DAGEN: WELCOME BACK, FOCUS ON
BIG TECHNOLOGY, THE HOUSE
JUDICIARY COMMITTEE HOLDING A
HEARING TOMORROW AS IT EXPLORES
WHETHER THE LARGEST TECH FIRM
VIOLATE U.S. ANTITRUST LAWS,
JOINING US NOW MORNING ANCHOR ON
FOX NEWS HEADLINE BRET LARSON,
BRET, WHAT'S GOING TO HAPPEN?
>> NOTHING.
THIS IS GOING TO BE --
[LAUGHTER]
DAGEN: WHOLE SEGMENT.
GIVE ME SOME JUICE.
>> WE SAW THEM, THEY DID THIS
WITH MICROSOFT BACK IN THE
90's, IT TOOK MORE THAN A
DECADE TO REALLY GET ANY
PROGRESS AND THEN THE ISSUE WAS
MICROSOFT INSTALLED THEIR
SOFTWARE BY DEFAULT, THIS IS AN
INTERESTING ONE BECAUSE IT'S
HARD TO SAY CONSUMERS ARE
HURTING HERE WHEN YOU LOOK AT
THE FACT THAT GOOGLE AND
FACEBOOK, THEY ARE FREE
SERVICES, YOU DON'T PAY TO USE
THEM, HOW IS IT HARMING THE
CONSUMER?
WHAT WE DON'T SEE HOW IT IS
HARMING THE CONSUME NEAR TERMS
OF PRIVACY VIOLATION, DATA
GATHERING, ALL THE MASSIVE TERA
BYTES OF DATA THEY ARE
COLLECTING EVERY WEEK, LITERALLY
THE AMOUNT OF DATA WE LEAVE
BEHIND, A DVD PER WEEK, YOU'RE
LOOKING AT HARRY POTTER ONCE A
WEEK, THAT'S THE DATA YOU LEAVE
BEHIND.
THOSE ARE THE QUESTIONS THAT
NEED TO BE ANSWERED IN TERMS OF
ANTITRUST, IT'S GOING TO BE
HARD, IS GOOGLE DOING THINGS TO
PREVENT COMPETITION IN THAT
SPACE, THEY HAVE 90% OF THE
SEARCH MARKET RIGHT NOW.
I'M SURE THEY WOULD LIKE TO SEE
SOME OF THAT BUT NOBODY USES
BING.
IT'S NOT JUST SEARCH, CALENDAR,
E-MAIL, HARD DRIVE.
DAGEN: ALSO GOOGLE AND FACEBOOK
COMBINED CONTROLLING THE VAST
MAJORITY OF ONLINE ADVERTISING.
>> THEY ARE THE DIGITAL AD
MARKET.
>> THAT'S IT. YOU WANT TO REACH
2 BILLION EYEBALLS, YOU HAVE TO
GO TO THEM AND MORE AND MORE NOW
WE ARE SEEING AMAZON IS IN THE
ADVERTISING SPACE.
PEOPLE AREN'T GOING TO GOOGLE, I
WANT TO BUY A SPICE RACK, YOU
WILL GO TO AMAZON AND TYPE IN
SPICE RACKS AND AM DOPE HAS
PROBABLY PEOPLE PAID TO --
SOMEONE SEARCHING SPICE RACKS,
10-CENT TO SHOW MINE FIRST.
>> THINKING OF THIS GOING TO THE
HILL, THINK OF MARK ZUCKERBERG
WHEN HE WAS TESTIFYING AND HOW
OUT OF TOUCH MEMBERS REALLY
SEEMED, I REALLY WORRY ABOUT
PROBLEM, WE DON'T PAY FOR USING
SERVICES, BUT WE ARE PAYING,
THEY ARE MAKING MONEY OFF OF US,
IS THE GOVERNMENT THE RIGHT
PLACE TO FIND SOLUTION?
THEY NEED TO BE INVOLVED BUT WE
NEED --
>> ZUCKERBERG WAS ON THE HILL
TALKING TO SENATE AND CONGRESS,
SENATOR CHUCK GRASSLEY ASKED HIM
HOW HIS COMPANY MAKES MONEY, HOW
DO YOU NOT KNOW THIS?
YOU NEED TO KNOW THE THINGS,
SOMEONE IN YOUR OFFICE NEEDS TO
UNDERSTAND THIS.
THIS IS WHAT WE ARE UP AGAINST,
CONGRESS IS BEHIND ON
TECHNOLOGY, I'M SURE THEY HAVE
STAFFERS, THIS IS NOT ONE SIDE
OF THE OTHER BUT BOTH SIDES OF
THE AISLE.
DAGEN: THERE'S BIPARTISAN
AGREEMENT THAT YOU HEARD SIMILAR
THINGS FROM REPUBLICANS AND
ELIZABETH WARREN.
>> RIGHT.
DAGEN: IN TERMS OF -- WHERE DO
YOU SEE THIS GOING?
>> IF YOU TALK NARROWLY ABOUT
THE HEARINGS, THEY WILL TALK
ABOUT BEING MONOPOLY, SAME
SITUATION WHERE ELECTED
OFFICIALS AREN'T GOING TO
UNDERSTAND BUSINESS MODEL,
AREN'T GOING TO BE ABLE TO
UNPACK THAT, THE REAL ISSUE THAT
NEEDS TO BE LITIGATED IS
PRIVACY, THEY AVOID PRIVACY
DISCUSSION BECAUSE THEY WILL BE
DEFENDING THEMSELVES SAYING THEY
ARE NOT MONOPOLY.
WE HAVE TO ADDRESS THE PRIVACY
SITUATION.
>> THE PRIVACY SITUATION IS
WORST THAN I THINK ANY OF US ARE
AWARE OF.
COMPANIES THAT TRADE OUR DATA
AND RIGHT NOW YOU THINK ABOUT
IT, YOU THINK, WELL, WHAT'S THE
BIG DEAL, I SEARCHED FOR PAIR OF
SHOES, I SAW ADVERTISEMENT, WHAT
HAPPENS TO INSURANCE COMPANY
SAYS CAN YOU KEEP TABS BECAUSE
HE'S GOING TO ER --
>> RUNNING SHOES.
>> HE'S GOING TO LIQUOR STORE
EVERY COUPLE OF WEEKS, THESE ARE
THE KINDS OF THINGS THAT ARE
POTENTIAL AND THE PROBLEM WITH A
LOT OF THE TECHNOLOGY LIKE TAKE
AI, FOR EXAMPLE, WHEN FACEBOOK
LAUNCHED, THEY DIDN'T REALIZE
THAT, YOU KNOW, CAMBRIDGE
ANALYTICA WOULD BE THE
CONCLUSION.
>> FACEBOOK KNEW WHAT IT WAS
DOING.
KIND OF A LITTLE DISTRACTION
OVER HERE BECAUSE IT WAS -- THAT