zuckerberg testimony

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Zuckerberg owns or clones most of the “8 social apps” he cites as competition

Mark Zuckerberg’s flimsy defense when congress asked about a lack of competition to Facebook has been to cite that the average American uses eight social apps. But that conveniently glosses over the fact that Facebook owns three of the top 10 U.S. iOS apps: #4 Instagram, #6 Messenger, and #8 Facebook according to App Annie. The top 3 apps are games. Facebook is building its Watch video hub to challenge #5 YouTube, and has relentlessly cloned Stories to beat #7 Snapchat. And Facebook also owns #19 WhatsApp. Zoom in to just “social networking apps”, and Facebook owns the entire top 3.

“The average American I think uses eight different communication and social apps. So there’s a lot of different choice and a lot of innovation and activity going on in this space” Zuckerberg said when asked about whether Facebook is a monopoly by Senator Graham during yesterday’s Senate hearing, and he’s trotted out that same talking point that was on his note sheet during today’s House testimony.

But Facebook has relentlessly sought to acquire or co-opt the features of its competitors. That’s why any valuable regulation will require congress to prioritize competition. That means either breaking up Facebook, Instagram, and WhatsApp; avoiding rules that are easy for Facebook to comply with but prohibitively expensive for potential rivals to manage; or ensuring data portability that allows users to choose where to take their content and personal information.

Breaking up Facebook, or at least preventing it from acquiring established social networks in the future, would be the most powerful way to promote competition in the space. Facebook’s multi-app structure creates economies of scale in data that allow it to share ad targeting and sales teams, backend engineering, and relevancy-sorting algorithms. That makes it tough for smaller competitors without as much money or data to provide the public with more choice.

Regulation done wrong could create a moat for Facebook, locking in its lead. Complex transparency laws might be just a paperwork speed bump for Facebook and its army of lawyers, but could be too onerous for upstart companies to follow. Meanwhile, data collection regulation could prevent competitors from ever building as large of a data war chest as Facebook has already generated.

Data portability gives users the option to choose the best social network for them, rather than being stuck where they already are. Facebook provides a Download Your Information tool for exporting your content. But photos come back compressed, and you don’t get the contact info of friends unless they opt in. The list of friends’ names you receive doesn’t allow you to find them on other apps the way contact info would. Facebook should at least offer a method for your exporting hashed version of that contact info that other apps could use to help you find your friends there without violating the privacy of those friends. Meanwhile, Instagram entirely lacks a Download Your Information tool.

Congress should push Zuckerberg to explain what apps compete with Facebook as a core identity provider, an omni-purpose social graph, or cross-platform messaging app. Without choice, users are at the mercy of Facebook’s policy and product examples. All of the congressional questions about data privacy and security don’t mean much to the public if they have no viable alternative to Facebook. The fact that Facebook owns or clones the majority of the 8 social apps used by the average American is nothing for Zuckerberg to boast about.

 

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Zuckerberg’s boring testimony is a big win for Facebook

Mark Zuckerberg ran his apology scripts, trotted out his lists of policy fixes and generally dulled the Senate into submission. And that constitutes success for Facebook.

Zuckerberg testified before the joint Senate judiciary and commerce committee today, capitalizing on the lack of knowledge of the politicians and their surface-level questions. Half the time, Zuckerberg got to simply paraphrase blog posts and statements he’d already released. Much of the other half, he merely explained how basic Facebook functionality works.

The senators hadn’t done their homework, but he had. All that training with D.C. image consultants paid off.

Facebook CEO Mark Zuckerberg arrives to testify before a joint hearing of the US Senate Commerce, Science and Transportation Committee and Senate Judiciary Committee on Capitol Hill, April 10, 2018 in Washington, DC. (Photo: JIM WATSON/AFP/Getty Images)

Sidestepping any gotcha questions or meme-worthy sound bites, Zuckerberg’s repetitive answers gave the impression that there’s little left to uncover, whether or not that’s true. He made a convincing argument that Facebook is atoning for its sins, is cognizant of its responsibility and has a concrete plan in place to improve data privacy.

With just five minutes per senator, and them each with a queue of questions to get through, few focused on the tougher queries, and even fewer had time for follow-ups to dig for real answers.

Did Facebook cover up the Cambridge Analytica scandal or decide against adding privacy protections earlier to protect its developer platform? Is it a breach of trust for Zuckerberg and other executives to have deleted their Facebook messages out of recipients’ inboxes? How has Facebook used a lack of data portability to inhibit the rise of competitors? Why doesn’t Instagram let users export their data the way they can from Facebook?

The public didn’t get answers to any of those questions today. Just Mark’s steady voice regurgitating Facebook’s talking points. Investors rewarded Facebook for its monotony with a 4.5 percent share price boost.

That’s not to say today’s hearing wasn’t effective. It’s just that the impact was felt before Zuckerberg waded through a hundred photographers to take his seat in the Senate office.

Facebook knew this day was coming, and worked to build Zuckerberg a fortress of facts he could point to no matter what he got asked:

  • Was Facebook asleep at the wheel during the 2016 election? Yesterday it revealed it had deleted the accounts of Russian GRU intelligence operatives in June 2016.
  • How will Facebook prevent this from happening again? Last week it announced plans to require identity and location verification for any political advertiser or popular Facebook Page, and significantly restricted its developer platform.
  • Is Facebook taking this seriously? Zuckerberg wrote in his prepared testimony for today that Facebook is doubling its security and content moderation team from 10,000 to 20,000, and that “protecting our community is more important than maximizing our profits.”
  • Is Facebook sorry? “We didn’t take a broad enough view of what our responsibility is and that was a huge mistake. That was my mistake,” Zuckerberg has said, over and over.

Facebook may never have made such sweeping changes and apologies had it not had today and tomorrow’s testimony on the horizon. But this defensive strategy also led to few meaningful disclosures, to the detriment of the understanding of the public and the Senate — and to the benefit of Facebook.

WASHINGTON, DC – APRIL 10: Facebook co-founder, Chairman and CEO Mark Zuckerberg testifies before a combined Senate Judiciary and Commerce committee hearing in the Hart Senate Office Building on Capitol Hill April 10, 2018 in Washington, DC. Zuckerberg, 33, was called to testify after it was reported that 87 million Facebook users had their personal information harvested by Cambridge Analytica, a British political consulting firm linked to the Trump campaign. (Photo by Chip Somodevilla/Getty Images)

We did learn that Facebook is working with Special Counsel Robert Mueller on his investigation into election interference. We learned that Zuckerberg thinks it was a mistake not to suspend the advertising account of Cambridge Analytica when Facebook learned it had bought user data from Dr. Aleksandr Kogan. And we learned that the senate will “haul in” Cambridge Analytica for a future hearing about data privacy.

None of those are earth-shaking.

Perhaps the only fireworks during the testimony came when Senator Ted Cruz laid into Zuckerberg over the Gizmodo report citing that Facebook’s trending topics curators suppressed conservative news trends. Cruz badgered Zuckerberg about whether he believes Facebook is politically neutral, whether Facebook has ever taken down Pages from liberal groups like Planned Parenthood or MoveOn.org, if he knows the political leanings of Facebook’s content moderators and whether Facebook fired Oculus co-founder Palmer Luckey over his [radical conservative] political views.

Zuckerberg maintained that he and Facebook are neutral, but that last question was the only one of the day that seemed to visibly perturb him. “That is a specific personnel matter than seems like it would be inappropriate…” Zuckerberg said before Cruz interrupted, pushing the CEO to exasperatedly respond, “Well then I can confirm that it was not because of a political view.” It should be noted that Cruz has received numerous campaign donations from Luckey.

Full exchange between Senator @tedcruz and Mark Zuckerberg where Senator Ted Cruz questions the Facebook CEO about the censorship of Conservatives on his platform. pic.twitter.com/c6d7jwDbnJ

— The Columbia Bugle 🇺🇸 (@ColumbiaBugle) April 10, 2018

This was the only time Zuckerberg seemed flapped, because he knows the stakes of the public perception of Facebook’s political leanings. Zuckerberg, many Facebook employees and Facebook’s home state of California are all known to lean left. But if the company itself is seen that way, conservative users could flee, shattering Facebook’s network effect. Yet again, Zuckerberg nimbly avoided getting cornered here, and was aided by the bell signaling the end of Cruz’s time. He never noticeably raised his voice, lashed back at the senators or got off message.

By the conclusion of the five hours of questioning, the senators themselves were admitting they hadn’t watched the day’s full testimony. Viewers at home had likely returned to their lives. Even the press corps’ eyes were glazing over. But Zuckerberg was prepared for the marathon. He maintained pace through the finish line. And he made it clear why marathons aren’t TV spectator sports.

The question is no longer what revelations would come from Mr. Zuckerberg going to Washington. Tomorrow’s testimony is likely to go similarly. It’s whether Facebook can coherently execute on the data privacy promises it made leading up to today. This will be a “never-ending battle” as Zuckerberg said, dragging out over many years. And again, that’s in Facebook’s interest. Because in the meantime, everyone’s going back to scrolling their feeds.

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Zuckerberg tells Congress Facebook is not listening to you through your phone

Facebook CEO Mark Zuckerberg officially shot down the conspiracy theory that the social network has some way of keeping tabs on its users by tapping into the mics on people’s smartphones. During Zuckerberg’s testimony before the Senate this afternoon, Senator Gary Peters had asked the CEO if the social network is mining audio from mobile devices — something his constituents have been asking him about, he said.

Zuckerberg denied this sort of audio data collection was taking place.

The fact that so many people believe that Facebook is “listening” to their private conversations is representative of how mistrustful users have grown of the company and its data privacy practices, the Senator noted.

“I think it’s safe to say very simply that Facebook is losing the trust of an awful lot of Americans as a result of this incident,” said Peters, tying his constituents’ questions about mobile data mining to their outrage over the Cambridge Analytica scandal.

Questions about Facebook’s mobile data collection practices aren’t anything new, however.

In fact, Facebook went on record back in 2016 to state — full stop — that it does not use your phone’s microphone to inform ads or News Feed stories.

Despite this, it’s something that keeps coming up, time and again. The Wall Street Journal even ran an explainer video about the conspiracy last month. And yet none of the reporting seems to quash the rumor.

People simply refuse to believe it’s not happening. They’ll tell you of very specific times when something they swear they only uttered aloud quickly appeared in their Facebook News Feed.

Perhaps their inability to believe Facebook on the matter is more of an indication of how precise — and downright creepy — Facebook’s ad targeting capabilities have become over the years.

Peters took the opportunity today to ask Zuckerberg this question straight on today, during Zuckerberg’s testimony.

“Something that I’ve been hearing a lot from folks who have been coming up to me and talking about a kind of experience they’ve had where they’re having a conversation with friends — not on the phone, just talking. And then they see ads popping up fairly quickly on their Facebook,” Peters explained. “So I’ve heard constituents fear that Facebook is mining audio from their mobile devices for the purposes of ad targeting — which I think speaks to the lack of trust that we’re seeing here.”

He then asked Zuckerberg to state if this is something Facebook did.

“Yes or no: Does Facebook use audio obtained from mobile devices to enrich personal information about its users?,” Peters asked.

Zuckerberg responded simply: “No.”

The CEO then added that his answer meant “no” in terms of the conspiracy theory that keeps getting passed around, but noted that the social network does allow users to record videos, which have an audio component. That was a bit of an unnecessary clarification, though, given that the question was about surreptitious recording, not something users were explicitly recording media to share.

“Hopefully that will dispel a lot of what I’ve been hearing,” Peters said, after hearing Zuckerberg’s response.

We wouldn’t be too sure.

There have been a number of lengthy explanations of the technical limitations regarding a project of this scale, which have also pointed out how easy it would be to detect this practice, if it were true. But there are still those people out there who believe things to be true because they feel true.

And at the end of the day, the fact that this conspiracy refuses to die says something about how Facebook users view the company: as a stalker that creeps on their privacy, and then can’t be believed when it tells you, “no, trust me, we don’t do that.”

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Mark Zuckerberg: “We do not sell data to advertisers”

While many of us in the tech world are familiar with Facebook’s business model, there is a common misconception among people that Facebook collects information about you and then sells that information to advertisers.

Zuckerberg wants everyone (especially the U.S. Senate) to know that’s not the case, and has laid forth the most simple example to explain it.

During his testimony, the Facebook CEO clarified to Senator John Cornyn that Facebook does not sell data.

There is a very common misconception that we sell data to advertisers, and we do not sell data to advertisers. What we allow is for advertisers to tell us who they want to reach and then we do the placement. So, if an advertiser comes to us and says, ‘Alright, I’m a ski shop and I want to sell skis to women,’ then we might have some sense because people shared skiing related content or said they were interested in that. They shared whether they’re a woman. And then we can show the ads to the right people without that data ever changing hands and going to the advertiser. That’s a very fundamental part of how our model works and something that is often misunderstood.

While, again, this may seem straightforward to many of us, Zuckerberg found himself having to explain more than once that Facebook does not sell data during his Senate testimony.

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Zuckerberg admits it was a mistake not to ban Cambridge Analytica’s ads

Facebook didn’t ban Cambridge Analytica when it found out in 2015 that it had received user data from Dr. Aleksandr Kogan, and Zuckerberg called that a mistake during his testimony before the Senate. Cambridge Analytica has since been banned.

Zuckerberg explained that “I want to correct one thing that I said earlier in response to a question from Senator Leahy. He had asked why we didn’t ban Cambridge Analytica at the time when we learned of them in 2015. And I answered that what my understanding was was that they were not on the platform, were not an app developer or advertiser. When I went back and met with my team afterwards, they let me know that Cambridge Analytica actually did start as an advertiser later in 2015, so we could have in theory banned them back then, and made a mistake by not doing so.”

NEW YORK, NY – SEPTEMBER 19: CEO of Cambridge Analytica Alexander Nix speaks at the 2016 Concordia Summit – Day 1 at Grand Hyatt New York on September 19, 2016 in New York City. (Photo by Bryan Bedder/Getty Images for Concordia Summit)

When the Guardian informed Facebook about Kogan sharing user data to Cambridge Analytica, Facebook banned Kogan, and required Cambridge Analytica to formally certify that it had deleted all the improperly attained user data. Cambridge Analytica did so, Zuckerberg confirmed in his prepared testimony for today. But Facebook then stopped short of blocking Cambridge Analytica from buying ads on its platform. The company went on to work with the Trump campaign to help it optimize political messaging and ad targeting.

Had Facebook banned Cambridge Analytica at the time, it wouldn’t have been able to buy ads directly on behalf of political campaigns with which it worked. However, the company might still have been able to help these campaigns to optimize their ads, so a 2015 ban wouldn’t have necessarily prevented second-hand use of improperly attained data.

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Mark Zuckerberg: ‘There will always be a version of Facebook that is free’

Today during Mark Zuckerberg’s testimony before the Senate, the Facebook CEO reiterated that “there will always be a version of Facebook that is free.”

In the midst of the Cambridge Analytica scandal, in which the user data of up to 87 million people was sold by a third-party developer to Trump Campaign-linked firm Cambridge Analytica, there has been talk of Facebook potentially adding a subscription layer.

The scandal has brought to light the heart of a problem that many have been well aware of: if you’re not buying a product, you are the product.

Last week, when asked if there might be a way for users to opt out of being targeted for ads, Sandberg responded saying they’d have to pay for it.

“We have different forms of opt-out,” Sandberg replied. “We don’t have an opt-out at the highest level. That would be a paid product.”

Our own Josh Constine made an argument that ad-free subscriptions could save Facebook. And while there’s no word on an ad-free subscription, Zuckerberg did at least leave room for it in the future, noting that there will always be a version of Facebook that is free.

“How do you sustain a business model in which users don’t pay for your service?” Senator Orrin Hatch asked Zuckerberg.

“Senator, we run ads.”

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