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Zuckerberg grilled over Facebook and Libra in congressional hearing – live Ocasio-Cortez confronts Zuckerberg over Cambridge Analytica during testimony – as it happened
(about 1 year later)
And we’re done. To recap:
Facebook CEO Mark Zuckerberg faced more than six hours of intensive questioning from members of the US House of Representatives financial services committee on Wednesday.
Though the hearing was meant to be about Libra, Facebook’s proposed cryptocurrency, questioning hit a wide range of topics, from biases in Facebook ad algorithms to the Cambridge Analytica scandal and fact checking political ads.
Zuckerberg said Facebook would not back any move by the Libra Association, which comprises a consortium of 21 members including venture capital firms and not-for-profits, to launch the cryptocurrency until it had satisfied all US regulatory concerns.
However, Zuckerberg refused to agree to a complete moratorium on the development of Libra despite being asked a number of times.
Republican representative Ann Wagner of Missouri asked Zuckerberg why several high-profile corporations - including Mastercard, Visa, PayPal and eBay - had recently departed the Libra project. Zuckerberg, momentarily at a loss for words, conceded: “It’s a risky enterprise.”
Zuckerberg said that if the US did not allow the launch of a cryptocurrency, China would beat it to the field.
A number of representatives, including Ayanna Pressley and Brad Sherman challenged Zuckerberg’s assertions that Libra was meant to help the poor and unbanked.
Representatives Maxine Waters and Chuy Garcia suggested it was time to break up Facebook. “Facebook has amassed too much power, it has become too big, and we should seriously consider breaking it up,” Garcia said.
Earlier, Congresswoman Alexandria Ocasio-Cortez grilled Zuckerberg over the Cambridge Analytica scandal, asking him at what point he personally knew about it and at what point people internally knew about it.
Here’s the clip of that moment:
Be still my beating heart..@aoc asks Zuckerberg the question. I & others (notably @jason_kint) have been asking for a loooong time. When exactly did he first learn about Cambridge Analytica? Tell me, does this sound like a convincing answer to you? pic.twitter.com/3Yt7jZjuoF
Zuckerberg claims he did not know about the scandal until it “went public” in 2018. Ocasio-Cortez asked if anyone on his board knew about Cambridge Analytica prior to a Guardian report in December 2015. He said it is possible some people were tracking the issue internally prior to that story’s publishing.
Representative McHenry, a Republican from North Carolina, is making five minutes of closing statements now. He said it is “important to encourage innovation” here in the US, seemingly agreeing with Zuckerberg’s argument that if Facebook and the US does not launch a global cryptocurrency, China will first.
“Make no mistake, for those of us here as policymakers we should have a common understanding that innovation is coming, with us or without us,” he said.
Representative Chuy Garcia says he will introduce a Keep Big Tech Out of Finance bill today, telling Zuckerberg “I don’t think we can trust you.”
.@RepChuyGarcia, @RepDean, and I took a quick selfie 🤳 in between the #Zuckerberg hearing and votes on the House Floor.We’re working hard #ForThePeople, fighting to protect the integrity of our elections and ensure that we can regulate @facebook’s Libra Project. pic.twitter.com/l8GUP1FvuQ
He grilled Zuckerberg over who should regulate Libra, asking if it should be regulated by the SEC as a bank. Zuckerberg seemed to dodge the question, saying “I think the SEC should decide.”
“When we have blurred the lines between banking and commerce, we’ve run into problems,” Garcia said. “Facebook has operated as a shadow government with you as its head.”
Zuckerberg struggles to answer questions from Alma Adams about how Facebook ads discriminate based on race.Zuckerberg struggles to answer questions from Alma Adams about how Facebook ads discriminate based on race.
compare the fluency with which Zuckerberg invoked MLK, Frederick Douglass and Black Lives Matter with his obvious extreme discomfort being questioned by Black lawmakers on the actual details of civil rights compliance and institutionscompare the fluency with which Zuckerberg invoked MLK, Frederick Douglass and Black Lives Matter with his obvious extreme discomfort being questioned by Black lawmakers on the actual details of civil rights compliance and institutions
“Based on this, how can Congress trust Facebook will not discriminate based on race in Libra offerings?” she asked him. “How will you address algorithm biases on your platform?”“Based on this, how can Congress trust Facebook will not discriminate based on race in Libra offerings?” she asked him. “How will you address algorithm biases on your platform?”
The executive said Facebook needs to detrmine “the right way to study them” without tracking race of users on the platform, which he claims Facebook does not currently do.The executive said Facebook needs to detrmine “the right way to study them” without tracking race of users on the platform, which he claims Facebook does not currently do.
Congresswoman Alexandria Ocasio-Cortez grilled Zuckerberg over the Cambridge Analytica scandal, asking him at what point he personally knew about it and at what point people internally knew about it.Congresswoman Alexandria Ocasio-Cortez grilled Zuckerberg over the Cambridge Analytica scandal, asking him at what point he personally knew about it and at what point people internally knew about it.
Zuckerberg claims he did not know about the scandal until it went public with a Guardian report in December 2015. He said it is possible some people were tracking the issue internally prior to that story’s publishing. Be still my beating heart..@aoc asks Zuckerberg the question. I & others (notably @jason_kint) have been asking for a loooong time. When exactly did he first learn about Cambridge Analytica? Tell me, does this sound like a convincing answer to you? pic.twitter.com/3Yt7jZjuoF
Zuckerberg claims he did not know about the scandal until it “went public” in 2018. Ocasio-Cortez asked if anyone on his board knew about Cambridge Analytica prior to a Guardian report in December 2015. He said it is possible some people were tracking the issue internally prior to that story’s publishing.
In a later exchange, Zuckerberg is grilled over Facebook’s policy not to fact-check political advertising.In a later exchange, Zuckerberg is grilled over Facebook’s policy not to fact-check political advertising.
AOC: "Do you see a potential problem here with a complete lack of fact checking on political advertisements?" Zuckerberg: "I think lying is bad."AOC: "So you will take down lies or you won't take down lies?"Zuckerberg will not answer.AOC: "Do you see a potential problem here with a complete lack of fact checking on political advertisements?" Zuckerberg: "I think lying is bad."AOC: "So you will take down lies or you won't take down lies?"Zuckerberg will not answer.
Zuckerberg said whether a post is taken down “depends on context.”Zuckerberg said whether a post is taken down “depends on context.”
Ocasio-Cortez asked Zuckerberg about his “dinner parties with far right figures” and asks if at those meetings he addressed the popular Right-wing theory that Facebook cracks down on conservative speech. Zuckerberg did not answer. Ocasio-Cortez asked Zuckerberg about his “dinner parties with far-right figures” and asks if at those meetings he addressed the popular rightwing theory that Facebook cracks down on conservative speech. Zuckerberg did not answer.
Revealed: 50 million Facebook profiles harvested for Cambridge Analytica in major data breach
Like other Congress members, Representative Ayanna Pressley criticizes Zuckerberg for claiming he wants to launch Libra to address low-income people and the underbanked.Like other Congress members, Representative Ayanna Pressley criticizes Zuckerberg for claiming he wants to launch Libra to address low-income people and the underbanked.
Your Libra white paper finds almost two thirds of the 1.7 billion people in the world who don’t have bank accounts say it’s because they lack enough money to open one. This is not about authentication. This is not about banking costs. This is about a tsunami of hurt that millions are experiencing because of a $1.6 trillion student debt crisis, because of rising health care costs. It is about people having to use GoFundMe pages to pay medical bills. This is because of the racial and gender wealth gap. So again, you represent the power, but I don’t think you understand the pain.Your Libra white paper finds almost two thirds of the 1.7 billion people in the world who don’t have bank accounts say it’s because they lack enough money to open one. This is not about authentication. This is not about banking costs. This is about a tsunami of hurt that millions are experiencing because of a $1.6 trillion student debt crisis, because of rising health care costs. It is about people having to use GoFundMe pages to pay medical bills. This is because of the racial and gender wealth gap. So again, you represent the power, but I don’t think you understand the pain.
Representative Riggleman poses what he called a “thought-provoking question” to Zuckerberg. “How realistic was The Social Network?”Representative Riggleman poses what he called a “thought-provoking question” to Zuckerberg. “How realistic was The Social Network?”
He joked the reason he asked the question is that he thinks a movie may be made of the ongoing saga of Facebook and “I just want to be in charge of my own casting.”He joked the reason he asked the question is that he thinks a movie may be made of the ongoing saga of Facebook and “I just want to be in charge of my own casting.”
“I think your life story is impressive,” Riggleman said. “I think with ingenuity and hard work, you can aspire to dream and that is the American dream.”“I think your life story is impressive,” Riggleman said. “I think with ingenuity and hard work, you can aspire to dream and that is the American dream.”
The hearing is back from recess, and Zuckerberg is still in the hot seat.The hearing is back from recess, and Zuckerberg is still in the hot seat.
Representatives are continuing to ask questions broad in scope, straying from the focus of cryptocurrency Libra.Representatives are continuing to ask questions broad in scope, straying from the focus of cryptocurrency Libra.
Cindy Axne of Iowa asked the executive how he plans to prevent election interference on the platform, especially in swing states like hers.Cindy Axne of Iowa asked the executive how he plans to prevent election interference on the platform, especially in swing states like hers.
She questioned how Americans can opt out of Facebook tracking when the company collects data on people who have no Facebook account.She questioned how Americans can opt out of Facebook tracking when the company collects data on people who have no Facebook account.
“My understanding is not that we build profiles for people who are not on our service,” Zuckerberg said.“My understanding is not that we build profiles for people who are not on our service,” Zuckerberg said.
However, a 2018 report from Gizmodo found Facebook uses contact information of users who may not necessarily have accounts in ad targeting. This information can be provided by people who do have Facebook accounts when the platform asks for “contacts” permissions.However, a 2018 report from Gizmodo found Facebook uses contact information of users who may not necessarily have accounts in ad targeting. This information can be provided by people who do have Facebook accounts when the platform asks for “contacts” permissions.
The hearing is on a recess right now as members head to the House floor for a vote. Stay tuned ...The hearing is on a recess right now as members head to the House floor for a vote. Stay tuned ...
The hearings are diverging from the topic of Libra and cryptocurrencies as many Congress members take the rare opportunity to question Zuckerberg on the Hill about other issues.
Rashida Tlaib says she is speaking to Zuckerberg both as a congresswoman and “as the mother raising two Muslim boys during what is a pretty dark time in our world” and asks why he is letting hate groups use Facebook events pages to organize.
“I think we could do more and do a better job here,” Zuckerberg said. “We aren’t perfect, and we make a lot of mistakes.”
Republican congressman Ted Budd of North Carolina takes his time on the floor to note that Libra is not technically a cryptocurrency, but a stablecoin, meaning it is not independently built on its own technology like Bitcoin and Ethereum but is tied to existing currencies like the dollar. He asks how Zuckerberg plans to allow regulation of the currency.
“If we’re to remain a world leader in financial technology, it’s vital that we don’t embrace reactionary laws against cryptocurrencies.”
Congresswoman Joyce Beatty of Ohio comes out swinging at Zuckerberg, grilling him for Facebook’s failure to prioritize diversity at the company.
She noted Zuckerberg has $46bn in cash or cash equivalent and asks if any of this is managed by diversity-owned companies. Zuckerberg struggles to answer.
“I’ll take that as a no,” she said.
Rep. Beatty: "Do you know what redlining is?"Zuckerberg: "Yes."Beatty: "Then you should have known better."
Beatty takes Zuckerberg, who invoked the civil rights movement in his defense of Facebook last week, to task for coopting the struggle of black Americans.
“It’s almost like you think this is a joke,” she said. “This is appalling and disgusting to me.”
Republican representative Barry Loudermilk appears to compliment Zuckerberg by comparing him to Trump.
“You’re both very successful businessmen, you’re both capitalists, you’re both billionaires, and you’ve done very well,” he said. “But I think really what you share in common is you both challenge the status quo – he calls it draining the swamp, you see it as innovation.”
Congressmen love capitalism, it turns out!
While many members of the committee sought to grill Zuckerberg today, in the line of questioning from Roger Williams of Texas and French Hill of Arkansas, the congressmen congratulated Zuckerberg for his efforts to innovate.
“I congratulate you, like so many of my colleagues, on the extraordinary investment and entrepreneurial success of creating Facebook,” Hill said. “I do admire people in our capitalist system here that are disruptors - that find the weakness and try to exploit it with a new product that’s better for consumers.”
Williams ended his questioning with a final statement for Zuckerberg: “I’m really glad you’re a capitalist.”
Representative Andy Barr has perhaps the friendliest examination of Zuckerberg of the day, asserting that he supports the executive’s choice not to censor political ads, especially those from Trump.
“I do find it highly troubling that politicians are trying to bully you to be a fact-checker, and to be the speech police, especially in politics which are at the core of the first amendment,” Barr said.
Representative David Scott also addresses Facebook’s “practice of redlining certain communities” as outlined by the recent settlement with the Department of Housing and Urban Development.
“What have you put into action to eliminate these practices?” he asks.
“We entered into a settlement with these civil rights groups to to create a new standard where we block that kind of targeting,” Zuckerberg said. “And I think it’s worth noting that the standard that we set as industry leading.”
It is worth noting that new rules proposed by the Trump administration may legally enable this kind of algorithmic redlining in the future.
Democratic Congressman Lacy Clay of Missouri addresses a recent settlement Facebook made with the US Department of Housing and Urban Development related to its advertising platform violating the Fair Housing Act.
Clay asked if Facebook will reveal what algorithms that led to discrimination in this case. Zuckerberg danced around an answer, saying the company does not collect data on race specifically and that it is carrying out a large-scale civil rights audit on its policies.
“It’s always been against our policies for anyone to use the ad systems to discriminate, and we enforce those policies through a mix of technical systems and human review,” Zuckerberg said.
Democratic Congressman Brad Sherman of California criticized Zuckerberg’s claims that Libra will help poor and unbanked people around the world enter the financial system.
“The poor and unbanked need pesos, they need dollars that they can buy something at a local store,” he said. “You’ve done no effort to help the unbanked anywhere else and any other time.”
He said an anonymous currency is more likely to help drug dealers and other people seeking to circumvent traditional financial systems more than the poor and unbanked.
“For the richest man in the world to come here and hide behind the poorest people in the world, and say that’s who you’re really trying to help,” he said. “You’re trying to help those for whom the dollar is not a good currency – drug dealers and tax evaders.”
The hearings are quickly winding into topics outside of cryptocurrency.
Representative Bill Posey of Florida uses his time on the floor to ask Zuckerberg why Facebook cracks down on anti-vaccine content, seeming to support the theory – for which there is no scientific backing – that vaccines cause disabilities.
“I support vaccinations of children and adults, but I also support open and frank communication of the risk of vaccination,” he said.
Zuckerberg does not seem to know how to respond to a congressman supporting anti-vaccination groups.
“We try to focus on on misinformation that has the potential to lead to physical harm or imminent harm,” Zuckerberg says. “And that can include, especially misleading health advice.”
Facebook to direct vaccine searches to public health pages