing
cha i g mechanisms
echa i he than
other ha IAP
IAP” (Rule 3.1.1). As
As
such,
such, wewe areare confused
confused asas to
to why Apple is is now
n o w claiming thisthis ad violates the
ad violates App Store
the App Store Rules
Rules
and
and would
would appreciate
appreciate anan explanation of why yyou o u believe
believe this violates App
this violates App Store
Store Rule
Rule 3.1.1,
3.1.1,
and
and why you you believe
believe this
this rule
rule applies to to the
the Spotify
Spotify appapp in
in the
the first
first place.1
place.1

11 Your
Your letter
letter and
and the
the App Review
Review Team
Team repeatedly refer
refer to Rule
Rule 3.1.1, which was
which w a s introduced
introduced in June
2016
2016 after
after months
months of disagreement with Spotify about these very
about these very issues.
issues. Apple publicly stated that
stated that
he gguidelines
"the de e themselves
he e e ha e cha
haven’t ged in that
changed" ha update.
da e See
See
https://developer.apple.com/news/?id=06132016c.
https:L/developer.apple.com/news/?id=06132016c. To the the extent that you
extent that you interpret
interpret Rule
Rule 3.1.1
3.1.1 as
as
having
having altered the
the scope
scope of
of the previous
previous rule 11.13,
11.13, it
it does not
n o t apply to
to our
o u r situation
situation because it
it is
is a
a
unilateral change designed to prohibit
prohibit behavior that was
w a s previously in compliance with Apple's old
rules.
rules.

HIGHLY CONFIDENTIAL -- SENSITIVE BUSINESS INFORMATION


INFORMATION HJC-APPLE-013582
@ Spotify®

Free
Free Trial
Trial and
and Off-Platform Communications
Communications with Customers
Customers

Sec d your A
Second, App Re ie Team
Review Team ha
has agai ake iissue
again taken e with
i h SSpotify’s
if ffree-trial
ee-trial and
and email
email
ccommunications
mm ica i i h iits ccustomers,
with me claimi
claimingg that
ha these
he e ccommunications
mm ica i i la e Apple's
violate A le
App
App Store
Store rules.
rules.

Examples of Spotify Emails Offering Users


Users A Free
Free Trial

6 Spotify 3 Spotify

Try Spotify
Premium free for Your Premium
an extra 30 days Give Premium music experience
rI you enjoyed your 7~aay Iree man or Snowy
one more chance. starts now‑
Premrum you ran try another 30 days for Iree by
Yo u now have access to S ot‘r
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On-demand Md OIIIIne ”SIGNING. Premium for the next 7 days, Iree.
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