It should have been the government providing an identity verification API, like they already do in the physical world with physical IDs. Governments dropped the ball, and so now Apple and Google get to be infrastructure.
The US government is a feckless facade, the US is a corporation run economic zone. The nice thing about being corporate run is that the rulers are unelected and unaccountable!
"Don't worry! I'm from the government and I'm here to ~~help~~ identify you to everyone else on the planet."
That's no better, and in many ways far worse, than the corpos doing it.