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You can find the current article at its original source at https://www.theguardian.com/technology/live/2020/jul/29/tech-congress-hearing-zuckerberg-bezos-cook-facebook-amazon-apple
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| ‘This should never have happened’: lawmakers condemn Facebook’s Instagram merger – live | |
| (32 minutes later) | |
| Jerry Nadler unimpressed with Mark Zuckerberg’s answer on Instagram acquisition, while Amazon boss Jeff Bezos accused of hypocrisy – follow live | |
| Representative Lucy Bath of Georgia in her questioning played a recording from a book seller who sold books on Amazon and felt her sales were throttled by Amazon. In the recording, she pleads with Bezos to help her company. | |
| Many advocates for small businesses praised the tactic, noting that it is rare to see Bezos confronted with the impact of his business. | |
| Representative Joe Neguse asks Zuckerberg about Facebook’s acquisitions of other companies and competitors, citing the purchases of Instagram and Whatsapp as examples. | |
| He asked Zuckerberg about an email he sent that was discovered in the investigation, in which Zuckerberg wrote: “I can just buy any competitive startup - but it’ll be a while before we can buy Google.” | |
| “I don’t recall specifically, but it sounds like a joke,” Zuckerberg said. | |
| Neguse said Facebook’s market share in the last several years is “not a joke.” The company has used that power to “either purchase or replicate the competition”. | |
| “Facebook, Facebook Messenger, WhatsApp, and Instagram, are the most now downloaded apps of the last decade, and your company sir owns them all,” he said. “We have a word for that, and that word is ‘monopoly.’” | |
| A verbal scuffle breaks out on the floor when Representative Mary Gay Scanlon opened her questioning with a sharp criticism of Steube and other Republicans. | |
| “I’d like to redirect your attention to antitrust law rather than fringe conspiracy theories,” she said. | |
| She again questioned Amazon over its strategies to overtake competitors, using an example of diaper sales as an example. | |
| In a strange exchange, yet another congress member has targeted the tech executives over supposed anti-conservative bias. | |
| Representative Greg Steube asked Sundar Pichai why his campaign emails are being sorted into the Spam inbox on his parents’ Gmail accounts. He claimed it was an anti-conservative conspiracy. | |
| “This is appears to only be happening to conservative Republicans,” he said. “I don’t see anything in the news or anything in the press or members on the other side of the aisle talking about their campaign emails getting thrown in junk folders in Gmail - so my question is is why is this only happening to Republicans?” he asked. | |
| Pichai said “there is nothing in the algorithm that has to do with political ideology”. | |
| A report from the Markup published in February found many political candidates - both conservative and progressive - find that Google’s algorithm sends their emails to Spam or to other inboxes. | |
| Upon return from the recess, finally a question for Bezos. Rep. Pramila Jayapal asks if Amazon accesses data from third parties to sell its own brands, asking Bezos for “a yes or no” answer. | Upon return from the recess, finally a question for Bezos. Rep. Pramila Jayapal asks if Amazon accesses data from third parties to sell its own brands, asking Bezos for “a yes or no” answer. |
| Bezos gives a rambling response, declining to deny or confirm the allegation. | Bezos gives a rambling response, declining to deny or confirm the allegation. |
| Jayapal notes that an April 2020 investigation from the Wall Street Journal found evidence that Amazon does engage in such anticompetitive practices. Amazon has access to data that “far exceeds” the sellers on the platform with whom it competes, the report found. | Jayapal notes that an April 2020 investigation from the Wall Street Journal found evidence that Amazon does engage in such anticompetitive practices. Amazon has access to data that “far exceeds” the sellers on the platform with whom it competes, the report found. |
| “So you can set the rules of the game for your competitors, but not actually follow those same rules for yourself,” she said. “Do you think that’s fair to the mom and pop third party businesses who are trying to sell on your platform?” | “So you can set the rules of the game for your competitors, but not actually follow those same rules for yourself,” she said. “Do you think that’s fair to the mom and pop third party businesses who are trying to sell on your platform?” |
| Another flashpoint in the first hours of the hearing - and one that arguably does not have to do with antitrust - was questions from Matt Gaetz of Florida regarding whether Google will continue to work with police despite backlash. | Another flashpoint in the first hours of the hearing - and one that arguably does not have to do with antitrust - was questions from Matt Gaetz of Florida regarding whether Google will continue to work with police despite backlash. |
| Pichai said Google has no plans to end police contracts. “Congressman, we are committed to continuing to work with law enforcement,” he said. | Pichai said Google has no plans to end police contracts. “Congressman, we are committed to continuing to work with law enforcement,” he said. |
| The hearing calls a ten minute recess to address technical issues - apparently related to Amazon’s feed. Maybe that’s why Bezos hasn’t been asked much yet. | The hearing calls a ten minute recess to address technical issues - apparently related to Amazon’s feed. Maybe that’s why Bezos hasn’t been asked much yet. |
| Now Zuckerberg is being asked about the Cambridge Analytica scandal and hate speech on the platform. | Now Zuckerberg is being asked about the Cambridge Analytica scandal and hate speech on the platform. |
| He is asked about the recent boycott of Facebook by advertisers over hate speech. | He is asked about the recent boycott of Facebook by advertisers over hate speech. |
| “We’re very focused on fighting against hate speech and our commitments to those issues and fighting them go back years before this recent movement,” he said. “Since 2016, the defenses that the company is built out to help secure elections in the US and around the world.” | “We’re very focused on fighting against hate speech and our commitments to those issues and fighting them go back years before this recent movement,” he said. “Since 2016, the defenses that the company is built out to help secure elections in the US and around the world.” |
| Apple CEO Tim Cook is addressed by Representative Hank Johnson of Georgia, who asks how Apple can so closely control its App Store without participating in anti-competitive behavior. | Apple CEO Tim Cook is addressed by Representative Hank Johnson of Georgia, who asks how Apple can so closely control its App Store without participating in anti-competitive behavior. |
| He said during the antitrust investigation Congress members heard concerns that rules governing the App Store review process are not available to the app developers. | He said during the antitrust investigation Congress members heard concerns that rules governing the App Store review process are not available to the app developers. |
| “The rules are made up as you go and subject to change - and Apple expects developers to go along with the changes or leave the app store,” Johnson said. “That’s an enormous amount of power.” | “The rules are made up as you go and subject to change - and Apple expects developers to go along with the changes or leave the app store,” Johnson said. “That’s an enormous amount of power.” |
| Cook repeated his claims that the App Store is not a monopoly because it does not charge the vast majority of apps to list there. He said 84% of apps are not charged anything and Apple has not increased commissions on apps since 2008. | Cook repeated his claims that the App Store is not a monopoly because it does not charge the vast majority of apps to list there. He said 84% of apps are not charged anything and Apple has not increased commissions on apps since 2008. |
| In the first few hours of testimony, Jeff Bezos has not yet been asked a single question. Poor Jeff! | In the first few hours of testimony, Jeff Bezos has not yet been asked a single question. Poor Jeff! |
| Rep. Ken Buck of Colorado opens his questioning with a grand statement: “Capitalism is the greatest tool for freedom the world has ever seen,” he says, apropos of nothing. | Rep. Ken Buck of Colorado opens his questioning with a grand statement: “Capitalism is the greatest tool for freedom the world has ever seen,” he says, apropos of nothing. |
| He then criticizes Google for withdrawing from a $10bn Pentagon contract because it “does not align” with Google’s values while working on government projects in China, like the controversial project Dragonfly- a search engine that would work with the Chinese government. | He then criticizes Google for withdrawing from a $10bn Pentagon contract because it “does not align” with Google’s values while working on government projects in China, like the controversial project Dragonfly- a search engine that would work with the Chinese government. |
| “What values do Google and communist China have in common?” he asked executive Sundar Pichai. | “What values do Google and communist China have in common?” he asked executive Sundar Pichai. |
| Representative Jerry Nadler of New York is next in line to question the executives. He zeros in on Facebook’s history of acquiring competitors or stealing their ideas, referencing internal documents that revealed Facebook bought Instagram to neutralize it as a competitive threat. | Representative Jerry Nadler of New York is next in line to question the executives. He zeros in on Facebook’s history of acquiring competitors or stealing their ideas, referencing internal documents that revealed Facebook bought Instagram to neutralize it as a competitive threat. |
| If so, the deal was illegal under antitrust laws and should be unwoven, legislators have argued. | If so, the deal was illegal under antitrust laws and should be unwoven, legislators have argued. |
| “If this was an illegal merger at the time of the transaction, why shouldn’t Instagram now be broken off into a separate company?” Nadler asked. | “If this was an illegal merger at the time of the transaction, why shouldn’t Instagram now be broken off into a separate company?” Nadler asked. |
| Zuckerberg said the acquisition was made in part to help Instagram build up its infrastructure and security as it experienced rapid growth. Nadler was not impressed with the answer. | Zuckerberg said the acquisition was made in part to help Instagram build up its infrastructure and security as it experienced rapid growth. Nadler was not impressed with the answer. |
| “This is exactly the type of anticompetitive acquisition the antitrust laws were designed to prevent, and this should never have happened in the first place, it should never have been permitted to happen, it cannot happen again.” | “This is exactly the type of anticompetitive acquisition the antitrust laws were designed to prevent, and this should never have happened in the first place, it should never have been permitted to happen, it cannot happen again.” |
| Representative Sensenbrenner launches again into his concerns about anti-conservative bias on social platforms, asking Zuckerberg why conservatives are “censored” on Facebook. | Representative Sensenbrenner launches again into his concerns about anti-conservative bias on social platforms, asking Zuckerberg why conservatives are “censored” on Facebook. |
| “Conservatives are consumers too,” he said. | “Conservatives are consumers too,” he said. |
| He specifically asked Zuckerberg why Donald Trump Jr. was removed from the platform for sharing a video containing false information this week. Zuckerberg politely explained to the representative that it was Twitter that limited Trump’s account for posting the video. | He specifically asked Zuckerberg why Donald Trump Jr. was removed from the platform for sharing a video containing false information this week. Zuckerberg politely explained to the representative that it was Twitter that limited Trump’s account for posting the video. |
| The video in question was, however, removed from Facebook though no accounts sharing it were censored. Sensenbrenner asked Zuckerberg why the video, which made baseless claims about coronavirus, was removed. He said people should be allowed to share posts that hail hydroxychloroquine as a “cure” for coronavirus even though the drug has not been found to be an effective treatment. | The video in question was, however, removed from Facebook though no accounts sharing it were censored. Sensenbrenner asked Zuckerberg why the video, which made baseless claims about coronavirus, was removed. He said people should be allowed to share posts that hail hydroxychloroquine as a “cure” for coronavirus even though the drug has not been found to be an effective treatment. |
| Zuckerberg said the video violates Facebook’s safety policies, which “prohibit content that will lead to imminent risk of harm”. | Zuckerberg said the video violates Facebook’s safety policies, which “prohibit content that will lead to imminent risk of harm”. |
| “Stating that there is a proven cure for Covid when there is in fact not might encourage someone to go take something that could have some adverse effect, so we do take that down,” he said. | “Stating that there is a proven cure for Covid when there is in fact not might encourage someone to go take something that could have some adverse effect, so we do take that down,” he said. |
| Zuckerberg, as he often does in Congressional hearings or when faced with criticism about accuracy on Facebook repeated his go-to line: “We do not want to be the arbiters of truth,” he said. | Zuckerberg, as he often does in Congressional hearings or when faced with criticism about accuracy on Facebook repeated his go-to line: “We do not want to be the arbiters of truth,” he said. |
| Cicilline starts by assailing Alphabet chief executive officer Sundar Pichai with accusations of anticompetitive behavior from Google. | Cicilline starts by assailing Alphabet chief executive officer Sundar Pichai with accusations of anticompetitive behavior from Google. |
| “So my first question, Mr. Pichai, is why does Google steal content from honest businesses?” Ciccilline said. | “So my first question, Mr. Pichai, is why does Google steal content from honest businesses?” Ciccilline said. |
| He said small businesses have accused Google of taking their content and listing on its own pages. One example cited was Google in 2010 taking reviews from Yelp and cross-posting them to its own pages. When Yelp asked Google to stop, Google reportedly threatened to remove Yelp from its search listings entirely. | He said small businesses have accused Google of taking their content and listing on its own pages. One example cited was Google in 2010 taking reviews from Yelp and cross-posting them to its own pages. When Yelp asked Google to stop, Google reportedly threatened to remove Yelp from its search listings entirely. |
| Cicilline said this behavior is “economically catastrophic” for other companies online. | Cicilline said this behavior is “economically catastrophic” for other companies online. |
| “The evidence seems very clear to me that as Google became the gateway to the internet, it began to abuse its power,” he said. “It used its surveillance over web traffic to identify competitive threats and crushed them. It has dampened innovation and new business growth.” | “The evidence seems very clear to me that as Google became the gateway to the internet, it began to abuse its power,” he said. “It used its surveillance over web traffic to identify competitive threats and crushed them. It has dampened innovation and new business growth.” |
| Finally Mark Zuckerberg provides his opening statement, attempting to set Facebook apart from the other companies on the stand today. | Finally Mark Zuckerberg provides his opening statement, attempting to set Facebook apart from the other companies on the stand today. |
| He said acquiring other companies like Instagram is not monopoly behavior. | He said acquiring other companies like Instagram is not monopoly behavior. |
| “Facebook stands for set of basic principles, giving people voice and economic opportunity, keeping people safe upholding democratic traditions like freedom of expression and voting and enabling an open and competitive marketplace,” he said. | “Facebook stands for set of basic principles, giving people voice and economic opportunity, keeping people safe upholding democratic traditions like freedom of expression and voting and enabling an open and competitive marketplace,” he said. |
| Read Zuckerberg’s full testimony here. | Read Zuckerberg’s full testimony here. |
| Tim Cook up next, arguing Apple does “not have a dominant market share” in any market where it does business. He addresses recent criticism that the rules surrounding Apple’s App Store unfairly charges companies to list apps. | Tim Cook up next, arguing Apple does “not have a dominant market share” in any market where it does business. He addresses recent criticism that the rules surrounding Apple’s App Store unfairly charges companies to list apps. |
| “After beginning with 500 apps, today the App Store hosts more than 1.7 million – only 60 of which are Apple software,” Cook’s he said. “Clearly, if Apple is a gatekeeper, what we have done is open the gate wider. We want to get every app we can on the store, not keep them off.” | “After beginning with 500 apps, today the App Store hosts more than 1.7 million – only 60 of which are Apple software,” Cook’s he said. “Clearly, if Apple is a gatekeeper, what we have done is open the gate wider. We want to get every app we can on the store, not keep them off.” |
| Read his full testimony here. | Read his full testimony here. |