Google Inc (GOOG), Apple Inc. (AAPL), Microsoft Corporation (MSFT): Internet Security by the Government… Really?

Investment implications

While it is unlikely that a shift to SecureKey will have a direct impact on any of the tech and telecom companies that have been implicated in the NSA leaks over the past several months, there’s potential for it to impact the bottom lines of those companies that deal directly with the government on a regular basis. For example, a study by the National Institute of Standards and technology estimates that the IRS could save $40 million to $111 million in set-up costs, and $2 million to $19 million annually. The IRS typically deals with people only once per year. Companies that will need to interact with the government for health care exchanges under Obamacare stand to save even more.

To be clear, the selection of SecureKey by the USPS has yet to be rolled out on a large scale basis, and no link to Obamacare has yet been made, but the conclusion is not unreasonable. Beyond protection your own privacy, investors will want to see how this system is adapted because it could impact countless companies.

The article Internet Security by the Government… Really? originally appeared on Fool.com and is written by Doug Ehrman.

Fool contributor Doug Ehrman has no position in any stocks mentioned. The Motley Fool recommends Apple, Facebook, and Google. The Motley Fool owns shares of Apple, Facebook, Google, and Microsoft.

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