Skip to main content

tv   Bloomberg Technology  Bloomberg  April 9, 2018 11:00pm-12:00am EDT

11:00 pm
mark: i am mark crumpton in new york. here is a check of first word news. the un security council met today to discuss a weekend chemical weapons attack in syria that left at least 40 people dead. the united states led the condemnation, saying the blame is squarely on syrian president bashar al-assad. >> the monster who was responsible for these attacks has no conscience, not even to be shocked by pictures of dead children. mark: president trump says he will decide on a u.s. response within 24 to 48 hours. the fbi today rated the office of the president's personal
11:01 pm
attorney, michael:. records related to several topics, including potential payments to stormy daniels, were reportedly seized by investigators. the u.s. budget deficit will surpass $1 trillion by 2020, two years earlier than previously estimated, according to the nonpartisan congressional budget office, which says the tax cuts and spending increases signed into law by the president are doing little to boost long-term growth. illinois democrat tammy duckworth has become the first u.s. senator to give birth while in office. she delivered her second daughter today. duckworth is a veteran who lost her legs and the iraq war. in new york, i am mark crumpton. "bloomberg technology" is next.
11:02 pm
emily: this is "bloomberg technology." coming up, mark zuckerberg doubled eight in d c. we will preview the testimony going into the hearings this week and the potential questions he will face. plus, a bloomberg exclusive. our conversation with anthony noto on his plans to rewrite the rules at the online student loan refinancer. and apple's new color scheme to boost sales and help fight disease. our look at the new special edition of the iphone 8. but first, to our lead. facebook ceo mark zuckerberg arrived in washington ahead of his tuesday testimony on capitol hill. the social media giant has been in damage control mode since word broke that up to 87 million users could have had data misused by a political consulting firm with ties to president trump. zuckerberg met with the ranking
11:03 pm
democrat on the commerce committee that will be questioning him. nelson did not mince words about the possibility of government action. >> if it is not his site, byeone else can be misused people who are trying to do us harm. i believe he understands that regulation could be right around the corner. emily: joining me now, bloomberg technology's sarah frier, who is in washington to cover this week's hearing. we have gone zuckerberg's prepared remarks he intends to read. he is very apologetic. does anything in this testimony surprise you? sarah: what surprised me is that facebook still does not know exactly what happened to this data from back in the day. of tellingo way lawmakers whether those 87 million people actually did have their data looked at by cambridge analytica. they did not build these productions into their products
11:04 pm
back when they had these rules. so zuckerberg -- really all he will be able to do is go to congress and apologize and explain the ways in which facebook is doing better, but he is not going to be able to answer some of their core questions about what exactly happened and how many people need to be worried about third parties using their information without their consent. emily: we wonder how well this apology is going to work. we also heard this from senator bill nelson about their conversation. take a listen. sen. nelson: he said to me very for right three -- very forthrightly, we were lied to and we should have caught that. i believe that, but i think that is naïve. emily: a bit of skepticism, sarah. how do you think the tone that mark zuckerberg is taking going into this will impact the feelings of lawmakers and questions they ask? sarah: i think zuckerberg can't
11:05 pm
go into this looking defensive. one thing i noticed in his prepared remarks was a lot of context about how facebook is good for the world. i am not sure that is going to help them when he is trying to answer questions about what they did wrong. it -- one does not necessarily negate the other. i noticed that in sandberg's interview with you last week, she was trying to drive on the point about facebook having a positive impact on society despite these faults. i'm not sure that argument is going to work. emily: in the same interview, she said, we don't run facebook for its profitability. this is a company that is more profitable than almost any country in the world. i have been getting a lot of questions -- how could she possibly say that? who is the customer? the user, the advertiser? is facebook possibly confused about who they are actually trying to serve? sarah: the customer is the advertiser and the way that
11:06 pm
facebook gets good information for the advertiser is by building for the user. tos is really important understanding what is happening here, because what is on trial tomorrow is not cambridge analytica or russian meddling. what it is is the way in which facebook has grown, by building for growth first above all else. zuckerberg and sandberg looking at this product and saying, this is what users decided, what they told us they wanted. zuckerberg is saying that the buck does stop with them. but -- stop with him. but he was not paying attention to what could go wrong because he was focused on making it something that people wanted to use. emily: right. so 14 years into building this company -- there were memos leaked over the weekend about pursuing growth at all cost. can we really believe that that is no longer the priority and
11:07 pm
that things really will change coming forward? anyway, is it all too little, too late? sarah: facebook might have to completely change its playbook. this is not a move fast, break things company anymore. this is a company that has to think about a product before it launches and understand their impact on society, not just on how much time users spend on the network. emily: sarah frier 4s in d.c. i will see you there tomorrow. sara, thank you. we already know what zuckerberg's prepared testimony will be for the congressional hearing. what will he be asked? bloomberg spoke with senator roger wicker, a member of the senate commerce committee that will be questioning the facebook ceo. >> the question ought to be, what should congress do in response to this? are the laws already adequate? were they just violated and need to be enforced better? to what extent did facebook
11:08 pm
violate its own internal policies? and what needs to be done to prevent this in the future? it ought to be a situation not , but going forward from here, seeing if laws have been violated or need to be changed to protect the public. >> what is your initial impression? sen. wicker: my initial impression is that facebook sort at privacy- winked concerns and allowed us to happen. i want to talk to mr. zuckerberg in person on this. i think most people think there was a breach of trust and we need to get to the bottom of how that happened. did that violate the law or their own policies? what needs to be done going forward? >> something investors are trying to get their head around. if you decide from these hearings that facebook's internal controls are not adequate, what does regulation look like from washington, d.c.?
11:09 pm
what kind of regulations have you got in mind? sen. wicker: i have an open mind about what we need to do. i think that ought to be the approach of most members of the committee. i do not have legislation in mind. i don't think the ftc has regulations in mind. i think we will be listening to what we find out. i will tell you, generally speaking, i come down on the side of a light touch regulation. i think the internet has derived -- thrived. it has been the engine of our economy and economic growth for two and a half, three decades. and we need to be careful with overregulation. at the same time, if something needs to be done, if laws are not adequate to protect privacy, to protect from the wholesale selling of private information, we need to look at that. but i am reluctant over regulate, because the internet
11:10 pm
has been so great for the economy and for americans in general. >> in your mind, what are the areas of weakness that do not have sufficient explanation from the company that you will be probing? sen. wicker: whether they violated the law, whether they feel they violated the law or ftc regulations. laws are a number of state which we need to look into. i'm going to be asking very straightforward questions. i have no idea what my colleagues on both sides of the aisle will be asking. emily: that was senator roger wicker of the senate commerce committee. on tuesday, tune in for a special edition of "bloomberg technology" 1:30 pm eastern time live from washington ahead of mark zuckerberg's testimony. i will be there live. being accused is of violating u.s. law on children's piracy -- privacy.
11:11 pm
a coalition of groups have asked the government to investigate, saying you to use information to illegally targeted advertising. youtube said it will look into the complaint to determine if improvements are necessary. coming up, we will hear from a new social media platform trying to take aim at facebook's revenue strategy. on subscribersng instead of advertisers. if you like bloomberg news, check us out on the radio and in the u.s. on sirius xm. this is bloomberg. ♪
11:12 pm
11:13 pm
emily: the delete facebook craze does not appear to be going away. there are scores of celebrities and notable users who is
11:14 pm
profiles have vanished. the list continues to grow as mark zuckerberg prepares to testify. they include elon musk and brian acton as well as will ferrell, cher, rosie o'donnell, and jim carrey. with all this comes the push to make the social media platform and others as transparent as possible. is there a way to create a truly socially responsible network? one network says its network is free of things users disliked, like ads and dog rhythms that keep your feet from being chronological. joining us now, the ceo in san francisco. vero is small and light plenty of other social networking apps, you want to be the next facebook or unseat facebook. no one has been able to do that. what makes you think you will be different? >> it is an ad free social network, subscription-based,
11:15 pm
which allows us to not do any data mining of any of our user'' data. emily: but the subscription has not started yet. when do you plan to start charging users and what makes you think they're going to pay for it? >> we are announcing later this year. we believe people will pay for not having their data mind, for not having ads, for not being targeted with those ads. value of really the being safe on a network, knowing what's being done with your data. emily: facebook has come under fire after revelations that russian trolls manipulated the network to meddle in the 2016 election. vero prevent something like this from happening? >> there is no data on our users being mined. so the respective of anything, users' data does not exist on
11:16 pm
our platform other than the content they share with each other. since we are a subscription service, unlike facebook, we are not interested in people data, so we are not providing access to anyone to users' information. emily: so you are not using any of the data to improve or enhance the experience. it is purely chronological. >> that's correct. emily: why do you think that will be sticky? why do you think that will keep users coming back? >> people love to share things with each other. we are a platform that allows people to share things with each other as they wish. when a platform gets involved and starts showing you things that it thinks you want to see, that has upset people over the last few years. that is where we saw the surge in users coming into vero, because they wanted a chronological feed.
11:17 pm
they wanted to understand the system they are using. vero is simple, unlike facebook. does not use ogg rhythms, does not put things in front of them that we think they want to see. we just let them see the things they have opted into. emily: can you talk to us about how big the network is? are you sort of in the way of of growth -- wave of growth? >> we have 4 million users come on board, but we have never been focused on the numbers. we are focused on the community, the user experience. that is why we have chosen the features that we have and not to have any ads and to keep everything very simple for the user to understand. , letting themfeed share the things they love, from photographs to music to movies and tv shows, and also, very importantly, taylor the audience they get to share with. emily: vero has had
11:18 pm
controversies of its own, one of which users were upset about how expensive the terms of service were and what you could do with the content they upload. can you address that? >> sure. our terms of use really allow for the content that they put on vero to be displayed to other users. we do not own their content, we don't intend to ever owning their content. it is not interesting to us. it is not our goal to own people's content. we want them to own their content and share it with other users who they decide to share it with. emily: do you think -- i know it is in your interest to believe that facebook can be overturned. do you think that now they have grown to 2 billion users, they can simply say, we are changing a few things? because growth does not matter so much anymore. they have already done it. is facebook ever going to stop being the most dominant social network? >> so i think this is a
11:19 pm
watershed moment for privacy. i think people are understanding the cost of free. today, facebook model is completely built off this idea of free, but you provide data through your behavior that is monetized to third parties. their users are not their customers. advertisers are their customers. let me be clear. vero's users are our customers. we are providing them a service that is an alternative. whether facebook exists or doesn't, our model is different and built from the ground up to serve our users. emily: ayman hariri, ceo of vero , thank you for stopping by. coming up, we had to atlanta to find out why the city is becoming a hot spot of cyberattacks. and "bloomberg technology" is live streaming on twitter. check that out. this is bloomberg. ♪
11:20 pm
11:21 pm
11:22 pm
emily: apple is launching red versions of the iphone 8 and iphone 8 plus for the second year. the new color option could boost sales of the overshadowed iphone line. the phones are part of the initiative that donates a percentage sales to the global fund to fight hiv and aids. in the wake of the facebook data crisis, cybersecurity continues to be the topic du jour. operators at in atlanta based venture capital firm. spoke to's alix steel
11:23 pm
the general partner in atlanta for his thoughts on facebook's recent turmoil. if there is a realization in the world now that social media has created a trove of information about the private lives of individuals, not only in united states but around the world. facebook saw at way to monetize that, not only through their advertising, but through other vehicles. , ihink if i was a senator would start off with mark zuckerberg by asking, how did we get here and where does this go from here? it absolutely, positively signals the loss of privacy in america. but i am not so sure americans have not voluntarily koke c pired -- voluntarily
11:24 pm
o-conspired. alix: so how do you fix it? does it have to come from regulation if people like me willingly give over private data? >> i think it is a combination of both. first of all, as an industry, we have not truly sweated the importance of protecting private data. there are technologies and approaches today that would allow you to protect and manage who accesses your data. so i really believe it is a combination of privacy, of regulation, and technology. thathat encourages me is these types of events create enormous opportunities for entrepreneurs to look at the world differently and say, we have to protect that data. it doesn't surprise me at all that mark zuckerberg and facebook monetize that private data the way they have.
11:25 pm
it was all part of a monetization scheme. i don't believe social media can operate that way in the future. alix: what does that newmont a look like? if we are looking at companies that have made money off of monetizing my data, what is the new model in 10 years? >> wow. clearly, i think the old model is not going to be the relevant model. -- relevant model once users have the ability to selectively protect their data. i really believe the new model is based on opt in, opt out. let's face it, some of the advertising that has resulted from the utilization of our private data truly does provide us with selections of things we are interested in. alix: what is the single biggest opportunity you see to invest in
11:26 pm
a firm to solve these problems, what kind of company? >> cybersecurity companies. business automation companies like sales loft, terminus. are exciting companies that changing the way we look at logistics, like stored, an interesting startup here in atlanta. another one who is solving the last mile problem for many companies. all of this innovation is coming out of atlanta and driving the skyline that you see behind you. emily: tom newton, general partner at tech operators, speaking with alix steel in atlanta. coming up, our conversation with sofi ceo on talk of relation. -- on thoughts of tech regulation. this is bloomberg. ♪
11:27 pm
11:28 pm
11:29 pm
>> it is 11:29 in hong kong and i am yvonne man. president trump made a keynote address to the forum. xi jinping said cold war and zero-sum mentalities were unafraid. he promised to lower import tariffs for vehicles, strengthen property right protections and oppose monopolies. and reports from china say alibaba chairman is prepared to abandon his commitment to create jobs in the u.s.. he made the threat on the sidelines of the form.
11:30 pm
the alibaba bosman the president january of last year and planned to help retailers across the u.s. create one million new jobs. japan will consider normalizing policy. kuroda took office five years ago. in 2013 the governor said the boj was aiming to hit 2% inflation within a couple years and he says now the bank will reposition around april of next year, when he will consider how to quit the stimulus program. global news 24 hours a day, powered by 2700 journalists and analysts in more than 120 countries around the world. i am yvonne man and this is bloomberg. i am sophie come rudin. investors are turning more risk on after xi jinping put up the open for business sign and we have stocks rising from tokyo to sydney. subdued.o remain we have u.s. futures bouncing higher, rising over 1%. the yen is beating a retreat
11:31 pm
with treasuries promising more reforms. korean yuan is outperforming the g-10 peers. but ubs has lowered the year and target for the asx 100. trade is aina source of volatility in the meantime. let's take a closer look. the shanghai composite are a touch off the session highs. ipex did rebound. the yuan is continuing to shrug off speculation that china is suffering the impact of yuan devaluation. a quick look at aluminum
11:32 pm
stocks, which are tracking a continued rise, one of the biggest gains since 2011. producer jumped over 5%. let's look at the market. emily: this is bloomberg technology. a former goldman sachs has been named as the new cfo, filling a role that has been vacant and last summer. it is the first major appointment made by anthony noto. the company is announced to surpass half of one million users. we caught up with noto to talk about his plans since taking the helm of sofi. take a listen. >> we have got to continue to build on our core loan products, student loan refinancing. we have got to continue to build out. but the real opportunity is to
11:33 pm
add a complete set of financial services products, including sofi money, which is the modern take on a bank account. so, much of 2018 will be building those products, but still making sure our core products outperform well. emily: what is it you want to do differently? i think as a company we build a culture we are proud of, a culture that is welcoming and inclusive, a culture that reflect society. we have a diverse employee base and our number one core values interestmembers' must come first. we have got to reflect the diversity of society. emily: the former ceo left a sexual harassment allegations.
11:34 pm
when you walk into a company, what is your first order of business knowing that the culture has been toxic for a really long time? anthony: sure, we focused on three things within my first six 018, makingsting 2 sure we are aligned with our top priorities, and then third, critically important to your question, is to lay out which core values we want to have as a company. we are building on a process that took place after the change in managing called one sofi, and i worked with the management team to identify 11 quarter values, which will build the foundation of the culture we are building and the next important step is to educate the company on those values, the behaviors we expect and that rewarding those that are culture carriers and punishing those that are not. hired: you have just michelle gill from goldman, which is interesting because people have said that goldman is increasingly your competitor.
11:35 pm
is this an effort to take on the goldman -- the rest of the financial world? anthony: not at all come it is to build a diverse company. michelle is a unique combination of a phenomenal leader, a financial expert and a culture builder. that set her apart from the rest of the candidates. we saw a great slate of candidates and are pleased we were able to hire michelle. prior to this her process and enjoyed the hours i have spent with her, talking about the vision of the company, where we can go from the outset and the importance of building a strong culture. that was a rare combination and we were lucky to convince her to join our team. delayedthe ipo has been a couple of times. why is that and what are the challenges? anthony: it is important to recognize the success, $12.9 billion funded since lester come up more than 60%. the company has achieved
11:36 pm
positive growth and also pre-cash flow and gap profitability. we want to build on that success in 2018. one important area is building the culture of that foundation, but we have to invest in the other products to build a more recurring revenue stream to overall accomplish our mission, which is to help people achieve financial independence. as ae: do you see sofi financial independent company? anthony: it is not a priority for 2018, but i see it in our future. we want the right to link blocks. we will strengthen our core products and invest in new products and building up the membership experience. our goal is to achieve the emotional benefit and putting together a real membership experience. we want to do those things before we answer the public market. sophie: so, two years, three years? i am not putting a time frame on it as much as i am convictions.
11:37 pm
sophie: mark zuckerberg is testifying this week before congress. facebook is in the middle of a huge controversy. overer has been dragged the last few weeks, as facebook has. where did facebook go so wrong? a very: it is complicated situation for them particularly, so i would have to spend more time to go through my thoughts, what i can say is what we are focused on and that is making sure we have the right core values and leadership on top of the company to make sure our members are never surprised. and to make sure that their interests come first and that involves not just transparency, but also information and education and as long as we put their interests first, in addition to the information and making sure they're educated in will not are doing, we surprise them and avoid some of the pitfalls we are hearing about in the news. sophie: do you think tech needs to be regulated? anthony: i think an industry is regulated when a leadership cannot adequately abide by some standards that they established in running their business and
11:38 pm
ultimately, if the leadership can step up in all these companies, provide the right consumer environment, then they will do it themselves and there is no need for an outside force. sophie: well, the financial industry has been regulated for a long time and some would say does pretty clear tech cannot regulate itself. so does that mean tech needs regulating? anthony: i think tech is a pretty broad term. within the media landscape there is a fair amount of regulation. the ftc, some of the other important regulatory bodies to provide regulation that they all have to comply with. so, there are some new areas that require greater scrutiny. and leader should solve on -- should focus on solving those areas. sophie: things have been looking breakcan it really
11:39 pm
it out of that 300 million users? anthony: i think they have the right strategy and focus. the company is refocusing on keeping people informed. that is the right strategy. i think as long as they stay focused on that, there will be ebbs and flows, but ultimately, that is a very unique value proposition that only twitter can build on. that is the key to how the growth of the company unfolds. but in terms of the specifics, i have not been there in a mile. ablei was there, we were to drive the acceleration of growth in the audience and what unfolds now is something that we will be watching, just like the rest of the outsiders. sophie: that was sofi ceo anthony noto. we are continuing our coverage on syntech. how one startup focused on the insurance business changed after softbank made a big bet on the company. that is next. this is bloomberg. ♪
11:40 pm
11:41 pm
11:42 pm
11:43 pm
sophie: late last year softbank made a bet that technology would overhaul the insurance industry with a $120 million loan into lemonade. so, what has limited been up to since the high-profile investment? we are joined by the ceo and cofounder from new york. now that you have got this money, where have you been putting it to use and what sort of progress have you made since this cash infusion? david: well, emily, like you said, we have been investing in artificial intelligence and we are trying to build an entirely new kind of company that is built on the substrate of technology and data. what that means is we can use a.i. to pay claims. aspay them in as little
11:44 pm
three seconds and most of our resources are going into exactly that, building a new kind of company built on that concept. emily: you could a lot of really privileged information about your customers and over the last few weeks we have been talking a lot about privacy, about data privacy. how are you sort of handling your relationship with the customer internally and have you learned anything at lemonade since some of the revelations we have seen coming out of facebook? david: i think so. insurance is an economic and -- is any economic necessity, but is not trusted. trust and trust related issues have been endemic to insurance way before the facebook issues. we tried to build an alternative business model that aligned us with our customers. insurance often finds you
11:45 pm
conflict with your customer -- if you deny your claim i get to pocket the money. businessa different model to make sure that we are aligned with our consumers in a way that the traditional insurance players and tech players have a difficulty doing. customer, if i am a how might my experience with you be different than a traditional insurance giant? david: i think you will find very little in common. [laughter] david: so, when you purchase insurance on lemonade, you or go tothe app the website come you are insured within a matter of seconds. if you spent more than 90 seconds purchasing insurance come you are doing something wrong. it is delightful and instantaneous and more remarkable man that, when you make a claim, it is the same thing. 1/3 of our claims are paid by our a.i. within three seconds. you press submit and the money is back on your debit card within three seconds. the only does a.i. allow us to transform the experience, but it allows us to lower costs.
11:46 pm
for first-time insurance buyers, younger consumers, the savings can be very dramatic, 70% to 80% savings more often than not. so, you have a lot on advertising and i am curious how some of these costs have paid off in growth. how are the costs stacking up relative to the progress you are making? david: we are a young company and have launched 18 months ago. these are early days, but we see growth well ahead of our expectations. in the six quarters we have been in business, we have grown 100% quarter on quarter. we are seeing growth that is way ahead of what we had initially planned. amongstt means is that the first time buyers seven sharon's, we have become the number one brand. our market share amongst early adopters of technology and millennials and young consumers in general has risen to the top, so we are now the first choice among lenders who buy insurance for the first time.
11:47 pm
growth has been surprising and fabulous. emily: paint the picture for me. say hurricane cindy hits again or something like it. in your perfect world how is the experience of those homeowners, those customers, different? david: we had to model hurricane sandy, we did not live through it, but it is part of our modeling. we are prepared for that eventuality in many ways. we are heavily in short. we have companies like lloyd's of london and allianz standing behind us and we are insurance carriers. we had to have that backing with new york regulators making sure we had the wherewithal to pay all of those claims. but beyond the wherewithal, it is having the will to pay them and that is an extra of the technology piece, the ability to handle claims quickly, a medium time to pay a claim is under a day. we are talking about orders of magnitude better than what the industry has known so far.
11:48 pm
but it is also about the economics. when people worry about sandy, they're not worried that the insurance company will have the wherewithal to pay the claim, they are worried they will not have the will. so, reinventing the business model, making a business model that is a conflict it, the never makes money by denying claims, all of that starts to engender trust and create an insurance company that is not only trusting, but trustworthy. that is a key part of fixing this industry. schr all right, daniel ieber, thank you. tuesday marks the start of mark zuckerberg's capitol hill testimony. we will talk to somebody on the front lines of arguing in favor of tech firms. this is bloomberg. ♪
11:49 pm
11:50 pm
emily: there is a high-profile techemily: name getting off of facebook, steve wozniak is living the social media platform. in an interview with usa today,
11:51 pm
he said he is no longer on facebook because of the alleged misuse of user data. comments i timt cook, saying apple makes its money off of good products, not off of you. as they say with facebook, you are the product. i want to bring in somebody whose group lobbies on capitol hill on behalf of companies like twitter, google and facebook, firms closely watching this week's testimony and potentially any regulation down the pipes. michael zuckerman joining me now. just how badly do you think facebook's reputation has been hurt by this? michael: thanks for having me. we will have to see what that looks like long-term, but i do have to give mark zuckerberg credit for being candid and showing leadership. it is not easy admitting you made a mistake, which he has done, but he is taken concrete action to fix the problem. at the end of the day, trust is
11:52 pm
the most important thing and it is up to him to regain the trust of all the users. emily: the ceos of google and twitter were also summoned to testify and they said, "no thank you." they are not happy with their names being dragged through the facebook mud. what are you hearing from companies aside from facebook about what is going on here? notael: i would rather address private conversations, but i can say this is an issue for the entire industry, to show leadership and provide transparency, reminding users on privacy practices and what everybody is doing and each platform is different. the facebook case is specific to facebook. but all of the companies take privacy very seriously. because if your users do not trust you, people do not believe in the platform and product, they will not use it anymore. internet is unique where competition is a click away. everybody recognizes that. emily: do using regulation will happen and if so, what should it look like? michael: there already is regulation at the state level,
11:53 pm
at the federal level, at the ftc, and certainly around the world. our companies go often above and beyond to protect data, to protect users and to provide policies on the privacy front people are come to bullet and often, it is better for the visuals to make those decisions as they are opting into websites and apps they are using than the government. emily: but over the last few weeks that has proven that a, users do not necessarily understand what they are signing up for an companies are not exactly transparent. facebook has potentially 87 million users having their data misused by cambridge analytica and other users could have had their profile scraped. is the clear text companies cannot regulate themselves? michael: we already do face regulation and the ftc is a very strong enforcement agency over this. but clearly in this case, mistakes were made.
11:54 pm
there will always be bad actors out there, which there were in this example. we need to stay ahead of it. changes are going to be made, specifically to facebook and mark zuckerberg will be talking about that as he testifies this week, but all the companies are looking at their policies and practices to ensure that the and trust is maintained everybody's data is protected in a way that people are comfortable with. evidenceght, but the at this point is that user trust has been broken. does the government need to do more. but iss some regulation, it not enough? michael: we always want to have a seat at the table when talking to lawmakers and regulators at the state and federal level and certainly around the world. but i think when you look at potentially new regulations as a result of this particular case, we really should focus on the arms. it is not just internet companies on the internet now, it is a lot of small and medium-sized businesses that take advantage of the positive benefits of the online community
11:55 pm
that has developed over the last few years. and the major consequences. we want to make sure that any rules and regulations make sense and do not harm startups and non-tech businesses. emily: we know that mark zuckerberg is taking up a contrite tone going into this. what is your sense of how this appearance will play out over the next couple days, how harsh lawmakers are going to be? michael: well, we will see. certainly there is a lot of anger on capitol hill, but i do think that the fact that mark zuckerberg has taken responsibility and they hardly put in concrete and tangible changes, that's half the battle. and he is showing leadership here as a young leader of a company, it's not easy going up to capitol hill in this context, but he is doing this and he has been incredibly candid and he is really showing leadership and putting actual changes in place and not just giving a hollow apology. emily: but is it too little, too late?
11:56 pm
facebook does not know where it is, what has been done with the data. is the genie out of the bottle? michael: look, i do not think so, but it is up to users to make that decision. competition is one click away and trust has to be art. it is incumbent upon facebook and every company to keep doing the right things, putting policies in place to protect their users and that is a decision individuals will make, but certainly they have work to do to earn back trust. emily: all right, michael beckerman, ceo of the internet association in d.c. there and, i will be we have a special edition of bloomberg technology, starting at 1:30 p.m. eastern time. we will bring you the latest of mark zuckerberg's testimony on capitol hill. that does it for this edition of bloomberg technology. we are live streaming on twitter. check us out, 5:00 p.m. in new york and 2:00 p.m. in san
11:57 pm
francisco. this is bloomberg. ♪
11:58 pm
11:59 pm
12:00 am
promises greater openness. asian stocks and u.s. features. sides torging both dial it down. the situation could take it wild to resolve. >> president trump responding forcefully to the chemical attack in syria. his defense


info Stream Only

Uploaded by TV Archive on