Congress Grilling Facebook CEO Zuckerber
After privately assuring senators that his company will do better, Facebook (NASDAQ:FB) CEO Mark Zuckerberg is undergoing a 2-day public congressional ‘inquisition’ and possibly pivotal for the massive social networking company he created.
Mr. Zuckerberg visited with senators in closed-door meetings Monday, previewing the public apology he planned to give Congress Tuesday after revelations that Cambridge Analytica, a data-mining firm affiliated with Donald Trump’s presidential campaign, gathered personal information from 87-M users to try to influence elections.
Mr. Zuckerberg has apologized, to users and the public, but it is the 1st time in his career that he has gone before Congress. He is testifying before a joint hearing of the Senate Judiciary and Commerce committees Tuesday and will testify before a House panel Wednesday.
Mr. Zuckerberg is not only trying to restore public trust in his company but also to stave off federal regulation that some lawmakers have floated.
Mr. Zuckerberg has apologized for fake news, hate speech, a lack of data privacy and Russian social media interference in the Y 2016 elections.
“We didn’t take a broad enough view of our responsibility, and that was a big mistake,” he says in the remarks. “It was my mistake, and I’m sorry. I started Facebook, I run it, and I’m responsible for what happens here.”
In the remarks, Zuckerberg said his company has a responsibility to make sure what happened with Cambridge Analytica does not happen again.
He was asked about Russia’s use of US social media during the 2016 elections, a subject of several congressional investigations and special counsel Robert Mueller’s probe into Russian interference.
Mr. Zuckerberg addressed Russian election interference and acknowledges, as he has in the past, that the company was too slow to respond and that it’s “working hard to get better.” The company has said that as many as 146-M people may have received information from a Russian agency that’s accused of orchestrating much of the cyber meddling in the election.
“We will continue working with the government to understand the full extent of Russian interference, and we will do our part not only to ensure the integrity of free and fair elections around the world, but also to give everyone a voice and to be a force for good in democracy everywhere,” Mr. Zuckerberg continuesd.
“We face a number of important issues around privacy, safety, and democracy, and you will rightfully have some hard questions for me to answer,” he said.
In addition to saying he is sorry, Mr. Zuckerberg outlined the steps the company has taken to restrict outsiders’ access to people’s personal information.
He also said the company is investigating every app that had access to a large amount of information before the company moved to prevent such access in Y 2014, something that came too late in the Cambridge Analytica case.
My take away, Mr. Zuckerberg is pleading with Congress to regulate Facebook in way that will serve to dampen competition and place a major regulatory barricade to entry in to his business.
|NASDAQ:FB||159.98||10 April 2018||2.05||157.93||161.39||157.01||22,514,916|
|HeffX-LTN Analysis for FB:||Overall||Short||Intermediate||Long|
|Bearish (-0.36)||Neutral (-0.23)||Bearish (-0.40)||Bearish (-0.46)|
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