REGULATION.
>> YOUR REACTION TO THAT?
>> AS EASY FOR TIM COOK TO SAY
BECAUSE HE DOESN'T DEAL WHEN IT
COMES TO DATA AS OTHER PEOPLE
LIKE THE FACEBOOK AND SOCIAL
MEDIA PLAYERS.
SO SOME WOULD SAY HE'S PROBABLY
ABLE TO LOB STONES AT THIS UPON
THE AND WITH HIM LOOKING AT
REGULATION OVER SOCIAL MEDIA,
DOESN'T THE THAT HELP HISSINGS
AS WELL DOESN'T IT STRENGTHEN
APPLE AT THIS POINT IN SO I
THINK IT IS EASY FOR HIM TO SAY.
>> THEY'VE USED THAT AS
MARKETING TOOL JAMES BUT WHAT DO
MAKE OF THIS BECAUSE AGAIN, IT
IS POSSIBLE WE'VE TALKED ABOUT
THIS FOR --
LITERALLY BEEN TALKING ABOUT IT
FOR YORES THAT THEY NEED TO COME
UP WITH SOME REGULATORY SYSTEM
WITHIN TECHNOLOGY BUT NOW THAT
YOU'VE HAD THESE --
FACEBOOK, GOOGLE, FALLING FLAT
ON THEIR FACE NOT DOING A GREAT
JOB IF THEY EVEN DECIDED TO SHOW
UP IN FRONT OF CONGRESS THAT
THIS IS A REALLY TRICKY
SITUATION THAT THE TECHNOLOGY
COMPANIES ARE FACING.
>> I THINK --
SUZANNE RAISES A GREAT QUESTION
IS --
I THINK CONSUMERS SHOULD BE VERY
SKEPTICAL HERE IS THIS A PLAY
WHERE HE THINKS HIS BUSINESS
MODEL WILL DO BETTER UNDER
REGULATION THAN SAY A FACEBOOK
OR A GOOGLE THAT APPLE COMPETES
WITH IN SOME ARENA YES APPLE HAS
SERVICES BUSINESS BUT THEY ARE
HARDWARE COMPANY, MAYBE HE SEES
AN ADVANTAGE.
I JUST IT SHALL I JUST THINK
THAT THIS STATEMENT THAT THIS IS
A MARKET FAILURE FIRST OF ALL --
MARKETS DON'T HAVE TO WORK
PERFECTLY THEY JUST HAVE TO WORK
BETTER THAN GOVERNMENT, AND
SECOND OF ALL PEOPLE WANT FREE
SERVICES.
SO TO SAY IT IS A FAILURE THAT
PEOPLE HAVE TOLERATED YEARS AND
YEARS OF TRADING PERSONAL
INFORMATION FOR LOTS OF
SERVICES, I THINK IS A MISTAKE.
THAT I THINK PEOPLE FOR BETTER
OR RS HAVE ENJOYED A LOT OF FREE
STUFF IS THEY'VE GOTTEN FROM
SILICON VALLEY AND YOU KNOW,
MAYBE THEY WOULD LIKE A
DIFFERENT TRADE BUT I DON'T
THINK THAT GOVERNMENT, I WOULD
BE VERY WORRIED ABOUT ABOUT A
GOVERNMENT PROGRAM THAT --
EPPEDZ UP ADVANTAGING INCUMBENT
LIKE APPLE AS IT USUALLY DOES
AND PREVENTS NEW COMPETITOR.
SKTS I HAD THIS CONVERSATION
WITH --
SOMEONE OVER LAST FIVE YEARS
DAYS OR SO ABOUT FORECAST AND
INDIVIDUALS RESPONSE WAS --
GRAB A DRINK.
QK TO THE PARTY.
WHERE HAVE YOU BEEN THE LAST --
>> IN THE A SURPRISE FOR ANYBODY
REALLY?
TEN YEARS OF THE FACEBOOK LIFE,
LITERALLY --
THAT FACEBOOK IF YOU USED
FACEBOOK OVER THE YEARS THEY
CONSTANTLY ASK YOU FOR MORE AND
MORE AND MORE GRANULAR PERSONAL
INFORMATION THEN YOU SIT BECOME
AND GO WOW, IT IS FREE.
GREAT ARTICLE IN "THE WALL
STREET JOURNAL" THIS WEEKEND.
>> BASICALLY REASON INSTAGRAM
FOUNDER LEFT IS BECAUSE FACEBOOK
AND WANTED TO EXTRACT MORE
INFORMATION FROM YOU FROM
INSTAGRAM THEY WANT TO KNOW YOUR
LOCATION AND THEY ARE LIKE WOW,
THIS IS NOT WHAT WE SIGNED UP
FOR.
BUT I THINK INEVIDENTIBILITY
THAT IS THE BASICALLY THE SIGNAL
FROM ALL OF TECH I WAS AT THE
LAGUNA BEACH THE LIVE EVENT AND
EVERYBODY UNDERSTANDS THAT THIS
IS A NEW REALITY.
IF YOU DON'T IF YOU'RE NOT
PREPARED YOU SHOULDN'T BE CEO.
>> BUT I THINK IF YOU LOOK AT
WHAT'S HAPPENING IN EUROPE
PEOPLE ARE SAYING WITH PRIVACY
AND KINDS OF CONCERNS OUT THERE
WE'RE GOING THAT WAY WE BETTER
BE PREPARED FOR IT AND TIM COOK
IS IN UNIQUE POSITION BECAUSE
LET'S NOT FORGET APPLE HAD A
HARD LINE IN WHAT PRIVACY MEANS
AND NOT ACCESS ANYTHING THAT'S
ON THERE SO I THINK THEY THINK
THIS IS GOING TO MAKE THEM MORE
POPULAR BECAUSE THEY'RE ALL
ABOUT PRIVACY AND EVERYBODY ELSE
ON SOCIAL MEDIA MAYBE ISN'T.
>> I DON'T KNOW IF THEY'RE ALLEN
ABOUT PRIVACY BUT THEY SEE THIS
AS PROBABLY A POSITION OF
STRENGTH THAT THEY'RE IN RIGHT
NOW.
>> REFERRING TO APPLE AND I WAS
VERY CRITICAL OF APPLE PUSHING
BECOME ON FBI WHEN --
WHEN THE FBI WANTED A A PHYSICAL
TO HELP.
ESSENTIALLY RIGHT CODE SO THEY
COULD ACCESS ONE OF THE
TERRORISTS THE MURDERERS PHONES
AND APPLE PUSHED BACK THAT IN
COURTS AND A I WAS CRITICAL OF
THEM BUT AGAINS THAT THE LINE
AND THIS IS REALLY --
REALLY A --
STANCE THAT STEVE JOB TOOK FROM
THE VERY BEGINNING.
BUT THESE ARE DIFFERENT --
THEY ARE DIFFERENT BUSINESSES.
FACEBOOK AND GOOGLE ARE
DIFFERENT GOOGLE IT A LESSER
EXTENT BECAUSE OF THE ANDROID
OPERATING SYSTEM AND THEY'RE IN
DEVICE BUSINESS INDIRECTLY BUT
AGAIN TIM COOK IS --
THROWING SOL SHADE.
>> YEAH, AND IT COULD BE JUST A
BUSINESS MODEL QUESTION.
I THINK YOU OUGHT TO BE
SKEPTICAL WHEN YOU HEAR AS
PRESENTED AS SCHISMLY A
FUNDAMENTAL BELIEF.
THESE COMPANIES HAVE DIFFERENT
MODELS AND SOME OF THEM ARE MORE
VULNERABLE TO CERTAIN REGULATION
THAN OTHERS.
SO I WOULD SAY CONSUMER BE
AWARE.