<HJC-antitrust thread>
Answering questions...
Apple CEO Tim Cook @tim_cook
Facebook CEO Mark Zuckerberg @finkd
Amazon CEO Jeff Bezos @JeffBezos
Alphabet/Google CEO Sundar Pichai @sundarpichai
Answering questions...
Apple CEO Tim Cook @tim_cook
Facebook CEO Mark Zuckerberg @finkd
Amazon CEO Jeff Bezos @JeffBezos
Alphabet/Google CEO Sundar Pichai @sundarpichai
Asking questions...
Chair: @davidcicilline
Ranking Member: @JimPressOffice
Vice Chair: @RepJoeNeguse
@RepHankJohnson @repraskin @RepJayapal @RepValDemings @repmgs @lucymcbath @repmattgaetz @repkenbuck @reparmstrongnd @RepGregSteube
ex-officio: @RepJerryNadler @Jim_Jordan
Chair: @davidcicilline
Ranking Member: @JimPressOffice
Vice Chair: @RepJoeNeguse
@RepHankJohnson @repraskin @RepJayapal @RepValDemings @repmgs @lucymcbath @repmattgaetz @repkenbuck @reparmstrongnd @RepGregSteube
ex-officio: @RepJerryNadler @Jim_Jordan
ok, we're live. 1:05pm. Chair @davidcicilline reminding the committee, witnesses, and public at the depth and length of the investigation including the millions of records. Also cites @RepKenBuck comment on how bipartisan the entire investigation has been.
Looks like we'll be seeing Lina Khan over the shoulder of the Chair. She first came on everyone's radar with The Antitrust Paradox four years ago. At this point, experts started to understand there was more to antitrust analysis than just consumer price. 
@davidcicilline noting 3 comment aspects to the companies under investigation: 1) bottleneck/gatekeeper, 2) data/surveillance, 3) abuse by self-preferencing itself.... thrilled to see how much @davidcicilline is focused on data collection and how it ties to competition. Nails it.
and @JimPressOffice, after dutifully making the point "big isn't bad," also leans into the access to data and how it's used. This is good and bipartisan center of focus -> intersection of data policy and competition policy. He ties antitrust to bias concerns. Fair. Nails it, too.
I think that's a WilmerHale screen (Facebook's law firm) on bottom labeled "Facebook" as @RepJerryNadler makes opening statement. Reminds me when I testified against Google last year, they had reserved entire first row. It's why political will and bipartisan support are critical.
Precisely. If press wants to stay close to the actual pulse of the investigation and this subcommittee, they'll stay upstream with the smarter conversation and rest of the party on antitrust which affects a lot more than what he spent his five minutes on.
there it is. not how we expected but same consequences.
Swearing in matters because a reminder Zuckerberg didn’t when he testified in March 2018 and House Judiciary has a lotta documents as noted at start of hearing.
As it has been in UK, Australia and Germany, this is key area of probe on antitrust. Price alone does not dictate consumer cost. These are free services launched as a layer on top of surveillance and microtargeted advertising businesses (Google/Facebook).
As Google's Pichai leans into Google's privacy practices, a friendly reminder Google's Chrome browser is the only web browser without tracking prevention. Their plans to catch up have caused a panic as it's expected they'll privilege their own tracking. cookiestatus.com
Yes. These types of data points are appropriate for last decade. They won't land with the committee, press or likely the public. To my broken record point, multiple years of global investigations have made everyone involved smarter.
Based on my clock, it looks like we'll get to real action two hours after the originally scheduled start time. Tech company policy teams will be screaming to try to reduce time for questioning. The best signal of democracy will be keeping them as long as needed for all rounds.
and @davidcicilline starts with Google's Pichai. he reads evidence from interviewed companies about how Google steals their content and privileges its own profits.
"Question: Why does Google steal content from honest businesses?" 🔥 and cuts off Pichai when he filibusters.
"Question: Why does Google steal content from honest businesses?" 🔥 and cuts off Pichai when he filibusters.
Q2 also goes to Pichai, essentially follows up on the conflict of interest for Google in acting as the platform and also having a $125B+ business built off microtargeted advertising. References docs on Google's practices around emerging threats. Cicilline understands the biz.
and @davidcicilline references brill @themarkup report yday as "evidence Google became gateway to internet and used surveillance over web traffic to identify competitive threats and crush them. Ensuring any internet business has to pay Google a tax." themarkup.org/google-the-gia…
For those watching closely, I get that the Cicilline & Sensenbrenner have very different approaches to probing power so just a friendly reminder there is a full subcommittee and multiple rounds of questions.
Now @RepJerryNadler probing Instagram acquisition by Facebook. Receipts just posted.
@davidcicilline just dropped mic on Zuckerberg by pointing out FTC's failure in investigating Instagram acquisition doesn't excuse Facebook's behavior. Instagram+WhatsApp+FB has already been determined to be anticompetitive including around its data collection (Germany).
one note on FTC docs above re: Instagram. Facebook would have assumed or known the subcommittee has all of those documents. My bigger question will be if they have more recent docs including from the currently active investigation. All of this creates real-time complexity for FB.
and yes, it would be better to live in a world where companies that monitor our lives, control our information and the companies who survive/die didn't have to worry about what docs were in the hands of our lawmakers who represent us. Solution to that is avoiding bad behavior.
as @RepHankJohnson probes Tim Cook about Apple's developer terms, frequent changes, every developer must be cheering. Cook says all developers are treated equally. This can't possibly be true considering Apple Maps, Apple Music, et al report up to Tim Cook.
and @RepHankJohnson also focusing on unique access to data to self-preference own products (this time with Apple). @davidcicilline focused here with Google. this is why data protection / privacy needs to now be a key consideration for antitrust.
@RepRaskin up next with question launched from Cambridge Analytica using evidence from @chrisinsilico Mindf*ck. He's focused on fake accounts. Reminder, all questions on topic were off limits when FB COO Sheryl Sandberg testified to Senate Intel. A lot has been covered up here.
When Zucka keeps saying they've been working on improvements since 2016, please know this is entirely misleading. Starting in 2015, FB engaged in a cover-up of their data abuse by apps, related election interference & handled it as a PR matter. More here.
This has continued ever since... even when Zucka finally had to testify in Apr 2018 as NYT report made things too hot for them, he promised a full audit of FB app ecosystem (we still haven't seen). At least 3 AGs are probing around all of this: @AGKarlRacine @AGBecerra @MassAGO
As @RepRaskin asks questions on fake accounts, a reminder this is all self-monitored affecting profits/democracy. FB still hasn't passed audit it committed to in 2017 b/c of measurement concerns. FB could literally be Enron. We don't know. See @chopraftc ftc.gov/system/files/d…
They've gone to break for a technical issue. After the break, expect many more smart lines of questioning and likely another round. This is far from over. Including @RepJayapal watch here while you wait.
They're back. @reparmstrongnd asking Pichai smart, important questions about GDPR in 2018. Pichai tries to claim ignorance which is absolute BS. Remember, G's data collection is a critical asset, Pichai is CEO and helped launch Chrome. Armstrong only misses on effects of GDPR.
More on miss by @RepArmstrongND (not his fault), it's a tech lobby point to fight privacy laws saying GDPR only made G/FB stronger. This is only b/c they've abused GDPR's purpose limitations + enforcement hasn't yet happened. GDPR heightens scrutiny based on risk. Bad for G/FB.
and @RepJayapal up next. She zeroes in on what was my "burning question" (digitalcontentnext.org/blog/2020/07/2…). @dcnorg Bezos chooses to avoid admitting to previous false testimony by employee saying he can't guarantee it doesn't happen. wsj.com/articles/amazo…
So @RepJayapal just did a clinic on the antitrust concern with Amazon. Will post later. It’s applicable to how all four companies can abuse the markets and puts data protection / privacy at heart of competition law as it should be.
and @RepValDemings crushes it on what was my burning question for Google by probing 2016 cookie/data merge. Here is the press report. It's also known as question #106 by Texas AG @KenPaxtonTX. Republican for those who think these concerns are partisan. propublica.org/article/google…
for those keeping score at home, this is the second line of questioning involving the news reporting of @JuliaAngwin (this one at @propublica) and yesterday's Google discrimination by @themarkup team. tech-smart investigative reporting is important y'all.
and Zuckerberg draws @RepJoeNeguse who is now doing a clinic on the antitrust concerns around Facebook. He hasn't even had to mention this email yet about shutting off a competitive threat. We're so far beyond this in the discovery and evidence.
lol Zucka's emails around the acquisition of Instagram are a twofer in the case against the duopoly as they also point out how Google can buy and control threats to its own monopoly (again built off its uniques access to data on top of $$$).
and @RepLucyMcBath using Amazon bookseller testimonial is exactly what this hearing is for...translating why these investigations matter to the public. They've got plenty of evidence but are brilliantly weaving it with storytelling. My point the other day.
wow. @davidcicilline brilliantly illustrates problem by pointing Bezos to records showing Amazon calls 3rd parties "internal competitors" rather than customers or business partners. Case in point. Closed.
wow. @davidcicilline circles back to Bezos's answer to @RepJayapal regarding the WSJ report which showed Amazon's GC gave false testimony. Bezos claims to be investigating the matter which is a clear dodge.
Sensenbrenner circling wagons on current antitrust law which is priority #1 for GOP. He points to Obama FTC approval of FB/Insta in 2012 neglecting that Obama-era regulatory scrutiny didn't put a massive halo over Google and Facebook.
and @RepJayapal back at it asking Zucka about Facebook's copying competitors (see Snap evidence). She goes for the jugular asking him about threats to Systrom @ Instagram that if he didn't sell he was going to defeat them. Same question about Zucka and Spiegel @ Snap.
There it is. The loss of credibility for any of these CEOs, particularly and already Zucka @ Facebook, brings additional risk as their employee base evaluates the authenticity of their testimony. Stock rewards only go so far when democracy is at play.
So @RepJerryNadler went in on the harmful effects of Facebook / Google on the news industry & journalism. As part of this, he pointed to facebook's alleged fraud around metrics. @DCNorg worked to unseal the evidence on this. @laurahazardowen documented it. niemanlab.org/2018/10/did-fa…
It's one of the best examples, mostly because there is a bit of discovery, that points back to my previous tweet about @chopraftc's letter earlier in this month.
Here is the video of @RepJerryNadler’s “Pivot to Video” punch. Every journalist who had to hear these words will appreciate it since Facebook’s own profit motivations were identified by many as the source of the chase.
We're back with @RepValDemings again. She's asking questions from the leaked docs in six4three case - specifically about enforcement against apps identified by the Facebook "growth team." Zucka claims ignorance. These are senior execs (Monika leads global policy now).
now @RepMGS. YouTube acquisition is similar case to Instagram. Google Video stunk. YT was dominating as it essentially didn't follow rules of copyright, moderation, etc. YT gave G dominance in video and according to testimony a critical asset to leverage in the ad supply chain.
sorry just had a moment to post the @RepJayapal grilling of Bezos around its biz model including use of 3rd party data to make product decisions that was in previous testimony and WSJ report.
3rd round! I thought this might happen. And based on a request from the Minority which again confirms the bipartisan concerns particularly with Google and Facebook.
wow. @davidcicilline grilling Zucka on its biz model. Running down top 10 stories on FB which includes extremely harmful content albeit some of it due to President of U.S. Now tying the harm back to FB's profit model. Making clear not a speech issue but a biz model issue.
Zucka is dead. @davidcicilline referencing deceptive video from earlier this week informing people not to wear masks stating Facebook can't contain deadly content. Then shifts to false advertising and points out how FB's biz decisions further promote and spread these ads. CDA230.
Facebook again. @RepHankJohnson grilling facebook on Onovo acquisition which provided it analysis of what apps people were using. This also comes from the leaked docs in the Six4three case. WhatsApp stood out as a clear target based on exhibits like this.
Here is video of @davidcicilline third round of questions which got to the heart of the toxic nature of Facebook’s biz model (max data collection, max microtargeting, max profits, zero liability).
Sorry, I broke the thread (of course). Here is the rest.
This is a BFD line of questioning. Watch @RepValDemings probe on Google’s 2016 data merge. She absolutely nailed it. More on this in a minute. But watch it. This is at the nexus of antitrust right now.
More context on why Google’s move in 2016 matters to antitrust.
