1
00:00:03,480 --> 00:00:07,560
Speaker 1: Welcome to the Bloomberg Law Podcast. I'm June Grosso. Every

2
00:00:07,640 --> 00:00:10,440
Speaker 1: day we bring you insight and analysis into the most

3
00:00:10,480 --> 00:00:13,440
Speaker 1: important legal news of the day. You can find more

4
00:00:13,480 --> 00:00:18,040
Speaker 1: episodes of the Bloomberg Law Podcast on Apple Podcasts, SoundCloud

5
00:00:18,320 --> 00:00:22,919
Speaker 1: and on Bloomberg dot com slash podcasts. Wisconsin Supreme Court

6
00:00:22,920 --> 00:00:26,200
Speaker 1: elections are supposed to be nonpartisan, but in a bitter

7
00:00:26,280 --> 00:00:31,080
Speaker 1: and expensive race, Rebecca Dallett, the winner and Michael Scrennock

8
00:00:31,200 --> 00:00:34,839
Speaker 1: turned the elections into a political referendum against Governor Scott

9
00:00:34,840 --> 00:00:39,159
Speaker 1: Walker and President Donald Trump, who Dalt even referenced in

10
00:00:39,159 --> 00:00:44,200
Speaker 1: television ads during the campaign. He's attacked our civil rights

11
00:00:44,640 --> 00:00:50,159
Speaker 1: and our values. She'll protect them. Hi'm Rebecca Dallett. For

12
00:00:50,200 --> 00:00:53,080
Speaker 1: over twenty years, I've been a prosecutor and a judge,

13
00:00:53,240 --> 00:00:56,080
Speaker 1: delivering justice to victims and their families in some of

14
00:00:56,080 --> 00:01:00,320
Speaker 1: the toughest cases of rape and child abuse. Joe us

15
00:01:00,400 --> 00:01:04,040
Speaker 1: Is Michael Bologna, reporter for Bloomberg News. Michael, this is

16
00:01:04,040 --> 00:01:06,560
Speaker 1: the first time in twenty three years that a liberal

17
00:01:06,840 --> 00:01:10,080
Speaker 1: non incumbent has won a seat on Wisconsin's High Court,

18
00:01:10,120 --> 00:01:12,920
Speaker 1: and it's officially a nonpartisan race, but it turned into

19
00:01:12,959 --> 00:01:17,960
Speaker 1: a political referendum. Tell us about that, Well, Um, that's

20
00:01:18,000 --> 00:01:22,520
Speaker 1: perhaps not not surprising even though these are nonpartisan races.

21
00:01:23,440 --> 00:01:30,040
Speaker 1: The the candidates, uh, you know, campaigns as liberals and conservatives,

22
00:01:30,080 --> 00:01:33,679
Speaker 1: so that everyone's leanings were well known, and there was

23
00:01:34,240 --> 00:01:39,120
Speaker 1: influence from you know, the National Rifle Association for for

24
00:01:39,240 --> 00:01:43,920
Speaker 1: SCREENAC and uh perhaps a Planned Parenthood and Democratic groups

25
00:01:43,920 --> 00:01:48,360
Speaker 1: for Rebecca Dallas. So it's been a highly politicized court

26
00:01:48,480 --> 00:01:52,000
Speaker 1: and it's not surprising that the leanings of these uh,

27
00:01:52,360 --> 00:01:56,320
Speaker 1: these candidates were well known by the voters. Is it

28
00:01:56,400 --> 00:02:00,280
Speaker 1: unusual though, to see this much outside money come into

29
00:02:00,320 --> 00:02:04,440
Speaker 1: a race like this from from national political groups. Well,

30
00:02:04,480 --> 00:02:07,240
Speaker 1: that there was a lot of outside money that came

31
00:02:07,280 --> 00:02:10,720
Speaker 1: into this campaign. But that said, it's a it's been

32
00:02:10,760 --> 00:02:13,520
Speaker 1: a highly politicized court for ten years, and there's been

33
00:02:13,520 --> 00:02:16,200
Speaker 1: a lot of outside money going back as far as

34
00:02:16,560 --> 00:02:20,800
Speaker 1: two thousand eight. Um, in the scheme of things, this

35
00:02:20,960 --> 00:02:24,280
Speaker 1: was an expensive race in in Wisconsin, but there's actually

36
00:02:24,280 --> 00:02:28,080
Speaker 1: been more expensive Supreme Court races going back to and

37
00:02:28,160 --> 00:02:32,240
Speaker 1: four years ago. Michael, This narrows the conservatives advantage on

38
00:02:32,280 --> 00:02:34,640
Speaker 1: the court from five to two to four to three.

39
00:02:35,120 --> 00:02:39,480
Speaker 1: Are there many decisions that go straight down partisan lines. Yes,

40
00:02:39,800 --> 00:02:44,200
Speaker 1: this is it's a highly partisan Supreme Court. UM. I

41
00:02:44,240 --> 00:02:46,520
Speaker 1: don't know if that's really common in in a lot

42
00:02:46,600 --> 00:02:49,480
Speaker 1: of other states, but it certainly has been in Wisconsin.

43
00:02:49,680 --> 00:02:53,679
Speaker 1: And I mean Wisconsin has been a very UH polarized

44
00:02:53,800 --> 00:02:58,400
Speaker 1: political climate certainly over the last eight years, with Republicans

45
00:02:58,440 --> 00:03:02,880
Speaker 1: controlling really all levers of of state government, the certainly

46
00:03:02,880 --> 00:03:06,920
Speaker 1: the governor's mansion and both the UM, both chambers of

47
00:03:06,960 --> 00:03:11,840
Speaker 1: the UH, of the legislature. And now, of course, after

48
00:03:11,960 --> 00:03:15,080
Speaker 1: the results of this Supreme Court race, Michael, we've seen

49
00:03:15,280 --> 00:03:19,760
Speaker 1: the comments and the tweets from Republican Wisconsin Governor Scott

50
00:03:19,760 --> 00:03:23,560
Speaker 1: Walker warning his supporters of a possible blue wave coming

51
00:03:24,360 --> 00:03:29,200
Speaker 1: in Wisconsin. How concerned should Republicans be in the in

52
00:03:29,240 --> 00:03:32,320
Speaker 1: the state given that result? Well, I think they should be.

53
00:03:32,400 --> 00:03:35,960
Speaker 1: And I mean Scott Walker maybe was the best advertisement

54
00:03:36,320 --> 00:03:40,920
Speaker 1: for for Democrats going forward with his his tweets that night. UM.

55
00:03:41,360 --> 00:03:44,880
Speaker 1: And this isn't the only UH indicator. I mean, we

56
00:03:45,000 --> 00:03:49,320
Speaker 1: had a state Senate seat UH in a really kind

57
00:03:49,360 --> 00:03:52,440
Speaker 1: of a red district just a few weeks ago that

58
00:03:52,480 --> 00:03:58,000
Speaker 1: went to a Democrat, UH, and that certainly caught Walker's attention. Um.

59
00:03:58,040 --> 00:04:02,280
Speaker 1: There was also a ballot initiative over the state treasurer

60
00:04:02,760 --> 00:04:06,800
Speaker 1: that went against Walker in the same election, which dalt one.

61
00:04:07,520 --> 00:04:10,480
Speaker 1: So that was that was another indicator. So there's a

62
00:04:10,560 --> 00:04:12,840
Speaker 1: number of things. I think there's a certain level of

63
00:04:12,880 --> 00:04:16,440
Speaker 1: Republican fatigue and Walker fatigue going on across the state

64
00:04:16,480 --> 00:04:19,719
Speaker 1: at the moment. Michael. This election also means that six

65
00:04:19,760 --> 00:04:24,080
Speaker 1: of the court seven justices will be women, which is unusual.

66
00:04:24,120 --> 00:04:26,880
Speaker 1: I don't know any other court off hand that has

67
00:04:27,000 --> 00:04:33,400
Speaker 1: that was that mentioned at all or considered. I mean,

68
00:04:34,320 --> 00:04:37,680
Speaker 1: I'm sure that people noticed this. It's it's it's an

69
00:04:37,760 --> 00:04:43,680
Speaker 1: encouraging and interesting uh development. Um. I can't say it

70
00:04:44,720 --> 00:04:50,919
Speaker 1: was planned or anything, but apparently the electorate believes that

71
00:04:50,960 --> 00:04:53,680
Speaker 1: this is a good thing and maybe a little bit

72
00:04:53,680 --> 00:04:56,280
Speaker 1: more balanced will come from that. You know, Michael, A

73
00:04:56,279 --> 00:04:59,040
Speaker 1: lot of folks here here in Washington watch races like

74
00:04:59,120 --> 00:05:02,080
Speaker 1: this and to look at them to see whether any

75
00:05:02,160 --> 00:05:05,000
Speaker 1: tea leaves can be read in terms of mid term

76
00:05:05,040 --> 00:05:09,720
Speaker 1: implications for other races across the country. Is it appropriate

77
00:05:09,760 --> 00:05:15,919
Speaker 1: to read a Wisconsin Supreme Court race in in that context? Well, yeah,

78
00:05:16,000 --> 00:05:27,360
Speaker 1: I think so. Um, because you know, Trump's um, uh,

79
00:05:27,400 --> 00:05:30,880
Speaker 1: you know, antics over his first year in office, came

80
00:05:30,920 --> 00:05:37,120
Speaker 1: out in the advertising during the campaign. Um, and uh,

81
00:05:37,160 --> 00:05:40,680
Speaker 1: you know, Wisconsin is a purple state, so to speak.

82
00:05:40,760 --> 00:05:44,520
Speaker 1: But it appears through this race and the the other

83
00:05:44,640 --> 00:05:47,080
Speaker 1: race that I talked about, Uh, that it that it

84
00:05:47,160 --> 00:05:50,120
Speaker 1: might be trending a blue er. Uh, you know, going

85
00:05:50,160 --> 00:05:54,159
Speaker 1: into November. And obviously, you know Scott Walker is concerned

86
00:05:54,160 --> 00:05:58,200
Speaker 1: about that. Michael, about forty five seconds here, Walker was

87
00:05:58,400 --> 00:06:02,320
Speaker 1: forced by the courts to set special elections for two

88
00:06:02,400 --> 00:06:05,840
Speaker 1: empty legislative seats. Was there a discussion of that during

89
00:06:05,880 --> 00:06:10,440
Speaker 1: this campaign? Uh? Probably there wasn't a lot of discussion

90
00:06:10,520 --> 00:06:12,760
Speaker 1: about that, just because that all came up just in

91
00:06:12,800 --> 00:06:18,960
Speaker 1: the last ten days or so. Um. I mean, it's

92
00:06:19,240 --> 00:06:22,160
Speaker 1: something that I'm sure some voters were concerned about. In

93
00:06:22,560 --> 00:06:27,039
Speaker 1: that whole situation kind of embarrassed Walker and Republicans made

94
00:06:27,040 --> 00:06:29,840
Speaker 1: them look a little silly at the last moment. It's

95
00:06:29,920 --> 00:06:32,440
Speaker 1: it's hard to say that that might have been had

96
00:06:32,520 --> 00:06:35,080
Speaker 1: much impact on the race though. Well, thank you, Michael.

97
00:06:35,120 --> 00:06:43,520
Speaker 1: That's Michael Bologna, reporter for Bloomberg News. Next Tuesday, Facebook

98
00:06:43,600 --> 00:06:46,640
Speaker 1: CEO Mark Zuckerberg will appear before a joint session of

99
00:06:46,680 --> 00:06:49,880
Speaker 1: a Senate Commerce, Science, and Transportation Committee and the Senate

100
00:06:49,960 --> 00:06:53,159
Speaker 1: Judiciary Committee. But before his big day on Capitol Hill,

101
00:06:53,200 --> 00:06:56,440
Speaker 1: the Facebook co founder held a call with reporters yesterday

102
00:06:56,640 --> 00:07:00,280
Speaker 1: where he gave more details about Cambridge analyticas imp upper

103
00:07:00,320 --> 00:07:03,880
Speaker 1: data usage. I'm quite confident given our analysis that is

104
00:07:03,920 --> 00:07:07,159
Speaker 1: not more than seven um. It very well could be less,

105
00:07:07,160 --> 00:07:09,640
Speaker 1: but we wanted to put out the maximum that we

106
00:07:09,680 --> 00:07:11,600
Speaker 1: felt that it could be as soon as we had

107
00:07:11,680 --> 00:07:15,360
Speaker 1: that analysis on its website. Face also said. Facebook also

108
00:07:15,400 --> 00:07:17,720
Speaker 1: said that data on most of its two billion users

109
00:07:17,720 --> 00:07:21,760
Speaker 1: could have been accessed improperly by malicious actors. Joining us

110
00:07:21,760 --> 00:07:26,600
Speaker 1: from our Bloomberg studios in Washington is Matthew Chettenhelm, Bloomberg

111
00:07:26,640 --> 00:07:30,400
Speaker 1: Intelligence media analysts. Matt. One of the things Zuckerberg said

112
00:07:30,480 --> 00:07:32,800
Speaker 1: yesterday was we didn't take a broad enough view of

113
00:07:32,800 --> 00:07:35,760
Speaker 1: what our responsibility was, and that was a huge mistake.

114
00:07:36,280 --> 00:07:39,320
Speaker 1: But Facebook has been under a twenty year consent decree

115
00:07:39,560 --> 00:07:43,240
Speaker 1: to safeguard uses personal information. There were hearings last year

116
00:07:43,320 --> 00:07:45,760
Speaker 1: on the Russian use of Facebook during the election. There

117
00:07:45,760 --> 00:07:48,800
Speaker 1: have been other instances of leaked data. So does this

118
00:07:48,880 --> 00:07:53,240
Speaker 1: seem like just another incident in a long line. Uh,

119
00:07:53,480 --> 00:07:56,280
Speaker 1: it certainly doesn't. It seems a little bit different and

120
00:07:56,560 --> 00:07:59,120
Speaker 1: it's it's in some ways really remarkable June, that that

121
00:07:59,160 --> 00:08:05,320
Speaker 1: we're talking seriously about regulation of Internet companies. We're coming

122
00:08:05,320 --> 00:08:08,520
Speaker 1: off a history of some twenty years when when this

123
00:08:08,520 --> 00:08:12,480
Speaker 1: this wasn't a serious idea at all, when Congress really

124
00:08:12,520 --> 00:08:15,600
Speaker 1: had took a hands off approach to the to these companies.

125
00:08:15,920 --> 00:08:19,960
Speaker 1: But this is a story that isn't going away anytime soon.

126
00:08:20,440 --> 00:08:23,520
Speaker 1: And I think it's it's it's it's a serious conversation

127
00:08:23,600 --> 00:08:26,080
Speaker 1: that needs to be had, even though I think there's real,

128
00:08:26,240 --> 00:08:30,280
Speaker 1: real doubts that that this Congress is likely to move

129
00:08:30,400 --> 00:08:34,720
Speaker 1: on serious material legislation anytime soon. Why do you have

130
00:08:34,800 --> 00:08:37,720
Speaker 1: those doubts? Well, for a number of reasons. One that

131
00:08:37,840 --> 00:08:40,840
Speaker 1: history that we talked about, We there this Congress has

132
00:08:40,920 --> 00:08:43,679
Speaker 1: as for for decades said look, we're not going to

133
00:08:43,679 --> 00:08:46,360
Speaker 1: touch this area. The Internet is thriving, we're not going

134
00:08:46,440 --> 00:08:48,960
Speaker 1: to get in the way of it too. That's sort

135
00:08:48,960 --> 00:08:52,439
Speaker 1: of consistent with this Congress's d n A. This Republican

136
00:08:52,480 --> 00:08:57,320
Speaker 1: controlled Congress prides itself on cutting away regulations, not building

137
00:08:57,400 --> 00:09:00,559
Speaker 1: new ones, and so does this president. And and third

138
00:09:00,880 --> 00:09:04,120
Speaker 1: Congress doesn't really have a have a grasp on this

139
00:09:04,240 --> 00:09:07,160
Speaker 1: problem yet. Uh, you know, they're they're trying to get

140
00:09:07,160 --> 00:09:10,800
Speaker 1: their hands on just understanding what has gone on and

141
00:09:10,800 --> 00:09:13,800
Speaker 1: and and how can they fix it? But there I

142
00:09:13,840 --> 00:09:17,800
Speaker 1: think they're far removed from actually addressing that in any

143
00:09:17,800 --> 00:09:20,040
Speaker 1: sort of concrete way. What I think this is for

144
00:09:20,120 --> 00:09:23,760
Speaker 1: now is exploring the issue, making a lot of noise

145
00:09:23,800 --> 00:09:26,400
Speaker 1: about it to insist that the company's move to to

146
00:09:26,520 --> 00:09:30,360
Speaker 1: do a better job. But but the prospect of serious

147
00:09:30,440 --> 00:09:33,880
Speaker 1: legislation anytime soon strikes me as pretty unlikely. Matt, does

148
00:09:33,920 --> 00:09:37,880
Speaker 1: Facebook have a handle on this incident? I think that

149
00:09:37,960 --> 00:09:40,320
Speaker 1: remains to be seen. I think they're still trying to

150
00:09:40,320 --> 00:09:44,559
Speaker 1: figure that out themselves. Uh, as a public relations matter,

151
00:09:44,679 --> 00:09:47,600
Speaker 1: I think they've struggled, uh, in terms of what is

152
00:09:47,640 --> 00:09:51,600
Speaker 1: the actual underlying problem. I think they're they're just starting

153
00:09:51,600 --> 00:09:54,440
Speaker 1: to begin to figure that out each day as they

154
00:09:54,480 --> 00:09:58,280
Speaker 1: look a little bit closer. So it's it's uh, truly

155
00:09:58,480 --> 00:10:01,880
Speaker 1: a giant that they've create aided and they're only themselves

156
00:10:02,000 --> 00:10:07,719
Speaker 1: now beginning to understand how to control it. Yeah, the

157
00:10:07,800 --> 00:10:12,640
Speaker 1: chief operating officer of Facebook, Cheryl Sandberg, is giving interviews now.

158
00:10:12,840 --> 00:10:15,880
Speaker 1: She's gonna be giving an interview to Bloomberg's Emily chang

159
00:10:15,880 --> 00:10:18,320
Speaker 1: here on Bloomberg Radio and Television in just about an hour.

160
00:10:18,480 --> 00:10:22,160
Speaker 1: She's also been uh speaking with Bloomberg technology reporter Sarah Fryer,

161
00:10:22,720 --> 00:10:27,120
Speaker 1: who says that Sandberg told her that the tool that

162
00:10:27,160 --> 00:10:29,640
Speaker 1: Facebook's using to let people share their friends data with

163
00:10:29,679 --> 00:10:35,080
Speaker 1: developers does comply with the privacy agreement that the consent

164
00:10:35,160 --> 00:10:38,160
Speaker 1: decree that it came to with the Federal Trade Commission.

165
00:10:38,240 --> 00:10:40,840
Speaker 1: So obviously, I mean, Sandberg and Facebook as a whole

166
00:10:40,840 --> 00:10:43,720
Speaker 1: are really trying to defend themselves here if nothing else. Yeah,

167
00:10:43,760 --> 00:10:46,120
Speaker 1: that's right, and and I I think you've probably seen

168
00:10:46,120 --> 00:10:48,679
Speaker 1: a lot of stories about the FTC investigation and how

169
00:10:48,720 --> 00:10:52,400
Speaker 1: there's the threat of you know, forty thou dollar uh

170
00:10:52,679 --> 00:10:56,040
Speaker 1: civil penalty per violation. So you do forty thousand times

171
00:10:56,360 --> 00:10:59,320
Speaker 1: fifty million users and you get to an astronomical number.

172
00:10:59,400 --> 00:11:03,400
Speaker 1: So Facebook needs to adopt a strong legal position and say, no,

173
00:11:03,880 --> 00:11:08,080
Speaker 1: we did not act inconsistent with that consent decree. And

174
00:11:08,080 --> 00:11:11,200
Speaker 1: that's what you're seeing from from Cheryl Sandberg. Now, I

175
00:11:11,240 --> 00:11:13,440
Speaker 1: think Facebook that there's something to be said for that.

176
00:11:13,520 --> 00:11:16,440
Speaker 1: I don't think that this is a clear case at

177
00:11:16,520 --> 00:11:18,440
Speaker 1: least if we take what the company has said to

178
00:11:18,520 --> 00:11:23,000
Speaker 1: be true, that that Facebook took the user's privacy settings

179
00:11:23,040 --> 00:11:26,160
Speaker 1: and directly defied them. This is sort of, uh, sort

180
00:11:26,200 --> 00:11:30,800
Speaker 1: of technically tangentially related to that. And so what what

181
00:11:30,840 --> 00:11:33,840
Speaker 1: I suspect what you'll end up with um is is

182
00:11:33,880 --> 00:11:37,239
Speaker 1: the FDC and Facebook working out some sort of solution

183
00:11:37,600 --> 00:11:40,120
Speaker 1: where where this is a slap on the wrist, maybe

184
00:11:40,120 --> 00:11:44,520
Speaker 1: a pretty serious uh monetary civil penalty connected to it,

185
00:11:44,800 --> 00:11:47,840
Speaker 1: but nothing in terms of the astronomical numbers that that

186
00:11:47,960 --> 00:11:50,679
Speaker 1: you've heard before. In some ways, it's in Facebook's interest

187
00:11:50,800 --> 00:11:53,880
Speaker 1: to have the FDC as a cop on the beat

188
00:11:53,920 --> 00:11:58,040
Speaker 1: here because it dissuades Congress from stepping in and and

189
00:11:58,200 --> 00:12:01,800
Speaker 1: adopting something much more in ruse of really getting into

190
00:12:02,480 --> 00:12:05,200
Speaker 1: the core of their business, which is really the big

191
00:12:05,240 --> 00:12:09,439
Speaker 1: concern from from from the facebooks and Google's Matt. Isn't

192
00:12:09,440 --> 00:12:13,880
Speaker 1: that the problem though? That another consent decree getting off again?

193
00:12:14,480 --> 00:12:17,679
Speaker 1: And there's nothing you know, these mistakes after mistake, if

194
00:12:17,679 --> 00:12:20,679
Speaker 1: they're not intentional, Even if they're not intentional, they're still

195
00:12:20,800 --> 00:12:25,520
Speaker 1: happening over and over again. And the privacy of millions

196
00:12:25,520 --> 00:12:28,360
Speaker 1: of Americans is at stake. So does someone else have

197
00:12:28,440 --> 00:12:31,400
Speaker 1: to step in beside the FTC? And I think I

198
00:12:31,440 --> 00:12:34,000
Speaker 1: think that's something that we're going to be talking about

199
00:12:34,080 --> 00:12:36,800
Speaker 1: for a while. I don't think Congress is is going

200
00:12:36,840 --> 00:12:40,200
Speaker 1: to solve it quickly. I don't think Facebook is going

201
00:12:40,240 --> 00:12:43,200
Speaker 1: to solve it quickly. And so we're going to be

202
00:12:43,480 --> 00:12:48,200
Speaker 1: continually talking about this conversation, probably for for the years

203
00:12:48,240 --> 00:12:52,920
Speaker 1: to come, until we we we someone can can start

204
00:12:52,960 --> 00:12:55,640
Speaker 1: to find some more solutions there. And while there is

205
00:12:55,679 --> 00:12:59,720
Speaker 1: all this attention on the vulnerability of people's private information

206
00:13:00,280 --> 00:13:03,520
Speaker 1: at this point, I mean, there have been revelations not

207
00:13:03,640 --> 00:13:07,520
Speaker 1: just with Facebook but with many other actors that have

208
00:13:07,640 --> 00:13:12,360
Speaker 1: an Internet presence, and the the exposure that people are

209
00:13:12,360 --> 00:13:16,080
Speaker 1: giving themselves, uh with their private information. Given that, do

210
00:13:16,120 --> 00:13:18,960
Speaker 1: you do you see any serious effort on the part

211
00:13:18,960 --> 00:13:22,200
Speaker 1: of the users to do more to to shore up

212
00:13:22,240 --> 00:13:25,719
Speaker 1: their own security or even to follow this uh you know,

213
00:13:25,840 --> 00:13:29,480
Speaker 1: quote unquote hashtag delete Facebook movement. I think that has

214
00:13:29,520 --> 00:13:32,480
Speaker 1: to be a concern of the company. I mean, yesterday

215
00:13:32,559 --> 00:13:36,199
Speaker 1: Zuckerberg said, no, we haven't seen anything you know, material

216
00:13:36,400 --> 00:13:38,880
Speaker 1: in that in that way, But I I think that's

217
00:13:38,880 --> 00:13:41,280
Speaker 1: a risk. I think, and and and what you're seeing

218
00:13:41,320 --> 00:13:44,520
Speaker 1: from the company in terms of of Zuckerberg's response, it

219
00:13:45,040 --> 00:13:48,320
Speaker 1: is has to be in part aimed at at comforting

220
00:13:48,520 --> 00:13:52,319
Speaker 1: users and and saying, look, this this is something that

221
00:13:52,360 --> 00:13:55,160
Speaker 1: we have a grasp on. This is that we we're

222
00:13:55,160 --> 00:13:58,240
Speaker 1: gonna take a broader view of our responsibility. That's something

223
00:13:58,240 --> 00:14:00,680
Speaker 1: you heard him say repeatedly. Yes, today, sort of go

224
00:14:00,800 --> 00:14:04,400
Speaker 1: beyond what the law allows and look out for your

225
00:14:04,480 --> 00:14:07,880
Speaker 1: interests user. Uh. And I think that message is aimed

226
00:14:07,920 --> 00:14:12,360
Speaker 1: at protecting uh, that that user base which is so

227
00:14:12,480 --> 00:14:18,520
Speaker 1: important to Facebook's success. And in that interview, Cheryl Sandberg's

228
00:14:18,520 --> 00:14:23,760
Speaker 1: interview with Emily Chang, she said that a few advertisers

229
00:14:23,800 --> 00:14:26,920
Speaker 1: have paused their spending and isn't that what it's all about.

230
00:14:27,040 --> 00:14:31,000
Speaker 1: The user data is connected to Facebook's revenue. That that

231
00:14:31,120 --> 00:14:34,480
Speaker 1: is exactly what it's all about. And so the concerns are, yes,

232
00:14:34,680 --> 00:14:38,760
Speaker 1: if the advertisers flee, and if Congress, you know, eventually

233
00:14:38,800 --> 00:14:41,880
Speaker 1: gets really serious about this and says no, Facebook, you

234
00:14:41,960 --> 00:14:45,040
Speaker 1: can't use all this data that you've collected about users

235
00:14:45,160 --> 00:14:49,000
Speaker 1: unless people give you permission on the front end. Uh.

236
00:14:49,040 --> 00:14:50,640
Speaker 1: That's the only way that this is really going to

237
00:14:50,720 --> 00:14:53,000
Speaker 1: be disruptive to Facebook. And I don't see that and

238
00:14:53,160 --> 00:14:57,600
Speaker 1: it there that's Matt Chuttenhelm, Bloomberg Intelligence Media Analysts. Thanks

239
00:14:57,640 --> 00:15:00,920
Speaker 1: for listening. To the Bloomberg Law Podcast. You can subscribe

240
00:15:00,960 --> 00:15:04,200
Speaker 1: and listen to the show on Apple podcast, SoundCloud, and

241
00:15:04,240 --> 00:15:08,720
Speaker 1: on Bloomberg dot com slash podcast. I'm June Brosso. This

242
00:15:09,080 --> 00:15:12,200
Speaker 1: is Bloomberg m