It would appear to be the latter, at least in North Carolina (HT Cnet via Techdirt):
Google tried to silence lawmakers and pushed — at times with a heavy hand — to influence legislation designed to bring the company to Caldwell County.
The company demanded that legislators never speak its name, and had them scolded when word of its interest in North Carolina leaked out, according to records made public this week.
As work proceeded on the bill to remove much of its tax burden, Google threatened to end negotiations because legislative staff didn’t write exactly what it wanted. State Commerce Secretary Jim Fain was asked to “prevail upon” the bill writer.
Indeed, the first set of state documents released from the 13-month negotiations reveal a company obsessed with secrecy and not above bullying, tactics that helped get it tax breaks that could top $100 million over three decades.
“I sort of had to work in the dark,” said Sen. Jim Jacumin, a Republican who represents Caldwell County. “That bothered me. They need to respect the laws of the land, even if they’re business.”
….. And again and again, the need for privacy came up. Executives didn’t want anybody even to mention the company’s name for fear that competitors could learn of its plans. Most involved with the negotiations were required to sign nondisclosure agreements.
Commerce Department officials refused to sign the agreements but officials in Caldwell County did, as did some legislators.
That posed challenges for elected officials, charged with conducting the public’s business in the open. As the tax measure wended its way through the legislature, some lawmakers began linking it to Google. That prompted a strong rebuke from (Google Executive Rhett) Weiss.
“We respect the legislature needs to conduct its business, to deliberate on bills,” Weiss wrote in a June 7 e-mail to Hobart. But legislators must understand that the project likely will be canceled if anyone “mentions the company’s interest in the bill, North Carolina, or the project itself.”
Negotiators went into full panic mode after The Charlotte Observer on July 21 outed the negotiations. Google representatives blamed the legislature for leaking the information, and there was much consternation at headquarters.
This secretive behavior should raise alarm bells in the investment community, which would appear to be in need of reminding Google that it’s a public company.
It’s also pretty clear that this story is getting more muted coverage than you might expect; I believe that it’s because, as far as the formerly Mainstream Media is concerned, Google still has its high-tech halo in place — despite cooperation with Chinese tyrants in censoring Internet content. Just imagine how much grief an oil company would get if it conducted negotiations over a new refinery in such a manner.
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UPDATE, Feb. 11: More fallout (HT Instapundit; bolds are mine) –
Google strong-armed the public partners with which it worked on the incentive package, in ways that would be unseemly even for a company that doesn’t publish a lengthy Code of Conduct that says things like, “Being a Googler means holding yourself to the highest possible standard of ethical business conduct. … When it comes to ethical conduct, we believe in erring on the side of caution.”
Except, apparently, when an annualized amount equal to two-tenths of 1 percent of its profits for the trailing 12 months is on the line.
Glorified warehouse
At first, the tax incentives offered to the cash-gushing Internet firm by the state of North Carolina and the down-at-the-heels county — at least $165 million over 30 years, or about $800,000 for each of the 200 jobs that are expected to be created — drew only knowing snickers from the digerati. A data center is basically a climate-controlled warehouse full of computers, with a seemingly limited capacity to create excellent jobs or kick-start further business growth around it. …..
‘Arrogance’
But it turns out that there was a lot more to the story. Google leaned hard on North Carolina lawmakers and officials, not just to get the fattest deal possible but to choke off the flow of information along the way.
According to documents obtained by The News & Observer of Raleigh, the company went beyond reasonable expectations of confidentiality to demand absolute secrecy while negotiations were under way, even asking participants to sign nondisclosure agreements; some legislators and local officials did so, but Department of Commerce officials did not. Google executive Rhett Weiss badgered Commerce Secretary Jim Fain about the state’s adherence to process, complaining, for example, when lawmakers wanted an estimate of the cost to North Carolina in lost tax revenue, and threatening to kill the whole thing if Google didn’t get its way.
Businesses need some measure of confidentiality when putting together this kind of transaction. Fair enough. But this is the people’s business, and Google’s high-handedness is an affront to the people of this state.
And then there’s that whole “Don’t be evil” thing. Google spokesman Barry Schnitt told me that the company’s negotiations with the state were “very standard.” If that’s the case, and this is standard operating procedure for the company, then something has gone wrong in Silicon Valley.