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| ‘This should never have happened’: lawmakers condemn Facebook’s Instagram acquisition – live | |
| (32 minutes later) | |
| Jerry Nadler unimpressed with Mark Zuckerberg’s answer on Instagram deal, while Amazon boss Jeff Bezos accused of hypocrisy – follow live | |
| Hank Johnson of Georgia asks Bezos about counterfeit products on Amazon, saying the company tries to avoid responsibility for third party sellers on its platform while also putting the cost burden on these third parties to police the site. | |
| Bezos said Amazon does a lot to prevent counterfeiting, and has invested hundreds of millions of dollars in systems to detect counterfit products. | |
| The hearing will take a brief recess now. | |
| Representative Jerry Nadler addresses the issues Facebook and Google have caused in the media industry. | |
| “Facebook and Google have greatly threatened journalism in the United States. Reporters have been fired, local newspapers have been shut down,” he said. “This is a very dangerous situation.” | |
| Specifically he asked Zuckerberg about accusations Facebook overstated the success of videos posted to its social network, leading many media companies to beef up their video teams. When the inflated numbers never came to fruition, the pivot cost hundreds journalists their jobs. | |
| “Do you realize the harm this caused journalists across the country?” he asked. | |
| Zuckerberg claimed he did not know these numbers were inflated. “We regret the mistake”, he said. | |
| Representative Jamie Raskin of Maryland goes in on Bezos over Amazon’s market share in the smart home space, specifically given the ubiquity of its smart speaker Alexa. | Representative Jamie Raskin of Maryland goes in on Bezos over Amazon’s market share in the smart home space, specifically given the ubiquity of its smart speaker Alexa. |
| He said Alexa is often heavily discounted and suggests it is pushed on consumers as a means to continue pushing Amazon products long term. Raskin notes that when he asks Alexa to buy batteries, the assistant first suggests Amazon-brand batteries. Raskin asks: Alexa trained to favor Amazon products? | He said Alexa is often heavily discounted and suggests it is pushed on consumers as a means to continue pushing Amazon products long term. Raskin notes that when he asks Alexa to buy batteries, the assistant first suggests Amazon-brand batteries. Raskin asks: Alexa trained to favor Amazon products? |
| “I don’t know if it’s been trained in that way,” Bezos said. “I’m sure there are cases where we do promote our own products is of course a common practice in business so it wouldn’t surprise me if Alexa sometimes does promote our own products.” | “I don’t know if it’s been trained in that way,” Bezos said. “I’m sure there are cases where we do promote our own products is of course a common practice in business so it wouldn’t surprise me if Alexa sometimes does promote our own products.” |
| Raskin also noted Amazon’s continued acquisition of other market shares. He reads an email Bezos sent to staff when buying smart doorbell Ring: | Raskin also noted Amazon’s continued acquisition of other market shares. He reads an email Bezos sent to staff when buying smart doorbell Ring: |
| “We’re buying market position not technology, and that market position and momentum is very valuable.” Ring now has more than 1,000 partnerships with local police forces. | “We’re buying market position not technology, and that market position and momentum is very valuable.” Ring now has more than 1,000 partnerships with local police forces. |
| Representative Jayapal returns to intensive questioning of Zuckerberg over anticompetitive practices including acquiring competitors or threatening them. | Representative Jayapal returns to intensive questioning of Zuckerberg over anticompetitive practices including acquiring competitors or threatening them. |
| She cited Instagram’s acquisition as an example, reading evidence gathered that Instagram founder Kevin Systrom said he was afraid of Zuckerberg and how Facebook would respond if he declined to sell the platform. Jayapal’s closing comment was a zinger: | She cited Instagram’s acquisition as an example, reading evidence gathered that Instagram founder Kevin Systrom said he was afraid of Zuckerberg and how Facebook would respond if he declined to sell the platform. Jayapal’s closing comment was a zinger: |
| Representative Lucy McBath 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. | Representative Lucy McBath 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. | Many advocates for small businesses praised the tactic, noting that it is rare to see Bezos confronted with the impact of his business. |
| Bezos was also faced with criticisms that third party sellers have extreme difficulty contacting anyone at the company when they have problems selling on the platform. | Bezos was also faced with criticisms that third party sellers have extreme difficulty contacting anyone at the company when they have problems selling on the platform. |
| One seller quoted even compared Amazon to a drug dealer, saying “because you just kept going and you had to get your next fix, but at end of the day you find out that this person was seemingly benefitting is ultimately going to be your downfall.” | One seller quoted even compared Amazon to a drug dealer, saying “because you just kept going and you had to get your next fix, but at end of the day you find out that this person was seemingly benefitting is ultimately going to be your downfall.” |
| In fact, there is a whole industry dedicated to helping these sellers when Amazon will not. | In fact, there is a whole industry dedicated to helping these sellers when Amazon will not. |
| Representative Joe Neguse asks Zuckerberg about Facebook’s acquisitions of other companies and competitors, citing the purchases of Instagram and Whatsapp as examples. | 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.” | 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. | “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”. | 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.’” | “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. | 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. | “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. | 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. | 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. | 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. | “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”. | 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. | 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. |