WEBVTT - TikTok Ban & Boeing Troubles

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<v Speaker 1>This is Bloomberg Law with June Brusso from Bloomberg Radio.

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<v Speaker 2>Is time ticking away for TikTok? Or is it just

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<v Speaker 2>another step in a year's long tech drama. The wildly

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<v Speaker 2>popular short video app used by one hundred seventy million

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<v Speaker 2>Americans is facing its most serious challenge to date, a

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<v Speaker 2>bill that would require its parent company, Chinese tech giant

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<v Speaker 2>Fyte Edance, to divest itself of the popular video service

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<v Speaker 2>in the US or remove the app from the country altogether.

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<v Speaker 2>That bill passed by a vote of three hundred fifty

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<v Speaker 2>two to sixty five on Wednesday in the House and

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<v Speaker 2>now goes to the Senate. Lawmakers cite privacy risks and

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<v Speaker 2>national security fears over the Chinese Communist Party's perceived ability

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<v Speaker 2>to use personal information for political gains or manipulation. Here's

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<v Speaker 2>North Carolina Republican Senator Tom tillis, we.

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<v Speaker 3>Have to recognize that information on any of these platforms

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<v Speaker 3>are at risk of going to the Chinese Communist Party.

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<v Speaker 3>So this is one step in one. I thinks a

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<v Speaker 3>long journey to hold China accountable.

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<v Speaker 2>But others like Republican Congressman Tom McClintock of California are

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<v Speaker 2>concerned that the US is going down a dangerous path.

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<v Speaker 1>The answer to CCPA style propaganda is not CCPA style oppression.

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<v Speaker 1>Let us slow down before we blunder down this very

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<v Speaker 1>steep and slippery slope.

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<v Speaker 2>And TikTok Ceo showed you promised a fight that includes

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<v Speaker 2>the courts.

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<v Speaker 4>We will continue to do all we can, including exercising

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<v Speaker 4>all legal rights.

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<v Speaker 2>That's something the company did last time in twenty twenty,

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<v Speaker 2>when then President Donald Trump ordered by Dance to sell TikTok.

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<v Speaker 2>My guest is Eric Goleman, a professor at Santa Clara

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<v Speaker 2>University Law School and co director of its High Tech

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<v Speaker 2>Law Institute. Eric explained why so many lawmakers are concerned

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<v Speaker 2>about TikTok and it's Chinese parent.

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<v Speaker 4>A lot of the legislatures object to TikTok principally because

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<v Speaker 4>of the fact that it's related to China, and there's

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<v Speaker 4>such senophobia among our country that it becomes a very

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<v Speaker 4>politically popular move to tweak China. So it's not so

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<v Speaker 4>much that the representatives care about the privacy issues. They

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<v Speaker 4>care about China, and they're signaling that to their voters.

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<v Speaker 2>They point to Chinese national security law that forces companies

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<v Speaker 2>to turn over information when compelled to do so. TikTok

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<v Speaker 2>CEO show Chu said that TikTok has never shared or

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<v Speaker 2>received request to share US user data with the Chinese government,

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<v Speaker 2>and he said that information on TikTok's American users had

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<v Speaker 2>been moved to US servers run by Texas based company Oracle,

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<v Speaker 2>and that under the new structure there's no way for

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<v Speaker 2>the Chinese government to access it or compel access to it.

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<v Speaker 2>So is that just a false premise or is there

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<v Speaker 2>something to be concerned about in general?

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<v Speaker 4>I think we should be concerned about government access to

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<v Speaker 4>our private information online, but I don't restrict my concern

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<v Speaker 4>to China. I feel that way about all governments across

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<v Speaker 4>the globe, including here in the United States, where government

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<v Speaker 4>agencies have a variety of ways about taining private online

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<v Speaker 4>communications that in fact we would prefer that they don't

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<v Speaker 4>have access to. Indeed, Europe cut off data flows with

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<v Speaker 4>the United States because of the concern in Europe that

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<v Speaker 4>the US government had access to European private information online.

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<v Speaker 4>So if that's the concern, then trying to target China

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<v Speaker 4>and doing it in this way is really an indirect solution.

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<v Speaker 4>We really ought to have a broad society wide conversation

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<v Speaker 4>about when government to have access to private citizen data

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<v Speaker 4>and what we're going to do to protect the interest

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<v Speaker 4>of private citizens.

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<v Speaker 2>So tell us about this bill what it would do.

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<v Speaker 4>The bill is styled as a divestiture law. The idea

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<v Speaker 4>is to get the ownership of TikTok out of the

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<v Speaker 4>hands of people related to China. In practice, it's almost

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<v Speaker 4>certainly going to turn into a TikTok ban. It would

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<v Speaker 4>ban TikTok in the United States and require app stores

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<v Speaker 4>not to allow the installation of TikTok. So it's trying

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<v Speaker 4>to just kick TikTok out of the US market.

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<v Speaker 2>So what the lawmakers are saying is that by dance,

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<v Speaker 2>the Chinese parent would have six months to divest TikTok.

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<v Speaker 4>Yeah, just to be clear, nobody expects that to really

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<v Speaker 4>be the outcome. There's a limited number of people who

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<v Speaker 4>might be interested in buying TikTok, and the forced sale

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<v Speaker 4>would almost certainly depress the prices. But I want to

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<v Speaker 4>analogize this to what happened after the Ukrainian War, where

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<v Speaker 4>Russia put the squeeze on US owned enterprises and force

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<v Speaker 4>them to sell to Russian owners, and in so doing,

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<v Speaker 4>they transferred billions of dollars of wealth from the US

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<v Speaker 4>owners to new Russian owners who bought it pennies on

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<v Speaker 4>the dollar. And so essentially the Congress is doing what

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<v Speaker 4>Russia did to our companies, and that really seems like

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<v Speaker 4>the wrong inspiration for US to be.

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<v Speaker 2>Drawn from China. Beijing has warned that a ban would

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<v Speaker 2>ultimately backfire on the United States itself. So what could

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<v Speaker 2>they do there?

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<v Speaker 4>You know, we're locked in a long term strategic battle

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<v Speaker 4>of words and actions against China and some other global powers,

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<v Speaker 4>So there's an infinite number of ways in which China

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<v Speaker 4>could work to degrade the interest of US companies. Now,

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<v Speaker 4>of course, China has a long history of doing that.

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<v Speaker 4>They have literally kicked US companies out of the China market.

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<v Speaker 4>They could continue to tamp down on US interests in

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<v Speaker 4>China to the economic detriment of US interests, And these

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<v Speaker 4>kinds of trade wars or attempts to kick foreign companies

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<v Speaker 4>out of the markets ultimately erect barriers that make everyone poorer.

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<v Speaker 4>So let's hope that we don't go there. But no

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<v Speaker 4>doubt that the US would be sending a strong signal

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<v Speaker 4>to China. We're erecting another trade barrier. You know, we

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<v Speaker 4>expected retaliation.

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<v Speaker 2>China's Foreign ministry also said that there was a failure

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<v Speaker 2>to provide evidence that TikTok is a threat to the

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<v Speaker 2>US national security. I've heard a lot of blanket statements

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<v Speaker 2>that it's a threat, but is there actual proof.

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<v Speaker 4>So one of the big questions is exactly how is

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<v Speaker 4>TikTok a threat to national security? And there's been some

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<v Speaker 4>seculation about this, but the best evidence of this has

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<v Speaker 4>not been revealed to the public. It's only been disclosed privately,

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<v Speaker 4>with the justification that because it's in national security interests,

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<v Speaker 4>we couldn't tell the public we would jeopardize national security.

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<v Speaker 4>But that kind of rationale makes it impossible for us

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<v Speaker 4>to actually scrutinize credibly the evidence, and as a result,

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<v Speaker 4>it's possible that that evidence is not credible. And in fact,

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<v Speaker 4>the efforts to ban TikTok were initiated in the Trump

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<v Speaker 4>administration and some of the judges got to see that

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<v Speaker 4>evidence and they did not find a persuasive Now, maybe

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<v Speaker 4>there's new evidence that we haven't seen yet, but the

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<v Speaker 4>most likely scenario is that national security is being invoked

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<v Speaker 4>as a concept, not actually as pieces of specific credible

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<v Speaker 4>evidence to try and justify the ban.

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<v Speaker 2>The company TikTok has warned about the potential economic impact

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<v Speaker 2>on small business owners who depend on the app. It's

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<v Speaker 2>urged it's one hundred and seventy million US users to

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<v Speaker 2>speak out against it, and they have been influencers. Took

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<v Speaker 2>to Capital Hill on Wednesday. Members of Congress were flooded

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<v Speaker 2>with calls from angry constituents and small business as are

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<v Speaker 2>saying a ban would crush their business. Do you think

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<v Speaker 2>it would have a severe economic impact on certain people?

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<v Speaker 4>It's not just the economic impact, although I think that's

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<v Speaker 4>a helpful way of establishing a measuring stick, but so

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<v Speaker 4>many communities rely upon TikTok to communicate with each other,

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<v Speaker 4>and that can create new stars, celebrities, influencers who wouldn't

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<v Speaker 4>have had a voice any other way that are actually

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<v Speaker 4>quite helpful to the communities that they're speaking to. It

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<v Speaker 4>also has created a variety of different small business opportunities

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<v Speaker 4>where new entrants to a market can use social media,

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<v Speaker 4>including TikTok, in order to gain traction against incumbents who

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<v Speaker 4>otherwise would rather not give them any opportunity to grow.

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<v Speaker 4>So When Congress says that we want to ban TikTok,

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<v Speaker 4>what they're really saying is we don't want people talking

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<v Speaker 4>to each other in that way, and we don't care

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<v Speaker 4>that sometimes that's the very best way for those people

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<v Speaker 4>to help self actualize or the very best way for

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<v Speaker 4>those entre to help build their business. So Congress is

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<v Speaker 4>just saying, we'll care about any of that, all of

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<v Speaker 4>that we're willing to forego in this nebulous chasing of

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<v Speaker 4>the quote national security interest.

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<v Speaker 2>Eric, I am not on TikTok. I confess, is it

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<v Speaker 2>really this unique platform? Because hearing people talk about it,

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<v Speaker 2>they say, this is the only way I can accomplish

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<v Speaker 2>this goal, whether it's business or reaching out to people.

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<v Speaker 2>Is it really that unique?

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<v Speaker 4>It doesn't really matter if TikTok is unique compared to

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<v Speaker 4>other social media. What matters is that there's certain types

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<v Speaker 4>of communities that have developed on TikTok that don't exist

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<v Speaker 4>in the other social media, and so by eliminating those communities,

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<v Speaker 4>even if you could publish the exact same content on

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<v Speaker 4>social media, you can't reach the same audience in the

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<v Speaker 4>same way. Now I don't personally use TikTok, it doesn't

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<v Speaker 4>speak to me, But for those who it speaks to,

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<v Speaker 4>it is perhaps the best way to reach them, the

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<v Speaker 4>best way to engage them. And so it isn't something

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<v Speaker 4>where we could simply tell the content publisher and the

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<v Speaker 4>audience just move your conversation another social media that literally

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<v Speaker 4>wouldn't happen, That relationship would bust up instead.

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<v Speaker 2>Does it seem as if the Senate is not as

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<v Speaker 2>enthrall with this bill as the House was.

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<v Speaker 4>We don't know what's going to happen to the bill

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<v Speaker 4>in the Senate. The Senate leaders have created equivocation about

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<v Speaker 4>the bill, but the political calculus that got the bill

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<v Speaker 4>through the House is the same for the Senate. In

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<v Speaker 4>all cases, there's political gold for beating up on China

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<v Speaker 4>legitimately or not. So I don't think that the bill

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<v Speaker 4>will die in the Senate easily. It will be given

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<v Speaker 4>a fair amount of push I think forward. But there

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<v Speaker 4>are a number of senators I think we understand both

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<v Speaker 4>the ridiculousness of the justifications of the bill as well

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<v Speaker 4>as the fact that in the end, the bill is

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<v Speaker 4>a censorship bill, and I think there are some senators

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<v Speaker 4>who just can't support that.

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<v Speaker 2>And some lawmakers did say that the United States shouldn't

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<v Speaker 2>be following China in selectively blocking social media platforms citing

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<v Speaker 2>free speech concerns.

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<v Speaker 4>I mean, it sounds so weird to say we should

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<v Speaker 4>not be ripping the playbook off of from authoritarian countries

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<v Speaker 4>and then justifying our actions by because they're doing it

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<v Speaker 4>like that, Just to me is so obvious, such a

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<v Speaker 4>baseline foundational assumption in how I proceed, and yet it

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<v Speaker 4>is not obvious in the house.

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<v Speaker 2>Coming up next on the Bloomberg Law Show, I'll continue

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<v Speaker 2>this conversation with Professor Eric Goleman of Santa Clara University

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<v Speaker 2>Law School. TikTok says it will fight the bill in

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<v Speaker 2>the courts. What are some of the legal grounds it

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<v Speaker 2>could use? And later in the show, the accident investigation

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<v Speaker 2>into that Alaska Airlines mid air emergency in January is

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<v Speaker 2>being slowed down by Boeing's failure to cooperate. Remember, you

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<v Speaker 2>can always get the latest legal news by listening to

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<v Speaker 2>our Bloomberg Law podcasts. You can get them wherever you

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<v Speaker 2>get your favorite podcasts, and you're listening to Bloomberg. TikTok

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<v Speaker 2>is used by one hundred and seventy million Americans, so

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<v Speaker 2>it's no wonder that after TikTok urged them on, angry

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<v Speaker 2>users flooded members of Congress with calls over a bill

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<v Speaker 2>that would lead to a nationwide ban of the popular

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<v Speaker 2>video app if it's China based owner doesn't sell at stake.

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<v Speaker 2>Here's the bill's author, Wisconsin Republican Mike Gallagher.

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<v Speaker 1>It's also based on a lie. They're saying we're pushing

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<v Speaker 1>an outright ban of TikTok, which is not true. It's

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<v Speaker 1>not actually what the bill does. It forces a divestiture.

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<v Speaker 2>But users, influencers, social media content creators, and small business

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<v Speaker 2>owners weren't buying it. Brandon Hurst, who sells plants on TikTok,

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<v Speaker 2>lobbied lawmakers not to pass the bill.

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<v Speaker 4>My whole business would be devastated. Yeah, I would lose

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<v Speaker 4>the opportunity to connect with millions of people on a

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<v Speaker 4>regular basis, and the community that I've worked really hard

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<v Speaker 4>to build would be would be gone.

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<v Speaker 2>But the bill passed the House with overwhelming bipartisan support

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<v Speaker 2>and now goes on to the Senate. I've been talking

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<v Speaker 2>to Professor Eric Goleman of Santa Clara University School of Law. Eric,

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<v Speaker 2>let's say that some version of the bill is enacted,

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<v Speaker 2>TikTok says it plans to exhaust all legal challenges before

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<v Speaker 2>it considers divestiture. What kind of legal challenges could TikTok bring.

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<v Speaker 4>Yeah, no doubt that if the bill is enacted, it

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<v Speaker 4>will be challenged in court, and it will be challenged

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<v Speaker 4>by TikTok. It's also probable that it will be challenged

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<v Speaker 4>by users of TikTok expressing their own free speech concerns

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<v Speaker 4>independent of the concerns that TikTok has, and the bill

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<v Speaker 4>will also impact the app stores, and it's possible that

0:13:38.240 --> 0:13:41.240
<v Speaker 4>they will point out that the bill impacts their free

0:13:41.240 --> 0:13:43.800
<v Speaker 4>speech as well. So there are at least three different

0:13:44.160 --> 0:13:47.560
<v Speaker 4>communities that have concerns about how the bill would restrict

0:13:47.600 --> 0:13:51.440
<v Speaker 4>their speech, and we actually have some indication of how

0:13:51.480 --> 0:13:53.880
<v Speaker 4>those legal challenges might look. This is not the first

0:13:53.880 --> 0:13:57.240
<v Speaker 4>time that efforts to ban social media apps have been

0:13:57.679 --> 0:14:01.360
<v Speaker 4>attempted and have been challenged in court. Both in the

0:14:01.400 --> 0:14:05.160
<v Speaker 4>Trump administration, there was a ban on TikTok and we chat,

0:14:05.440 --> 0:14:08.480
<v Speaker 4>and then states have been enacting bands, including an illegal

0:14:08.520 --> 0:14:11.480
<v Speaker 4>challenge was filed against one in Montana, and all of

0:14:11.520 --> 0:14:15.080
<v Speaker 4>those efforts to ban in the past have failed, including

0:14:15.520 --> 0:14:19.360
<v Speaker 4>on First Amendment grounds, those bands were unconstitutional, and so

0:14:19.680 --> 0:14:22.240
<v Speaker 4>it seems to me that TikTok and its users and

0:14:22.280 --> 0:14:25.480
<v Speaker 4>maybe the answers have pretty good reasons to think that

0:14:25.560 --> 0:14:27.520
<v Speaker 4>they might win a First Amendment challenge.

0:14:27.720 --> 0:14:31.760
<v Speaker 2>Tell us more about the possible First Amendment challenges from

0:14:31.800 --> 0:14:33.680
<v Speaker 2>those three communities you mentioned.

0:14:34.280 --> 0:14:37.400
<v Speaker 4>So let's talk about TikTok's interest under the First Amendment.

0:14:37.480 --> 0:14:40.560
<v Speaker 4>TikTok operates a service that other people's used to talk

0:14:40.600 --> 0:14:44.320
<v Speaker 4>to each other, and sometimes there's been discussion that TikTok

0:14:44.320 --> 0:14:47.400
<v Speaker 4>doesn't have its own First Amendment interest. It's just a

0:14:47.520 --> 0:14:52.240
<v Speaker 4>vessel for other communications. But TikTok publishes content in the

0:14:52.240 --> 0:14:54.920
<v Speaker 4>form of the software that offers to its users, and

0:14:55.080 --> 0:14:58.480
<v Speaker 4>it curates users speech in a way that communicates its

0:14:58.640 --> 0:15:03.160
<v Speaker 4>editorial Priorities and courts have recognized that TikTok has a

0:15:03.240 --> 0:15:06.280
<v Speaker 4>speech interest in the publication of the software and in

0:15:06.840 --> 0:15:10.000
<v Speaker 4>the way in which it curates its content for its users.

0:15:10.160 --> 0:15:13.040
<v Speaker 4>So there's some serious First Amendment issues that I think

0:15:13.360 --> 0:15:16.400
<v Speaker 4>are raised when you tell a service that the government's

0:15:16.400 --> 0:15:20.560
<v Speaker 4>going to come in and override its its curatorial discretion.

0:15:21.000 --> 0:15:23.960
<v Speaker 4>I want to talk about the TikTok users interest for

0:15:24.120 --> 0:15:27.760
<v Speaker 4>the First Amendment. The TikTok users are talking to each other,

0:15:28.160 --> 0:15:31.920
<v Speaker 4>and they are creating conversations that don't exist in the

0:15:31.920 --> 0:15:34.760
<v Speaker 4>same way to the same audience anywhere else in the

0:15:34.800 --> 0:15:39.240
<v Speaker 4>information ecosystem, and so taking away TikTok takes away their

0:15:39.280 --> 0:15:42.960
<v Speaker 4>ability to engage with each other. If you're content publisher

0:15:43.000 --> 0:15:45.440
<v Speaker 4>in TikTok, it takes away your ability to create your

0:15:45.520 --> 0:15:48.520
<v Speaker 4>own audience and speak with them in the way you choose,

0:15:48.920 --> 0:15:51.920
<v Speaker 4>And so that impacts their First Amendment interests. And looking

0:15:52.040 --> 0:15:54.240
<v Speaker 4>back to the app stores, the app stores have not

0:15:54.640 --> 0:15:59.320
<v Speaker 4>previously taken the leadership on challenging the constitutionality of TikTok

0:15:59.400 --> 0:16:03.160
<v Speaker 4>bands or bands of social media, but they're actually harmed

0:16:03.280 --> 0:16:07.040
<v Speaker 4>by the TikTok band bill as well. And let me

0:16:07.080 --> 0:16:09.800
<v Speaker 4>give an analogy of how we might think about their interests.

0:16:09.880 --> 0:16:14.600
<v Speaker 4>The ban is kind of like telling a bookstore that

0:16:14.680 --> 0:16:17.160
<v Speaker 4>they can't carry a particular book. They can still run

0:16:17.200 --> 0:16:19.840
<v Speaker 4>a bookstore, but they just can't carry a book. And

0:16:19.960 --> 0:16:22.160
<v Speaker 4>so for the app store, they're being told you have

0:16:22.280 --> 0:16:26.200
<v Speaker 4>to pull an app off of your shelves. And by

0:16:26.360 --> 0:16:29.720
<v Speaker 4>forcing the bookstore or in this case, the app store

0:16:29.800 --> 0:16:32.560
<v Speaker 4>to change what it wants to offer to its users

0:16:32.960 --> 0:16:37.040
<v Speaker 4>that encroaches on the app store speech interests as well.

0:16:37.200 --> 0:16:41.000
<v Speaker 4>So there are three different each interests to play here, TikTok's,

0:16:41.160 --> 0:16:44.960
<v Speaker 4>TikTok users, and the app stores. And I think each

0:16:45.000 --> 0:16:46.760
<v Speaker 4>of them has very good reason to point to the

0:16:46.800 --> 0:16:50.640
<v Speaker 4>Constitution and say that the ban hurts their ability to

0:16:50.760 --> 0:16:51.800
<v Speaker 4>speak the way they choose.

0:16:52.520 --> 0:16:57.160
<v Speaker 2>TikTok is banned on federal devices, and Biden administration officials

0:16:57.200 --> 0:17:00.720
<v Speaker 2>help with the bill's technical language. But by re election

0:17:01.000 --> 0:17:06.000
<v Speaker 2>campaign joined TikTok last month, I mean talk about irony.

0:17:06.520 --> 0:17:10.040
<v Speaker 4>Biden's presence on TikTok is a reminder that even if

0:17:10.080 --> 0:17:13.720
<v Speaker 4>Biden could reach audiences through other channels, there's value to

0:17:13.760 --> 0:17:17.400
<v Speaker 4>reach them through TikTok. And it is that exact political

0:17:17.520 --> 0:17:21.560
<v Speaker 4>speech benefit that shows how corrupt it is to try

0:17:21.560 --> 0:17:25.800
<v Speaker 4>and ban TikTok. It literally would suppress valuable political speech

0:17:26.080 --> 0:17:28.440
<v Speaker 4>coming from the president who would potentially sign to build

0:17:28.480 --> 0:17:28.840
<v Speaker 4>a bandit.

0:17:29.760 --> 0:17:35.440
<v Speaker 2>Former President Donald Trump, surprise surprise, has flip flopped on TikTok. Recently,

0:17:35.480 --> 0:17:38.800
<v Speaker 2>he's expressed his opposition to the ban. Do you think

0:17:38.840 --> 0:17:42.320
<v Speaker 2>that this could be an issue in the presidential election.

0:17:43.080 --> 0:17:46.480
<v Speaker 4>Trump's flip flopping on TikTok is really quite shocking. He

0:17:46.800 --> 0:17:49.640
<v Speaker 4>made a concerted effort to try to force the exact

0:17:49.760 --> 0:17:53.919
<v Speaker 4>same moves that the House enacted while he was in office,

0:17:54.400 --> 0:17:57.880
<v Speaker 4>but he didn't sway a lot of his loyal fans.

0:17:58.280 --> 0:18:02.320
<v Speaker 4>Only fifteen Republicans voted against the TikTok band despite Trump

0:18:02.400 --> 0:18:05.320
<v Speaker 4>asking him to do so, so the vast majority of

0:18:05.400 --> 0:18:09.439
<v Speaker 4>Republicans didn't heed his requests. Though I don't really know

0:18:09.480 --> 0:18:11.919
<v Speaker 4>how serious anyone's taking him on this topic.

0:18:12.440 --> 0:18:16.120
<v Speaker 2>You know, I thought that in all the discussion about TikTok,

0:18:16.200 --> 0:18:20.720
<v Speaker 2>there might be some discussion about how it's harmful to

0:18:21.400 --> 0:18:25.240
<v Speaker 2>young adults. You know, we had those lawsuits by parents.

0:18:25.720 --> 0:18:29.400
<v Speaker 4>Yeah. So the effort to ban TikTok is a very

0:18:29.480 --> 0:18:33.320
<v Speaker 4>small corner of the broader tech lash, the effort among

0:18:33.400 --> 0:18:37.960
<v Speaker 4>regulators to try to suppress and control social media generally.

0:18:38.240 --> 0:18:40.920
<v Speaker 4>And there's a wide list of gripes against social media

0:18:40.920 --> 0:18:44.560
<v Speaker 4>that regulators have lobbed, of which privacy is a non

0:18:44.600 --> 0:18:47.040
<v Speaker 4>trivial one. But there are other concerns as well, including

0:18:47.080 --> 0:18:51.359
<v Speaker 4>the concerns about the impact of social media on teenage

0:18:51.359 --> 0:18:54.800
<v Speaker 4>and younger users. But in this sense, the TikTok ban

0:18:54.960 --> 0:19:00.000
<v Speaker 4>is not really about protecting the users. Although nominally it's

0:19:00.040 --> 0:19:02.560
<v Speaker 4>about protecting their privacy, it always comes back to the

0:19:02.560 --> 0:19:06.960
<v Speaker 4>idea it's China that's doing these nefarious things, and if

0:19:07.000 --> 0:19:10.520
<v Speaker 4>it had been a British company owning TikTok who did

0:19:10.520 --> 0:19:12.639
<v Speaker 4>the exact same things that China was doing, we wouldn't

0:19:12.640 --> 0:19:14.720
<v Speaker 4>even be hearing a peep about this. And it's just

0:19:14.720 --> 0:19:17.240
<v Speaker 4>a reminder that all the efforts that are taking place

0:19:17.320 --> 0:19:20.960
<v Speaker 4>to ban TikTok are not about protecting users. They really

0:19:21.040 --> 0:19:22.640
<v Speaker 4>are just political gamesmanship.

0:19:23.280 --> 0:19:26.800
<v Speaker 2>Have any of those lawsuits by parents reached a motion

0:19:26.920 --> 0:19:31.720
<v Speaker 2>to dismiss stage or have been settled or any important

0:19:31.760 --> 0:19:32.920
<v Speaker 2>rulings yet.

0:19:33.160 --> 0:19:36.560
<v Speaker 4>Yeah, a number of the lawsuits against TikTok for harming

0:19:36.640 --> 0:19:41.520
<v Speaker 4>their users, including underage users, have been dismissed outright. Some

0:19:41.560 --> 0:19:44.919
<v Speaker 4>of those are on appeal, but there's a very large

0:19:45.080 --> 0:19:48.399
<v Speaker 4>pair of cases in California courts that have not reached

0:19:48.400 --> 0:19:51.119
<v Speaker 4>a final judgment on the question, and so those are

0:19:51.160 --> 0:19:53.240
<v Speaker 4>really going to dictate whether or not there's going to

0:19:53.240 --> 0:19:56.120
<v Speaker 4>be legal traction to the claims against TikTok.

0:19:56.880 --> 0:19:59.679
<v Speaker 2>While we're on the topic, across the pond, as they say,

0:20:00.400 --> 0:20:04.400
<v Speaker 2>there's a battle over one of Britain's most famous newspapers,

0:20:04.800 --> 0:20:08.760
<v Speaker 2>and the government has outlined plans to stop foreign states

0:20:08.800 --> 0:20:11.040
<v Speaker 2>from owning newspapers.

0:20:10.840 --> 0:20:14.359
<v Speaker 4>And the target there was some US buyers were planned

0:20:14.400 --> 0:20:16.520
<v Speaker 4>to buy up one of the leading newspapers in the

0:20:16.640 --> 0:20:21.280
<v Speaker 4>UK that caters to the conservative audience, and the members

0:20:21.400 --> 0:20:25.280
<v Speaker 4>of the legislature there didn't want to see the newspaper

0:20:25.359 --> 0:20:27.399
<v Speaker 4>fall into the hands of US interests, and it was

0:20:27.880 --> 0:20:30.320
<v Speaker 4>a reminder that here in the United States, we would

0:20:30.320 --> 0:20:35.000
<v Speaker 4>not tolerate an effort to ban or control the identity

0:20:35.000 --> 0:20:38.639
<v Speaker 4>of owners of a newspaper. That would be clearly a

0:20:38.760 --> 0:20:42.280
<v Speaker 4>First Amendment objection because it would be dictating who gets

0:20:42.280 --> 0:20:44.760
<v Speaker 4>the right to speak in our country. And believe it

0:20:44.880 --> 0:20:50.159
<v Speaker 4>or not, foreign speakers have protected constitutional rights to speak

0:20:50.440 --> 0:20:53.240
<v Speaker 4>here in the United States, So there would not be

0:20:53.359 --> 0:20:58.280
<v Speaker 4>the possibility of establishing controls over who owned a newspaper

0:20:58.359 --> 0:21:01.960
<v Speaker 4>here in the US, unlike other countries like Britain, where

0:21:01.960 --> 0:21:03.919
<v Speaker 4>literally they're proposed to that, but they don't have the

0:21:03.960 --> 0:21:06.600
<v Speaker 4>First Amendment, they can pass laws like that with the

0:21:06.840 --> 0:21:10.119
<v Speaker 4>intent and objective of controlling who gets to speak in

0:21:10.160 --> 0:21:13.359
<v Speaker 4>their country. We wouldn't tolerate that here.

0:21:14.000 --> 0:21:18.000
<v Speaker 2>What about the regulation of broadcast ownership in the US.

0:21:18.400 --> 0:21:20.879
<v Speaker 4>Back to this ish about foreign ownership over media in

0:21:20.880 --> 0:21:23.960
<v Speaker 4>the United States, Now, there is one area where there

0:21:24.119 --> 0:21:28.120
<v Speaker 4>is the right of the government to control who owns

0:21:28.600 --> 0:21:32.000
<v Speaker 4>the media that reaches the public, and that's in the

0:21:32.040 --> 0:21:36.720
<v Speaker 4>area of broadcasting. We limit the ability of foreign owners

0:21:36.760 --> 0:21:41.359
<v Speaker 4>to own broadcasting stations in the United States, and I

0:21:41.440 --> 0:21:46.120
<v Speaker 4>believe that that's constitutional. Now, even though we allow the

0:21:46.160 --> 0:21:51.480
<v Speaker 4>regulation of broadcast ownership, that doesn't extend to the ownership

0:21:51.520 --> 0:21:55.600
<v Speaker 4>of online services, even if they're broadcasting video, just like

0:21:55.680 --> 0:21:59.359
<v Speaker 4>the broadcasters do who are regulated by the SEC. And

0:21:59.400 --> 0:22:03.600
<v Speaker 4>that's because of nineteen ninety seven court opinion that said

0:22:03.840 --> 0:22:06.520
<v Speaker 4>that the rules that apply to broadcasting are not the

0:22:06.560 --> 0:22:08.480
<v Speaker 4>same as the rules that apply to the Internet, that

0:22:08.600 --> 0:22:14.520
<v Speaker 4>the reasons why we control the access to broadcasting don't

0:22:14.560 --> 0:22:17.679
<v Speaker 4>extend to why we might permit people to speak on

0:22:17.720 --> 0:22:20.919
<v Speaker 4>the Internet. So there are rules about foreign ownership of

0:22:20.960 --> 0:22:23.680
<v Speaker 4>media here in the US that might very well be constitutional,

0:22:24.080 --> 0:22:27.160
<v Speaker 4>and yet they don't extend to a ban on TikTok

0:22:27.200 --> 0:22:29.520
<v Speaker 4>because the Internet is not like broadcasting.

0:22:29.920 --> 0:22:32.040
<v Speaker 2>Thank you so much, Eric, This has been a tour

0:22:32.119 --> 0:22:36.000
<v Speaker 2>de force. We covered so many different topics. That's Professor

0:22:36.119 --> 0:22:39.520
<v Speaker 2>Eric Goldman of Santa Clara University Law School and co

0:22:39.600 --> 0:22:43.400
<v Speaker 2>director of the High Tech Law Institute. In other legal news, today,

0:22:43.960 --> 0:22:47.960
<v Speaker 2>Donald Trump's first criminal trial may not begin on March

0:22:48.000 --> 0:22:51.600
<v Speaker 2>twenty fifth, as planned, after lawyers for the Manhattan District

0:22:51.640 --> 0:22:55.200
<v Speaker 2>Attorney and the former president told a judge they'd received

0:22:55.320 --> 0:23:00.560
<v Speaker 2>thousands of new pages of evidence from Federal prosecutors Office

0:23:00.600 --> 0:23:04.000
<v Speaker 2>said today that some thirty one thousand pages of records

0:23:04.280 --> 0:23:08.240
<v Speaker 2>tied to former Trump lawyer Michael Cohen's federal campaign finance

0:23:08.320 --> 0:23:12.280
<v Speaker 2>convictions were turned over to their office on Wednesday, adding

0:23:12.280 --> 0:23:14.679
<v Speaker 2>that they would not object to a thirty day delay

0:23:14.760 --> 0:23:18.200
<v Speaker 2>in the start of Trump's hush money trial. Bragg blamed

0:23:18.280 --> 0:23:21.280
<v Speaker 2>Trump for the delay of the production of documents, saying

0:23:21.320 --> 0:23:25.480
<v Speaker 2>the defense waited until January eighteenth to issue a subpoena

0:23:25.520 --> 0:23:29.400
<v Speaker 2>for more materials. The potential delay is the latest good

0:23:29.520 --> 0:23:32.920
<v Speaker 2>news in court for Trump, who had faced the prospect

0:23:32.960 --> 0:23:36.640
<v Speaker 2>of up to four criminal trials before the November presidential election.

0:23:36.960 --> 0:23:40.200
<v Speaker 2>Three of those cases now might slip into next year.

0:23:40.720 --> 0:23:43.640
<v Speaker 2>Coming up next on the Bloomberg Law Show, we'll look

0:23:43.640 --> 0:23:49.040
<v Speaker 2>at the accident investigation into the Alaska Airlines mid air emergency.

0:23:49.200 --> 0:23:53.800
<v Speaker 2>In January, officials say that investigation is being slowed down

0:23:53.880 --> 0:23:58.120
<v Speaker 2>and complicated by Boeing's failure to cooperate. I'm June Grosso,

0:23:58.200 --> 0:24:02.280
<v Speaker 2>and you're listening to Bloomberg. It's been two months since

0:24:02.320 --> 0:24:06.240
<v Speaker 2>that Alaska Airlines jet had a mid air emergency when

0:24:06.240 --> 0:24:09.440
<v Speaker 2>a door plug blew off, and officials with the National

0:24:09.480 --> 0:24:13.399
<v Speaker 2>Transportation Safety Board say they're still in the dark about

0:24:13.440 --> 0:24:16.000
<v Speaker 2>who performed the work on the panel of the Boeing

0:24:16.119 --> 0:24:20.200
<v Speaker 2>seven thirty seven MAX that failed. At a Senate Commerce

0:24:20.200 --> 0:24:25.560
<v Speaker 2>Committee hearing last week, NTSB chair Jennifer Homandy said they've

0:24:25.600 --> 0:24:29.360
<v Speaker 2>repeatedly asked Boeing for the information, and they can't even

0:24:29.440 --> 0:24:31.480
<v Speaker 2>get a list of the people who are on the

0:24:31.560 --> 0:24:33.920
<v Speaker 2>team that handles doors and door plugs.

0:24:34.600 --> 0:24:37.320
<v Speaker 5>We don't have the records. We don't have the names

0:24:37.680 --> 0:24:41.879
<v Speaker 5>of the twenty five people that is in charge of

0:24:41.920 --> 0:24:45.880
<v Speaker 5>doing that work in that facility. It's absurd that two

0:24:45.920 --> 0:24:47.639
<v Speaker 5>months later we don't have that.

0:24:48.000 --> 0:24:52.439
<v Speaker 2>Joining me is Alan Levin, Bloomberg Aviation Safety reporter. So

0:24:52.760 --> 0:24:55.679
<v Speaker 2>I want you to start with a description of what

0:24:55.960 --> 0:25:01.000
<v Speaker 2>happened to Alaska Airlines Flight twelve eighty two, and you

0:25:01.040 --> 0:25:02.440
<v Speaker 2>know what we know about it.

0:25:03.240 --> 0:25:06.919
<v Speaker 6>This plane took off from Portland in the evening of

0:25:07.000 --> 0:25:13.600
<v Speaker 6>January fifth, and when it reached about fourteen fifteen thousand feet,

0:25:14.119 --> 0:25:20.240
<v Speaker 6>the cabin pressure suddenly dropped. And what happened was there's

0:25:20.359 --> 0:25:23.520
<v Speaker 6>what is known as a door plug, which is basically

0:25:23.600 --> 0:25:29.240
<v Speaker 6>just a beefed up panel that covers an unused exit door,

0:25:29.640 --> 0:25:32.760
<v Speaker 6>and it blew off the side of the plane. And

0:25:32.800 --> 0:25:36.000
<v Speaker 6>if you can imagine the air pressure and an airliner

0:25:36.200 --> 0:25:40.480
<v Speaker 6>is about the equivalent of usually somewhere around five thousand

0:25:40.560 --> 0:25:45.560
<v Speaker 6>feet altitude, but they were well above that. So nature

0:25:45.560 --> 0:25:48.960
<v Speaker 6>of horrors of vacuum, there's a tremendous amount of force

0:25:49.480 --> 0:25:53.240
<v Speaker 6>pushing from the inside where the pressure is higher out

0:25:53.920 --> 0:25:57.920
<v Speaker 6>and this plug blew off, and then you know, all

0:25:58.080 --> 0:26:02.400
<v Speaker 6>the air inside the car wants to get outside, and

0:26:02.440 --> 0:26:05.840
<v Speaker 6>so there's like a river, if you will, of pressurized

0:26:05.880 --> 0:26:10.480
<v Speaker 6>air flowing out through this. It can be quite powerful.

0:26:11.160 --> 0:26:14.080
<v Speaker 6>Luckily they were not at you know, thirty five thousand feet,

0:26:14.080 --> 0:26:16.600
<v Speaker 6>where it would have been even more intense. And also

0:26:16.720 --> 0:26:20.600
<v Speaker 6>luckily nobody was seated next to where the door plug

0:26:20.760 --> 0:26:23.560
<v Speaker 6>was or in the middle seat, so the two closest

0:26:23.560 --> 0:26:26.480
<v Speaker 6>seats were empty. On a very full plane, it's kind

0:26:26.480 --> 0:26:31.000
<v Speaker 6>of lucky as dramatic as this was. Nobody was injured,

0:26:31.400 --> 0:26:37.400
<v Speaker 6>amazing no damage to the aircraft structure, and the pilots

0:26:37.400 --> 0:26:40.560
<v Speaker 6>were able to return and make an emergency landing.

0:26:41.480 --> 0:26:47.840
<v Speaker 2>The NTSB has determined that those missing bolts caused the incident.

0:26:48.080 --> 0:26:51.760
<v Speaker 6>So it's a little early to say the cause, but

0:26:51.800 --> 0:26:55.520
<v Speaker 6>the NTSB did put out a preliminary report and they

0:26:55.560 --> 0:27:00.080
<v Speaker 6>said it appears, and probably even a little stronger than that,

0:27:00.320 --> 0:27:04.240
<v Speaker 6>there's very strong indications that this flug or this panel

0:27:04.400 --> 0:27:09.959
<v Speaker 6>over the unused door was not attached properly in the factory.

0:27:10.560 --> 0:27:14.400
<v Speaker 6>It's in rent in Washington that Boeing uses to complete

0:27:14.480 --> 0:27:18.960
<v Speaker 6>the construction of these seven thirty seven Max jets. In particular,

0:27:19.440 --> 0:27:24.399
<v Speaker 6>there's an extensive mechanism to hold the pressure on the door,

0:27:24.520 --> 0:27:28.800
<v Speaker 6>about a dozen points of these pins that interact with

0:27:28.880 --> 0:27:32.280
<v Speaker 6>the plane that hold the pressure, but they don't ensure

0:27:32.320 --> 0:27:36.960
<v Speaker 6>the door will never come off. So Boeing ads four

0:27:37.200 --> 0:27:42.160
<v Speaker 6>bolts that prevent the door from sliding, and before they

0:27:42.240 --> 0:27:44.920
<v Speaker 6>ship a plane out, they put four bolts in there

0:27:44.960 --> 0:27:48.880
<v Speaker 6>so it can never move and if installed correctly, they

0:27:48.880 --> 0:27:52.520
<v Speaker 6>work pretty well. Because this has never happened before, but

0:27:52.640 --> 0:27:56.200
<v Speaker 6>in this case, all the evidence suggests that the bolts

0:27:56.280 --> 0:28:00.359
<v Speaker 6>were not installed, and so the plane was delivered not October.

0:28:00.560 --> 0:28:06.439
<v Speaker 6>It went into service in November, and it bumped around

0:28:06.600 --> 0:28:10.359
<v Speaker 6>enough that it came loose on this flight in early January.

0:28:11.080 --> 0:28:16.119
<v Speaker 2>So the NTSB accident investigators still don't know who performed

0:28:16.119 --> 0:28:18.800
<v Speaker 2>the work on that panel that failed.

0:28:19.440 --> 0:28:20.040
<v Speaker 4>That's correct.

0:28:20.119 --> 0:28:26.720
<v Speaker 6>It's quite extraordinary actually how this investigation has evolved, if

0:28:26.720 --> 0:28:30.919
<v Speaker 6>you will, so any factory, you know, you theoretically have

0:28:31.080 --> 0:28:34.919
<v Speaker 6>records of the construction of whatever widgets they're making, But

0:28:35.520 --> 0:28:39.600
<v Speaker 6>in the aviation industry, the record keeping is on steroids.

0:28:39.720 --> 0:28:42.920
<v Speaker 6>Anytime you do a safety critical thing, you're supposed to

0:28:43.240 --> 0:28:46.360
<v Speaker 6>memorialize it. You know, in this case it's a computer system.

0:28:46.720 --> 0:28:49.800
<v Speaker 6>When that happens, for a safety critical item like this,

0:28:50.200 --> 0:28:53.560
<v Speaker 6>there's supposed to be a second set of eyes. So

0:28:53.600 --> 0:28:56.959
<v Speaker 6>not only does the workers supervisor have to oversee it,

0:28:57.080 --> 0:29:00.320
<v Speaker 6>but you know, in some cases there's a secondary set

0:29:00.320 --> 0:29:04.160
<v Speaker 6>of eyes who comes in afterward and certifies that it

0:29:04.240 --> 0:29:09.480
<v Speaker 6>was done properly. Now, in this case, Boeing has said

0:29:09.920 --> 0:29:13.680
<v Speaker 6>that they do not have a record of this work

0:29:13.720 --> 0:29:18.880
<v Speaker 6>being performed, and in fact, they an extraordinary admission last

0:29:18.880 --> 0:29:21.880
<v Speaker 6>week in a letter to the Senate. They said that

0:29:21.960 --> 0:29:25.840
<v Speaker 6>it was a violation of their processes and so, as

0:29:25.880 --> 0:29:28.800
<v Speaker 6>you say, as a part of that, they do not

0:29:29.120 --> 0:29:34.600
<v Speaker 6>know who performed the work, and the NTSB has been

0:29:34.640 --> 0:29:39.840
<v Speaker 6>asking Boeing for information. The NTSB is frustrated because they

0:29:39.880 --> 0:29:42.680
<v Speaker 6>can't get the names of the key people to interview,

0:29:42.840 --> 0:29:46.560
<v Speaker 6>so instead they had to ask for the names of

0:29:47.160 --> 0:29:51.240
<v Speaker 6>every person who might have done work on a door

0:29:51.280 --> 0:29:54.640
<v Speaker 6>assembly in the plant at the time this plane was

0:29:54.640 --> 0:29:58.760
<v Speaker 6>moving through. Told it's twenty five people. They were in

0:29:59.280 --> 0:30:03.120
<v Speaker 6>rent and Washington at this plant doing interviews last week.

0:30:03.320 --> 0:30:06.880
<v Speaker 6>But the head of the NTSB, Jennifer Hammandy, this week

0:30:07.080 --> 0:30:10.480
<v Speaker 6>told senators that they still have been unable to determine

0:30:10.520 --> 0:30:11.120
<v Speaker 6>who did it.

0:30:12.320 --> 0:30:17.760
<v Speaker 2>And Boeing overrode security camera footage of repair work on

0:30:18.080 --> 0:30:22.600
<v Speaker 2>the door plug, and they said that's consistent with standard practice.

0:30:22.720 --> 0:30:26.000
<v Speaker 2>Video recordings are maintained on a rolling thirty day basis.

0:30:26.480 --> 0:30:28.440
<v Speaker 2>Is Is that a problem as well?

0:30:28.800 --> 0:30:32.520
<v Speaker 6>I don't see that as a huge problem. So, you know,

0:30:32.560 --> 0:30:35.920
<v Speaker 6>this work was done in late September. Boeing has a

0:30:35.960 --> 0:30:40.080
<v Speaker 6>policy to overwrite ape every thirty days, so they have,

0:30:40.280 --> 0:30:43.960
<v Speaker 6>you know, videos showing the shop floor. Presumably we don't

0:30:43.960 --> 0:30:47.800
<v Speaker 6>know precisely, but they're not a key safety tool such

0:30:47.840 --> 0:30:52.320
<v Speaker 6>as performing the secondary inspection on work would be they're there,

0:30:53.080 --> 0:30:56.400
<v Speaker 6>you know, just to ensure people aren't stealing tools and

0:30:56.840 --> 0:31:01.400
<v Speaker 6>et cetera. You know, the NTSB always for video records

0:31:01.440 --> 0:31:04.920
<v Speaker 6>because there's so there's so many surveillance cameras and so

0:31:05.000 --> 0:31:09.440
<v Speaker 6>many people just randomly taking video with their phones. They

0:31:09.480 --> 0:31:12.160
<v Speaker 6>always sort of ask for that. In this case, it

0:31:12.280 --> 0:31:15.400
<v Speaker 6>wasn't available, but there was no indication there was any

0:31:16.280 --> 0:31:18.400
<v Speaker 6>anything untoward or about that.

0:31:18.920 --> 0:31:23.320
<v Speaker 2>So now you also had a Federal Aviation Administration audit

0:31:24.000 --> 0:31:28.840
<v Speaker 2>of Boeing seven thirty seven MAX that found a plethora

0:31:28.880 --> 0:31:31.240
<v Speaker 2>of issues with the production process.

0:31:32.040 --> 0:31:37.400
<v Speaker 6>That's correct. We understand there were dozens of violations, but

0:31:37.640 --> 0:31:41.400
<v Speaker 6>we still don't know the detail. I would add that

0:31:41.480 --> 0:31:45.840
<v Speaker 6>the fa also audited a second company called Spirit Aerospace,

0:31:46.800 --> 0:31:51.560
<v Speaker 6>which builds the raw fuselage parts for the seven thirty

0:31:51.600 --> 0:31:56.240
<v Speaker 6>seven and then ships them to Washington State where Boeing

0:31:56.280 --> 0:31:59.800
<v Speaker 6>does the final assembly, and they found violations that Spirit

0:32:00.000 --> 0:32:05.080
<v Speaker 6>as well. It's relevant because the reason this door plug

0:32:05.160 --> 0:32:07.880
<v Speaker 6>got removed in the first place at the factory is

0:32:07.880 --> 0:32:13.479
<v Speaker 6>that there were improperly done rivets by the Spirit folks,

0:32:13.520 --> 0:32:15.480
<v Speaker 6>and so they had to go in and fix those.

0:32:15.640 --> 0:32:18.680
<v Speaker 6>But the bottom line is, yeah, the FAA has done

0:32:18.720 --> 0:32:22.400
<v Speaker 6>this audit. We don't know the precise details of how

0:32:22.440 --> 0:32:25.680
<v Speaker 6>bad the violations were, but they did find dozens of

0:32:25.720 --> 0:32:30.720
<v Speaker 6>cases where there were shortfalls in the safety processes and

0:32:30.800 --> 0:32:33.880
<v Speaker 6>record keeping, etc. That FAA expects.

0:32:34.360 --> 0:32:40.360
<v Speaker 2>So we've seen several mishaps with Boeing aircraft recently, flaming engines,

0:32:40.600 --> 0:32:44.760
<v Speaker 2>tires falling from the sky, engine failures over the Pacific,

0:32:44.920 --> 0:32:50.640
<v Speaker 2>malfunctioning rudders, issues with wiring gears and hydraulic systems. Am

0:32:50.640 --> 0:32:53.160
<v Speaker 2>I overstating it? It sounds like a lot.

0:32:53.480 --> 0:32:57.520
<v Speaker 6>Well. I have two almost contradictory points here. One is

0:32:57.560 --> 0:33:00.480
<v Speaker 6>that in the case of the tire falling off, it

0:33:00.560 --> 0:33:05.200
<v Speaker 6>was quite dramatic. Somebody videotaped it and the tire came

0:33:05.240 --> 0:33:07.120
<v Speaker 6>down and hit a car in a parking lot. It

0:33:07.160 --> 0:33:10.800
<v Speaker 6>was in San Francisco. You know, that's not a good look,

0:33:11.040 --> 0:33:14.080
<v Speaker 6>but it was a twenty plus year old plane. That

0:33:14.600 --> 0:33:17.640
<v Speaker 6>failure had absolutely nothing to do with Boeing. We don't

0:33:17.640 --> 0:33:20.080
<v Speaker 6>know what happened, but you think it would be related

0:33:20.160 --> 0:33:25.800
<v Speaker 6>to maintenance somehow. Quite frankly, if you keep an eye

0:33:26.120 --> 0:33:31.280
<v Speaker 6>on incidents on a daily basis. As I've done many years,

0:33:32.000 --> 0:33:35.800
<v Speaker 6>these things happen all the time. I think it's fair

0:33:35.840 --> 0:33:40.200
<v Speaker 6>to say the accident rates are remarkable. They'd never been better,

0:33:40.800 --> 0:33:45.360
<v Speaker 6>and these incidents, I think demonstrate that the safety net

0:33:45.400 --> 0:33:49.520
<v Speaker 6>is pretty robust. But I would also say that one

0:33:49.600 --> 0:33:53.760
<v Speaker 6>of those incidents that you mentioned does speak to broader

0:33:53.800 --> 0:33:57.400
<v Speaker 6>issues with Boeing. There was a notice by the federal

0:33:57.480 --> 0:34:02.680
<v Speaker 6>government last week that thirty seven MAX wiring had been

0:34:02.720 --> 0:34:07.600
<v Speaker 6>improperly installed. When that happens, sometimes it chased, and what

0:34:07.760 --> 0:34:11.680
<v Speaker 6>happened was a flight control device known as a spoiler

0:34:12.520 --> 0:34:17.239
<v Speaker 6>was activating without a pilot intending for it to activate.

0:34:17.640 --> 0:34:21.080
<v Speaker 6>That speaks to some of these very same issues with

0:34:21.239 --> 0:34:25.440
<v Speaker 6>quality that we've seen with Boeing in this door plugse.

0:34:25.680 --> 0:34:30.279
<v Speaker 2>The Justice Department has opened a criminal investigation into that

0:34:30.520 --> 0:34:36.239
<v Speaker 2>Alaska Airlines incident, examining whether it falls under the government's

0:34:36.280 --> 0:34:42.120
<v Speaker 2>twenty twenty one deferred prosecution agreement with Boeing. The accident

0:34:42.120 --> 0:34:44.719
<v Speaker 2>took place just two days before the expiration of the

0:34:44.760 --> 0:34:46.800
<v Speaker 2>deferred prosecution agreement.

0:34:46.760 --> 0:34:52.080
<v Speaker 6>Several years ago. After these two fatal accidents in twenty

0:34:52.080 --> 0:34:56.920
<v Speaker 6>eighteen and twenty nineteen involving seven thirty seven MAX aircraft.

0:34:57.200 --> 0:35:01.080
<v Speaker 6>If you recall, the accidents were caused at least in

0:35:01.160 --> 0:35:07.160
<v Speaker 6>part by a bad design that Boeing put into the plane,

0:35:07.520 --> 0:35:13.040
<v Speaker 6>and afterward the Justice Department reached an agreement not to

0:35:13.080 --> 0:35:19.239
<v Speaker 6>prosecute Boeing, and in exchange, Boeing admitted to a violation

0:35:19.560 --> 0:35:23.640
<v Speaker 6>and agreed to pay a large civil penalty and then

0:35:23.760 --> 0:35:28.160
<v Speaker 6>also agreed to essentially clean up its act over a

0:35:28.239 --> 0:35:31.520
<v Speaker 6>three year period. That period, as you say, was about

0:35:31.560 --> 0:35:36.880
<v Speaker 6>to expire. The Justice Department has six months to decide

0:35:36.920 --> 0:35:42.640
<v Speaker 6>whether Boeing has violated is this earlier agreement. We understand

0:35:42.680 --> 0:35:47.160
<v Speaker 6>that they've convened a grand jury to look at whether

0:35:47.200 --> 0:35:51.760
<v Speaker 6>there are criminal charges to be brought. There are two possibilities.

0:35:51.800 --> 0:35:56.560
<v Speaker 6>We understand. It's possible they could say that Boeing violated

0:35:56.800 --> 0:36:00.000
<v Speaker 6>the earlier agreements and then they would bring the charge

0:36:00.560 --> 0:36:05.359
<v Speaker 6>on that score, or they are also potentially looking at

0:36:05.440 --> 0:36:11.080
<v Speaker 6>bringing charges related to the actual January fifth failure. Now

0:36:11.120 --> 0:36:15.840
<v Speaker 6>I would note some countries France, for example, almost always

0:36:16.280 --> 0:36:20.399
<v Speaker 6>files a criminal charge after an airline accident, but it's

0:36:20.719 --> 0:36:25.000
<v Speaker 6>very unusual in the US and quite controversial. We're very

0:36:25.000 --> 0:36:27.359
<v Speaker 6>early on. It's unclear how it's going to play out.

0:36:27.360 --> 0:36:30.239
<v Speaker 6>But it's a very sticky, complicated situation.

0:36:30.760 --> 0:36:34.480
<v Speaker 2>Seems like Bowen's been here before. Thanks so much, Alan.

0:36:34.840 --> 0:36:39.120
<v Speaker 2>That's Alan Levin, Bloomberg Aviation Safety Reporter. And that's it

0:36:39.200 --> 0:36:42.160
<v Speaker 2>for this edition of the Bloomberg Law Podcast. Remember you've

0:36:42.200 --> 0:36:44.920
<v Speaker 2>can always get the latest legal news by subscribing and

0:36:44.960 --> 0:36:48.480
<v Speaker 2>listening to the show on Apple Podcasts, Spotify, and at

0:36:48.520 --> 0:36:52.840
<v Speaker 2>Bloomberg dot com, slash podcast, slash Law. I'm June Grosso

0:36:53.040 --> 0:36:54.520
<v Speaker 2>and this is Bloomberg