HALF HOUR AND A LOOK AT
FACEBOOK.
SHARES ARE HIGHER AHEAD OF CEO
MARK ZUCKERBERG'S TESTIMONY THIS
AFTERNOON FOR A JOINT HEARING OF
THE SENATE JUDICIARY AND
COMMERCE COMMITTEES.
LAWMAKERS ARE EXPECTED TO GRILL
ZUCKERBERG INTO THE EVENING, AND
JOINING US NOW, CHAIRMAN OF THE
SENATE JUDICIARY COMMITTEE,
MEMBER OF SENATE FINANCE
COMMITTEE, THE FINE SENATOR FROM
IOWA, CHUCK GRASSLEY.
CHAIRMAN GRASSLEY, MR. SENATOR,
YOU SPOKE WITH MARK ZUCKERBERG
IN A PRIVATE MEETING YESTERDAY.
YOU'LL BE QUESTIONING HIM THIS
AFTERNOON.
TELL US WHAT HE TOLD YOU WHAT WE
COULD EXPECT TODAY.
>> YEAH.
WELL, I THINK HE, PRETTY MUCH
ALONG THE LINES OF A PRINTED
STATEMENT P HE PUT OUT THAT
HE'LL GIVE THIS MORNING, AND
FIRST OF ALL, THE HALF HOUR
MEETING I HAD WITH HIM WAS
BASICALLY ABOUT HOW WE'RE GOING
TO CONDUCT THE MEETING AND
QUESTIONS HE HAD ABOUT THAT AND
THINGS THAT I COULD BRIEF HIM ON
AHEAD OF TIME.
BUT WHEN HE DID SPEAK ABOUT IT,
I FELT THAT HE WAS APOLOGETIC,
REMORSEFUL FOR A FEW YEARS BACK
THAT THEY DIDN'T DO ENOUGH TO
ENFORCE THEIR OWN PROTOCOL AND
EXPRESSED REGRET ABOUT IT.
AND YOU GET THE FEELING THAT
THINGS ARE GOING TO BE DIFFERENT
IN THE FUTURE.
AND I THINK HOW HE PERFORMS
TODAY IN THIS COMMITTEE IS A BIG
FACTOR WHETHER OR NOT THERE'S
GOING TO BE SUCCEEDING
LEGISLATION AND REGULATION ABOUT
THE WHOLE ISSUE.
ACTUALLY, IF WE COULD KEEP IT
OUT OF THE LEGAL ENVIRONMENT, IF
THESE COMPANIES WILL DO WHAT
THEY SAY THAT THEY'RE GOING TO
DO TO PROTECT PRIVACY THAT THEY
HAVEN'T DONE THUS FAR AND WILL
CONTINUE TO DO THAT AND REDUCE
THE CYNICISM, ENHANCE THEIR
CREDIBILITY WITH THE PUBLIC,
THEN MAYBE WE DON'T HAVE TO DO
LEGISLATING.
BUT WE'LL DO, WE'LL MAKE THAT
DECISION DOWN THE ROAD.
HE'S GOT -- IF HE CAN PERFORM
WELL TODAY AND BUILD CONFIDENCE,
THAT WILL HELP.
>> SENATOR GRASSLEY, YOU RAISED
THE PROSPECT OF LEGISLATION AND
REGULATION.
WHAT KIND OF REGULATION PRIVACY
PROTECTIONS COULD YOU AND THE
REPUBLICAN PARTY GET BEHIND WITH
RESPECT TO FACEBOOK IF HE
DOESN'T LIVE UP TO THE KIND OF
STANDARD THAT YOU SET?
>> WELL, LET ME SAY WHAT THE
GOAL IS AS OPPOSED TO HOW YOU
WRITE A BILL TO ACCOMPLISH IT.
I THINK THAT EVERYBODY IS LED TO
BELIEVE THAT THERE'S PRIVACY
PROTECTED IN THE FINE PRINT THAT
YOU NEVER READ AT THE END OF
SIGNING UP FOR THESE SERVICES.
AND TO MAKE THAT MORE, MORE
PUBLIC, MORE TRANSPARENT BECAUSE
WITH TRANSPARENCY THEN THE
PEOPLE ARE GOING TO KNOW WHAT
THEY'RE SIGNING UP FOR, WHAT
THEIR PROTECTIONS ARE.
FINISH REALLY IT'S BUILT ON
TRUST NOW, AND IT OUGHT TO NOT
BE BUILT ON TRUST, SOMETHING
THAT'S IN THE FINE PRINT IS
GOING TO PROTECT MY PRIVACY.
YOU OUGHT TO READ IT.
AND THE TRANSPARENCY OF IT, I
THINK, IS THE GOAL.
AND MAYBE AN ISSUE THAT THE
PLATFORMS DON'T LIKE IS DO YOU
CHECK OUT OR TO YOU CHECK IN --
DO YOU CHECK IN TO THE USE OF
THEIR DATA.
BUT THE PRIVACY OF THE DATA IS
VERY, VERY IMPORTANT BECAUSE THE
MASSIVE AMOUNT THAT'S COLLECTED
BY THESE PLATFORMS, THE PUBLIC
OUGHT TO KNOW WHAT ITS USE IS
AND WHETHER OR NOT THEY WANT TO
BE A PART OF SHARING THAT WITH
THE PUBLIC.
>> SENATOR, DO YOU THINK THAT
YOU REALLY CAN TRUST A COMPANY
WHICH IS ALWAYS GOING TO BE
ABOUT MAKING MONEY AND BUILDING
ITS OWN BUSINESS, AND A COMPANY
LIKE FACEBOOK WHICH REALLY HAS A
MONOPOLY ON WHAT'S BECOME
ESSENTIALLY A SERVICE UTILITY
FOR COMMUNICATIONS?
CAN YOU REALLY TRUST A COMPANY
TO POLICE ITSELF WHEN IT COMES
TO OUR PRIVACY AND WHEN IT COMES
TO THINGS LIKE NOT CENSORING OUR
FREEDOM OF SPEECH?
>> AS OF RIGHT NOW, NO.
BUT MAYBE, I WANT TO -- I THINK
I HAVE A RESPONSIBILITY TO SEE
WHAT LESSONS HAVE BEEN LEARNED.
BUT I'M OPEN TO LEGISLATION, BUT
I HAVEN'T MADE A DECISION.
AND, OBVIOUSLY, JUST BEING OPEN
TO LEGISLATION, WHAT DOES THE
LEGISLATION DO.
SO WE HAVEN'T CROSSED THAT
BRIDGE YET, AND THERE IS BILLS
IN LIKE BY SENATOR KLOBUCHAR AS
AN EXAMPLE OF THINGS FOR US TO
LOOK AT.
BUT I THINK WE ARE GOING TO WAIT
UNTIL THIS HEARING'S OVER BEFORE
WE GO DOWN THAT ROAD.
>> SENATOR GRASSLEY, MITCH
ROCHELLE.
THE THING THAT CONCERNS ME AND
PRESUMABLY IF THERE IS
LEGISLATION AND REGULATION, IT
WOULD COVER NOT JUST FACEBOOK,
BUT OTHERS IN THE SOCIAL MEDIA
INDUSTRY OR EVEN SEARCH ENGINES
THAT HAVE PERSONAL DATA OR JUST
CUSTOMERS' DATA.
BUT THERE'S SORT OF A SLIPPERY
SLOPE THAT YOU CAN GO DOWN WHICH
IS OVERREGULATION AND THEN
DISCOURAGING START-UPS BECAUSE
THEY CAN NEVER COMPLY WITH THAT
REGULATION.
HOW DO YOU BALANCE ALL THAT WHEN
YOU'RE WRITING LEGISLATION SO
THAT YOU DON'T DISCOURAGE THE
NEXT FACEBOOK FROM EVER BECOMING
THE NEXT FACEBOOK?
>> WELL, QUITE OBVIOUSLY LIKE
WITH DODD-FRANK, WE SCREWED UP
AND HURT A LOT OF INNOCENT
PEOPLE IN THE BANKING INDUSTRY.
THE SAME THING COULD HAPPEN OR
HERE, AND IT'S A BALANCING ACT,
AND YOU DON'T INTEND TO WRITE
BAD LEGISLATION, BUT SOMETIMES
YOU DO.
AND I THINK THE CAUTION YOU JUST
GAVE IS SOMETHING THAT WE HAVE
TO TAKE INTO CONSIDERATION
BECAUSE OUR ECONOMY IS ENTIRELY
ADVANCED BOTH SOCIALLY, PRETTY
CREATE AND ECONOMICALLY --
POLITICALLY AND ECONOMICALLY AS
A RESULT OF THESE PLATFORMS.
AND A LOT OF INNOVATION IN THE
LAST 20 YEARS.
WE DON'T WANT TO DISCOURAGE THAT
IN THE FUTURE BECAUSE THAT'S
GOING TO CREATE JOBS IF WE -- OR
DISCOURAGE JOBS IF WE DO.
SO I DON'T HAVE AN ANSWER FOR
YOU EXCEPT YOU'VE LAID OUT A
VERY CAUTIOUS APPROACH THAT WE
OUGHT TO BE TAKING.
DAGEN: SENATOR, DO YOU THINK
THOUGH THAT MARK ZUCKERBERG AND
FACEBOOK WILL GET A LITTLE BIT
OF A SOFTER TOUCH FROM THOSE
ACROSS THE AISLE, ON THE OTHER
SIDE OF THE AISLE SIMPLY
BECAUSE, AGAIN, SILICON VALLEY
AND THAT VERY COMPANY IS KIND OF
KNOWN AS A BASTION OF
LIBERALISM, AND THEY DO HAVE A
TENDENCY TO SUPPORT THE IDEAS
FROM THE LEFT VERSUS IDEAS FROM
THE RIGHT.
SO, AGAIN, HE'S GOING TO FACE A,
FACE A PANEL THAT MIGHT BE A
LITTLE BIT NICER TO HIM THAN SAY
A BANK CEO SITTING IN FRONT OF
YOUR, YOU AND YOUR COLLEAGUES.
>> I DON'T THINK SO.
I THINK YOU'RE RIGHT, I TALKED
TO TWITTER YESTERDAY, THEIR CEO,
AND HE ADMITTED TO BE KIND OF
LEFT-LEANING, AND FACEBOOK
PROBABLY THE SAME WAY.
BUT I'VE HEARD BOTH PRIVATELY
AND PUBLICLY FROM PEOPLE ON THE
LEFT THAT THEY'RE VERY
EMBARRASSED BY WHAT'S HAPPENED
FROM THESE PLATFORMS, AND I
THINK THEY'VE COME TO THE
CONCLUSION THEY HAVE A
RESPONSIBILITY TO LOOK OUT FOR
THEIR CONSTITUENTS JUST LIKE
THOSE OF US ON THE RIGHT DO TO
PROTECT FROM, THEIR PRIVACY.
BUT ALSO THEY'RE ALSO
INTRODUCING, SOME OF THEM ARE
INTRODUCING LEGISLATION.
SO I DON'T THINK THEY'LL GET A
SOFT TOUCH PARTICULARLY WHEN
THEY'RE SO MUCH INTERESTED IN
THE RUSSIAN INTERFERENCE IN OUR
ELECTION AS I AM.
BUT THEY TALK ABOUT IT MORE THAN
WE DO.
AND I THINK THEY'RE GOING TO GO
DOWN THAT ROAD AS MUCH AS GOING
DOWN THE ROAD OF PRIVACY.
AND IF THEY GO DOWN THAT ROAD,
YOU KNOW, THAT ZUCKERBERG IS NOT