♪
DAVID: WELL, WE'RE USED TO
HEARING POLITICIANS, EVEN SOME
FOLKS RIGHT HERE AT FOX BUSINESS
TALKING ABOUT BREAKING UP
FACEBOOK AND GOOGLE, BUT NOW A
COMPUTER SCIENTIST, WHO'S
ACTUALLY KNOWN FOR INVENTING
WHAT HE CALLED THE WORLDWIDE WEB
IN 1989 -- AND, NO, WE'RE NOT
TALKING ABOUT AL GORE -- HE'S
SAYING THE SAME THING.
KIM BURNERS LEE SAYS THE
CONCENTRATION OF FACEBOOK AND
GOOGLE IN THE DIGITAL
MARKETPLACE NOW DEMANDS THAT,
QUOTE, THERE IS NO ALTERNATIVE
TO REALLY COMING IN AND BREAKING
THINGS UP.
SO, GANG, IS HE RIGHT?
>> OKAY, FIRST OF ALL --
>> ABSOLUTELY NOT.
[LAUGHTER]
LOOK, I'LL, I GUESS I'LL JUMP IN
FIRST.
[LAUGHTER]
LOOK, THIS IS -- WE HAVE A LONG
HISTORY OF TARGETING BIG
COMPANIES THAT END UP EVEN
WITHOUT GOVERNMENT INTERVENTION
FALLING ON THEIR OWN PETARD.
YOU KNOW, FOR THE VERY FIRST AND
MOST FAMOUS ONE WAS STANDARD
OIL.
I GOT NEWS FOR YOU, EVEN BEFORE
THE GOVERNMENT BROKE THEM UP
INTO 34 COUNTRIES, THEY HAD LOST
HALF THEIR MARKET SHARE.
WHY?
MARKET COMPETITION.
AT ONE TIME INTERNET EXPLORER
HAD 96% OF THE BROWSER MARKET.
PEOPLE STILL USE IT?
NO, THEY'RE USING THE CHROME AND
THE GOOGLE AND OTHER STUFF LIKE
THAT.
MARKET FORCES WILL TAKE CARE OF
THIS.
WHAT THIS TECHIE SAID IS
COMPLETELY IDIOTIC.
>> WELL, TO BE FAIR, HE ALSO
SAID LET'S SEE IF THEY GET
DESTROYED FIRST --
DAVID: LET ME JUST PUT UP THAT
FULL SCREEN.
BEFORE BREAKING THEM UP, WE
SHOULD SEE WHETHER THEY ARE NOT
JUST DISRUPTED BY A SMALL PLAYER
BREAKING THEM OUT OF THE MARKET,
BUT BY THE MARKET SHIFTING, BY
THE INTEREST GOING SOMEWHERE
ELSE.
SO YOU'RE RIGHT, HE DOES
CONTRADICT --
>> HE'S BEING DELUSIONAL BECAUSE
THEY WON'T.
UNLIKE THE EARLY PHASE OF
TECHNOLOGY WHEN COMPANIES LIKE
AOL WENT AWAY, YOU DIDN'T HAVE
TO DO ANYTHING.
THEY DESTROYED EACH OTHER.
THE CONSUMER BENEFITED, NO
QUESTION ABOUT THAT HISTORY THAT
GARY IS ALLUDING TO THE.
THINGS HAVE CHANGED.
IF YOU HAVEN'T --
>> THIS TIME IS DIFFERENT!
>> WHAT'S HAPPENED TO YOU
PEOPLE?
THIS TIME -- THEY SAID THE SAME
THING ABOUT ALCOA, ABOUT
STANDARD OIL --
>> I'M GOING TO EXPLAIN THE
DIFFERENCE BETWEEN EARLY TECH
ERR AND NOW, AND WHAT HAS
HAPPENED IS A COMPANY LIKE
GOOGLE IS ACTUALLY NOT BUILT --
WE THINK IT'S THE GREATEST
INNOVATOR, BUT IT'S BECOME A
TECH CONGLOMERATE THAT ACQUIRES
COMPETITORS THAT ARE GOING TO
BEAT THEM.
FACEBOOK --
>> [INAUDIBLE]
>> GOOGLE BOUGHT YouTUBE,
ANDROID, NET, THEY BOUGHT ALL
THE --
>> AND, JONAS --
>> THEY DIDN'T INVENT ANYTHING.
KNOCK KNOCK --
[INAUDIBLE CONVERSATIONS]
>> WE DON'T NEED TO BREAK THEM
UP, WE NEED TO STOP THEM FROM
BUYING THE COMPETITION.
>> YOU BRING UP STANDARD OIL.
WHEN STANDARD OIL WAS A
MONOPOLY, THE PRICE OF OIL
DROPPED PRECIPITOUSLY.
THERE'S NOTHING WRONG WITH ONE
DOMINANT COMPANY IF THAT MARKET
SHARE IS WON THROUGH
COMPETITION.
AND THERE'S A TREMENDOUS AMOUNT
OF COMPETITION IN ALL OF THESE
SPACES.
>> THE COMPETITION'S WONDERFUL,
THAT'S MY POINT.
LET THERE BE COMPETITION, DON'T
LET THEM QUICKLY BUY COMPETITORS
UP.
GOOGLE TRIED TO BE YouTUBE.
THEY FAILED, AND YOU TALKING
ABOUT WOULD HAVE BEEN YouTUBE
THE -- YOU TALKING ABOUT, BUT
GOOGLE BOUGHT YouTUBE.
THAT'S WHAT WE'VE GOT TO THE
WATCH FOR.
DON'T LET 'EM TAKE ALL THE
COMPETITORS UP AND OWN THE
ENTIRE WORLD OF TECHNOLOGY.
THAT'S WHAT YOU HAVE TO WATCH
OUT FOR.
>> BUT, JONAS, LARGE COMPETITORS
HAVE ALWAYS BOUGHT -- HOW MANY
COMPANIES DO YOU THINK AMAZON
AND MICROSOFT HAVE BOUGHT OVER
THE YEARS?
HOW MANY COMPANIES DO YOU THINK
IBM HAS BOUGHT OVER THE YEARS?
AT SOME POINT NEW TECHNOLOGY
COMES IN.
AT ONE TIME THERE WAS JUST THREE
NETWORKS, CBS, NBC AND ABC --
>> AND TODAY'S TECH GENIUSES --
[INAUDIBLE CONVERSATIONS]
>> I BET MICROSOFT WISH THEY
BOUGHT APPLE, AND WE'RE WERE THE
THAT THAT THEY -- WE'RE BETTER
THAT THEY DIDN'T.
>> IT WAS GOING TO BE THE SEARS,
WALMART THAT WAS GOING TO KILL
US OFF, IN A FREE MARKET NEW
COMPETITORS ALWAYS COME UP.
EVEN, JONAS, YOUR POINT OF LET'S
JUST CONTROL HOW THEY CAN
MERGE --
>> BUT THESE COMPANIES, THESE
COMPANIES HAVE GOT, HAVE BEEN
HANDLED WITH KID GLOVES BY
WASHINGTON FOR YEARS.
THEY'VE GOTTEN A FREE PASS.
YOU KNOW, THEY'RE PROTECTED FROM
ANY LIABILITY BECAUSE OF LAWS IN
WASHINGTON FOR USER-GENERATED
CONTENT.
THEY HAVE GOTTEN, THEY'VE GOTTEN
A FREE RIDE FOR A LONG TIME.
AND LIKE JONAS SAID, INSTAGRAM
SHOULD HAVE NEVER HAPPENED BY
FACEBOOK.
>> I WAS GOING TO SAY, IT'S
IRONIC TO SAY -- GOOGLE HAS GOT
A FREE RIDE, MEANWHILE YOU
PROBABLY USE IT A HUNDRED TIMES
A DAY K AND YOU'VE NEVER PAID A
CENT FOR IT.
>> WE PAY -- WAIT, WAIT, WAIT,
OH, WE PAY, WE JUST DON'T KNOW
HOW WE PAY.
WE DON'T KNOW WHERE THAT
USER-GENERATED DATA IS --
>> IT'S IN RUSSIA.
[LAUGHTER]
>> WE PAY PLENTY.
WE JUST DON'T KNOW THE ACTUAL --
>> ARE YOU GOING TO TELL ME IF
YOU HEARD TOMORROW THAT GOOGLE
AND FACEBOOK WERE MERGING, YOU
WOULDN'T BE A LITTLE CONCERNED
ABOUT --
>> NO, NOT AT ALL.
>> NOT AT ALL.
[INAUDIBLE CONVERSATIONS]
>> WELL, I GOTTA SAY, THERE IS A
COMPETITION, THERE ARE
COMPETITORS OUT THERE, AND ONE
OF THEM, BY THE WAY, IS BING.
BING COMPETES --
>> BING?
DAVID: I LOVE BING.
I USE BING MORE THAN GOOGLE.
>> I KNOW THEY'RE PAYING YOU,
DAVID, NOBODY USES BING --
DAVID: I DON'T HAVE ONE PENNY OF
MICROSOFT STOCK, NOT ONE PENNY.
>> THE ONLY PEOPLE WHO USE BING,
IT COME ON THEIR COMPUTER, AND
THEY DON'T KNOW HOW TO REPLACE
IT.
DAVID: I LOVE MY BING.
[LAUGHTER]
>> MY DAD'S CONDO IN SOUTH
BEACH --
DAVID: I'M A BING GUY.
AND I DON'T HAVE THE MICROSOFT.
I'M NOT STUART VARNEY.
>> I WOULDN'T BRAG ABOUT THAT.