DESCRIBED THAT ASSERTION AS A,
QUOTE, DISGRACE.
>> DAGEN: THANK YOU FOR THE
REPORTING, BLAKE, AT THE WHITE
HOUSE FOR US.
FACEBOOK'S CEO MARK ZUCKERBERG
SET TO BE GRILLED BY HOUSE
LAWMAKERS TODAY.
THIS AFTER TESTIFYING FOR
ROUGHLY FIVE HOURS BEFORE SOME
SKEPTICAL SENATORS ABOUT HOW THE
COMPANY ALLOWED CAMBRIDGE
ANALYTICA TO USE PERSONAL DATA
FROM UP TO 87 MILLION FACEBOOK
USERS.
>> WOULD YOU BE COMFORTABLE
SHARING WITH US THE NAME OF THE
HOTEL YOU STAYED IN LAST NIGHT?
>> NO.
[ LAUGHTER ]
>> IF YOU MESSAGED ANYBODY THIS
WEEK, WOULD YOU SHARE WITH US
THE NAMES OF THE PEOPLE YOU
MESSAGED?
>> SENATOR, NO, I WOULD PROBABLY
NOT CHOOSE TO DO THAT PUBLICLY
HERE.
>> I THINK THAT MAY BE WHAT THIS
IS ALL ABOUT, YOUR RIGHT TO
PRIVACY, THE LIMITS OF YOUR
RIGHT TO PRIVACY, AND HOW MUCH
YOU GIVE AWAY IN MODERN AMERICA
IN THE NAME OF, QUOTE,
CONNECTING PEOPLE AROUND THE
WORLD.
>> HERE'S WHAT EVERYBODY'S BEEN
TRYING TO TELL YOU TODAY.
I SAY THIS GENTLY.
YOUR USER AGREEMENT SUCKS.
YOU SPOT ME 75I.Q. POINTS.
IF I CAN FIGURE IT OUT, YOU CAN
FIGURE IT OUT.
THE PURPOSE OF THE USER
AGREEMENT IS TO COVER FACEBOOK'S
REAR END.
IT'S NOT TO INFORM YOUR USERS
ABOUT THEIR RIGHTS.
>> DAGEN: JOINING ME NOW IS
PROFESSOR OF MARKETING AT NYU
STERNS GLOBAL BUSINESS, AUTHOR
OF THE FOUR, THE HIDDEN DNA OF
AMAZON, FACEBOOK, AND GOOGLE.
SCOTT GALWAY, YOUR TAKE ON
ZUCKERBERG'S PERFORMANCE
YESTERDAY?
>> IT'S REMARKABLE ON HOW
UNREMARKABLE IT WAS.
HE DIDN'T SCREW UP.
THERE WAS A COUPLE GOOD SOUND
BITES THERE.
THERE WAS NO REAL MOMENT.
D.C.'S THE BIG LOOSER.
YOU THINK 55 ADULTS WOULD HAVE
GOTTEN IN A ROOM AND SAID WE
CAN'T DO ANYTHING IN FOUR OR
FIVE MINUTES EACH.
WHO KNOWS TECHNOLOGIES, RAISE
YOUR HAND.
THREE OR FOUR PEOPLE WOULD HAVE
RAISED THEIR HAND OUT OF THE 55.
WHY DON'T WE GIVE EACH OF YOU
MORE THAN FIVE MINUTES SO YOU
CAN DRILL IT DOWN.
IT WAS THE FORMAT THAT MADE THIS
A USELESS EXERCISE.
>> THAT'S A GOOD POINT.
>> I AGREE, 200%.
IT WAS REMARKABLY UNREMARKABLE.
MOST OF THEM KNEW THAT GOING IN.
BUT IT WAS THE OPPORTUNITY TO
GET FIVE MINUTES ON TV.
THAT'S ALL IT WAS ABOUT.
AND NOTHING'S GOING TO COME OUT
OF THIS, OTHER THAN ZUCKERBERG'S
GOING TO SAY WELL, I'M HIGHLY
CONCERNED ABOUT THIS WHOLE
SCREENING OUT CONSERVATIVE
STUFF.
WE WILL TAKE THAT UNDER
ADVISEMENT.
>> WHAT DOES MARK ZUCKERBERG DO
AFTER TWO DAYS OF TESTIMONY IN
FRONT OF CONGRESS.
>> HE GOES BACK TO WORK AND DOES
NOTHING AND HIRES A LOT MORE
LOBBYISTS.
THE FOLKS THAT ARE ABOUT TO GO
GANGSTER ON FACEBOOK RIGHT NOW
ARE IN EUROPE, SPECIFICALLY
MARJORIE VESIGER.
EUROPE HAS PROPOSED MORE
LEGISLATION AGAINST FACEBOOK
THAN AMERICA HAS TO DATE.
FRANCE IS TALKING ABOUT TAXING
THEM ON THEIR TOP LINE.
GOOGLE FIGURED OUT A WAY TO DO
$7 BILLION IN REVENUE IN TUCK
AND PAY $50,000 -- IN THE U.K.
AND PAY $50,000 IN TAXES.
THEY'RE TALKING ABOUT REGULATING
FACEBOOK AND TWIST
FACEBOOK AND TWITTER AS MEDIA
COMPANIES IN BRITAIN.
THIS IS A NOTHING BURGER IN D.C.
>> HE WAS TOLD SPECIFICALLY --
HIS NOTES, THEY DIDN'T LEAK,
PICTURES WERE TAKEN OF HIS
NOTES.
>> DAGEN: THE A.P. PHOTOGRAPHER
GOT A SHOT OF THE NOTES, THE
PREP WORK THAT HIS LAWYERS HAD
DONE FOR HIM.
>> TO SCOTT'S POINT, HE WAS
TALKING EXACTLY WHAT YOU WERE
SAYING, HE WAS INSTRUCTED IF
THAT CAME UP TO NOT COME OUT AND
SAY -- IT'S INTERESTING, WHAT
YOUR TAKE WOULD BE ON THIS, HE
WAS TOLD APPARENTLY DON'T SAY
WE'RE ALREADY DOING WHAT THEY'RE
REGULATING IN EUROPE, THAT WE'RE
ALREADY DOING THAT.
APPARENTLY IT SAID THAT IN HIS
NOTES THAT HE WASN'T SUPPOSED TO
SAY THAT.
>> THERE'S BEEN A LOT OF SERIOUS
LIES IN BIG TECH.
INFORMATION WANTS TO BE FREE.
THAT WAS A LIE.
WE NOT ONLY COMPLY WITH THE TAX
LAWS, WE COMPLY WITH THE SPIRIT
OF THE TAX LAWS.
THAT WAS TIM COOK.
THE SPIRIT OF U.S. TAX LAWS
ISN'T THAT YOU ISSUE YOUR I.P.
TO THE AISLE OF MANS SO YOU
SUPPRESS TAX IN THE U.S. AND
INCREASE THEM IN LOW TAX
DOMAINS.
THAT'S NOT THE SPIRIT OF THE
U.S. TAX LAW.
THE MOST RECENT BIG LIE FROM BIG
TECH WAS MARGE ZUCKERBERG WAS
SAYING I'M NOT SURE WE SHOULDN'T
BE REGULATED.
I WOULD LIKE TO KNOW IF THE
LOBBYISTS IN D.C. REPRESENTING
FACEBOOK ARE RUNNING AROUND
SAYING YOU KNOW WHAT, WE'RE OPEN
TO REGULATION.
THAT IS SO RIDICULOUS.
THEY WILL FIGHT TOOTH AND NAIL
ANY REGULATION.
>> THE ONLY THING THAT MARK
ZUCKERBERG SAID THAT I AGREE
WITH, IF CONGRESS PASSES
REGULATIONS, YOU KNOW THEY WILL
BE TOO BIG AND TOO MANY AND THAT
WILL KEEP CHALLENGERS OUT OF THE
MARKETPLACE BECAUSE A NEW
START-UP WILL HAVE A TOUGH TIME
DEALING WITH IT.
I AGREE WITH YOU.
LEAVE THEM ALONE.
LET THE CUSTOMERS OF FACEBOOK
DECIDE FACEBOOK'S FUTURE DEAF
DECIDE FACEBOOK'S FUTURE.DEAF
>> DAGEN: IT WAS CLEAR BASED ON
THE QUESTIONING THAT THE LAST
TECH GAUGE ET THAT SOME
TECH GADGE ET THAT SOME
TECH GADGETST THAT SOME
TECH GADGETS TTHAT SOME
TECH GADGETS THAAT SOME
TECH GADGETS THATT SOME
TECH GADGETS THAT SSOME
TECH GADGETS THAT SOMME
TECH GADGETS THAT SOMEE
TECH GADGETS THAT SOME OF THESE
SENATORS BOUGHT WAS A VIEW
MASTER.
YOU BROUGHT UP CELL PHONES.
15 U.S. CORPORATIONS FOUND WAYS
TO AVOID TAXES ON NEARLY
$25 BILLION ON COMBINED ITEMS
LAST YEAR.
AMAZON RECEIVED $137 MILLION
REBATE ON $5.4 BILLION IN
PROFITS RESULTING IN AN
EFFECTIVE TAX RATE OF A NEGATIVE
2.5%.
PRESIDENT TRUMP'S BEEN ATTACKING
AMAZON FOR NOT PAYING ENOUGH IN
TAXES.
THIS KIND OF GOES TO YOUR POINT.
>> WE'VE INSTITUTIONALIZED A
REGRESSIVE CORPORATE TAX
STRUCTURE MANY SINCE 2008,
WALMART PAID $64 BILLION IN
CORPORATE INCOME TAX, AMAZON HAS
PAID 1.4ED BILLION DOLLARS.
THIS IS HE
THIS IS DESPITE THE FACT THAT
AMAZON HAS ADDED THE VALUE OF
WALMART TO ITS MARKET CAP IN THE
LAST THREE MONTHS.
SO WHAT WE'VE EFFECTIVELY -- OUR
TAX SYSTEM AROUND BIG TECH IS
THE HUNGER GAMES.
IF YOU SURVIVE IT AND YOU WIN,
YOU LIVE A FABULOUS LIFE AND YOU
CAN AVOID TAXES.
THE TAX SYSTEM IS SO COMPLEX AND
SO FAVORS LARGE MULTINATIONALS
THAT IT'S BASICALLY A TRANSFER
OF WEALTH FROM SMALL DOMESTIC
AND MEDIUM SIZE COMPANIES THAT
ONLY HAVE DOMESTIC OPERATIONS TO
LARGE MULTINATIONALS WHO CAN
AFFORD LARGE TAX DEPARTMENTS AND
CAN DO THESE UNNATURAL
GYMNASTICS TO FIGURE OUT A WAY
TO SUPPRESS THEIR TAXES IN HIGH
TAX CO-MAINS.
AMAZON'S ABOUT TO BECOME THE
MOST VALUABLE COMPANY IN HISTORY
AND EFFECTIVELY PAY NO TAX.
THE QUESTION BECOMES WHEN THE
MOST SUCCESSFUL COMPANY IN THE
WORLD DOESN'T PAY TAXES, WHO
DOES PAY TAXES.
IT'S SIMPLE, LESS SUCCESSFUL
COMPANIES PAY TAXES.
ALEXA, IS THIS A GOOD THING?
THOUGH, ABOUT WITH FACEBOOK AND
ITS FUTURE, DO YOU THINK THAT
THE PROBLEM WAS -- I WAS TALKING
TO A WELL-KNOWN INVESTOR
YESTERDAY AND HE SAID THE
GOVERNMENT JUST STOOD BACK AND
DID NOTHING BECAUSE THEY HAVE NO
UNDERSTANDING OF TECHNOLOGY AND
THEY DON'T WANT TO, QUOTE, GET
IN THE WAY OF INNOVATION.
FACEBOOK SHOULD NEVER HAVE BEEN
ALLOWED TO BUY INSTAGRAM, FOR
EXAMPLE, THAT THEY JUST LET THE
COMPANY GET BIGGER AND BIGGER
AND BIGGER WITH NO CONTROL.
>> I DON'T THINK THE REVOLUTION
IS GOING TO BE CONSUMER-LED.
I THINK CONSUMERS ARE LAZY AND
TALK ABOUT SUPPLY CHAIN ETHICS
AND WANT THAT LITTLE BLACK DRESS
FOR $9.99 AND ESPRESSO PODS
DELIVERED WITHIN 48 HOURS FOR
FREE.
I DON'T THINK THIS WILL BE
CONSUMER DOSH
CONSUMER-LOSH
CONSUMER-LEDH
CONSUMER-LED.
WHEN 213 MILLION AMERICANS ARE
ON FACEBOOK, YOU DON'T HAVE A
CHOICE.
WHEN YOU HAVE 5 MILLION
ADVERTISERS AND NO ONE
ADVERTISER CAN REALLY HURT YOU,
ADVERTISERS HAVE NO CHOICE BUT
TO BE ON FACEBOOK.
SO BOTTOM LINE, THIS IS A
MONOPOLY.
I THINK THE ANSWER IS TO BREAK
THESE GUYS UP, FACEBOOK,
INSTAGRAM, MESSENGER, WHAT'S
APP, HEALTHIER FOR THE ECONOMY.