Link to UK Parliament hearing - Facebook whistleblower starts momentarily. Chair of committee is @DamianCollins who led multi-party, impressive hearings in 2018/2019 and made himself into one of the smartest lawmakers on the planet regarding the issues. /1 parliamentlive.tv/event/index/cd…
For those who didn’t spend many hours tracking as Parliament DCMS investigated, tried to summons Zuckerberg to answer to cover-up and called them a ‘digital gangsta’, prepare for a session where they’re able to go deeper into dialogue and details rather than talking points. /2
As an example @DamianCollins is already diving into the mechanics of Facebook Groups and how they can amplify problematic engagement and recommend and organize groups and networks of groups around harmful themes. /3
Remarkable exchange between MP @MrJohnNicolson as he mashes with Facebook whistleblower on whether the company is “negligent,” “evil,” or “malevolent.” /4
I really like @DamianCollins follow-up here. It’s where an area where I feel pretty strongly and Facebook lost the most trust with me. Trust is earned based on how you act at a point of vulnerability. Once you know something harmful is happening, how did you deal with it? /5
I wasn’t expecting this line of discussion but 🙌🏼 it’s as if the Facebook whistleblower was a fly on the wall when I had direct access to Facebook and they failed to listen. /6
Good perspective why it’s not sustainable the only group that can ask questions and get answers from Facebook is Facebook itself. It’s important context we just learned from unsealed docs in lawsuit FB terminated PWC’s audit initiated by board after Cambridge Analytica breach. /7
wicked smart question as @DamianCollins connects dots between microtargeted amplification for advertising $$$ / profits and the microtargeted spread of harmful content. Yes, advertisers $100+B per year funds same systems that also spread harm. Profit > Civil society. /8
And @DamianCollins fact checks Facebook PR Nick Clegg’s silly misleading “two to tango” blog post putting blame of the users to accurately represent Facebook’s integral role in providing accelerated velocity and reach for harmful content. /9
In a sane world, this would freak investors on earnings day. Towards close of hearing we get to “Enron” discussion. First, whistleblower clearly points out the extraordinary percentage of new accounts which aren’t authentic (Facebook plays “denominator game” here, too). /10
And @DamianCollins rightly inquires why the ad sales wouldn’t be fraudulent. Whistleblower points to SUMA (actually means Single User Multiple Accounts based on evidence we helped unseal) and yes there is an active fraud lawsuit involving c-level. Will post thread below. /11
Here is a thread on SUMA, fake accounts, “potential reach” and advertising sales concerns and allegations including FT and WSJ reporting on them. /12
ok, this is HUGE. Late Friday, Penske (PMC) filed a wicked-smart, landmark antitrust lawsuit against Google. I've now read it in full and I'm very impressed. Importantly, it's the first antitrust suit for Google tying its AI-driven products to its adjudicated search monopoly. /1
The core claim: Google is abusing its search monopoly to force pubs to hand over content - not just for traditional search indexing but to feed its AI. Google then repurposes it to substitute them with its own services breaking the fundamental bargain of the open web. /2
Penske says this is not a fair exchange. If it weren't for Google's adjudicated monopoly power (recall Judge Mehta said they get 19x as many queries as next biggest), Google would be paying pubs for these rights or if it didn't then they would opt-out of providing them. /3
OK all ye people depressed Judge Mehta didn't order Google broken into bits this week. I'm here to cheer you up. DOJ has its other remedies trial in 16 days and just posted its PFJ (Proposed Final Remedies) now 60+ pages of brilliant detail. Let me walk you through key terms. /1
This is the 2023 US v Google adtech win - the one DCN and its premium publishers have long been much more deep and focused on. Here’s what it means for publishers of all types - and why it will be a massive win for the open web if Judge Brinkema signs on (I believe she will). /2
First, clear structural remedies. Google must divest AdX, its ad exchange, w/in 2yrs and likely DFP, its publisher ad server. No more vertical ad stack monopoly with interest conflicts. This would finally decouple tools Google can use to rig auctions and suppress pub revenues. /3
All eyes at Google on streaming NFL game tonight but Google Inc and its many monopolies have had quite the week. I’ve been absorbing on this end, some quick Friday thoughts on things missed. Bad news certainly for the public, and also DCN members, in US v Google Search case. /1
Judge Mehta said "no thanks" to helping publishers - because he said no pubs testified. Maybe that’s what retaliation fear looks like??? He also noted the unlawful conduct was about distribution deals, not deals with publishers. More on that in a minute. /2
Despite Mehta finding Google illegally maintained its 95%+ search monopoly with browser deals, he also said it’s OK for Google to keep owning Chrome - the world’s biggest browser - so they can keep paying everyone else and free riding on their own browser. All bad here. /3
Woah. Facebook just settled immediately before board members Andreessen, Thiel, Zuckerberg, Desmond-Hellman, and Sheryl Sandberg were set to testify as to who knew what and when…depriving public of any accountability and facts in courtroom from board and officer comms. 1/3
Counter to Facebook lawyers framing yesterday, the DC AG suit isn’t dead (awaiting DC Circuit from 1/30 hearing), and NdCal shareholder suit also still alive. This is the closest to
Courtroom testimony after about $8B+ in settlements. 2/3
Credit to Reuters, Delaware Online who I saw actually showed up to cover. It’s likely why Facebook, Zuckerberg and its board, let this one get so close. But the grid. But today things were likely to get very very hot. 3/3
News cycles. News cycles. What I called the "mother of all lawsuits" for Facebook in 2021 goes to trial TOMORROW. Zuckerberg, Marc Andreessen, Sheryl Sandberg, Peter Thiel, other board members expected to testify live as to who knew what and when in its largest scandal ever. /1
Meanwhile, Zuckerberg and Facebook comms have successfully flooded the zone with AI-hype and exclusive CEO interviews mostly distracting the press away from a trial on how they leveraged, and allegedly abused, personal data to drive a decade of massive growth in mobile share. /2
The case involves allegations the board broke its loyalty to company (and Zuckerberg insider traded on stock) after Facebook had been long violating its FTC consent decree and other privacy laws - all covered up by nearly $8 billion in settlements ($5B alone with the FTC). /3
Woah. Exhibit list just posted for Facebook trial in DE starting in a few weeks. We finally have confirmation Sheryl Sandberg was deposed by the SEC - one week prior to Zuckerberg which also kept secret until a lawsuit unsealed it. Sandberg was also sanctioned in this case. /1
This matters as it gets at Who Knew What When at FB ahead of the world finding out its platform was leaking personal data for years. Zuckerberg was dodgy at best under oath to Congress, FB responses to Parliaments focused on 2018 news. But exhibits include Jan 2017 MZ emails. /2
The DE lawsuit claims Facebook's $5 billion record settlement was inflated in order to protect its CEO, Zuckerberg, and also includes (civil) insider trading claims. Zuckerberg was ordered to sit for multiple day depo this year, will have to testify live. /3