WORLD'SLARGESTONLINESERVICE.
MORETHAN90%OFSEARCHES
ONLINE.
ABILLIONUSERSANDBROWSERS,
SMARTPHONES.
THEYSTOODOUTASTITANSINOUR
ECONOMY.
STRONGERANDMOREPOWERFULTHAN
EVERBEFORE.
ASTHEYSHIFTMOREOFTHEIR
WORK,THESEGIANTSSTANDTO
PROFIT.
LOCALLYOWNEDBUSINESSESMEAN
MOMANDPOPSTORESFACEAN
ECONOMICCRISISLIKEANYOTHER
INRECENTHISTORY.
ASHARDASITISTOBELIEVETHAT
OURECONOMYWILLEMERGEFROM
THISCRISISEVENMORE
CONSOLIDATEDTHANBEFORE.
THESECOMPANIESSERVEAS
CRITICALARTERIESOFCOMMERCE
ANDCOMMUNICATIONS.
BECAUSETHESECOMPANIESARESO
CENTRALTOOURMODERNLIFE,
THEIRBUSINESSPRACTICESAND
DECISIONSHAVEANOUTSIZED
EFFECTONOURECONOMYAND
DEMOCRACY.
ANYSINGLEACTIONBYONEOF
THOSECOMPANIESCANAFFECT
HUNDREDSOFMILLIONSOFUSIN
PROFOUNDANDLASTINGWAYS.
ALTHOUGHTHESEFOURCORPORATIONS
DIFFERINIMPORTANTAND
MEANINGFULWAYS,WE'VEOBSERVED
COMMONPROBLEMSOVERTHECOURSE
OFTHISINVESTIGATION.
FIRST,EACHPLATFORMISA
BOTTLENECKFORAKEYCHANNELOF
DISTRIBUTION.
WHETHERTHEYCONTROLCCESSTO
INFORMATIONORAMARKETPLACE,
THESEPLATFORMSHAVETHE
INCENTIVEANDABILITYTOEXPLOIT
THISPOWER.
THEYCANCHARGEXORBAHBITANT
FEESANDEXTRACTVALUABLEDATA
FROMTHEPEOPLEANDBUSINESSES
THATRELYONTHEM.
SECOND,EACHPLATFORMUSESITS
CONTROLOVERDIGITAL
INFRASTRUCTURETOSURVEILOTHER
COMPANIES,THEIRGROWTH,
BUSINESSACTIVITYANDWHETHER
THEYMIGHTPOSEACOMPETITIVE
THREAT.
EACHPLATFORMHASPROTECTEDITS
POWERBYCOPYINGORCUTTINGOFF
ACCESSFORANYACTUALOR
POTENTIALRIVAL.
THIRD,THESEPLATFORMSABUSE
THEIRCONTROLOVERCURRENT
TECHNOLOGIESTOEXTENDTHEIR
POWER.
WHETHERIT'STHROUGH
SELF-PREFERENCES,PREDATORY
PRICINGORREQUIRINGBUYING
ADDITIONALPRODUCTS.
THEY'VEWIELDINGTHEIRPOWERIN
DESTRUCTIVE,HARMFULWAYSIN
ORDERTOEXPAND.
ATTODAY'SHEARING,WE'LL
DISCOVERHOWEACHAAFFECTSOUR
DAILYLIVES.
SO,WHYDOESTHISMATTER?
MANYOFTHEPRACTICESUSEDBY
THESECOMPANIESHAVEHARMFUL
ECONOMICEFFECTS.
THEYDISCOURAGE
ENTREPRENEURSHIP,HEIGHTENCOST.
SIMPLYPUT,THEYHAVETOOMUCH
POWER.
THISPOWERSTAVESOFFNEWFORMS
OFCOMPETITION,CREATIVITYAND
INNOVATION.
ANDWHILETHESEDOMINANTFIRMS
MAYSTILLPRODUCENEW,
INNOVATIVEPRODUCTS,THEIR
DOMINANCEISKILLINGSMALL
BUSINESSESANDMANUFACTURING
THATARETHEAMERICANECONOMY.
SOMEHARVESTANDABUSEPEOPLE'S
DATATOSELLADSFROMEVERYTHING
TONEWBOOKSTODANGEROUS
SO-CALLEDMIRACLECURES.
WHENEVERYDAYAMERICANSLEARN
HOWMUCHOFTHEIRDATAISBEING
MINED,THEYCAN'TRUNAWAYFAST
ENOUGH,BUTINMANYCASES,
THERE'SNOESCAPEBECAUSE
THERE'SNOALTERNATIVE.
PEOPLEARESTUCKWITHBAD
OPTIONS.
THEY'REPREDICATEDONTHEIDEA
THATIFACOMPANYHARMSPEOPLE,
THEY'LLCHOOSEANOTHEROPTION.
WE'REHERETODAYBECAUSETHAT
CHOICEISNOLONGERPOSSIBLE.
INCLOSING,I'MCONFIDENTTHAT
ADDRESSINGTHEPROBLEMSWESEE
WILLLEADTOASTRONGER,MORE
VIBRANTECONOMYBECAUSE
CONCENTRATEDECONOMICPOWER
LEADSTOCONCENTRATEDPOLITICAL
POWER.
THISGOESTOTHEHEARTOF
WHETHERWE,ASAPEOPLE,GOVERN
OURSELVESORWHETHERWELET
OURSELVESBEGOVERNEDBYPRIVATE
MONOPOLIES.
AMERICANDEMOCRACYHASALWAYS
BEENAATWARAGAINSTMOPLY
POWER.
THROUGHOUTHISTORY,WE'VE
RECOGNIZEDTHATCONCENTRATED
MARKETSANDPOLITICALCONTROL
AREINCOMPATIBLEWITHDEMOCRATIC
IDEALS.
WHENTHEAMERICANPEOPLE
CONFRONTEDMONOPOLISTSINTHE
PAST,OILTYCOONSORAT&TAND
MICROSOFT,WETOOKACTIONTO
ENSURENOPRIVATECORPORATION
CONTROLSOURECONOMYOR
DEMOCRACY.
WEFACESIMILARCHANGESTODAY.
ASGATEKEEPERSOFTHEECONOMY,
THEYENJYTHEPOWERTOPICK
WINNERSANDLOSERS,TOSHAKE
DOWNSMALLBUSINESSESANDENRICH
THEMSELVESWHILECHOKINGOFF
COMPETITORS.
THEIRABILITYTOCALLTHESHOTS,
UPENDEDHIGHERSECTORSAND
INSPIREFEARREPRESENTTHE
POWERSOFAPRIVATEGOVERNMENT.
OURFOUNDERSWOULDNOTBOW
BEFOREAKING,NORSHOULDWEBOW
BEFORETHEEMPERORSOFTHE
ONLINEECONOMY.
WITHTHAT,IRECOGNIZEMR.
SENSERFORHISOPENING
STATEMENT.
>>THANKYOU,MR.CHAIRMAN.
IWANTTOTHANKTHECEOsFOR
QUICKLYWORKINGWITHTHE
SUBCOMMITTEETOAPPEARTODAY.
THEMEMORIALSERVICEFORJOHN
LEWISONMONDAYREQUIREDOUR
ATTENTION.
HOWEVER,THISISVITAL.
THROUGHOUTMYLONGTIMEIN
CONGRESS,IHAVEPRIORITIZED
OVERSIGHTASONEOFOURSEMINAL
RESPONSIBILITIES.
PARTOFTHATRESPONSIBILITYIS
TOPERIODICALLYREVIEWTHE
EFFECTIVENESSOFOURLAWS.
ITHINKIT'SAGOODANDTIMELY
THINGTOBRINGTOALLOFOUR
COMPANIES.
THESEUNEXPECTEDAND
UNPRECEDENTEDTIMES,YOUR
COMPANIESHAVEPROVIDED
MOTIVATIONSTOOURNATIONSCAN
MEETAMYRIADOFOURDAILY
NEEDS.
THEDELIVERYOFGROCERIES,
VIRTUALBUSINESSFORDOCTORS.
CONNECTINGSOCIALLYDISTANT
FAMILIES.
ORKEEPINGOURSMALLANDLARGE
BUSINESSESCONNECTED.
THATRESPONSIBILITYCOMESAN
INCREASEDSCRUTINYOFYOUR
DOMINANCEINTHEMARKETPLACE.
IWANTTOREITERATESOMETHINGI
SAIDTHROUGHOUTTHIS
INVESTIGATION.
BEINGBIGISNOTINHERENTLYBAD.
QUITETHEOPPOSITE.
INAMERICA,YOUSHOULDBE
REWARDEDFORSUCCESS.
WE'REHERETOBETTERUNDERSTAND
THEROLEYOURCOMPANIESHAVEIN
THEDIGITALMARKETPLACEAND
IMPORTANTLY,THEEFFECTTHEY
HAVEONCONSUMERSANDTHEPUBLIC
ATLARGE.
YOULEADSOMEOFTODAY'SMORE
POWERFULCOMPANIESANDMY
COLLEAGUESANDIHAVEAGREAT
INTERESTABOUTWHATYOUR
COMPANIESDOWITHTHAT
ACCUMULATEDPOWER.
WEALSOKNOWTHATTHETECH
MARKETPLACEPLACEISDRIVENBY
DATA.
SOITFOUNDTHATTHEYCONTROL
THEMARKETPLACE.
THEREAREBROADERQUESTIONS
SURROUNDINGDATA.
WHOOWNSTHEDATA?
WHATRESPONSIBILITIESDO
COMPANIESHAVETOSHAREITWITH
THEIRCUSTOMERSORCOMPETITORS?
WHATISTHEFAIRMARKETVALUEOF
THATDATA?
ISTHEREANYTHINGMONOPOLISTIC
ININQUIRINGTHISANDWHATABOUT
MONOTIZINGIT?
THESEARECOMPLEXISSUESTHAT
CONGRESSREGULATORSANDEVEN
YOUROWNCOMPANIESAREWRESTLING
WITHINTHECURRENT
TECHNOLOGICALLANDSCAPEANDTHE
ANSWERSTOWHICHWEOWETHE
AMERICANCONSUMERS.
SINCETHETECHINVESTIGATION
BEGAN,WEHAVEHEARD
RUMBLINGINGSTHATAREQUICKTO
SAYYOURSUCCESSFULCOMPANIES
HAVEGROWNTOOLARGE.
SINCETHISHEARINGWAS
ANNOUNCED,SEEMSTHOSE
COMPLAINTSHAVEGOTTENLOUDER.
WHILEIFINDTHESECOMPLAINTS
INFORMATIVE,IDON'TPLANON
LITIGATINGEACHOFTHESE
COMPLAINTSTODAY.
ATITRUSTLAWOFACONSUMER
WELFARESTANDARDHASSERVEDTHIS
COUNTRYWELLFOROVERACENTURY.
THOSELAWSHAVEPROVIDEDTHE
FRAMEWORKANDCREATIVITYTOMAKE
WAYFORSOMEOFOURMOST
SUCCESSFULANDINNOVATIVE
COMPANIES.
IWILLBETHEFIRSTTOHIGHLIGHT
THAT.
HOWEVER,ASTHEBUSINESS
LANDSCAPEEVOLVES,WEMUST
ENSURETHATOUREXISTING
ANTITRUSTLAWSAREAPPLIEDTO
MEETTHENEEDSOFOURCOUNTRY
ANDITSCONSUMERS.
ASWEKNOWCOMPANIESLIKE
FACEBOOK,YOUTUBEANDTWITTER
HAVEBECOMETHEPUBLICSQUAREOF
TODAYWHEREPOLITICALDEBATE
UNFOLDSINREALTIME.
BUTREPORTSTHATDESCENDING
VIEWSOFTENCONSERVATIVEVIEWS
ARETARGETEDORCENSOREDIS
SERIOUSLYTROUBLING.
CONSERVATIVESARECONSUMERS,
TOO.
ANDTHEYNEEDTHEPROTECTIONOF
THEANTITRUSTLAWS.
THEPOWERTOINFLUENCETHEBIG
CARRIERSWITHREMARKABLE
RESPONSIBILITIES.
SOLETTHEFACTSBEOURGUIDE
HERE.
YOURCOMPANIESARELARGE.
THAT'SNOTAPROBLEM.
YOURCOMPANIESARESUCCESSFUL.
THAT'SNOTAPROBLEMEITHER.
BUTIWANTTOLEAVEHERETODAY
WITHAMORECOMPLETEPICTUREOF
HOWYOURINDIVIDUALCOMPANIES
USEYOURSIZE,SUCCESSANDPOWER
ANDWHATITMEANSTOTHE
AMERICANCONSUMER.
IYIELDBACKTHEBALANCEOFMY
TIME.
>>THANKTHEGENTLEMEN.
THECHAIRNOWRECOGNIZESTHE
DISTINGUISHEDCHAIRMANOFTHE
FULLCOMMITTEE,MR.NADLER,FOR
HISOPENINGSTATEMENT.
>>THANKYOU,MR.CHAIRMAN.
IWANTTOTHANKYOUANDTHE
SUBCOMMITTEEMEMBERSFORTHE
TREMENDOUSEFFORTTHATYOUHAVE
ALLPUTINTOTHESUBCOMMITTEE'S
INVESTIGATION.
IAPPRECIATEYOURQUELLCALLING
THISHEARINGTODAYSOTHATWE
CANHEARDIRECTLYFROMTHE
LEERSDOFAMAZON,APPLE,
FACEBOOKANDGOOGLELANDILOOK
FORWARDTOANIMPORTANT
DIALOGUE.
TODAY,ITISEFFECTIVELY
IMPOSSIBLETOUSETHEINTERNET
WITHOUTUSINGINONEWAYOR
ANOTHER,THESERVICESOFTHESE
FOURCOMPANIES.
IHAVELONGBELIEVEDWITHTHOMAS
JEFFERSONANDLEWISBRANDICE,
THATCONCENTRATIONOFPOWERIN
ANYFORM,ESPECIALLY
CONCENTRATIONOFECONOMICOR
POLITICALPOWER,ISDANGEROUSTO
ADEMOCRATICSOCIETY.
THATISWHYWEMUSTEXAMINE
THESEANDOTHERCOMPANIESTHAT
PLAYADOMINANTROLEINOUR
ECONOMYANDINOURSOCIETY.
ANDENSURETHATOURANTITRUST
LAWSGIVEENFORCERSTHETOOLS
THEYNEEDTOPRESERVEAHEALTHY
MARKETPLACE.
THESEPRINCIPLESHAVEGUIDED
THISCOMMITTEE'SYEARLONG
INVESTIGATIONINTOCOMPETITION
ANDDIGITALMARKETSANDTHEYARE
THELENSTOWHICHIAPPROACH
TODAY'SHEARING.
THEOPENINTERNETHASDELIVERED
ENORMOUSBENEFITSTOAMERICANS.
INCLUDINGASURGEOFECONOMIC
OPPORTUNITY,MASSIVEINVESTMENT
ANDNEWPATHWAYSFOREDUCATION
ONLINE.
BUTTHERE'SGROWINGEVIDENCE
THATAHANDFULOFCORPORATIONS
HAVECOMETOCAPTUREANOUTSIDE
SHAREOFONLINECOMMERCE.
FROMPROVIDINGTHEDOMINANCE
SEARCHPLATFORM,RETAILPLATFORM
ANDONLINEMESSAGINGPLATFORMTO
PROVIDINGTHECLOUDCOMPUTINGIN
WHICHHUNDREDSOFTHOUSANDSOF
OTHERBUSINESSESRELY,THESE
DOMINANTPLATFORMSNOWCOMPRISE
THEESSENTIALINFRASTRUCTUREFOR
THE21stCENTURY.
BYVIRTUEOFCONTROLLING
ESSENTIALINFRASTRUCTURE,THESE
COMPANIESHAVETHEABILITYTO
CONTROLACCESSTOMARKET.
INSOMEBASICWAYS,THEPROBLEM
ISNOTWHATWEFACED130YEARS
AGOWHENRAILROADSTRANSFORMED
AMERICANLIFE.
BOTHENABLINGFARMERSAND
PRODUCERSTOACCESSNEWMARKETS,
BUTALSOCREATINGAKEYCHOKE
HOLDTHATTHERAILROAD
MONOPOLIESCOULDUEXPLOIT.
NOTORIOUSLYABUSEDTHEPOWERIN
AVARIETYOFWAYS.
THEYCHARGEDTOLLS.
THEYDISCRIMINATEDAMONG
FARMERS,PICKINGWINNERSAND
LOSERSACROSSTHEECONOMYANDBY
EXPANDINGINTOBUSINESS,THEY
COMPETEDDIRECTLYWITH
PRODUCERS,THEYCOULDUSETHEIR
DOMINANCEANDTRANSPORTATIONTO
PAYFORTHEIROWNSERVICES.
THESETACTICSBYTHERAILROADS
SPURREDFURYANDDESPAIRACROSS
THECOUNTRY.
CONGRESSNICHEWAITING
INVESTIGATIONSTODOCUMENTTHESE
PROBLEMSANDENACTEDLEGISLATIVE
SOLUTIONSTOOUTLAWTHESE
ANTICOMPETITIVEPRACTICESINTHE
RAILROADINDUSTRYANDOTHER
INDUSTRIESDOMINATEDBY
UNREGULATEDMONOPOLIESAND
TRUSTS.
IMPORTANTLY,CONGRESSIONAL
OVERSIGHTANDLEGISLATIVE
REFORMSDURINGTHISPERIODDID
NOTPREVENTTHEARRIVALOFNEW
TECHNOLOGYFORHUMANPROGRESS.
THATITWASTHEIROLDCONGRESS
TOENSURETHENEWMONOPOLISTS
COULDNOTABUSETHEIRPOWER.
TODAY,THEDIGITALECONOMYPOSES
SIMILARCHALLENGES.
WHILETHEUNDERLYINGTECHNOLOGY
ISDRAMATICALLYDIFFERENT,OF
COURSE,NEWUDIGITAL
INTERMEDIARIESHAVETHEABILITY
TOCONTROLACCESSTOCRITICAL
MARKETS.
IFYOUAREANINDEPENDENT
MERCHANTS,DEVELOPERORCONTENT
PRODUCER,YOUAREINCREASINGLY
RELIANTONTHESEPOWERFUL
INTERMEDIARIESTOACCESSMARKETS
ANDCONSUMERS.
OFCOURSETHEECONOMY,MANY
BUSINESSESLIVEINFEAROF
EXCLUSIONFROMTHESEPLATFORMS.
THEFACTSOMECOMPANIESHAVE
SHAREDWITHCOMMITTEEOVERTHE
PASTYEAROFTHISINVESTIGATION.
THESUBCOMMITTEE'SCURRENT
REVIEWINTHEDIGITAL
MARKETPLACECONTINUESALONG
TRADITIONINTHISCOMMITTEEOF
OVERSIGHTOFTHEANTITRUSTLAWS
INOURECONOMY.
FROMTHEDAYSOFCHAIRMAN
EMANUELSELLER,THEHOUSE
JUDICIARYCOMMITTEEANDHIS
ANTITRUSTSUBCOMMITTEEHAVE
CONDUCTEDCAREFULSECTORSVOEING
SIGNSOFCONSOLIDATIONAND
CONDUCT.
THISHASCONTINUEDONA
BIPARTISANBASISOVERTHEYEARS
THROUGHCHAIRMANBROOKSAND
CONNIERSANDOTHERS.
ASA1950REPORTDESCRIBEDOUR
MANDATE,QUOTE,ITISTHE--OF
THISSUBCOMMITTEETOINVESTIGATE
FACTORSWHICHTENDTOELIMINATE
COMPETITION,STRENGTHEN
MONOPOLIES,INJURESMALL
BUSINESSESORPROMOTEUNDUE
CONCENTRATIONOFECONOMICPOWER.
TOASCERTAINTHEFACTSANDMAKE
RECOMMENDATIONSBASEDONTHOSE
FINDINGS.
FOLLOWINGINTHISTRADITION,OUR
INVESTIGATIONHASHELDHEARINGS
WITHINDUSTRYANDGOVERNMENT
WITNESSES,CONSULTATIONSWITH
SUBJECTMATTEREXPERTSANDA
CAREFULANDPAINSTAKINGREVIEW
OFLARGEVOLUMESOFEVIDENCE
PROVIDEDBYINDUSTRY
PARTICIPANTSANDREGULATORS.
WHILEULTIMATELY,ITISTHE
RESPONSIBILITYOFTHEANTITRUST
ENFORCEMENTAGENCIESTOENFORCE
THELAW,CONGRESSHASAN
OBLIGATIONTOASSESSWHETHERTHE
LAWSANDPOLICIESANDTHEWILL
TOENFORCETHOSELAWSAND
POLICIESAREADEQUATETOADDRESS
THECOMPETITIONISSUESFACING
OURCOUNTRYANDTOTAKEACTION
IFTHEYAREFOUNDTOBELACKING.
GIVENTHEDOMINANTROLETHESE
FOURCOMPANIESPLAYINOUR
ECONOMYANDSOCIETY,ITISONLY
REASONABLETHATOURCAREFUL
EXAMINATIONOFTHEANTITRUST
LAWSBEGINWITHTHEM.
IAPPRECIATEALLOFOUR
WITNESSESTODAY.
THEINVESTIGATIONWOULDNOTBE
COMPLETE,INDEED,IT'SHARDLY
BEGUN,WITHOUTHEARINGFROMTHE
DECISIONMAKERSOFTHESE.
IYIELDBACKTHEBALANCEOFMY
TIME.
>>ITHANKTHEGENTLEMENANDI
NOWRECOGNIZETHERANKINGMEMBER
OFTHEFULLCOMMITTEE,THE
GENTLEMANFROMOHIO,MR.JORDAN,
FORHISOPENINGSTATEMENT.
>>THANKYOU,MR.CHAIRMAN.
IALSOWANTTOTHANKTHERANKING
MEMBER.
NOTSUREHOWMANYMORECOMMITTEE
HEARINGSTHISSUBCOMMITTEEOR
THEFULLCOMMITTEEAREGOINGTO
HAVETHISCONGRESS,BUTIWANT
TOTHANKJIMFORHISGREATWORK
FORTHECONSTITUENTSOF
WISCONSINFORTHISMANYYEARS
ANDFORTHEWORKHE'SDONETHIS
ENTIRECOMMITTEE.
BIGTECH'SOUTTOGET
CONSERVATIVES.
THAT'SNOTASUSPICIOUS.
NOTAHUNCH.
THAT'SAFACT.
JULY20th,2020,GOOGLEREMOVES
BREITBART.
APRIL19th,2020,GOOGLEAND
YOUTUBEANNOUNCEAPOLICY
CENSORINGTHECONTENTTHAT
CONFLICTSWITHRECOMMENDATIONS
THEWORLDHEALTHORGANIZATION.
THINKABOUTTHAT.
WORLDHEALTHORGANIZATION.
ORGANIZATIONTHATLIEDTOUS.
THEORGANIZATIONTHATCHILLED
FORCHINAANDIFYOUCONTRADICT
SOMETHINGTHEYSAY,THEYCANSAY
WHATEVERTHEYWANT.
THEYCANLIEFORCHINA.
THEYCANCHILLFORCHINA.
YOUSAYSOMETHINGAGAINSTTHEM,
YOUGETCENSORED.
JUNE29th,2020,AMAZONBANS
PRESIDENTTRUMP'SACCOUNTON
TWITCHAFTERHERAISESCONCERNS
ABOUTDEFUNDINGTHEPOLICE.
JUNE4th,2020,AMAZONBANSA
BOOKCRITICALOFTHECORONAVIRUS
LOCKDOWNSWRITTENBYA
CONSERVATIVECOMMENTATOR.
MAY27th,2020,AMAZONSMILE
WON'TLETYOUUGIVEGIVETOTHE
FAMILYRESEARCHCOUNCIL,BUTYOU
CANGIVETOPLANNEDPARENTHOOD.
FACEBOOK,JUNE19th,2020,TAKES
DOWNPOSTSFROMTRUMP'S
RE-ELECTIONCAMPAIGN.
THEYSILENCEAPRO-LIFE
ADVERTISEMENT.
MAY19th,2020,FORMERFACEBOOK
EMPLOYEESADMITFACEBOOK
ROUTINE
LYSUPPRESSESCONSERVATIVE
VIEWS.
IHAVEN'TMENTIONEDTWITTER.
IASKEDFORYOUGUYSTOINVITE
THEMASAWITNESS.
YOUGUYSSAIDNO,IHAVEN'T
MENTIONEDTHEMTWOYEARSAGO.
FOURMEMBEROFCONGRESSWERE
SHADOWEDTWOYEARSAGO.
435INTHEHOUSE.
ONLYFOUR.
GATES,MEADOWS,NUANCE,JORDAN,
GETSHAHKOED.
WHATDIDMR.DORSEYTELLUS?
ITWASJUSTAGLITCHINOUR
ALGORITHM.
WHATDIDYOUPUTIN?
IFIHADANICKELFOREVERYTIME
IHEARDITWASJUSTAGLITCH,I
WOULDN'TBEASWEALTHYASOUR
WITNESSES,BUTIWOULDBEDOING
ALLRIGHT.
WE'VEHEARDTHATEXCUSETIMEAND
TIMEAGAIN.
MAY28th,THEYSENSORPRESIDENT
TRUMP'STWEETS.
SENSORSTHEWHITEHOUSEQUOTING
THEPRESIDENT'SCOMMENTSAABOUT
THERIOTSINMINNEAPOLIS.
JUNE2020,TWITTERSENSORSTHE
PRESIDENTAGAIN.
YOUCANTWEETALLYOUWANTABOUT
THEAUTONOMOUSZONETHAT
HAPPENEDINSEATTLE,BUTTHE
PRESIDENTTWEETSHE'SGOINGTO
HAVEONEINWASHINGTON,D.C.,
OH,NO,YOUCAN'TDOTHAT.
YOUGETBANNED.
CENSORED.
DOZENSOFEXAMPLES.
IFORGOTONE.
JUSTLASTWEEK,JULY21st.
JULY21st.
THELEADEROFIRAN,ISLAMIC
REPUBLICOFIRAN,LARGESTSTATE
SPONSOROFTERRORISM.
TWITTERALLOWSTHISTWEET.
QUOTE,THEISLAMICREPUBLICOF
IRANWILLNEVERFORGETTHEMAR
TORDOMOFSULMANNIEANDWILL
STRIKEABLOWINTHEUNITED
STATES.
SOYOUCANTHREATENTHECITIZENS
OFTHISGREATCOUNTRY,THE
LEADEROFTHELARGESTSTATE
SPONSOROFTERRORISM,THAT'S
JUSTFINE,BUTOH,THEPRESIDENT
SAYSHE'SNOTGOINGTOALLOW
SOMEAUTONOMOUSZONEIND.C.AND
HEGETSCENSORED.
ALLKINDSOFEXAMPLES.
MOSTOFTHEMFROMTHISYEARAND
THAT'SWHAT'SCRITICALTO
UNDERSTAND.
MOSTOFTHEMFROMTHISYEAR,AN
ELECTIONYEAR.
THAT'SWHATCONCERNSMEANDSO
MANYAMERICANSBECAUSEWESAW
WHATGOOGLEDIDIN2016.
WEALLKNOWABOUTTHEE-MAILTHE
DAYAFTERTHEELECTIONWHERETOP
EXECUTIVESATGOOGLETALKED
ABOUTTHESILENTDONATION.
INSPITEOFTHEIREFFORTSTO
HELPCLINTON,PRESIDENTTRUMP
WON.
BUTWE'RE97DAYSBEFOREAN
ELECTION.
ANDTHEPOWERASTHEPREVIOUS
CHAIRMANANDRANKINGMEMBERHAVE
SAID,THEPOWERTHESECOMPANIES
HAVETOIMPACTWHATHAPPENS
DURINGANELECTION,WHATPEOPLE,
WHATAMERICANCITIZENSGETTO
SEEPRIORTOTHEIRVOTINGIS
PRETTYDARNIMPORTANT.
THAT'SWHYTHISCOMMITTEE
HEARINGISIMPORTANT.
WEALLTHINKTHEFREEMARKETIS
GREAT.
WETHINKCOMPETITIONISGREAT.
WELOVETHEFACTTHESEARE
AMERICANCOMPANIES.
WHAT'SNOTGREATISCENSORING
PEOPLE.
CENSORINGCONSERVATIVESAND
TRYINGTOIMPACTELECTIONS.
IFITDOESN'TEND,THEREHASTO
BECONSEQUENCES.
THAT'SWHATI'MCONCERNEDABOUT
WHATITHINKSOMANYAMERICANS
ARECONCERNEDABOUT.
ILOOKFORWARDTOHEARINGFROM
OURWITNESSES,MR.CHAIRMAN.
BEFOREIYIELDBACK,WEHAVEA
COLLEAGUE.
IWOULDASKUNANIMOUSCONSENT
THATMR.JOHNSON,THERANKING
MEMBEROFTHECONSTITUTION
SUBCOMMITTEEBEALLOWEDTO
PARTICIPATEINTODAY'SHEARING,
OURCUSTOMARYPRACTICEFOR
SUBCOMMITTEEHEARINGS.
>>THEGENTLEMANMAKESA
UNANIMOUSCONSENT.
>>IWOULDOBJECT.
OBJECTIONISHEARD.
>>ANDNOWUSINGTODAY'S--
>>WHYAREWENOTALLOWING,IT
ISCUSTOMARY.
THEREWASAANONYMOUSCONSENT
REQUEST.
OBJECTIONWASHEARD.
IWILLNOWINTRODUCEOUR
WITNESS.
>>THISHASNEVERHAPPENEDIN
THEHISTORYOFTHECOMMITTEE.
>>IWILLNOWINTRODUCETODAY'S
WITNESSES.
OURFIRST,JEFFBEZOS.
MR.JORDAN,IHAVETHETIME.
>>WE'RETALKINGABOUTPEOPLE'S
LIBERTIESHERE.
>>MR.JORDAN,YOUMADEA
UNANIMOUSCONSENTREQUEST.
OBJECTIONWASHEARD.
THOSEARETHERULES.
ITISNOWMYPLEASURETO
INTRODUCETHERULES.
JEFFBEZOS--
>>PUTYOURMASKON.
>>OFAMAZON.COM.
MR.BEZOSFOUNDEDAMAZONIN
19--EXCUSEME.
I'MGOINGTOREMINDMEMBERSOF
THISCOMMITTEEUNLESSYOUARE
SPEAKING,OURRULESREQUIREYOU
TOWEARAMASKACCORDINGTOTHE
ATTENDINGPHYSICIAN.
I'MSPEAKINGABOUTANOTHER
MEMBEROFTHISCOMMITTEE.
I'LLBEGINAGAIN.
ITISNOWMYPLEASURETO
INTRODUCETODAY'SWITNESSES.
OURFIRSTISJEFFBEZOS.
CHIEFEXECUTIVEOFFICEROF
AMAZON.COM.
HEFOUNDEDITIN1994ASAN
ONLINEBOOKSTORE.
SINCETHEN,THEY'VEGROWNTOBE
THELARGESTRETAILERONTHE
INTERNET.
HEALSOOVERSEESINTOAREAS
INCLUDINGCLOUDCOMPUTING,
DIGITALSTREAMINGANDARTIFICIAL
INTELLIGENCE.
HERECEIVEDHISBACHELOR'SOF
SCIENCEFROMPRINCETON.
THESECONDWITNESS,CHIEF
EXECUTIVEOFFICEROFALPHABET
ANDGOOGLE.
HEJOINEDGOOGLEIN2004ANDHAS
HELPEDMANAGEANUMBEROF
SUCCESSFULPRODUCTSINCLUDING
GOOGLECHROME,GMAILAND
ANDROIDOPERATINGSYSTEM.
HEALSOOVERSHOWEDTHECOMPANY'S
POPULARSEARCHPRODUCTS.
PRIORTOTHIS,HEWORKEDAT
McKENZIE.
RECEIVEDADEGREEIN
METALLURGICALENGINEERING,A
MASTERSFROMSTANFORDUNIVERSITY
ANDANMBAFROMTHEWHARTON
SCHOOLOFUNIVERSITYOF
PENNSYLVANIA.
OURTHIRDWITNESSISTIMCOOK,
CHIEFEXECUTIVEOFFICEROF
APPLE.
MR.COOKJOINEDAPPLEIN1998
ANDSERVEDASCHIEFOPERATIONAL
OFFICERUNDERSTEVEJOBS.
IN2011,MR.COOKWASNAMEDCEO.
WHILEATAPPLE,HEHASOVERSEEN
THEIREXPANSIONINTONEW
MARKETS,THELAUNCHAND
DEVELOPMENTSOFAPPLEPAY,APPLE
WATCH,iCLOUD,APPLECARDAND
HOMEPOD.
PRIORTOJOININGAPPLE,HE
SERVEDASDIRECTOROFNORTH
AMERICANFULFILLMENTFORIBM.
HERECEIVEDABASHLOROFSCIENCE
FROMAUBURNANDMBAFROMDUKE
UNIVERSITYSCHOOLOFBUSINESS.
OURLASTWITNESSISMARK
ZUCKERBERG.
FOUNDER,CHAIRMANANDCEOOF
FACEBOOK.
MR.ZUCKERBERGINITIALLY
LAUNCHEDFACEBOOKINORDERTO
HELPCONNECTCOLLEGESTUDENTSAT
HISSCHOOLMOREEASILY.
SINCETHEN,THECOMPANYHAS
GROWNINTOTHEWORLD'SLARGEST
SOCIALMEDIAPLATFORMWITH1.7
BILLIONGLOBALDAILYACTIVE
USERS.
HEATTENDEDHARVARDBEFORE
LEAVINGTHEFOCUSFULLTIMEON
DEVELOPINGFACEBOOK.
WEWELCOMEALLOFOUR
DISTINGUISHEDWITNESSESAND
THANKTHEMFORPARTICIPATINGIN
TODAY'SHEARINGANDNOW,WE'LL
BEGINBYSWEARINGYOUINAND
BEFOREIDOTHAT,IWANTEDTO
ALSOREMINDYOUTHATYOUARETHE
ONLYONESFROMYOURRESPECTIVE
COMPANIESINVITEDTOTESTIFY
TODAY.
ANDINACCORDANCEWITHNORMAL
HOUSEPRACTICEINSECTIONGOF
THEHOUSEREMOTECOMMITTEE
PROCEEDINGREGULATIONS,YOUR
SWORNTESTIMONYMUSTBEYOUR
OWN.
LETMEKNOWIFATANYPOINT,YOU
WISHTOMUTEYOURSELFIFYOU
WISHTOCONFERWITHYOURCOUNTY
COUNSEL.
WILLYOUMUTEYOURMICROPHONES
ANDRAISEYOURRIGHTHANDS.
DOYOUSWEARORAFFIRMUNDER
PENALTYOFPERJURYTHATTHE
TESTIMONYYOU'REABOUTTOGIVE
ISTRUEANDCORRECTTOTHEBEST
OFYOURKNOWLEDGE,INFORMATION
ANDBELIEF,SOHELPYOUGOD?
>>YES.
>>IDO.
>>LETTHERECORDSHOWTHE
WITNESSESANSWEREDEDINTHE
AFFIRMATIVE.
THANKYOUANDYOUMAYREMAIN
SEATED.
YOURWRITTENSTATEMENTSWILLBE
ENTEREDINTOTHERECORDINTHEIR
ENTIRETY.
UIASKYOUSUMMARIZEYOUR
TESTIMONYINFIVEMINUTESTO
HELPYOUSTAYWITHINTHATTIME,
THERE'SATIMINGLIGHTINWEBX.
WHENTHELIGHTSWITCHESFROM
GREENTOYELLOW,YOUHAVEONE
MINUTETOCONCLUDE.
WHENIT'SRED,ITSIGNALSYOUR
FIVEMINUTESHAVEEXPIRED.
MR.BEZOS,YOUMAYBEGIN.
>>THANKYOU,CHAIRMAN.
RANKINGMEMBERANDMEMBERSOF
THESUBCOMMITTEE.
IWASBORNINTOGREATWEALTH.
NOTMONETARYWEALTH,BUTTHE
WEALTHOFALOVINGFAMILY.
AFAMILYTHATFOSTEREDMY
CURIOSITYANDENCOURAGEDMETO
DREAMBIG.
MYMOM,JACKIE,HADMEWHENSHE
WASA17-YEAR-OLDHIGHSCHOOL
STUDENTINALBUQUERQUE.
BEINGPREGNANTINHIGHSCHOOL
WASNOTPOPULAR.
THESCHOOLTRIEDTOKICKHER
OUT.
BUTSHEWASALLOWEDTOFINISH.
AFTERMYGRANDFATHERNEGOTIATED
TERMSWITHTHEPRINCIPAL.
SHECOULDN'THAVEALOCKER.
NOEXTRAKRIRKLARSANDCOULDN'T
WALKACROSSTHESTAGETOGETHER
DIPLOMA.
SHEGRADUATEDANDWASDETERMINED
TOCONTINUEHERENLKAGS,SOSHE
ENROLLEDINNIGHTSCHOOL,
BRINGINGME,HERINFANTSON,TO
CLASSWITHHERTHROUGHOUT.
MYDAD'SNAMEISMIGUEL.
HEADOPTEDMEWHENIWAS4.
HEWAS16WHENHECAMETOTHE
U.S.FROMCUBABYHIMSELF
SHORTLYAFTERCASTROTOOKOVER.
MYDADDIDN'TSPEAKENGLISHAND
DIDNOTHAVEANEASYPATH.
WHATHEDIDHAVEWASGRITAND
DETERMINATION.
HERECEIVEDASCHOLARSHIPTO
COLLEGEINALBUQUERQUE,WHICHIS
WHEREHEMETMYMOM.
TOGETHER,WITHMYGRANDPARENTS,
THESEHARDWORKING,RESOURCEFUL
ANDLOVINGPEOPLEMADEMEWHOI
AM.
IWALKEDAWAYFROMASTEADYJOB
ONWALLSTREETINTOASEATTLE
GARAGETOFINDAMAZON,FULLY
UNDERSTANDINGTHATITMIGHTNOT
WORK.
ITFEELSLIKEJUSTYESTERDAYI
WASDRIVINGTHEPACKAGESTOTHE
POSTOFFICEMYSELF,DREAMTHAG
ONEDAY,WEMIGHTAFFORDA
FORKLIFT.
CUSTOMEROBSESSIONHASDRIVEN
OURSUCCESS.
ITAKEITASANARTICLEOFFAITH
THATCUSTOMERSDOTHERIGHT
THING.
YOUEARNTRUSTSLOWLYOVERTIME
BYDOINGHARDTHINGSWELL.
DELIVERINGONTIME.
OFFERINGEVERYDAYLOWPRICES.
MAKINGPROMISESANDKEEPINGTHEM
ANDMAKINGPRINIPLEDDECISIONS,
EVENWHENUNPOPULAR.
OURAPPROACHISWORKING.
80%OFAMERICANSHAVEA
FAVORABLEIMPRESSIONOFAMAZON
OVERALL.
WHOKNEWAMERICANSTRUSTAMAZON
TODOTHERIGHTTHING?
ONLYTHEIRDOCTORSANDTHE
MILITARY.
THERETAILMARKETIS
EXTRAORDINARILYLARGEAND
COMPETITIVE.
MORETHAN4%OFU.S.RETAIL.
THERE'SROOMINRETAILFOR
MULTIPLEWINNERS.
WECOMPETEAGAINSTLARGEPLAYERS
LIKECOSTCO,KROGERANDOF
COURSE,WALMART.
ACOMPANYMORETHANTWICE
AMAZON'SSIZE.
20YEARSAGO,WEMADETHE
DECISIONTOINVITEOTHERSELLERS
TOSELLINOURSTORE.
TOSHARETHESAMEVALUABLEREAL
ESTATEWESPENDBILLIONSTO
BUILDMARKETANDMAINTAIN.
WEBELIEVETHATCOMBININGTHE
STRENGTHSOFAMAZON'SSTOREWITH
THEVASTSELECTIONOFPRODUCTS
OFFEREDBYTHIRDPARTIESWOULD
BEABETTEREXPERIENCEFOR
CUSTOMERS.
ANDTHATTHEGROWINGPIEOF
REVENUEANDPROFITSWOULDBEBIG
ENOUGHFORALL.
WEWEREBETTINGTHATITWASNOT
AZEROSUMGAME.
FORTUNATELY,WEWERERIGHT.
THEREARENOW1.7MILLIONSMALL
ANDMEDIUMUSIZEDBUSINESSES
SELLINGONAMAZON.
THETRUSTCUSTOMERSPUTINUS
EVERYDAYHASALLOWEDAMAZONTO
CREATEMOREJOBSINTHEUNITED
STATESOVERTHEPASTDECADETHAN
ANYOTHERCOMPANY.
HUNDREDSOFTHOUSANDSOFJOBS
ACROSS42STATES.
AMAZONEMPLOYEESMAKEAMINIMUM
OF$15ANHOUR.
MORETHANDOUBLETHEFEDERAL
MINIMUMWAGE.
ANDWEOFFERTHEBESTBENEFITS.
BENEFITSTHATINCLUDEHEALTH
INSURANCE,401(k)RETIREMENTAND
PARENTALLEAVE,WHICHINCLUDES
20WEEKSOFPAIDMATERNITY
LEAVE.
MORETHANANYPLACEONEARTH,
ENTREPRENEURIALCOMPANIESSTART,
GROWANDTHRIVEHEREINTHEU.S.
WENURTUREENTREPRENEURSAND
STARTUPSWITHSTABLERULEOF
LAW.
THEFINESTUNIVERSITYSYSTEMIN
THEWORLD.
THEFREEDOMOFDEMOCRACY.
ANDADEEPLYACCEPTEDCULTUREOF
RISKTAKING.
OFCOURSE,THISGREATNATIONOF
OURSISFARFROMPERFECT.
EVENASWEREMEMBERCONGRESSMAN
JOHNLEWISANDHONORHISLEGACY,
WE'REINTHEMIDDLEOFAMUCH
NEEDEDRACERECKONING.
WEALSOFACETHECHALLENGESOF
CLIMATECHANGEANDINCOME
INEQUALITYANDARESTUMBLING
THROUGHTHECRISISOFAGLOBAL
PANDEMIC.
STILL,WITHALLOFOURFAULTS
ANDPROBLEMS,THERESTOFTHE
WORLDWOULDLOVEEVENTHE
TINIESTSIPOFTHEELIXIRWE
HAVEHEREINTHEU.S.
IMMIGRANTSLIKEMYDADSEEWHAT
ATREASURETHISCOUNTRYIS.
THEYHAVEPERSPECTIVEANDOFTEN
CANSEEITEVENMORECLEARLY
THANTHOSEOFUSWHOWERELUCKY
ENOUGHTOBEBORNHERE.
ITISSTILLDAYONEFORTHIS
COUNTRYANDEVENINTHEFACEOF
TODAY'SHUMBLINGCHALLENGES,I
HAVENEVERBEENMOREOPTIMISTIC
ABOUTOURFUTURE.
IAPPRECIATETHEOPPORTUNITYTO
APPEARBEFOREYOUTODAYANDI'M
VERYHAPPYTOTAKEYOUR
QUESTIONS.
>>THANKYOU,MR.BEZOS.
MR.BACHAI,YOARENOW
RECOGNIZEDFORFIVEMINUTES.
>>THANKYOU,MR.CHAIRMAN.
RANKKINGMEMBERANDMEMBERSOF
THESUBCOMMITTEE.
BEFOREISTART,IKNOWTHIS
HEARINGWASDELAYEDFORTHE
CEREMONIESTOHONORTHELIFEOF
JOHNLEWIS.
BECAUSEOFHISCOURAGE,THIS
WORLDISABETTERPLACE.
HE'LLBEDEEPLYMISSED.
IT'SHARD,DISCUSSIONOF
OPPORTUNITY.
THISHASNEVERBEENMORE
IMPORTANTASATHEGLOBAL
PANDEMICPOSESDUALCHALLENGETO
OURHEALTHANDOURECONOMY.
EXPANDINGCCESSTOOPPORTUNITY
THROUGHTECHNOLOGYISPERSONAL
TOME.
IDIDN'THAVEMUCHACCESSTOA
COMPUTERGROWINGUPININDIA,SO
YOUCANIMAGINEMYAMAZEMENT
WHENIARRIVEDINTHEU.S.FOR
GRADUATESCHOOLANDSAWALABOF
COMPUTERSTOUSEWHENEVERI
WANTED.
ACCESSINGTHEINTERNETFORTHE
FIRSTTIMESETMEONAPATHTO
BRINGTECHNOLOGYTOASMANY
PEOPLEASPOSSIBLE.
ITINSPIREDMETOBUILDGOOGLE'S
FIRSTBROWSER,CHROME.
I'MPROUDTHAT11YEARSLATER,
SOMANYPEOPLEEXPERIENCECHROME
FORFREE.
GOOGLETAKESPRIDEINTHENUMBER
OFPEOPLEWHOCHOOSETHEIR
PRODUCT.
WEAREEVENPROUDEROFWHATTHEY
DOWITHTHEM.
FROMTHE140MILLIONSTUDENTS
ANDTEACHERSUSINGGSWEETFOR
EDUCATIONTOSTAYCONNECTED
DURINGTHEPANDEMIC.
TOTHE5MILLIONAMERICANS
GAININGDIGITALSKILLSTOGROW
WITHGOOGLE.
TOALLTHEPEOPLEWHOHAVE
TURNEDTOGOOGLEFORHELP.
TOFINDINGTHEFASTESTPHONETO
LEARNINGHOWTOCOOKANEWDISH
ONYOUTUBE.
GOOGLE'SWORKWOULDNOTBE
POSSIBLEWITHOUTALONG
TRADITIONOFAMERICANTRADITION.
WEEMPLOYMORETHAN75,000
PEOPLEINTHEU.S.ACROSS26
STATES.
THEPROMISEOFPOLICIES
ESTIMATEDTHATIN2018,WE
ENLISTEDMORETHAN$20MILLION
INTHEU.S.,CITINGASTHE
LARGESTCAPITALINAMERICATHAT
YEARANDONEOFTHETOPFIVEFOR
THELASTTHREEYEARS.
ONEWAYWECONTRIBUTEISBY
BUILDINGHELPFULPRODUCTS.
RESEARCHFOUNDFREESERVICES
LIKESEARCH,GMAIL,MAPSAND
PHOTOSPROVIDETHOUSANDSOF
DOLLARSAYEARTOTHEAVERAGE
AMERICANANDMANYARESMALL
BIDSESUSINGOURDIGITALTOOLS
TOGROW.
AFAMILYOWNEDSTONECOMPANYIN
WISCONSINUSESGOOGLEMY
BUSINESS.
AASTOREINVISTA,RHODEISLAND
CREDITSGOOGLEWITHHELPINGTHEM
REACHCUSTOMERSONLINEDURING
THEPANDEMIC.
NEARLYONE-THIRDOFSMALL
BUSINESSOWNERSSAYTHATWITHOUT
DIGITALTOOLS,THEYWOULDHAVE
HADTOCLOSEALLORPARTOF
THEIRBUSINESSDURINGCOVID.
ONTHEWAYWECONTRIBUTEISBY
BEINGAMONGTHEWORLD'SBIGGEST
INVESTORSINRESEARCHAND
DEVELOPMENT.
BYTHEENDOF2019,OURRND
SPENDHADINCREASEDTENFOLDOVER
TENYEARS.
FROM$2.8BILLIONTO$26
BILLION.
ANDWEHAVEINVESTED$9BILLION
INNINEYEARS.
OURENGINEERSHELPAMERICA
REMAINAGLOBALLEADNER
EMERGINGTECHNOLOGIESLIKE
ARTIFICIALINTELLIGENCE,
SELF-DRIVINGCARSANDCOMPUTING.
JUSTASAMERICA'STECHNOLOGY
LEADERSHIPISNOTINEVITABLE,
GOOGLE'SCONTINUEDGUARANTEED.
TODAY,USERSHAVEMOREACCESSTO
INFORMATIONTHANEVERBEFORE.
COMPETITIONRISESTOINNOVATE
ANDLEADSTOBETTERPRODUCTS.
LOWERCHOICESANDMORECHOICES
FOREVERYONE.
FOREXAMPLE,COMPETITIONHELPS
LOWERCOSTSBY40%OVERTHELAST
DECADE,WITHSAVINGSPASSEDDOWN
TOCONSUMERS.
OPENPLATFORMSLIKEANDROIDALSO
SUPPORTTHEFOUNDATIONOF
OTHERS.
USINGANDROID,THOUSANDSOF
MOBILEOPERATORSBUILDANDSELL
THEIROWNDEVICESWITHOUTPAYING
LICENSESFEES.
THISHASENABLEDBILLIONSOF
CONSUMERSTOOFFERCUTTINGEDGE
SMARTPHONES,SOMEFORLESSTHAN
$50.
WHETHERBUILDINGTOOLSFORSMALL
BUSINESSES,GOOGLESUCCEEDSWHEN
OTHERSSUCCEED.
TREATINGITRESPONSIBILITY.
I'VENEVERFORGOTTENHOWACCESS
TOTECHNOLOGYANDINNOVATION
CHANGEDTHECOURSEOFMYLIFE.
GOOGLEAIMSTOBUILDPRODUCTS
THATINCREASEACCESSTO
OPPORTUNITYFOREVERYONE.
NOMATTERWHEREYOULIVE,WHAT
YOUBELIEVEORHOWMUCHMONEY
YOUEARN.
WEARECOMMITTEDTODOINGTHIS
RESPONSIBLYINPARTNERSHIPWITH
LAWMAKERSTOENSUREEVERY
AMERICANHASACCESSTOTHE
INCREDIBLEOPPORTUNITY
TECHNOLOGYCREATES.
THANKYOU.
>>THANKYOU.
MR.COOKISNOWRECOGNIZEDFOR
FIVEMINUTES.
>>CHAIRMAN,RANKINGMEMBER,
MEMBERSOFTHESUBCOMMITTEE,
THANKYOUFORTHEOPPORTUNITYTO
OFFERTESTIMONY.
BEFOREIBEGIN,IWANTTO
RECOGNIZETHELIFEANDLEGACYOF
JOHNLEWIS.
IJOINYOUINMOURNINGOFNOT
ONLYAHERO,BUTSOMEONEIKNEW
PERSONALLYWHOSEEXAMPLE
INSPIRESMEANDGUIDESMESTILL.
EVERYAMERICANOWESJOHNLEWISA
DEBTANDIFEELFORTUNATETO
HAILFROMASTATEANDACOUNTRY
THATBENEFITTEDSOPROFOUNDLY
FROMHISLEADERSHIP.
MYNAMEISTIMCOOK.
I'VEBEENAPPLE'SCEOSINCE2011
ANDAPROUDEMPLOYEEOFTHIS
UNIQUELYAMERICANCOMPANYSINCE
1998.
ATAPPLE,WEMAKEOURSELVESA
PROMISEANDOURCUSTOMERSA
PROMISE.
IT'SAPROMISETHATWE'LLONLY
BUILDTHINGSTHATMAKEUSPROUD.
ASSTEVEPUTIT,WEONLYMAKE
THINGSFOROURFAMILYAND
FRIENDS.
YOUCOULDTRYTODEFINETHIS
DIFFERENCEINALOTOFWAYS.
YOUCANCALLITSIMPLICITYOF
DESIGNALLTHOSETHINGSARE
TRUE,BUTIFYOUWANTTOPUTIT
SIMPLY,PRODUCTSLIKEiPHONE
JUSTWORK.
WHENCUSTOMERSGIVEiPHONEAA
99%SATISFACTIONRATING,THAT'S
THEMESSAGETHEY'RESENDING
ABOUTTHEUSEREXPERIENCE.
BUTWEALSOKNOWTHATCUSTOMER
HAVESALOTOFCHOICESANDTHAT
OURPRODUCTSFACEFIERCE
COMPETITION.
COMPANIESLIKESAMSUNG,LG,
HUAWEIANDGOOGLEHAVEBUILT
SUCCESSFULBUSINESSESWITH
DIFFERENTAPPROACHES.
WE'REOKAYWITHTHAT.
OURGOALISTHEBEST.
NOTTHEMOST.
INFACT,WEDON'THAVEA
DOMINANTSHAREINANYMARKETOR
INANYPRODUCTCATEGORYWHEREWE
DOBUSINESS.
WHATDOESMOTIVATEUSISTHAT
TIMELESSDRIVETOBUILDNEW
THINGSWE'REPROUDTOSHOWOUR
USERS.
WE'REFOCUSEDONTHOSE
INNOVATIONS,ONDEEPENINGCORE
PRINCIPLESLIKEPRIVACYAND
SECURITYANDCREATINGNEWU
FEATURES.
IF2008,WEINTRODUCEDANEW
FUTUREOFTHEiPHONECALLEDTHE
APPSTORE.
LAUNCHEDWITH50APPS,WHICH
SEEMEDLIKEALOTATTHETIME,
THEAPPSTOREPROVIDEDASAFE
ANDTRUSTEDWAYFORUSERSTOGET
MOREOUTOFTHEIRPHONE.
PHYSICALMEDIALIKECDsHADTO
BESHIPPEDANDWEREHARDTO
UPDATE.
FROMTHEBEGINNING,THEAPP
STOREWASAREVOLUTIONARY
ALTERNATIVE.
DEVELOPERSSETPRICESFORTHEIR
APPSANDNEVERPAIDFORSHELF
SPACE.
WEPROVIDEEVERYDEVELOPERWITH
TOOLSLIKECOMPILERS,
PROGRAMMINGLANGUAGESANDMORE
THAN150,000ESSENTIALSOFTWARE
BUILDINGBLOCKSCALLEDAPIs.
THEAPPSTOREGUIDELINESENSURE
AHIGHQUALITY,RELIABLEAND
SECUREUSEREXPERIENCE.
THEY'RETRANSPARENTANDAPPLIED
EQUALLYTOEVERYDEVELOPER.
FORTHEVASTMAJORITYOFAPPS,
DEVELOPERSKEEP100%OFTHE
MONEYTHEYMAKE.
THEONLYAPPSTHATARESUBJECT
TOACOMMISSIONARETHOSEWHERE
THEDEVELOPERACQUIRESA
CUSTOMERONANAPPLEDEVICEAND
WHERETHEFEATURESORSERVICES
WOULDBEEXPERIENCEDAND
CONSUMEDONANAPPLEDEVICE.
INTHEAPPSTORES'SMORETHAN
TEN-YEARHISTORY,WEHAVENEVER
RAISEDTHECOMMISSIONORADDEDA
SINGLEFEE.
INFACT,WE'VEREDUCEDITFOR
SUBSCRIPTIONSANDEXEMPTED
ADDITIONALCATEGORIESOFAPPS.
I'MHERETODAYBECAUSEIT'S
REASONABLEANDAPPROPRIATE.
WEAPPROACHEDTHISPROCESSWITH
RESPECTANDHUMILITY.
BUTWEMAKENOCONCESSIONONTHE
FACTS.
WHATBEGANAS500APPSISNOW
MORETHAN1.7MILLION.
ONLY60OFWHICHAREAPPLE
SOFTWARE.
IFAPPLEISTHEGATEKEEPER,
APPLEWANTSTOOPENTHEGATE
WIDER.
WEWANTTOGETEVERYAPPONTHE
STORE,NOTKEEPTHEMOFF.
CONTRIBUTIONSARECONSISTENT.
THEECOSYSTEMISRESPONSIBLEFOR
9MILLIONJOBSANDFACILITATED
138BILLIONINCOMMERCEIN2019
ALONE.
ISHARETHECOMMITTEE'SBELIEF
THATCOMPETITIONPROMOTES
INNOVATION,THATITMAKESSPACE
FORTHENEXTGREATIDEA.
ANDTHATITGIVESCONSUMERSMORE
CHOICES.
SINCEAPPLEWASFOUNDED,THESE
THINGSHAVEDEFINEDUS.
THEFIRSTMACBROUGHT
OPPORTUNITYANDPOSSIBILITYINTO
THEHOME.
THEiPODHELPEDMUSICIANSAND
ARTISTSTOSHARETHEIRCREATIONS
ANDBEPAIDFAIRLYFORIT.
THISLEGACYDOESMUCHMORETHAN
MAKEUSPROUD.
ITINSPIRESUSTOWORK
TIRELESSLYTOMAKESURETOMORROW
WILLBEEVENBETTERTHANTODAY.
THANKYOUVERYMUCH.
ILOOKFORWARDTORESPONDINGTO
YOURQUESTIONS.
>>THANKYOU,MR.COOK.
MR.ZUCKERBERGISNOWRECOGNIZED
FORFIVEMINUTES.
>>THANKYOU.
BEFOREIBEGIN,IWANTTOADDMY
VOICETOTHOSEHONORING
CONGRESSMANJOHNLEWISANDHIS
SERVICETOOURCOUNTRY.
AMERICAHASLOSTAREALHEROWHO
NEVERSTOPPEDFIGHTINGFORTHE
RIGHTSOFEVERYPERSON.
CHAIRMAN,RANKINGMEMBER,
MEMBERSOFTHESUBCOMMITTEE,
THANKYOUFORTHEOPPORTUNITYTO
TESTIFY.
THETECHINDUSTRYISANAMERICAN
SUCCESSSTORY.
THEPRODUCTSWEBUILDHAVE
CHANGEDTHEWORLDANDIMPROVED
PEOPLE'SLIVES.
OURINDUSTRYISONEOFTHEWAYS
THATAMERICASHARESITSVALUES
WITHTHEWORLDANDONEOFOUR
GREATESTECONOMICANDCULTURAL
EXPORTS.
FACEBOOKISPARTOFTHISSTORY.
WESTARTEDWITHANIDEATOGIVE
PEOPLETHEPOWERTOSHAREAND
CONNECT.
ANDWEBUILTSERVICESTHAT
BILLIONSOFPEOPLEFINDUSEFUL.
I'MPROUDTHATWE'VEGIVEN
PEOPLEWHOHAVENEVERHADA
VOICEBEFORETHEOPPORTUNITYTO
BEHEARD.BEFORETHEOPPORTUNIT
BEHEARDANDGIVENSMALL
BUSINESSESACCESSTOTOOLSTHAT
ONLYTHELARGESTPLAYERSUSEDTO
HAVE.
SINCECOVIDEMERGED,I'MPROUD
THATPEOPLEHAVEUSEDOUR
SERVICESTOSTAYINTOUCHWITH
FRIENDSANDFAMILYWHOTHEY
CAN'TBEWITHINPERSONANDTO
KEEPTHEIRSMALLBUSINESSES
RUNNINGONLINEWHENPHYSICAL
STORESARECLOSED.
IBELIEVETHATFACEBOOKANDTHE
U.S.TECHINDUSTRYAREAFORCE
FORINNOVATIONANDEMPOWERING
PEOPLE.
BUTIRECOGNIZETHATTHEREARE
CONCERNSABOUTTHESIZEAND
POWEROFTECHCOMPANIES.
OURSERVICESAREABOUT
CONNECTIONANDOURBUSINESS
MODELISADVERTISING.
WEFACEINTENSECOMPETITIONIN
BOTH.
MANYOFYOURCOMPETITORSHAVE
HUNDREDSOFMILLIONSORBILLIONS
OFUSERS,SOMEAREUPSTARTS,BUT
OTHERSAREGATEKEEPERSWITHTHE
POWERTODECIDEIFWECANEVEN
RELEASEOURAPPSINTHEIRAPP
STORESTOCOMPETEWITHTHEM.
INMANYAREAS,WE'REBEHINDOUR
COMPETITORS.
THEMOSTPOPULARMESSAGING
SERVICEINTHEU.S.IS
I-MESSAGE.
THEFASTESTGROWINGAPPIS
TIKTOK.
THEMOSTPOPULARAPPFORVIDEO
ISYOUTUBE.
THEFASTESTGROWINGADSPLATFORM
ISAMAZON.
THELARGESTADSPLATFORMIS
GOOGLE.
ANDFOREVERYDOLLARSPENTON
ADVERTISINGINTHEU.S.,LESS
THAN10CENTSISSPENTWITHUS.
WE'REHERETOTALKABOUTONLINE
PLATFORMS,BUTITHINKTHETRUE
NATUREOFCOMPETITIONISMUCH
BROADER.
WHENGOOGLEBOUGHTYOUTUBE,THEY
COULDCOMPETEAGAINSTTHECABLE
INDUSTRY.
WHENAMAZONBOUGHTWHOLEFOOD
FOODS,THEYCOULDCOMPETE
AGAINSTKROGERANDWALMART.
NOWPEOPLECANWATCHVIDEO,GET
GROCERIESDELIVERED,ANDSEND
PRIVATEMESSAGESFORFREE.
THAT'SCOMPETITION.
NEWCOMPANIESARECREATEDALL
THETIMEALLOVERTHEWORLD.
ANDHISTORYSHOWSTHATIFWE
DON'TKEEPINNOVATING,SOMEONE
WILLREPLACEEVERYCOMPANYHERE
TODAY.
THATCHANGECANOFTENHAPPEN
FASTERTHANYOUEXPECT.
OFTHETENMOSTVALUABLE
COMPANIESADECADEAGO,ONLY
THREESTILLMAKETHATLIST
TODAY.
ANDIFYOULOOKATWHERETHETOP
TECHNOLOGYCOMPANIESCOMEFROM,
ADECADEAGOTHEVASTMAJORITY
WEREAMERICAN.
TODAY,ALMOSTHALFARECHINESE.
ASIDEFROMCOMPETITION,THERE
AREOTHERSERIOUSISSUESRELATED
TOTHEINTERNETINCLUDING
QUESTIONSABOUTELECTIONS,
HARMFULCONTENTANDPRIVACY.
WHILETHESEARENOTANTITRUST
ISSUESANDARENOTSPECIFICALLY
THETOPICOFTODAY'SHEARING,I
RECOGNIZETHATWE'REOFTENAT
THECENTEROFTHESEDISCUSSIONS.
WEBUILDPLATFORMSFORSHARING
IDEASANDIMPORTANTDEBATESPLAY
OUTACROSSOURSERVICES.
IBELIEVETHATTHISULTIMATELY
LEADSTOMOREPROGRESS.
BUTITMEANSWEOFTENFIND
OURSELVESINTHEMIDDLEOFDEEP
DISAGREEMENTSABOUTSOCIAL
ISSUESANDHIGH-STAKES
ELECTIONS.
IPERSONALLYDON'TBELIEVETHAT
PRIVATECOMPANIESSHOULDBE
MAKINGSOMANYDECISIONSABOUT
THESEISSUESBYTHEMSELVES.
ANDTHAT'SWHYLASTYEARIMADE
THECASETHATTHERENEEDSTOBE
NEWREGULATIONFORTHEINTERNET.
FACEBOOKSTANDSFORASETOF
BASICPRINCIPLES,GIVINGPEOPLE
VOICEANDECONOMICOPPORTUNITY,
KEEPINGPEOPLESAFE,UPHOLDING
DEMOCRATICTRADITIONSLIKE
FREEDOMOFEXPRESSIONAND
VOTING,ANDENABLINGANDOPENING
ACOMPETITIVEMARKETPLACE.
THESEAREFUNDAMENTALVALUESFOR
MOSTOFUS,BUTNOTFOREVERYONE
INTHEWORLD,NOTFOREVERY
COMPANYTHATWECOMPETEWITHOR
THECOMPANIESTHEYREPRESENT.
ASCOMPETITIONINCREASES,
THERE'SNOGUARANTEETHATOUR
VALUESWILLWINOUT.
I'MPROUDOFTHESERVICESWE
BUILDANDHOWTHEYIMPROVE
PEOPLE'SLIVES.
WECOMPETEHARD.
WECOMPETEFAIRLY.
WETRYTOBETHEBEST.
WHENWESUCCEED,IT'SBECAUSEWE
DELIVERGREATEXPERIENCESTHAT
PEOPLELOVE.
THANKYOUANDIWILLFORWARDTO
ANSWERINGYOURQUESTIONS.
>>THANKYOU.
ANDITHANKTHEWITNESSESFOR
YOUROPENINGSTATEMENTS.
BEFOREIBEGINRECOGNIZING
MEMBERSFORQUESTIONINGUNDER
THEFIVE-MINUTERULE,WITHOUT
OBJECTIONI'MGOINGTOENTER
INTOTHEHEARINGRECORDTHE
DOCUMENTSANDEXHIBITSMAJORITY
MEMBERSWILLBEREFERENCINGIN
THEIRQUESTIONINGTODAY.
THESEMATERIALSHAVEBEEN
DISTRIBUTETODAYTHEWITNESSES.
IWILLNOWRECOGNIZEMYSELFFOR
FIVEMINUTES.
>>OVER85%OFALLONLINE
SEARCHESGOTHROUGHGOOGLE,
EVERYONLINECOMPANYINTHE
UNITEDSTATESDEPENDSONGOOGLE
TOREACHUSERS.
ABUSINESSMAYSINKORSWIM
BASEDONGOOGLE'SDECISIONS
ALONE.
NUMEROUSONLINEBUSINESSESTOLD
USTHATGOOGLESTEALSTHEIR
CONTENTANDPRIVILEGESITSOWN
SITESINWAYSTHATPROFITGOOGLE
BUTCRUSHEVERYONEELSE.
MOSTBUSINESSESASKEDTOSTAY
ANONYMOUSDUETOFEARSTHAT
GOOGLEWOULDRETALIATEAGAINST
THEM.
HEHADTODOWNSIZEHISBUSINESS
ANDLAYOFFHALFOFHISSTAFF.
HETOLDUSANDIQUOTE,IF
SOMEONECAMETOMEWITHANIDEA
FORAWEBSITETODAY,IWOULD
TELLTHEMTORUN,RUNASFAR
AWAYFROMTHEWEBASPOSSIBLE,
LAUNCHALAWNCAREBUSINESS,
SOMETHINGGOOGLECAN'TTAKEAWAY
ASSOONASHEORSHEIS
THRIVING.
SOMYFIRSTQUESTION,WHYDOES
GOOGLESTEALCONTENTFROMHONEST
BUSINESSES?
>>MR.CHAIRMAN,WITHRESPECT,I
DISAGREEWITHTHAT
CHARACTERIZATION.
JUSTLASTWEEKIMETWITHMANY
SMALLBUSINESSES,INFACT,TODAY
WESUPPORT1.4MILLIONSMALL
BUSINESSES.
SUPPORTINGOVER$385BILLIONIN
ECONOMICACTIVITY.
WESEEMANYBUSINESSESTRY
PARTICULARLYEVENDURINGTHE
PANDEMICBUSINESSESANEXAMPLE,
KETTLEBELLSFROMTEXAS--
>>IHAVEALIMITEDAMOUNTOF
TIME.
BUTMYQUESTIONISVERY
SPECIFIC.
WEHEARDTHROUGHOUTTHIS
INVESTIGATIONTHATGOOGLEHAS
STOLENCONTENTTOBUILDYOUROWN
BUSINESS.
THESEARECONSISTENTREPORTSAND
SOYOURTESTIMONYTHATTHAT
DOESN'THAPPENISINCONSISTENT
WITHWHATWE'VELEARNEDDURING
THECOURSEOFTHEINVESTIGATION.
I'LLMOVEONTOANEWQUESTION.
MR.PICHAI,MOSTAMERICANS
BELIEVEWHENTHEYENTERASEARCH
QUERY,GOOGLESHOWSTHEMOST
RELEVANTRESULTS.
MYQUESTION,ISN'TTHEREA
FUNDAMENTALCONFLICTOFINTEREST
BETWEENSERVINGUSERSWHOWANT
TOACCESSTHEMOSTANDMOST
RELEVANTINFORMATIONAND
GOOGLE'SBUSINESSMODELWHICH
INCENTIVIZESGOOGLETOSELLADS
ANDKEEPUSERSONGOOGLE'SOWN
SITES.
>>WEHAVEALWAYSFOCUSEDON
PROVIDINGUSERSTHEMOST
RELEVANTINFORMATIONANDWERELY
ONTHETRUSTFROMUSERSTOCOME
BACKFORGOOGLEEVERYDAY.
INFACT,THEVASTMAJORITYOF
QUERIESINGOOGLE,WEDON'TSHOW
ADSATALL.
ANDWESHOWADSONLYFORASMALL
SUBSETOFINKWERS.
THEYMAYBELOOKINGFOR
SOMETHINGLIKETVSETSORSO
ON--
>>WHATISTHEVALUEOFTHEPART
THATYOUDOUSETHEGOOGLEADS
FOR.
IT'SASUBSTANTIALPARTOFYOUR
BUSINESS.
WHAT'STHEACTUAL--200
BILLION?
300BILLION?
>>INTERMSOFREVENUE,IT'S
AROUND100-PLUSBILLIONDOLLARS,
BUT--
>>THAT'SALOTOFMONEY,MR.
PICHAI.
LETMEMOVEON.
REALLY,MR.PICHAI,IT'S
GOOGLE'SBUSINESSMODELTHAT'S
THEPROBLEM.
GOOGLEEVOLVEDFROMATURNSTILE
TOAWALLEDGARDENTHAT
INCREASINGLYKEEPSUSERSWITHIN
ITSSITES.
OVERADECADEAGO,GOOGLE
STARTEDTOFEARCOMPETITIONFROM
CERTAINWEBSITES.
THESEDOCUMENTSSHOWTHATGOOGLE
STAFFDISCUSSEDTHE
PROLIFERATINGTHREATTHATTHESE
WEBPAGESPOSETOGOOGLE.
ANYTRAFFICLOSTTOOTHERSITES
WASALOSSOFREVENUE.
CERTAINWEBSITESWEREGETTING,
ANDIQUOTE,TOOMUCHTRAFFIC.
SOGOOGLEDECIDEDTOPUTANEND
TOTHAT.
MR.PICHAI,YOU'VEBEENAT
GOOGLESINCE2004.
WEREYOUINVOLVEDINTHESE
DISCUSSIONSABOUTTHETHREAT
FROMVERTICALSEARCH?
>>CONGRESSMAN,WITHOUTKNOWING
THESPECIFICS,IT'S--YOUKNOW,
I'MNOTFULLYCLEAROFTHE
CONTEXT.
DEFINITELY,WHENWELOOKAT
VERTICALSEARCHESITVALIDATES
THECOMPETITION.
WHENCONSUMERSSHOPONLINE,OVER
55%OFPRODUCTSEARCHES
ORIGINATEWITHAMAZON.
INTHEFEWCATEGORIESWHICHARE
COMMERCIALINNATURE,WESEE
VIGOROUSCOMPETITIONANDWEARE
WORKINGHARD--
>>LETMEASKVERYSPECIFICALLY,
THEEVIDENCETHATWECOLLECTED
SHOWSTHATGOOGLEPURSUEDA
MULTIPRONGEDATTACK.
THEYBEGANTOSTEALOTHERWEB
PAGESCONTENT.
IN2010GOOGLESTOLERESTAURANT
REVIEWSFROMYELP.
DOYOUKNOWHOWGOOGLERESPONDED
WHENYELPASKEDYOUTOSTOP
STEALINGTHEIRREVIEWS?
I'LLTELLYOU.
OURINVESTIGATIONSHOWSTHAT
GOOGLE'SRESPONSEWASTO
THREATENTODELISTYELP.
THECHOOSEGAVEYELPWAS,LETUS
STEALYOURCONTENTORDISAPPEAR
FROMTHEWEB.
ISN'TTHATANTICOMPETITIVE?
>>CONGRESSMAN,WHENIRUNTHE
COMPANY,I'MREALLYFOCUSEDON
GIVINGUSERSWHATTHEYWANT.
WECONDUCTOURSELVESTOTHE
HIGHESTSTANDARD.
HAPPYTOENGAGEANDUNDERSTAND
THESPECIFICSANDANSWERSYOUR
QUESTIONSFURTHER.
>>IHAVEONEFINALSERIESOF
QUESTIONS.
DIDGOOGLEEVERUSEITS
SURVEILLANCEOVERWEBTRAFFICTO
IDENTIFYCOMPETITIVETHREATS?
>>CONGRESSMAN,JUSTLIKEOTHER
BUSINESSES,WETRIEDTO
UNDERSTANDTRENDSFROM,YOU
KNOW,DATA,WHICHWECANSEE,
ANDWEUSEITTOIMPROVEOUR
PRODUCTSFOROURUSERS.
BUTWE'REREALLYFOCUSEDON
IMPROVINGOUR--
>>IAPPRECIATETHAT,MR.
PICHAI.
GOOGLE'SOWNDOCUMENTSSHOWTHAT
GOOGLEDIDJUSTTHAT.
WHICHISVERYDISTURBINGAND
VERYANTICOMPETITIVE.
GOOGLEBEGANTOPRIVILEGEITS
OWNSITES.
AREPORTPUBLISHEDJUST
YESTERDAYFOUNDTHAT63%OFWEB
SEARCHESTHATSTARTONGOOGLE
ALSOENDSOMEWHEREONGOOGLE'S
OWNWEBSITES.
ANDTOME,THAT'SEVIDENCETHAT
GOOGLEISAWALLEDGARDENWHICH
KEEPSUSERSONGOOGLE'S
WEBSITES.
ANDIT'SCATASTROPHICFOROTHER
COMPANIESONLINE.
MYTIMEISRUNNINGOUT.
MR.PICHAI,THEEVIDENCESEEMS
CLEARTOME.
ASGOOGLEBECAMETHEGATEWAYTO
THEINTERNET,ITUSEDITS
SURVEILLANCETOIDENTIFY
COMPETITIVETHREATSANDCRUSHED
THEM.
IT'SDAMPENEDINNOVATIONAND
DRAMATICALLYINCREASEDTHEPRICE
OFACCESSINGUSERSONTHE
INTERNET,ENSURINGTHATANY
BUSINESSTHATWANTSTOBEFOUND
ONTHEWEBMUSTPAYGOOGLEA
TAX.
WITHTHAT,IRECOGNIZETHE
RANKINGMEMBEROFTHE
SUBCOMMITTEE,MR.SENSENBRENNER
FORHISFIRSTROUNDOF
QUESTIONS.
>>THANKYOU,VERYMUCH.
I'VEBEENINCONGRESS42YEARS.
THAT'SCOMINGTOANENDATTHE
ENDOFTHISYEAR.
DURINGTHATPERIODOFTIME,
DURINGTHEDECADEOFTHE'90s
ANDTHE'00s,IWASINVOLVEDAS
CHAIRMANOFTHESCIENCE
COMMITTEEANDCHAIRMANOFTHIS
COMMITTEEANDTRYINGTOMAKETHE
NETUNIVERSAL,OPENITUPTO
EVERYBODY.
ONEOFTHE--ONEOFTHETHESES
THATWEUSEDISTHENETSHOULD
ENDUPBECOMINGBASICALLYTHE
DEBATEONISSUES,NOTONLYIN
OURCOUNTRY,BUTTHROUGHOUTTHE
WORLD.
ANDINEXCHANGEFORTHAT,THIS
COMMITTEEANDTHECONGRESSGAVE
INTERNETSERVICEPROVIDERS
IMMUNITYSOIFSOMEBODYSAID
SOMETHINGDEFAMATORYINWHAT
THEYPOSTED,THEISPsCOULDNOT
BEAPARTOFTHELAWSUITFOR
DEFAMATION.
AFTERHEARINGMR.JORDANGIVEA
LONGLINEOFCENSORSHIPOF
CONSERVATIVEVIEWPOINTS,I'M
CONCERNEDTHATTHEPEOPLEWHO
MANAGETHENETANDTHEFOUROF
YOUMANAGEABIGPARTOFTHE
NET,ENDINGUPUSINGTHISASA
POLITICALSCREEN.
CONSERVATIVESARECONSUMERSTOO.
ANDTHEWAYTHENETWASPUT
TOGETHERINTHEEYESOFCONGRESS
ISTHATEVERYBODYSHOULDBEABLE
TOSPEAKTHEIRMIND.
MR.ZUCKERBERG,MR.JORDAN'S
LITANYOFCENSORSHIPZEROSINON
FACEBOOK.
EXACTLYWHATAREYOURSTANDARDS
IN,QUOTE,FILTERINGOUT
POLITICALSPEECHTHATMAYBESOME
PEOPLEOUTTHEREDON'TAGREE
WITH.
>>THANKYOUFORTHEOPPORTUNITY
TOADDRESSTHIS.
OURGOALISTOOFFERAPLATFORM
FORALLIDEAS.
WEWANTTOGIVEEVERYONEINTHE
WORLDAVOICETOSHARETHEIR
EXPERIENCESANDIDEAS,ALOTOF
THATISDAYTODAYTHINGSTHAT
LAPINTHEIRLIVES,SOMEOFIT
ISPOLITICAL.
WEDISTINGUISHEDOURSELVESAS
ONEOFTHECOMPANIESTHAT
DEFENDSFREESPEECHTHEMOST.
WEHAVESTANDARDSAROUNDWHAT
YOUCANANDCANNOTSAY.
ITHINKYOUWOULDLIKELYAGREE
WITHMOSTOFTHEM.
THEYBEGANCATEGORIESOFHARM
SUCHASPROMOTINGTERRORIST
PROPAGANDA,CHILDEXPLOITATION,
INCITEMENTOFVIOLENCE,SOME
MORELEGALISTICTHINGSLIKE
INTELLECTUALPROPERTY
VIOLATIONS.
ANDTHEYALSOBANTHINGSLIKE
HATESPEECHTHATCOULDLEADTO
DEHUMANIZINGPEOPLE--
>>IFIMAYASKASPECIFICOF
YOU.
ITWASREPORTEDTHATDONALD
TRUMPJR.GOTTAKENDOWNFORA
PERIODOFTIMEBECAUSEHEPUT
SOMETHINGUPONTHEEFFICACYOF
HYDROXYCHLOROQUINE.
NOW,ICOULDN'TTAKEITMYSELF,
BUTTHERESTILLISADEBATEON
WHETHERITISEFFECTIVEIN
TREATINGORPREVENTINGCOVID-19.
ANDITHINKTHATTHISISA
LEGITIMATEMATTEROFDISCUSSION.
ANDITWOULDBEUPTOAPATIENT
ANDTHEIRDOCTORTODETERMINE
WHETHERHYDROXYCHLOROQUINEWAS
THECORRECTMEDICATIONGIVENTHE
CIRCUMSTANCES.
WHYDIDTHATHAPPEN?
>>CONGRESSMAN,FIRSTTOBE
CLEAR,ITHINKWHATYOUMIGHTBE
REFERRINGTOHAPPENEDON
TWITTER.
IT'SHARDFORMETOSPEAKTO
THAT.
ICANTALKTOOURPOLICIESABOUT
THIS.
WEDOPROHIBITCONTENTTHATWILL
LEADTOIMMINENTRISKOFHARM.
STATINGTHATTHERE'SAPROVEN
CUREFORCOVID,WHENTHEREISIN
FACTNONE,MIGHTENCOURAGE
SOMEONETOTAKESOMETHINGTHAT
COULDHAVESOMEADVERSEEFFECTS.
WETAKETHATDOWN.
WEDONOTPROHIBITDISCUSSION
AROUNDTRIALSOFDRUGSORPEOPLE
SAYINGTHATTHEYTHINKTHAT
THINGSMIGHTWORKORPERSONAL
EXPERIENCESWITHEXPERIMENTAL
DRUGS.
BUTIFSOMEONEISGOINGTOSAY
THATSOMETHINGISPROVEN,WHEN
INFACTITISNOT,THATCOULD
LEADPEOPLE--
>>WOULDN'TTHATBEUPTO
SOMEBODYONTHEOTHERSIDEOF
THEISSUETOSAYTHATTHISIS
NOTPROVEN?
IKNOWASAFACTTHAT,YOUKNOW,
FORPEOPLEWITHCERTAIN
CONDITIONS,IT'SCONTRA
INDICATEDANDTHEYSHOULDN'T
TAKEITONTHAT.
WOULDN'TTHATBEUPTOSOMEBODY
ELSETOSAY,OKAY,WHATSOMEBODY
POSTEDONTHISREALLYISN'TTRUE
ANDHERE'SWHATTHEFACTSARE
RATHERTHANHAVINGATWITTEROR
AFACEBOOKTAKEITDOWN?
>>CONGRESSMAN,INGENERAL,I
AGREEWITHYOUANDWEDONOT
WANTTOBECOMETHEARBITERSOF
TRUTH.
ITHINKTHATWOULDBEABAD
POSITIONFORUSTOBEINANDNOT
WHATWESHOULDBEDOING.
ONSPECIFICCLAIMS,IFSOMEONE
ISGOINGTOGOOUTANDSAYTHAT
HYDROXYCHLOROQUINEISPROVENTO
CURECOVIDWHENINFACTITHAS
NOTBEENPROVENTOCURECOVID
ANDTHATSTATEMENTCOULDLEAD
PEOPLETOTAKEADRUGTHATIN
SOMECASESSOMEOFTHEDATA
SUGGESTSITMIGHTBEHARMFULTO
PEOPLE,WETHINKTHATWESHOULD
TAKETHATDOWN.
THATCOULDCAUSEIMMINENTRISK
OFHARM.
>>THANKYOU,IYIELDBACK.
>>IRECOGNIZETHEDISTINGUISHED
CHAIROFTHEFULLJUDICIARY
COMMITTEE,MR.NADLERFROMNEW
YORKFORFIVEMINUTES.
>>THANKYOU,MR.CHAIRMAN.
MR.ZUCKERBERG,IWANTTOTHANK
YOUFORPROVIDINGUSINFORMATION
DURINGYOURINVESTIGATION.
HOWEVER,THEDOCUMENTSYOU
PROVIDEDTELLAVERYDISTURBING
STORYANDTHATSTORYISTHAT
FACEBOOKSOUGHTINSTAGRAMASA
POWERFULTHREATTHATCOULD
SIEFENBUSINESSAWAYFROM
FACEBOOK.
RATHERTHANCOMPETEWITHIT,
FACEBOOKBOUGHTIT.
THISISTHETYPEOFCQUISITION
THATTHELAWSWERETRYINGTO
PREVENT.
ONTHEDAYFACEBOOKBOUGHT
INSTAGRAM,WHICHYOUDESCRIBED
ASATHREAT,YOUWROTE,QUOTE,
ONETHINGABOUTSTART-UPSISYOU
CANOFTENACQUIRETHEM.
YOUWEREREFERRINGTOCOMPANIES
LIKEINSTAGRAMINTHATQUOTE,
WEREYOU?
>>IDON'THAVETHEEXACT
DOCUMENTINFRONTOFME.
IHAVEALWAYSBEENCLEARTHATWE
VIEWEDINSTAGRAMASACOMPETITOR
ANDASACOMPLEMENTTOOUR
SERVICES.
INTHEGROWINGSPACEAROUND--
AFTERSMARTPHONESSTARTED
GETTINGBIG,THEYCOMPETEDWITH
USINTHESPACEOFMOBILE
CAMERASANDMOBILEPHOTO
SHARING.
BUTATTHETIME,NOONETHOUGHT
OFTHEMASAGENERALSOCIAL
NETWORK.
PEOPLEDIDN'TTHINKOFTHEMAS
COMPETINGWITHUSINTHATSPACE.
YOUKNOW,ITHINKTHATTHE
ACQUISITIONHASBEENWILDLY
SUCCESSFUL.
WEWEREABLETOCONTINUE
INVESTINGINITANDGROWINGIT
ASASTANDALONEBRANDTHAT
REACHESMANYMOREPEOPLETHATI
THINKTHECO-FOUNDERORI
THOUGHTWOULDBEPOSSIBLEATTHE
TIMEWHILEINCORPORATINGSOMEOF
THETECHNOLOGYINTOMAKING
FACEBOOK'SPHOTO-SHARING
PRODUCTSBETTER.
SOYES.
>>OKAY.
INEARLY2012WHENFACEBOOK
CONTEMPLATEDACQUIRING
INSTAGRAM,ACOMPETITIVE
START-UP,YOUTOLDYOURCFOTHAT
INSTAGRAMCOULDBEDISRUPTIVETO
US,ANDYOUDESCRIBEDTHEMASA
THREAT,SAYINGTHATINSTAGRAM
CANMEANINGFULLYHURTUSWITHOUT
BECOMINGAHUGEBUSINESS.
WHATDIDYOUMEANWHENYOU
DESCRIBEDINSTAGRAMASATHREAT
ANDWHENYOUSAIDTHATINSTAGRAM
MEANINGFULLYHURTFACEBOOK?
DIDYOUMEANTHATCONSUMERS
MIGHTSWITCHFROMFACEBOOKTO
INSTAGRAM?
>>CONGRESSMAN,THANKSFORTHE
OPPORTUNITYTOADDRESSTHIS.
ATTHETIME,THEREWASASMALL
BUTGROWINGFIELD--
>>DIDYOUMEANTHATCONSUMERS
MIGHTSWITCHFROMFACEBOOKTO
INSTAGRAM?
>>THANKS.
CONGRESSMAN--
>>YESORNO,DIDYOU--
>>INTHESPACEOFMOBILEPHOTOS
ANDCAMERAAPPS,WHICHWAS
GROWING,THEYWEREACOMPETITOR.
I'VEBEENCLEAR--
>>FINE.
INFEBRUARYOFTHATYEAR,
FEBRUARY2012,YOUTOLD
FACEBOOK'SCHIEFFINANCIAL
OFFICERTHATYOUWEREINTERESTED
INBUYINGINSTAGRAM.
HEASKEDYOUWHETHERTHEPURPOSE
WASTONEUTRALIZEACOMPETITOR
ORIMPROVEYOURSERVICES.
YOUANSWEREDITWASA
COMBINATIONOFBOTH,SAYINGWHAT
WE'REREALLYBUYINGISTIME.
EVENIFNEWCOMPETITORSPRINGS
UP,THOSEPRODUCTSWON'TGET
MUCHTRACTION.
MR.ZUCKERBERG,WHATDIDYOU
MEANWHENYOUSAIDTHEPURPOSE
OFTHEDEALWASTONEUTRALIZEA
POTENTIALCOMPETITOR.
>>THOSEAREN'TMYWORDS.
YES,I'VEBEENCLEARTHAT
INSTAGRAMWASACOMPETITORIN
THESPACEOFMOBILEPHOTO
SHARING.
THEREWEREALOTOFOTHERSAT
THETIME.
THEYCOMPETEDWITHOTHERAPPS.
ITWASASUBSETOFTHEOVERALL
SPACEOFCONNECTINGTHATWE
EXISTINANDBYHAVINGTHEMJOIN
US,THEYCERTAINLYWENTFROM
BEINGACOMPETITORINTHESPACE
OFBEINGAMOBILECAMERATOAN
APPTHATWECOULDHELPGROWAND
GETMOREPEOPLETOBEABLETO
USEANDBEONOURTEAM--
>>MR.ZUCKERBERG,MERGERSAND
ACQUISITIONSTHATBUYOFF
POTENTIALCOMPETITIVETHREATS
VIOLATETHEANTITRUSTLAWS.
YOUPURCHASEDINSTAGRAMTO
NEUTRALIZEACOMPETITIVETHREAT.
IFTHISWASANILLEGALMERGERAT
THETIMEOFTHETRANSACTION,WHY
SHOULDN'TINSTAGRAMNOWBE
BROKENOFFINTOASEPARATE
COMPANY?
>>CONGRESSMAN,ITHINKTHEFTC
HADALLOFTHESEDOCUMENTSAND
REVIEWEDTHISANDUNANIMOUSLY
VOTEDATTHETIMENOTTO
CHALLENGETHEACQUISITION.
ITHINKWITHHINDSIGHT,IT
PROBABLYLOOKSLIKEOBVIOUSTHAT
INSTAGRAMWOULDHAVEREACHEDTHE
SCALETHATITHASTODAY,BUTAT
THETIMEITWASFARFROM
OBVIOUS.
ALOTOFTHECOMPETITORSTHAT
THEYCOMPETEDWITH,INCLUDING
COMPANIESLIKEPATH,WHICHWERE
HOTATTHETIMEANDHADGREAT
FOUNDERSANDENTREPRENEURS
RUNNINGTHEM,DAVEMOOREANDI
WORKEDCLOSELYWITHTHEM,I
DON'TTHINKPATHEXISTSTODAY.
ITWASNOTAGUARANTEETHAT
INSTAGRAMWASGOINGTOSUCCEED.
THEACQUISITIONHASDONEWILDLY
WELLLARGELYBECAUSENOTJUSTOF
THEFOUNDERS'TALENT,BUT
BECAUSEWEINVESTEDHEAVILYIN
BUILDINGUPTHEINFRASTRUCTURE
ANDPROMOTINGITANDWORKINGON
SECURITYANDWORKINGONALOTOF
THINGSAROUNDTHIS.
ANDITHINKTHATTHISHASBEEN
ANAMERICANSUCCESSSTORY.
>>THANKYOU.
MR.ZUCKERBERG,YOU'REMAKINGMY
POINT.
INCLOSING,MR.CHAIRMAN,IWANT
TOENDWHEREIBEGAN.
FACEBOOK,BYMR.ZUCKERBERG'S
OWNADMISSION,FACEBOOKSAW
INSTAGRAMASATHREATTHATCOULD
POTENTIALLYSIPHONBUSINESSAWAY
FROMFACEBOOK.
RATHERTHANCOMPETEWITHIT,
FACEBOOKBOUGHTIT.
THISISTHETYPEOF
ANTICOMPETITIVEACQUISITIONTHAT
THELAWSWEREMEANTTOPREVENT.
ITSHOULDNEVERHAVEBEEN
PERMITTEDTOHAPPENANDIT
CANNOTHAPPENAGAIN.
IYIELDBACK.
>>THANKYOU,MR.CHAIRMAN.
IWOULDREMINDTHEWITNESSTHAT
THEFAILURESOFTHEFTCDONOT
ALLEVIATETHEANTITRUST
CHALLENGESTHATTHECHAIRMAN
DESCRIBED.
IWILLRECOGNIZETHEGENTLEMAN
FROMCOLORADOANDTHANKHIMFOR
CO-HOSTINGONEOFTHEMOST
IMPORTANTFIELDHEARINGSWEHAD
INCOLORADOTHATWASVERY
CRITICALINTHISINVESTIGATION.
YOU'RERECOGNIZEDFORFIVE
MINUTES,MR.BUCK.
>>IWANTTOOFFERMY
APPRECIATIONTOYOUFORTHE
BIPARTISANYOUHAVEAPPROACHED
THESUBCOMMITTEE'S
INVESTIGATION.
CAPITALISMISTHEGREATEST
INSTRUMENTFORFREEDOMTHIS
WORLDHASEVERSEEN.
THISECONOMICSYSTEMHASLIFTED
MILLIONSOUTOFPOVERTY.
ITHASMADEAMERICATHEFREEST,
MOSTPROSPEROUSNATIONINTHE
WORLD.
OURWITNESSESHAVETAKENIDEAS
BORNOUTOFADORMROOM,A
GARAGE.
YOUHAVEENJOYEDTHEFREEDOMTO
SUCCEED.
IDONOTBELIEVEBIGIS
NECESSARILYBAD.
INFACT,BIGISOFTENAFORCE
FORGOOD.
IWANTTOADDRESSONEISSUE.
MR.PICHAI,INOCTOBER2018
GOOGLEDROPPEDOUTOFTHE
RUNNINGFORAPENTAGONCONTRACT
TOCOMPLETETHEJOINTENTERPRISE
INFRASTRUCTURECONTRACTWHICH
WASVALUEDATMORETHAN
$10BILLION.
GOOGLE'SSTATEDREASONFOR
REMOVINGITSELFFROMTHEBIDDING
PROCESSISTHATTHEU.S.
MILITARY'SPROJECTDIDNOTALIGN
WITHGOOGLE'SCORPORATEVALUES
ANDPRINCIPLES.
THISISTHESAMEU.S.MILITARY
THATFIGHTSFOROURFREEDOMSAND
STANDSASAFORCEFORGOOD
ACROSSTHEGLOBE.
THESEARETHESAMESOLDIERS,
SAILORSANDAIRMENTHAT
SACRIFICETHEIRLIVESTOENSURE
YOUHAVETHEFREEDOMTOBUILD
YOURCOMPANYANDSETYOUR
CORPORATEPOLICIESWITHOUTFEAR
OFGOVERNMENTINTERFERENCE
UNLIKEINCOMMUNISTCHINA.
IFINDITINTERESTINGTHAT
MONTHSAFTERMAKINGTHIS
DECISIONTOWITHDRAWFROMTHE
JEDICONTRACT,MARINEGENERAL
JOSEPHDUNFORD,THECHAIRMANOF
THEU.S.JOINTCHIEFSOFSTAFF,
WARNEDTHESENATEARMEDFORCES
COMMITTEETHATTHECHINESE
MILITARYWASDIRECTLY
BENEFITTINGFROMGOOGLE'SWORK.
ITMADEMEWONDER,WHATVALUES
GOOGLEANDCOMMUNISTREDCHINA
HADINCOMMON.
IASKEDMYSELF,SELF,ISITTHAT
THECHINESECOMMUNISTPARTY
IMPRISONSUYGHURS?
COULDITBETHATCHINAFORCES
SLAVESTOWORKINSWEATSHOPS?
MAYBETHEYALIGNONTHEDESIGN
TOSUPPRESSFREESPEECH.
DIDGOOGLEAGREEWITHTHE
DECISIONTOLIETOTHEWORLD
ABOUTTHECOVID-19PANDEMIC?
THENITHOUGHTABOUTGOOGLE'S
DRAGONFLYEXPERIMENT.
IWONDEREDIFYOUAGREEDWITH
THECHINESEGOVERNMENT'SUSEOF
TECHNOLOGYPLATFORMSTOSPYON
ITSOWNPEOPLEANDENFORCE
SECURITYLAWS.
IFMAYBE,IT'STHATYOUR
COMPANIESALIGNWITHTHECHINESE
COMMUNISTESPIONAGEPOLICIES
WHERETHESTRATEGYISTOSTEAL
WHATEVERCAN'TBEPRODUCED
DOMESTICALLY.
THESEVALUESTHATALLOWGOOGLE
TOWORKWITHTHECHINESE
MILITARYBUTNOTTHEAMERICAN
MILITARYWITHOUTANYHINTOF
ATTRIBUTION.
DURINGOURFIELDHEARINGINMY
HOMESTATEOFCOLORADO,IHEARD
ASTORYTHATSOUNDEDSOBRAZEN
ANDCONTRARYTOFREEMARKET
PRINCIPLESTHATITHOUGHTIT
MUSTHAVEBEENINTHECHINESE.
GOOGLETOOKADVANTAGEOFYOURA
COMPANYTHATRELIEDONYOUR
SEARCHENGINE.
GOOGLEMISAPPROPRIATEDLYRICS
ANDPUBLISHEDTHOSELYRICSON
GOOGLE'SOWNPLATFORM.
HOWEVER,GENIUSCAUGHTGOOGLEIN
THEACTREDHANDED.
WHENGENIUSSUSPECTEDTHIS
CORPORATETHREATWASOCCURRING,
THECOMPANYINCORPORATEDA
DIGITALWATERMARKINITSLYRICS
THATSPELLEDOUT,REDHANDED.
INMORSECODE.
GOOGLE'SLYRICBOXESCONTAINTHE
WATERMARK.
AFTERGOOGLEEXECUTIVESSTATED
THATTHEYWEREINVESTIGATING
THISPROBLEMATICBEHAVIOR,
GENIUSCREATEDANOTHER
EXPERIMENTTODETERMINETHE
SCOPEOFTHEMISAPPROPRIATION.
ITTURNSOUTTHATOUTOF271
SONGSWHERETHEWATERMARKWAS
APPLIED,43%SHOWEDCLEAR
EVIDENCEOFMATCHING.
YOURCOMPANYWHICHADVERTISES
ITSELFASADOORWAYTOFREEDOM,
TOOKADVANTAGEOFTHISSMALL
COMPANY,ALLBUTEXTINGUISHING
THEIRFREEDOMTOCOMPETE.
YOURCORRESPONDENTVALUESONCE
STOODFORFREEDOM,APLATFORM
THATTHREATCAPITALISMFLOURISH
ANDHELPEDBRINGCOUNTLESS
PEOPLEACROSSTHEGLOBEOUTOF
POVERTY.
MYQUESTIONTOYOU,MR.PICHAI,
DOYOUTHINKTHATGOOGLECOULD
GETAWAYWITHFOLLOWINGCHINA'S
CORPORATEESPIONAGEPLAYBOOKIF
YOUDIDN'THAVEAMONOPOLISTIC
ADVANTAGEINTHEMARKET.
>>IWANTTOADDRESSTHE
IMPORTANTCONCERNSYOURAISED.
FIRSTOFALL,WEAREPROUDTO
SUPPORTTHEU.S.GOVERNMENT.
WERECENTLYSIGNEDABIGPROJECT
WITHTHEDEPARTMENTOFDEFENSE
TOHELPPROTECTPENTAGON
NETWORKSFROMCYBERSECURITY
ATTACKS.
WEHAVEPROJECTSUNDERWAYWITH
THENAVYWTHEDEPARTMENTOF
VETERANSAFFAIRS,HAPPYTO
FOLLOWUPANDEXPLAINMORE.
WEHAVEALIMITEDPRESENCEIN
CHINA.
WEDIDN'TOFFERANYOFOUR
SERVICESINCHINA.
ANDWITHRESPECTTOMUSIC,WE
LICENSECONTENTTHERE,INFACT,
WELICENSECONTENTFROMOTHER
COMPANIESANDSOTHISISA
DISPUTEBETWEENGENIUSANDOTHER
COMPANIESINTERMSOFWHERETHE
SOURCEOFTHECONTENTIS.
HAPPYTOENGAGEANDEXPLAINWHAT
WEDOHEREFURTHER.
>>THANKYOU.
IYIELDBACK,MR.CHAIRMAN.
>>INOWRECOGNIZETHEGENTLEMAN
FROMGEORGIA,MR.JOHNSON,FOR
FIVEMINUTES.
>>THANKYOU,MR.CHAIRMAN.
MR.COOK,WITHOVER100MILLION
iPHONEUSERSINTHEUNITED
STATESALONEANDWITHAPPLE'S
OWNERSHIPOFTHEAPPSTORE,
GIVINGAPPLETHEABILITYTO
CONTROLWHICHAPPSAREALLOWED
TOBEMARKETEDTOAPPLEUSERS,
YOUWELDIMMENSEPOWEROVER
SMALLBUSINESSESTOGROWAND
PROSPER.
APPLEISTHESOLEDECISION-MAKER
ASTOWHETHERANAPPISMADE
AVAILABLETOAPPUSERSTHROUGH
APPLE'SAPPSTORE,ISN'TTHAT
CORRECT?
>>SIR,THEAPPSTORE--THANK
YOUFORTHEQUESTION.
THEAPPSTOREISAFEATUREOF
THEiPHONE,MUCHLIKETHECAMERA
ISANDTHECHIPIS.
ANDSO--
>>MYPOINTIS,ANDI'MSORRYTO
INTERRUPT,BUTIWANTTOGETTO
THEPOINT,POINTISTHATAPPLE
ISTHESOLEDECISION-MAKERASTO
WHETHERANAPPISMADEAVAILABLE
TOAPPUSERSTHROUGHTHEAPPLE
STORE,ISN'TTHATCORRECT?
>>IFIT'SANATIVEAPP,YES,
SIR.
IFIT'SAWEB--
>>OKAY.
THANKYOU.
THROUGHOUTOURINVESTIGATION
WE'VEHEARDCONCERNSTHATRULES
GOVERNINGTHEAPPSTOREREVIEW
PROCESSARENOTAVAILABLETOTHE
APPDEVELOPERS.
THERULESAREMADEUPASYOUGO.
THEYAREARBITRARILYINTERPRETED
ANDENFORCEDANDARESUBJECTTO
CHANGEWHENEVERAPPLESEESFIT
TOCHANGEANDDEVELOPERSHAVENO
CHOICEBUTTOGOALONGWITHTHE
CHANGESORTHEYMUSTLEAVETHE
APPSTORE.
THAT'SANENORMOUSAMOUNTOF
POWER.
ALSO,THERULESGETCHANGEDTO
BENEFITAPPLEATTHEEXPENSEOF
APPDEVELOPERSANDTHEAPPSTORE
ISSAIDTOALSODISCRIMINATE
BETWEENAPPDEVELOPERSWITH
SIMILARAPPS.
ONTHEPLATFORMANDALSOASTO
SMALLAPPDEVELOPERSVERSUS
LARGEAPPDEVELOPERS.
SO,MR.COOK,DOESAPPLENOT
TREATALLAPPDEVELOPERS
EQUALLY?
>>WETREATEVERYDEVELOPERTHE
SAME.
WEHAVEOPENANDTRANSPARENT
RULES.
IT'SARIGOROUSPROCESS.
BECAUSEWECARESODEEPLYABOUT
PRIVACYANDSECURITYAND
QUALITY,WEDOLOOKATEVERYAPP
BEFOREITGOESON.
BUTTHOSEAPPS--THOSERULES
APPLYEVENLYTOEVERYONE.
ANDASYOUCANTELLBYGOING
FROM--
>>SOMEDEVELOPERSAREFAVORED
OVEROTHERS,THOUGH,ISN'TTHAT
CORRECT?
>>THATISNOTCORRECT.
ANDASYOUCANTELLFROMGOING
FROM--
>>SIR--I'LLGIVEYOUAN
EXAMPLE.
HASTWOAPPSTORES--TWOAPP
STOREEMPLOYEESASSIGNEDTOHELP
ITNAVIGATETHEAPPSTORE
BUREAUCRACY,ISTHATTRUE?
>>IDON'TKNOWABOUTTHAT,SIR.
>>WELL,YOUDON'THAVEOTHER
APPDEVELOPERSWHOHAVETHAT
SAMEACCESSTOAPPLEPERSONNEL,
DOYOU?
>>WEDOALOTOFTHINGSWITH
DEVELOPERSINCLUDINGLOOKINGAT
THEIRBETATESTAPPSREGARDLESS
OFWHETHERTHEY'RESMALLOR
LARGE.
>>LETMEASKYOUTHISQUESTION.
APPLEHASNEGOTIATEDEXCEPTIONS
TOITSTYPICAL30%COMMISSION
FORSOMEAPPSLIKEAMAZONPRIME.
ISTHAT--ISAREDUCED
COMMISSIONSUCHASTHEONETHAT
AMAZONPRIMEGIVESAVAILABLETO
OTHERAPPDEVELOPERS?
>>IT'SAVAILABLETOANYONE
MEETINGTHECONDITIONS,YES.
>>OKAY.
LETMEYOUTHIS,APPLEREQUIRES
ALLAPPDEVELOPERSTOUSE
APPLE'SPAYMENTPROCESSING
SYSTEMIFTHOSEDEVELOPERSWANT
TOSELLTHEIRGOODSORSERVICES
TOAPPLEUSERSTHROUGHAPPLE'S
APPSTORE,ISN'TTHATCORRECT?
>>THATISCORRECT.
BECAUSEIT'S--
>>BYPROCESSINGPAYMENTSFOR
APPSTHATYOUALLOWINTOTHEAPP
STORE,YOUCOLLECTTHEIR
CUSTOMERDATAANDYOUUSETHAT
DATATOINFORMAPPLEASTO
WHETHERAPPLESHOULD--WHETHER
ORNOTITWOULDBEPROFITABLE
FORAPPLETOLAUNCHACOMPETING
APP,ISN'TTHATCORRECT?
>>SIR,84%OFTHEAPPSARE
CHARGEDNOTHING.
THEREMAINING16%EITHERPAY15
OR30,DEPENDINGUPONTHE
SPECIFICS.
IFIT'SINTHESECONDYEAROFA
SUBSCRIPTIONASANEXAMPLE,IT
ONLYPAYS15%.
IFYOULOOKBACKATHISTORY--
>>WHAT'STOSTOPAPPLEFROM
INCREASINGITSCOMMISSIONTO
50%?
>>SIR,WEHAVENEVERINCREASED
COMMISSIONSINTHESTORESINCE
THEFIRSTDAYITOPERATEDIN
2008.
>>NOTHINGTOSTOPYOUFROM
DOINGSO,ISTHERE?
>>NO,SIR.
IDISAGREESTRONGLYWITHTHAT.
THERE'SACOMPETITIONFOR
DEVELOPERSJUSTLIKETHERE'SA
COMPETITIONFORDEVELOPERS.
THECOMPETITIONFORDEVELOPERS
THEYCANWRITETHEIRAPPSFOR
ANDROIDORWINDOWSORXBOXOR
PLAYSTATION.
WEHAVEFIERCECOMPETITIONAT
THEDEVELOPERSIDEANDTHE
CUSTOMERSIDEWHICHISSO
COMPETITIVE,IWOULDDESCRIBEIT
ASASTREETFIGHTFORMARKET
SHAREINTHECELLPHONE
BUSINESS.
>>HASAPPLEEVERRETALIATED
AGAINSTORDISADVANTAGEDA
DEVELOPERWHOWENTPUBLICABOUT
THEIRFRUSTRATIONSWITHTHEAPP
STORE?
>>SIR,WEDON'T--WEDONOT
RETALIATEORBULLYPEOPLE.
IT'SSTRONGLYAGAINSTOUR
COMPANYCULTURE.
>>TIMEOFTHEGENTLEMANHAS
EXPIRED.
THECHAIRRECOGNIZESTHE
GENTLEMANFROMFLORIDA,
MR.GAETS.
>>MR.ZUCKERBERGMADETHECLAIM
THATFACEBOOKISANAMERICAN
COMPANYWITHAMERICANVALUES.
DOYOUTAKEADIFFERENTVIEW,
THATYOURCOMPANIESDON'T
EMBRACEAMERICANVALUES.
IT'SGREATTOSEETHATNONEOF
YOUDO.
I'MWORRIEDABOUTGOOGLE'S
MARKETPOWER,HOWIT
CONCENTRATESTHATPOWERANDHOW
ITWIELDSIT.
PROJECTMAEVENWASAPROJECT
THATGOOGLEPULLEDOUTOFCITING
ETHICALCONCERNSANDYOUMADE
THEDECISIONTOPULLOUTOFTHAT
JOINTVENTURE,FOLLOWINGRECEIPT
OFALETTERFROMTHOUSANDSOF
YOUREMPLOYEESSAYINGTHAT
GOOGLESHOULDNOTBEINTHE
BUSINESSOFWAR.
MYQUESTIONIS,DIDYOUWEIGH
THEINPUTFROMYOUREMPLOYEES
WHENMAKINGTHEDECISIONTO
ABANDONTHATPROJECTWITHTHE
UNITEDSTATESMILITARY?
>>CONGRESSMAN,THANKSFORYOUR
CONCERN.
ASISAIDEARLIER,WE'REDEEPLY
COMMITTEDTOSUPPORTINGTHE
MILITARYANDTHEU.S.
GOVERNMENT.
WEHAVEUNDERTAKENSEVERAL
PROJECTSSINCETHEN.
WETAKEOUREMPLOYEES--ONE
INPUT,WEMAKEDECISIONSBASED
ONAVARIETYOFFACTORS.
ASACOMPANY,WEWERENEWINTHE
CLOUDSPACEATTHATTIME,SINCE
THEN--
>>THANKYOU.
THAT'SASUFFICIENTANSWER.
YOUDIDTAKETHEIRFEEDBACKINTO
ACCOUNT.
INFACT,SOMEOFYOURGOOGLERS
HAVERECENTLYSENTYOUALETTER
WHERETHEYASKEDYOUTOEXIT
OTHERPARTNERSHIPSASA
CONSEQUENCEOFETHICALCONCERNS.
THEYASKEDYOUTOSTOPDOING
BUSINESSWITHAMERICANLAW
ENFORCEMENTSAYINGTHATPOLICE
BROADLYUPHOLDWHITESUPREMACY
ANDGOOGLESHOULDNOTBEENGAGED
TOANYSERVICETOPOLICE.
YOUPROVIDESOMEOFTHEMOST
BASICSERVICESTOPOLICELIKE
EMAIL.
BUTYOUALSOPROVIDESERVICES
THATHELPKEEPOURCOPSSAFE
WHENTHEY'REDOINGTHEIRJOBAND
SOMYQUESTIONISHEREINFRONT
OFCONGRESSANDTHEAMERICAN
PEOPLE,WILLYOUTAKETHEPLEDGE
THATGOOGLEWILLNOTADOPTTHE
BIGOTEDANTIPOLICEPOLICYTHAT
ISREQUESTEDINTHEMOSTRECENT
LETTER.
>>CONGRESSMAN,WEHAVEALONG
TRACKRECORDOFWORKINGWITHLAW
ENFORCEMENTWHENITISSUPPORTED
BYDUEPROCESSANDTHELAW,WE
PUSHBACKAGAINSTOVERBROAD
REQUESTS.
WEARETRANSPARENTABOUTTHE
REQUESTSWEGET.
BUTWEHAVEALONGHISTORYOF
FOLLOWINGTHELAWAND
COOPERATINGWITH--
>>IUNDERSTANDTHEHISTORY.
I'MASKINGABOUTTHEFUTURE.
TOTHELAWENFORCEMENTWHOARE
WATCHINGTODAY,CANTHEYREST
ASSUREDTHATUNDERYOUR
LEADERSHIP,GOOGLEWILLNOT
ADOPTTHESEBIGOTED,ANTIPOLICE
POLICIES?
>>WEAREWORKINGWITHLAW
ENFORCEMENTINTHEWAYTHATIS
CONSISTENTWITHLAWANDDUE
PROCESSESINTHEU.S.
>>IAPPRECIATETHATANDIKNOW
THATWILLBECOMFORTINGTOTHE
POLICEWHOUTILIZEYOUR
SERVICES.
YOUMENTIONEDEARLIERINYOUR--
INTHEDISCUSSIONABOUTCHINA
THATYOURENGAGEMENTINCHINA
WASVERYLIMITED.
BUTYETGOOGLEHASANAICHINA
CENTER,THECHINESEACADEMYOF
SCIENCESHASPUBLISHEDAPAPER
SAYINGTHATITENHANCEDTHE
TARGETINGCAPABILITIESOFA
FIGHTERAIRCRAFT.
YOUCOLLABORATEWITHCHINESE
UNIVERSITIES.
ONEOFYOURGOOGLERSWHILEUNDER
YOUREMPLOYWASCITEDINCHINESE
STATEMEDIASAYING,CHINAIS
LIKEASLEEPINGGIANT,WHENSHE
WAKES,SHEWILLTREMBLETHE
WORLD.
THEFORMERSECRETARYOFDEFENSE,
MR.SHANAHAN,SAIDTHATTHE
LINESHAVEBEENBLURREDINCHINA
BETWEENCOMMERCIALANDMILITARY
APPLICATION.
GENERALDUNFORDSAYSYOUR
COMPANYISDIRECTLYAIDINGTHE
CHINESEMILITARYANDPETERTEAL
WHOSERVESONMR.ZUCKERBERG'S
BOARDATFACEBOOKSAIDTHAT
GOOGLE'SACTIVITIESWITHCHINA
ARETREASONOUS.
HEUSEDYOUOFTREASON.
WHYWOULDANAMERICANCOMPANY
WITHAMERICANVALUESSODIRECTLY
AIDTHECHINESEMILITARYBUT
HAVEETHICALCONCERNSABOUT
WORKINGALONGSIDETHEU.S.
MILITARYONPROJECTMAEVEN.
IUNDERSTANDYOURPOINTABOUT
CYBERSECURITYANDTHOSETHINGS.
BUTPROJECTMAEVENWASA
SPECIFICWAYTOENSURETHATOUR
TROOPSARESAFEONTHE
BATTLEFIELD.
IFYOUHAVENOPROBLEMMAKING
THEJ-20CHINESEFIGHTERMORE
EFFECTIVEINITSTARGETING,WHY
WOULDN'TYOUWANTTOMAKE
AMERICAASEFFECTIVE?
>>CONGRESSMAN,WITHRESPECT,WE
ARENOTWORKINGWITHTHECHINESE
MILITARY.
IT'SABSOLUTELYFALSE.
IHADACHANCETOMEETWITH
GENERALDUNFORDPERSONAL.
WECLARIFIEDWHATWEDOIN
CHINA.
IT'SVERY,VERYLIMITEDIN
NATURE.
OURAIWORKINCHINAISLIMITED
TOAHANDFULOFPEOPLEWORKING
ONOPEN-SOURCEPROJECTS.
I'MHAPPYTOSHAREANDENGAGE
WITHTHEOFFICETO--
>>MYGOSH.
WHENTHECHAIRMANOFTHEJOINT
CHIEFSOFSTAFFSAYSTHATAN
AMERICANCOMPANYISDIRECTLY
AIDINGCHINA,WHENYOU'RE
WORKINGWITHUNIVERSITIESAND
WHENYOUREMPLOYEESARETALKING
ABOUTCHINATREMBLINGTHEWORLD,
ITSEEMSTOCALLINTOQUESTION
YOURCOMMITMENTTOOURCOUNTRY
ANDVALUES.
ISEEOURTIMEISEXPIRED.
>>IRECOGNIZETHEGENTLEMAN
FROMMARYLANDFORFIVEMINUTES.
>>THANKYOU,MR.CHAIRMAN.
MR.ZUCKERBERG,ASYOUKNOWTHE
PROLIFERATIONOFFAKEFACEBOOK
ACCOUNTSWASAKEYTOOLINTHE
STRATEGYOFRUSSIANINTERFERENCE
INTHEAMERICANELECTIONIN
2016.
AMERICANLAWENFORCEMENT,THE
SENATE,THEHOUSEHAVEALLFOUND
THATVLADIMIRPUTINENGAGEDINA
SWEEPINGANDSYSTEMATICCAMPAIGN
TOUNDERMINEAMERICANDEMOCRACY
IN2016ANDTOWORKFORA
VICTORYFORDONALDTRUMP.
INHISREMARKABLEBOOK,
CAMBRIDGEANALYTICAANDTHEPLOT
TOBREAKAMERICA,A
WHISTLE-BLOWERWHOWORKEDFOR
SEVERALYEARSATCAMBRIDGE
ANALYTICA,STEVEBANNON'SGOAL
WASTOCHANGEPOLITICSBY
CHANGINGCULTURE.
FACEBOOKDATA,ALGORITHMSWERE
HISKEYFOCUS.
THEYIDENTIFIEDPEOPLEWHO
EXHIBITEDTHETHREETRAITSIN
WHATTHEYCALLTHEDARKTRIAD.
THEYPROCEEDEDTOBOMBARDAND
ACTIVATETHESEPEOPLE.
WITHINCREASINGLYDARKAND
MANIPULATIVEMESSAGESFROMFAKE
FACEBOOKPAGESBOTHTOGETTHEM
TOVOTEFORTRUMPBUTMORE
IMPORTANTLYTOACTIVATETHEMAS
RACISTSANDWHITENATIONALISTS.
HEGOESONTODESCRIBETHE
REMARKABLESUCCESSOFTHIS
CAMPAIGN,BOTHELECTORALLY,BUT
ALSOPOLITICALLYINTHECOUNTRY
INTERMSOFSOWINGTHETERRIBLE
RACIALANDETHNICDIVISIONSTHAT
YOUSEEINAMERICATODAY.
SOTHEYWAGEDAMASSCAMPAIGNOF
PSYCHOLOGICALWARFARETO
POLARIZEAMERICAAROUNDRACEAND
RELIGION.
ANDITWORKEDFORTHEMBUTI
DIDN'TWORKSOWELLFORAMERICA.
SO,MR.ZUCKERBERG,WHICHPARTS
OFTHISNARRATIVEHAVEYOU
ADDRESSED,ORAREYOUPLANNING
TOADDRESS,ORDOYOUJUSTSEE
THATESSENTIALLYASTHECOSTOF
BEINGAFORUMINAMARKETPLACE
FORIDEAS?
ISTHERENOTHINGTHATCANBE
DONEABOUTTHEUSEOFFACEBOOK
TOINGENDERSOCIALDIVISIONIN
AMERICA?
>>CONGRESSMAN,THANKYOU.
SINCE2016THEREHAVEBEENALOT
OFSTEPSTHATWE'VETAKENTO
PROTECTTHEINTEGRITYOF
ELECTIONS.
WE'VEHIRED--ITHINKIT'SMORE
THAN30,000PEOPLETOWORKON
SAFETYANDSECURITY.
WEHAVEBUILTUPAISYSTEMSTO
BEABLETOFINDHARMFULCONTENT
INCLUDINGBEINGABLETOFIND
MORETHAN50DIFFERENTNETWORKS
OFCOORDINATEDANDAUTHENTIC
BEHAVIOR,NATIONSTATESTRYING
TOINTERFEREFEARIN
ELECTIONS--
>>LETMEJUSTPAUSEYOUTHERE
FORASECOND.
I'MINTERESTEDINTHAT.
THESTOPHATEFORPROFIT
CAMPAIGNISACOALITIONTHAT
INCLUDESTHECOLOROFCHANGE,
THEANTI-DEFAMATIONLEAGUEAND
OTHERGROUPSANDTHEY'RE
TARGETINGFACEBOOKRIGHTNOWFOR
ABOYCOTTBECAUSEOFTHERAPID
SPREADOFHATEMESSAGESONLINE,
THEPRESENCEOFGROUPSTRYINGTO
INTERRUPTBLACKLIVESMATTER
PROTESTS.
SOTHEY'REASKINGYOUTOREMOVE
THESEPAGESANDTOJOINTHE
MOVEMENTFORCIVILRIGHTSBYNOT
ALLOWINGTHATKINDOFCONTENT,
THEY'REBOYCOTTERSINCLUDINGA
LOTOFBIGCOMPANIES,LEVI'S,
McDONALDS,ANDSOON.
BUTYOUSEEMNOTTOBETHAT
MOVEDBYTHEIRCAMPAIGNANDI
JUSTWONDERWHATYOUTHINKABOUT
WHATTHEY'REASKINGYOUTODO.
>>CONGRESSMAN,THANKS.
WE'REVERYFOCUSEDONFIGHTING
AGAINSTELECTIONINTERFERENCE
ANDFOCUSEDONFIGHTINGAGAINST
HATESPEECH.
OURCOMMITMENTSTOTHOSEISSUES
ANDFIGHTINGTHEMGOBACKYEARS
BEFORETHISRECENTMOVEMENT.
SINCE2016,THEDEFENSESTHAT
THECOMPANYHASBUILTUPTOHELP
SECUREELECTIONSNOTJUSTINTHE
U.S.BUTAROUNDTHEWORLD,I
THINKARESOMEOFTHEMOST
ADVANCEDTHATANYCOMPANYOR
GOVERNMENTHASINTHEWORLDNOW.
WECOLLABORATEWITHLAW
ENFORCEMENTANDINTELLIGENCE
AGENCIESANDAREABLETO
SOMETIMESIDENTIFYTHREATS
COMINGFROMOTHERCOUNTRIES
BEFOREGOVERNMENTSAREEVENABLE
TO.
INTERMSOFFIGHTINGHATE,WE
HAVEBUILTREALLYSOPHISTICATED
SYSTEMS.
OURGOALISTOIDENTIFYIT
BEFOREANYONEEVENSEESITON
THEPLATFORM.
ANDWE'VEBUILTAISYSTEMSAND
ASIMENTIONEDHAVETENSOF
THOUSANDSOFPEOPLEWORKINGON
SAFETYANDSECURITYWITHTHE
GOALOFGETTINGTHESTUFFDOWN
SOTHATWAYBEFOREPEOPLEEVEN
SEEIT.
ANDRIGHTNOWWE'REABLETO
PROACTIVELYIDENTIFY89%OFTHE
HATESPEECHTHATWETAKEDOWN
BEFOREITHINKIT'SEVENSEENBY
OTHERPEOPLE.
IWANTTODOBETTERTHAN89%.
IWOULDLIKETOGETTHATTO99%.
BUTWEHAVEAMASSIVEINVESTMENT
HERE.
WEINVEST--
>>CANYOUJUST--MYTIMEIS
ALMOSTOUT.
CANYOUJUSTADDRESSTHE
PROLIFERATIONOFFAKEACCOUNTS?
IUNDERSTANDYOUGET6.5BILLION
FAKEACCOUNTSPRODUCEDTHERE,
BUTYOUHAVEAPROFITMOTIVE
THAT'SLINKEDTOTHAT,BECAUSE
THAT'SWHATSHAREDWITHYOUR
INVESTORS.
AREYOUWORKINGTOTRYTOFAIR
ITOUT,THESEFAKEACCOUNTS?
>>THEGENTLEMAN'STIMEIS
EXPIRED.
THEWITNESSMAYANSWERTHE
QUESTION.
>>CONGRESSMAN,ABSOLUTELY.
WEWORKHARDONTHIS.
WETAKEDOWNBILLIONSOFFAKE
ACCOUNTSAYEAR.
ALOTOFTHATISJUSTPEOPLE
TRYINGTOSETUPACCOUNTSTO
SPAMPEOPLEFORCOMMERCIAL
REASONS.
AVERYSMALLPERCENTOFTHATARE
NATIONSTATESTRYINGTO
INTERFEREINELECTIONS.
WE'REVERYFOCUSEDONTRYINGTO
FINDTHOSE.
HAVINGFAKEANDHARMFULCONTENT
ONOURPLATFORMDOESNOTHELP
OURBUSINESS.
ITHURTSOURBUSINESS.
PEOPLEDONOTWANTTOSEETHAT
STUFFANDTHEYUSEOURSERVICES
LESSWHENTHEYDO.
SOWEAREALIGNEDWITHPEOPLEIN
ORDERTOTAKETHATDOWNANDWE
INVESTBILLIONSOFDOLLARSA
YEARINDOINGSO.
>>IYIELDBACK.
THANKYOU.
>>THECOMMITTEEWILLSTANDIN
RECESSFORTENMINUTESWHILEWE
FIXATECHNICALFEEDWITHONEOF
YOURWITNESSES.
>>>THISCOMMITTEEHEARINGWITH
CEOsFROMAMAZON,APPLE,GOOGLE
ANDFACEBOOK,DISCUSSING
ANTITRUSTLAWANDONLINE
PLATFORMMARKETPOWER,TAKINGA
BRIEFBREAK.
SHOULDBEABOUTTENMINUTES.
THEYAREEXPECTEDTORESUME
SHORTLY.
WEWILLBRINGYOULIVECOVERAGE
OFTHISHEARINGFROMBEGINNING
TOENDHEREONC-SPAN3.
WHILEWEWAITFORTHEHEARINGTO
RESUME,WE'LLTAKEYOUBACKTO
THEBEGINNINGANDSOMEOFTHE
OPENINGSTATEMENTSFROMTHETECH
CEOs.
>>JEFFBEZOS,YOUMAYBEGIN.
>>THANKYOU,CHAIRMAN
CICILLINE,RANKINGMEMBER,AND
MEMBERSOFTHESUBCOMMITTEE.
IWASBORNINTOGREATWEALTH.
NOTMONETARYWEALTH,BUTTHE
WEALTHOFALOVINGFAMILY.
AFAMILYTHATFOSTEREDMY
CURIOSITYANDENCOURAGEDMETO
DREAMBIG.
MYMOM,JACKIE,HADMEWHENSHE
WASA17-YEAR-OLDHIGHSCHOOL
STUDENTINALBUQUERQUE.
BEINGPREGNANTINHIGHSCHOOL,
WASNOTPOPULAR.
THESCHOOLTRIEDTOKICKHER
OUT,BUTSHEWASALLOWEDTO
FINISHAFTERMYGRANDFATHER
NEGOTIATEDTERMSWITHTHE
PRINCIPAL.
SHECOULDN'THAVEALOCKERAND
COULDN'TWALKACROSSTHESTAGE
TOGETHERDIPLOMA.
SHEGRADUATEDANDWASDETERMINED
TOCONTINUEHEREDUCATION.
SHEENROLLEDINNIGHTSCHOOL
BRINGINGMETOCLASSTHROUGHOUT.
MYDAD'SNAMEISMIGUEL.
HEADOPTEDMEWHENIWAS4.
HEWAS16WHENHECAMETOTHE
U.S.FROMCUBASHORTLYAFTER
CASTROTOOKOVER.
MYDADDIDN'TSPEAKENGLISHAND
HEDIDNOTHAVEANEASYPATH.
WHATHEDIDHAVEWASGRITAND
DETERMINATION.
HERECEIVEDASCHOLARSHIPTO
COLLEGEWHICHISWHEREHEMETMY
MOM.
THESEHARD-WORKING,RESOURCEFUL
ANDLOVINGPEOPLEMADEMEWHOI
AM.
IWALKEDAWAYFROMASTEADYJOB
ONWALLSTREETINTOASEATTLE
GARAGETOFOUNDAMAZON,FULLY
UNDERSTANDINGTHATITMIGHTNOT
WORK.
ITFEELSLIKEJUSTYESTERDAYI
WASDRIVINGTHEPACKAGESTOTHE
POSTOFFICEMYSELF,DREAMING
THATONEDAY,WEMIGHTAFFORDA
FORKLIFT.
CUSTOMEROBSESSIONHASDRIVEN
OURSUCCESS.
ANDITAKEITASANARTICLEOF
FAITHTHATCUSTOMERSNOTICEWHEN
YOUDOTHERIGHTTHING.
YOUEARNTRUSTSLOWLYOVERTIME
BYDOINGHARDTHINGSWELL,
DELIVERINGONTIME,OFFERING
EVERYDAYLOWPRICES,MAKING
PROMISESANDKEEPINGTHEMAND
MAKINGPRINCIPLEDDECISIONS,
EVENWHENTHEYAREUNPOPULAR.
ANDOURAPPROACHISWORKING.
80%OFAMERICANSHAVEA
FAVORABLEIMPRESSIONOFAMAZON
OVERALL.
WHODOAMERICANSTRUSTMORETHAN
AMAZONTODOTHERIGHTTHING?
ONLYTHEIRDOCTORSANDTHE
MILITARY.
THERETAILMARKETWEPARTICIPATE
INISLARGEANDCOMPETITIVE.
AMAZONACCOUNTSFORLEARN1%OF
THE$25TRILLIONGLOBALRETAIL
MARKETANDLESSTHAN4%OFU.S.
RETAIL.
THERE'SROOMINRETAILFOR
MULTIPLEWINNERS.
WECOMPETEAGAINSTTARGET,
COSTCO,KROGERAND,OFCOURSE,
WALMART.
ACOMPANYMORETHANTWICE
AMAZON'SSIZE.
20YEARSAGO,WEMADETHE
DECISIONTOINVITEOTHERSELLERS
TOSELLINOURSTORE,TOSHARE
THESAMEREALESTATEWESPENT
BILLIONSTOBUILD,MARKETAND
MAINTAIN.
WEBELIEVETHATCOMBININGTHE
STRENGTHSOFAMAZON'SSTOREWITH
THEVASTSELECTIONOFPRODUCTS
OFFEREDBYTHIRDPARTIESWOULD
BEABETTEREXPERIENCEFOR
CUSTOMERSANDTHEGROWINGPIEOF
REVENUEANDPROFITSWOULDBEBIG
ENOUGHFORALL.
WEWEREBETTINGITWASNOTA
ZERO-SUMGAME.
FORTUNATELY,WEWERERIGHT.
THEREARENOW1.7MILLIONSMALL
ANDMEDIUM-SIZEDBUSINESSES
SELLINGONAMAZON.
WEHAVEBEENABLETOCREATEMORE
JOBSINTHEUNITEDSTATESOVER
THEPASTDECADETHANANYOTHER
COMPANY.
AMAZONEMPLOYEESMAKEAMINIMUM
OF$15ANHOUR.
ANDWEOFFERTHEBESTBENEFITS,
BENEFITSTHATINCLUDE
COMPREHENSIVEHEALTHINSURANCE,
401(k)RETIREMENT,ANDLEAVE.
ENTREPRENEURIALCOMPANIESSTART,
GROWANDTHRIVEHEREINTHEU.S.
WENURTUREENTREPRENEURSAND
START-UPSWITHSTABLERULEOF
LAW.
THEFINESTUNIVERSITYSYSTEMIN
THEWORLD.
THEFREEDOMOFDEMOCRACYANDA
DEEPLYACCEPTEDCULTUREOF
RISK-TAKING.
OFCOURSETHISGREATNATIONOF
OURSISFARFROMPERFECT.
EVENASWEREMEMBERCONGRESSMAN
JOHNLEWISANDHONORHISLEGACY,
WE'REINTHEMIDDLEOFAMUCH
NEEDEDRACERECKONING.
WEALSOFACETHECHALLENGESOF
CLIMATECHANGEANDINCOME
INEQUALITYANDSTUMBLINGTHROUGH
THECRISISOFAGLOBALPANDEMIC.
STILL,WITHALLOFOURFAULTS
ANDPROBLEMS,THERESTOFTHE
WORLDWOULDLOVEEVENTHE
TINIESTSIPOFTHEELIXIRWE
HAVEHEREINTHEU.S.
IMMIGRANTSLIKEMYDADSEEWHAT
ATREASURETHISCOUNTRYIS.
THEYHAVEPERSPECTIVEANDOFTEN
CANSEEITEVENMORECLEARLY
THATBETHOSEOFUSWHOWERE
LUCKYENOUGHTOBEBORNHERE.
IT'SDAYONEFORTHISCOUNTRY,
ANDEVENINTHEFACEOFTODAY'S
HUMBLESCHALLENGES,IHAVENEVER
BEENMOREOPTIMISTICABOUTOUR
FUTURE.
IAPPRECIATETHEOPPORTUNITYTO
APPEARBEFOREYOUTODAYANDI'M
VERYHAPPYTOTAKEYOUR
QUESTIONS.
>>THANKYOU,MR.BEZOS.
MR.PICHAI,YOU'RERECOGNIZED
FORFIVEMINUTES.
>>THANKYOU,MR.CHAIRMAN.
RANKINGMEMBERANDMEMBERSOF
THESUBCOMMITTEE,BEFOREI
START,IKNOWTHISHEARINGWAS
DISPLAYEDBECAUSEOFTHE
CEREMONIESTOHONORTHELIFEOF
YOURCOLLEAGUE,REPRESENTATIVE
JOHNLEWIS.
BECAUSEOFHISCOURAGE,THIS
WORLDISABETTERPLACE.
ITWILLBEDEEPLYMISSED.
ATITSHEART,ADISCUSSIONABOUT
COMPETITIONISADISCUSSION
ABOUTOPPORTUNITY.
THISHASNEVERBEENMORE
IMPORTANTASTHEGLOBALPANDEMIC
POSESDUALCHALLENGESTOOUR
HEALTHANDECONOMY.
EXPANDINGACCESSTOOPPORTUNITY
THROUGHTECHNOLOGYISPERSONAL
TOME.
IDIDN'THAVEMUCHACCESSTOA
COMPUTERGROWINGUPININDIA.
SOYOUCANIMAGINEMYAMAZESMENT
WHENIARRIVEDINTHEU.S.FOR
GRADUATESCHOOLANDSAWAN
ENTIRELABOFCOMPUTERSTOUSE
WHENEVERIWANTED.
ACCESSINGTHEINTERNETFORTHE
FIRSTTIMESETMEONAPATHTO
BRINGTECHNOLOGYTOASMANY
PEOPLEASPOSSIBLE.
ITINSPIREDMETOBUILDGOOGLE'S
FIRSTBROWSER,CHROME.
I'MPROUDTHAT11YEARSLATER,
SOMANYPEOPLEEXPERIENCETHE
WEBTHROUGHCHROMEFORFREE.
WEAREEVENPROUDEROFWHATTHEY
DOWITHTHEM,FROMTHE140
MILLIONSTUDENTSANDTEACHERS
USINGGSUITEFOREDUCATIONTO
STAYCONNECTEDDURINGTHE
PANDEMIC,TOTHE5MILLION
AMERICANSGAININGDIGITALSKILLS
THROUGHGROWWITHGOOGLE,TOALL
THEPEOPLEWHOTURNTOGOOGLE
FORHELP,FROMFINDINGTHE
FASTESTROUTEHOME,TOLEARNING
HOWTOCOOKANEWDISHON
GOOGLE.
WEAREPROUDTOCONTRIBUTETO
AMERICA'SFUTURE.
WEEMPLOYMORETHAN75,000
PEOPLEINTHEU.S.ACROSS26
STATES.
THEPROGRESSOFPOLICYINSTITUTE
ESTIMATEDIN2018,WEENLISTED
MORETHAN$20BILLIONINTHE
U.S.CITINGUSASTHELARGEST
CAPITALINVESTORINAMERICATHAT
YEARANDONEOFTHETOPFIVEIN
THELASTTHREEYEARS.
ONEWAYWECONTRIBUTEISBY
BUILDINGHELPFULPRODUCTS.
FREESERVICESLIKESEARCH,
GMAIL,MAPSANDPHOTOSPROVIDE
THOUSANDSOFDOLLARSAYEARIN
VALUETOTHEAVERAGEAMERICAN
ANDMANYARESMALLBUSINESSES
USINGOURDIGITALTOOLSTOGROW.
AFAMILY-OWNEDSTONECOMPANYIN
WISCONSINUSESGOOGLEMY
BUSINESSTODRAWMORECUSTOMERS,
AFAMILY-OWNEDAPPLIANCESTORE
CREDITSGOOGLEANALYTICSWITH
HELPINGTHEMREACHCUSTOMERS
ONLINE.
NEARLYONE-THIRDOFSMALL
BUSINESSOWNERSSAYWITHOUT
DIGITALTOOLS,THEYWOULDHAVE
CLOSEALLORPARTOFTHEIR
BUSINESSDURINGCOVID.
ATTHEENDOF2019,OURR&D
SPENDHASINCREASEDTENFOLDOVER
TENYEARSFROM$2.8BILLIONTO
$26BILLION.
ANDWEHAVEINVESTEDOVER
$90MILLIONTHELASTFIVEYEARS.
OURENGINEERSAREHELPING
AMERICAREMAINAGLOBALLEADER
INEMERGINGTECHNOLOGIESLIKE
ARTIFICIALINTELLIGENCE,
SELF-DRIVINGCARSANDQUANTUM
COMPETING.
JUSTASAMERICA'STECHNOLOGY
LEADERSHIPISNOTINEVITABLE,
GOOGLE'SCONTINUEDSUCCESSESIS
NOTGUARANTEED.
NEWCOMPETITORSEMERGEEVERYDAY
ANDUSERSHAVEACCESSTOMORE
INFORMATIONTHANEVERBEFORE.
COMPETITIONLEADSTOBETTER
PRODUCTSANDMORECHOICESFOR
EVERYONE.
FOREXAMPLE,COMPETITIONHELPED
LOWERONLINEADVERTISINGCOSTS
BY40%OVERTHELASTDECADE.
THESAVINGSPASSEDDOWNTO
COORDINATION.
OPENPLATFORMSLIKEANDROIDALSO
SUPPORTTHEINNOVATIONOF
OTHERS.
USINGANDROID,THOUSANDSOF
MOBILEOPERATORSBUILDANDSELL
THEIROWNDEVICESWITHOUTPAYING
ANYLICENSINGFEESTOUS.
THISHASENABLEDCONSUMERSTO
AFFORDSMARTPHONES,SOMEFOR
LESSTHAN$50.
WHETHERBUILDINGTOOLSFORSMALL
BUSINESSESORPLATFORMSLIKE
ANDROID,GOOGLESUCCEEDSWHEN
OTHERSSUCCEED.
ITALSOSETSHIGHERSTANDARDS
FORPRIVACYANDSECURITY.
I'VEBELIEVEDTHATPRIVACYISA
UNIVERSALRIGHTANDGOOGLEIS
COMMITTEDTOKEEPINGYOUR
INFORMATIONSAFE,TREATINGIT
RESPONSIBLY,PUTTINGYOUIN
CONTROL,ANDWEHAVELONG
SUPPORTEDTHECREATIONOF
COMPREHENSIVEFEDERALPRIVACY
LAWS.
I'VENEVERFORGOTTENHOWACCESS
TOTECHNOLOGYANDINNOVATION
CHANGEDTHECOURSEOFMYLIFE.
GOOGLEAIMSTOBUILDPRODUCTS
THATINCREASEACCESSTO
OPPORTUNITYFOREVERYONE.
NOMATTERWHEREYOULIVE,WHAT
YOUBELIEVEORHOWMUCHMONEY
YOUEARN.
WEARECOMMITTEDTODOINGTHIS
RESPONSIBLY,INPARTNERSHIPWITH
LAWMAKERSTOENSUREEVERY
AMERICANHASACCESSTOTHE
INCREDIBLEOPPORTUNITY
TECHNOLOGYCREATES.
THANKYOU.
>>THANKYOU,MR.PICHAI.
MR.COOKISNOWRECOGNIZEDFOR
FIVEMINUTES.
>>CHAIRMAN,RANKINGMEMBER,
MEMBERSOFTHESUBCOMMITTEE,
THANKYOUFORTHEOPPORTUNITYTO
OFFERTESTIMONY.
BEFOREIBEGIN,IWANTTO
RECOGNIZETHELIFEANDLEGACYOF
JOHNLEWIS.
IJOINYOUINMOURNINGNOTONLY
AHERO,BUTSOMEONEIKNEW
PERSONALLYWHOSEEXAMPLE
INSPIRESANDGUIDESMESTILL.
EVERYAMERICANOWESJOHNLEWISA
DEBTANDIFEELFORTUNETOHAIL
FROMASTATEANDCOUNTRYTHAT
BENEFITTEDFROMHISLEADERSHIP.
MYNAMEISTIMAPPLE'SCEOSINC
2011.
>>INOWRECOGNIZETHEGENTLEMAN
FROMNORTHDAKOTA,MR.ARMSTRONG
FORFIVEMINUTES.
>>GOOGLEHASRECEIVEDCRITICISM
ABOUTBIASFROMCONSERVATIVES
ANDCONTENTMODERATION.
ASARESULT,ASIGNIFICANT
PORTIONOFTHEAMERICANPUBLIC
HASLOSTTRUSTINYOURCOMPANY.
ALACKOFPUBLICCONFIDENCEINA
PRODUCTUSUALLYMEANSTHERE'S
ECONOMICHARMTOTHECOMPANY.
BUTTHATJUSTISN'TINTHECASE
WITHGOOGLE.
SOIT'SALEGITIMATEQUESTIONAS
TOWHETHERGOOGLE'SMARKETPOWER
INSULATESIT.
IALSOTHINKIT'SALEGITIMATE
QUESTIONTOASKIFOTHER
ATTEMPTSTOREGULATEYOUR
INDUSTRIESHAVEWORKED.
SOMR.PACHI,GOOGLEHAS
RESTRICTEDTHEPORTABILITYOF
USERDATADUETOCOMPLIANCEWITH
THEGENERALDATAPROTECTION
REGULATION.
SPECIFICALLYIN2018,GOOGLE
RESTRICTEDTHEABILITYTOEXPORT
THEDOUBLEI.D.OFCOOKIEBASED
IDENTIFIERTHATCREATESPROFILES
THROUGHGOOGLEDATATRANSFER.
ISTHATCORRECT?
>>CONGRESSMAN,NOTFAMILIAR
WITHTHESPECIFICSOFTHAT
PARTICULARISSUE.
BUTHAPPYTOFOLLOWUPMOREONCE
IUNDERSTANDITBETTER.
>>SOYOU'RENOTPARTICULARLY
FAMILIARWITHHOWYOU'RE
COMPLYINGWITHGDPR.
>>CONGRESSMAN,WE'VELONGBEEN
WORKINGTOCOMPLYWITHGDPR.
WETHINKIT'SANIMPORTANT
REGULATION,ANDWEHAVE--WE
AREINFULLCOMPLIANCETOTHE
EXTENTOFMYKNOWLEDGE.
IJUSTMEANTNOTWITHTHAT
SPECIFICISSUEYOUMENTIONED
THERE.
>>SOTOCOMPLY,GOOGLEMUST
RESTRICTTHE--WITHOTHER
PLATFORMSTOCONDUCTCROSS
PLATFORMANALYSIS.
ITSEEMSASIFTHATULTIMATELY
LIMITSTHEABILITYOF
ADVERTISERSTOMAKECOMPARISONS
BETWEENGOOGLEBASEDCAMPAIGNS
ANDNONGOOGLEBASDCAMPAIGNS.
WOULDYOUAGREEWITHTHAT?
>>INALLTHESYSTEMS,WEARE
BALANCINGWITHINUSERS,
ADVERTISERSANDPUBLISHERS.
WECAREABOUTTHEPRIVACYOFOUR
USERS.
SOWHENWESERVETHESE
ECOSYSTEMS,WEHAVETOTAKETHAT
INTOACCOUNT.
WEHAVETOCOMPLYWITHIMPORTANT
LAWSANDREGULATIONSINEVERY
COUNTRYWEOPERATEIN.
SOTHAT'STHEDELICATEBALANCE
WEARESTRIKING.
BUTWEAREFOCUSEDONUSERSAND
TRYINGTODOTHEBESTWECAN.
>>IWANTTOBECLEAR,I
PERSONALLYBELIEVETHATJUSTTHE
MARKETPOWERCONSOLIDATIONIS
SIGNIFICANT.
BUTIWANTTOBECLEARWHEN
WE'REMOVINGFORWARDTOREGULATE
THIS,THATWEAREN'TSQUEEZING
OUTCOMPETITIONINOURQUESTTO
DOSOMETHING.
BECAUSEI'VESAIDTHATBEFOREIN
THISHEARINGANDI'LLSAYIT
AGAIN,USUALLYINOURQUESTTO
REGULATEBIGCOMPANIES,WEEND
UPHURTINGSMALLCOMPANIESMORE.
I'MASTRONGPRIVACYADVOCATE,
BUTTHECONSEQUENCESOFGDPR
HAVEBEENTOENTRENCHLARGE
ACTORSLIKEGOOGLE,LEADINGTO
REGULATORYCAPTURETHAT
EXASPERATESCOMPETITION
CONCERNS.
ANDTHEADMARKETSHAREHAS
INCREASEDSINCETHE
IMPLEMENTATIONOFGDPR.
DOYOUKNOWTHATTOBECORRECT?
>>CONGRESSMAN,TOJUSTGIVEYOU
ASENSEOFTHEROBUST
COMPETITIONWESEE,ADPRICES
HAVEFALLENBY40%INTENYEARS.
INFACT,INTHEU.S.,
ADVERTISINGASASHAREOFGDP
HASCOMEDOWNTOLESSTHAN1%
TODAY.
SOWESEEROBUSTCOMPETITIONIN
THEMARKETPLACE.
ASISAIDEARLIER,WEHAVETO
COMPLYWITHREGULATION.
WEHAVETOINTERPRETITSTRICTLY
ANDBALANCETHEECOSYSTEM.
BUTOURUTMOSTCAREISENSURING
PRIVACYANDSECURITYOFOUR
USERS.
>>I'MGLADYOUMENTIONED
PRIVACY,BECAUSEIWOULDBE
REMISSIFIDIDN'TFEELWITH
THISISSUE.
GENERALLYSPEAKINGOUTSIDEOF
THEBIASESWITHALLOFTHIS,AND
THISISFORESSENTIALLYALLFOUR
OFOURWITNESSES,ITHINKONEOF
THEBIGGERCONCERNSWHENWETALK
ABOUTTHATDATAHAVINGVALUEAND
PRIVACY,WHICHISWHEREPEOPLE
GETCONCERNEDWITHHOWTHE
DIGITALAGEISMOVINGFORWARD.
THEREAREREPORTSLAW
ENFORCEMENTHASMADEUSEOFWHAT
ISCALLEDGEOFENCEWARMSTHAT
ALLOWAUTHORITIESTOCOMPEL
TECHNOLOGYCOMPANIESTODISCLOSE
LOCATIONFORANYDEVICEATA
PARTICULARPOINTINTIME.
COURTFILINGSSUGGESTTHAT
GOOGLERECEIVEDA1500%INCREASE
INGEOFENCEREQUESTS.
ANDSOTHEFOURTHAMENDMENT
REQUIRESPROBABLECAUSEAND
SPECIFICITY.
THAT'SNOTWHATTHESEARE.
THESEWARRANTSAREFORANY
PERSONINANAREAATA
PARTICULARTIME.
ANDGEOFENCEWARRANTSREQUIRE
NEITHER.
SOTHEYAREESSENTIALITWILL
GENERALWARRANTS.
IBELIEVETHELOCATION
INFORMATIONSHOULDBECONSIDERED
ASCONTENTSUNDERTHEHISTORIC
COMMUNICATIONSACT.
DOYOUAGREE?
>>UMM,I'MHAPPYTOUNDERSTAND
MORE.
WEDEEPLYCAREABOUT--THIS
IS--WETHINKTHISISAN
IMPORTANTAREA.
OVERSIGHTANDWESIMPLYMADEA
CHANGEBYWHICHWEAUTOMATICALLY
DELETELOCATIONACTIVITYAFTERA
CERTAINPERIODOFTIMEBY
DEFAULTFORUSERS.
SOWEAREHAPPYTOENGAGEWITH
THEOFFICE,CONGRESSMAN.
>>I'MUSINGYOU,BECAUSETHIS
ISGOINGONINVIRGINIAANDNEW
YORKRIGHTNOW.
BUTTHISEQUAUQUATESTOEVERYT.
PEOPLEWOULDBETERRIFIEDTHAT
LAWENFORCEMENTCANGET
ANYBODY'SINFORMATION.
SOITREQUIRESCONGRESSTOACT.
ITISTHESINGLEMOSTISSUE--
>>THETIMEOFTHEGENTLEMANHAS
EXPIRED.
>>IHAVEAUNANIMOUSCONCEPT
REQUESTFOR"WALLSTREET
JOURNAL"ARTICLE,POLICEREQUEST
FORGOOGLEUSERSFACENEW
SCRUTINY.
>>WITHOUTOBJECTION.
>>ANDIHAVETWOLETTERSFROM
CONGRESSMANWALDENAND
CONGRESSWOMANROGERS.
THEFIRSTISTOMR.COOKOF
APPLE,THESECONDTOMR.PACHI.
>>WITHOUTOBJECTION.
INOWRECOGNIZETHEGENTLELADY
FROMWASHINGTON.
>>THANKYOUALLFORBEINGWITH
US.
MR.BEZOS,INJULY2019,YOUR
EMPLOYEENATESUTTONTOLDME
UNDEROATHINTHISCOMMITTEE
THATAMAZONDOESNOTUSEANY
SPECIFICSELLERDATAWHEN
CREATINGITSOWNPRIVATEBRAND
PRODUCT.
SODOESAMAZONEVERACCESSAND
USETHIRDPARTYSELLERDATAWHEN
MAKINGBUSINESSDECISIONS.
JUSTAYESORNOWILLSUFFICE,
SIR.
>>THANKYOUFORTHEQUESTION.
IKNOWIT'SANIMPORTANTTOPIC.
IWANTTOTHANKYOUFOR
REPRESENTINGUS.
ICAN'TANSWERTHATQUESTIONYES
ORNO.
WHATICANTELLYOUIS,WEHAVE
APOLICYAGAINSTUSINGSELLER
SPECIFICDATATOAIDOURPRIVATE
LABELBUSINESS.
BUTICAN'TGUARANTEEYOUTHAT
THATPOLICYHASNEVERBEEN
VIOLATED.
>>MR.BEZOS,YOU'REPROBABLY
AWARETHATINAPRIL2020,A
REPORTIN"THEWALLSTREET
JOURNAL"REVEALEDTHATYOUR
COMPANYDOESACCESSDATAON
THIRDPARTYSELLERS,BY
REVIEWINGDATAONSELLERSAND
PRODUCTSANDCREATINGTINY
CATEGORIESTHATALLOWYOUR
COMPANYTOCATEGORICALLYACCESS
DETAILEDSELLERINFORMATIONINA
SUPPOSEDLYAGGREGATECATEGORY.
DOYOUDENYTHATREPORT?
>>I'MFAMILIARWITH"THEWALL
STREETJOURNAL"ARTICLETHAT
YOU'REFAMILIARWITH.
WECONTINUETOLOOKINTOTHAT
VERYCAREFULLY.
I'MNOTSATISFIEDTHATWEHAVE
GOTTENTOTHEBOTTOMOFIT,AND
WE'LLKEEPLOOKINGATIT.
SOMEOFTHESOURCESINTHE
ARTICLEAREANONYMOUS,BUTWE
CONTINUETOLOOKINTOIT.
>>ITAKETHATASYOU'RENOT
DENYINGTHAT.
AFORMERAMAZONEMPLOYEETOLD
THISCOMMITTEE"THERE'SARULE
BUTTHERE'SNOBODYENFORCINGOR
SPOTCHECKING.
THEYJUSTSAYDON'THELP
YOURSELFTOTHEDATA.
EVERYONECANHAVEACCESSTO
ANYTHINGTHEYWANT."
DOCATEGORYMANAGERSHAVEACCESS
TOTHIRDPARTYPRODUCTSAND
BUSINESSES?
>>HERE'SWHATICANTELLYOU.
WEDOHAVECERTAINSAFEGUARDSIN
PLACE.
WEEXPECTPEOPLETOFOLLOWTHE
POLICYTHESAMEWEWOULDANY
OTHER.
IT'SAVOLUNTARYPOLICY--
>>SOTHERE'SNOACTUAL
ENFORCEMENTOFTHATPOLICY?
SOMAYBETHATANSWERSMY--
>>I'MSORRY,NO,ITHINKIMAY
HAVEMISSPOKE.
I'MTRYINGTOSAYAMAZON--THE
FACTTHATWEHAVESUCHAPOLICY
ISVOLUNTARY.
ITHINKNOOTHERRETAILERHAS
SUCHAPOLICY.
ENFORCEMENTOFTHATPOLICY,IF
WEFOUNDSOMEONEVIOLATEDIT,WE
WOULDTAKEACTIONAGAINSTTHEM.
>>THERE'SNUMEROUSREPORTS,AND
THECOMMITTEEHASCONDUCTED
INTERVIEWSWITHFORMER
EMPLOYEES,WHOCONFIRMEMPLOYEES
HAVEACCESSTOTHATDATAANDARE
USINGIT.
ANDSOMYNEXTQUESTIONWAS
GOINGTOBEIFYOUTHOUGHTYOU
WEREENFORCINGTHESERULES,DO
YOUTHINKTHAT'SWORKING?
AND,AGAIN,IWOULDJUSTSAY
THERE'SCREDIBLEREPORTING
THAT'SDOCUMENTEDBREACHESOF
THESERULESTHATYOUHAVEPUT
INTOPLACE.
ANDTHECOMMITTEEHAS
INTERVIEWEDEMPLOYEESTHAT
TYPICALLYSAYTHATTHESE
BREACHESTYPICALLYOCCUR.
LET'STALKABOUTAGGREGATEDATA
FORAMINUTE.
RULESALLOWFORYOUTOACCESS
COMBINEDDATAONAPRODUCT.
WHENTHEREAREONLYONEORTWO
SELLERSINTHEMARKETPLACE,
CORRECT?
>>YES.
AGGREGATEDATAISALLOWEDUNDER
OURPOLICIES,THAT'SCORRECT.
>>OKAY.
INTERVIEWSWITHFORMEREMPLOYEES
HAVEMADEITCLEARTHATTHAT
DATAESSENTIALLYALLOWSACCESS
TOHIGHLYDETAILEDDATAINTHE
PRODUCTCATEGORIES.
THERE'SANEXAMPLEOFASMALL
BUSINESSTHATHADNODIRECT
COMPETITORSEXCEPTFORAMAZON
WAREHOUSE.
ANAMAZONEMPLOYEEACCESSEDA
REPORTONTHEIRPRODUCTWITH
INFORMATIONONHOWMUCHTHE
COMPANYSPENTONADVERTISING.
ANDTHENAMAZONLAUNCHEDITSOWN
COMPETINGPRODUCTSINOCTOBER
2019.
THAT'SAMAJORLOOPHOLE.
IGOBACKTOTHEGENERAL
COUNSEL'SSTATEMENT,CLEARLY
THEREWASNOACCESSTOTHIS
DATA,THATAMAZONDOESNOTUSE
THATDATAFORITSOWNBENEFIT.
ANDI'MNOWHEARINGYOUSAY
YOU'RENOTSOSURETHAT'SGOING
ON.
ANDTHEISSUEWE'RECONCERNED
WITHHEREISVERYSIMPLE.
YOUHAVEACCESSTODATATHAT
EXCEEDSTHESELLERSONYOUR
PLATFORMSWITHWHOMYOUCOMPETE.
YOUCANTRACKCONSUMER
INTERESTS,YOUCANACCESSTOTHE
ENTIREOFSELLERSPRICINGAND
INVENTORYINFORMATIONPAST,
PRESENT,ANDFUTURE.
ANDYOUDICTATETHE
PARTICIPATIONOFTHIRDPARTY
SELLERSONYOURPLATFORM,SOYOU
CANSETTHERULESFORYOUR
COMPETITORSBUTNOTFOLLOWTHOSE
SAMERULESFORYOURSELF-.
DOYOUTHINKTHAT'SFAIRFORTHE
MOMANDPOPBUSINESSESTRYINGTO
SELLONYOURPLATFORM?
>>IAPPRECIATETHATQUESTION.
ILIKEITALOT,BECAUSEIWANT
ACHANCETOADDRESSTHAT.
I'MVERYPROUDOFWHATWEHAVE
DONEFORTHIRDPARTYSELLERSON
THISPLATFORM.
WESTARTEDOURTHIRDPARTY
PLATFORM20YEARSAGO,ANDWE
HADZEROSELLERSONIT.
>>THEQUESTIONI'MASKING--
I'MSORRY.
MYTIMEISEXPIRING.
THEQUESTIONIWANTEDTOASKYOU
ISTHATYOUHAVEACCESSTODATA
THATYOURCOMPETITORSDONOT
HAVE.
SOYOUMIGHTALLOWTHIRDPARTY
SELLERSONTOYOURPLATFORM.
BUTIFYOU'REMONITORINGTHE
DATATOMAKESURETHATTHEY'RE
NEVERGOINGTOGETBIGENOUGH
THATTHEYCANCOMPETEWITHYOU,
THATISTHECONCERNTHATTHE
COMMITTEEHAS.
AND,YOUKNOW,ITHINKYOUR
COMPANYSTARTEDINMYDISTRICT,
IWANTTOTHANKYOUFORTHATAND
THEWORKYOU'VEDONEANDSAY
THATTHEWHOLEGOALOFTHIS
COMMITTEE'SWORKISTOMAKESURE
THATTHEREAREMOREAMAZONS,
THATTHEREAREMOREAPPLES,THAT
THEREAREMORECOMPANIESTHAT
GETTOINNOVATEANDSMALL
BUSINESSESGETTOTHRIVE.
ANDTHATISWHATWE'RETRYINGTO
GETAT.
THATISWHYWENEEDTOREGULATE
THESEMARKETPLACES,SOTHATNO
COMPANYHASAPLATFORMSO
DOMINANTTHATITISCOMPANILYA
MONOPOLY.
THANKYOU,MR.CHAIRMAN.
IYIELDBACK.
>>IJUSTWANTEDTOREMINDTHE
WITNESSES,WEAPPRECIATETHE
GRATITUDEFORTHEQUESTIONSAND
YOURDESCRIPTIONOFTHEMASGOOD
QUESTIONS.
WEJUSTASSUMETHEY'REGOOD
QUESTIONS,SOWECANMAKESURE
YOU'REMAKINGGOODUSEOFYOUR
TIME.
WITHTHAT,IRECOGNIZETHE
GENTLEMANFROMFLORIDA.
>>THANKYOU,MR.CHAIRMAN.
MR.PACHI,I'MGOINGTO
ILLUSTRATEMYQUESTIONWITHA
FACTUALINCIDENTTHATOCCURRED
TOME.
SEVERALMONTHSAGO,MYWIFE
CALLEDANDSAIDTHERE'SAGOOD
ARTICLETHATYOUSHOULDREAD.
OUTOFCURIOSITY,IWASUPHERE
INWASHINGTON,ANDIGOOGLED
GATEWAYPUNDIT.
ANDITDIDN'TSHOWUPONTHE
FIRSTORSECONDPAGE.
THEREWASABUNCHOFDIFFERENT
BLOGGINGSITESABOUTHOWTHERE
WEREDISAGREEMENTSWITHWHATWAS
ONTHEGATEWAYPUNDIT.
BUTIHADTOTYPEIN
GATEWAYPUNDIT.COMTOGETTOIT.
ANDGOOGLEDIDN'TALLOWMETO
GETTOTHEWEBSITE.
THATWASACOUPLEMONTHSAGO
BEFORETHISHEARINGWASSETTO
BEHEARD,BEFOREYOUKNEWYOU
WOULDBEAPPEARINGBEFOREUS
TODAYANDTHATTHISISANISSUE
THATCONSERVATIVESAND
REPUBLICANSHAVEHAD.
LASTWEEK,AFTERTHISWAS
NOTICED,THISWEARINGWAS
NOTICED,IDIDTHESAMETHING.
IGOOGLEDGATEWAYPUNDIT,AND
THATWASTHEFIRSTWEBSITETHAT
CAMEUP.
THISISN'TFROMACONSTITUENTIN
PIDISTRICT,IDIDTHISONMY
LAPTOPHERESEVERALMONTHSAGO
ANDTHENTODAY.
SOCLEARLY,SOMETHINGHAD
HAPPENEDBETWEENNOTBEING
NOTIFIEDTHATYOUWEREGOINGTO
BEAPPEARINGBEFOREOUR
COMMITTEEANDLASTWEEK,KNOWING
YOUWOULDBEAPPEARINGBEFORE
OURCOMMITTEEANDSUDDENLY
CONSERVATIVEWEBSITESAREATTHE
TOPOFTHEBARWHENYOUSEARCH
FORTHEM.
SOWASTHEREANYTHINGDONEAT
GOOGLEBETWEENACOUPLEMONTHS
AGOANDLASTWEEKORTHEWEEK
BEFOREYOUAPPEARINGTODAY,THAT
HASCHANGEDYOURAPPROACHTO
SILENCINGCONSERVATIVEWEBSITES?
>>CONGRESSMAN,WEAPPROACHOUR
WORKWITHADEEPSENSEOF
RESPONSIBILITYINANONPARTISAN
WAY.
WEWANTTOSEVENALLOURUSERS,
NOMATTERWHERETHEYARE.
INFACT,IT'SINOURLONG-TERM
BUSINESSINCENTIVETODOSO.
ANDIBELIEVEONOURPLATFORMS,
INCLUDINGYOUTUBE,THEREARE
MORECONSERVATIVEVOICESTHAN
EVERBEFORE,ANDWEBELIEVEIN
FREEDOMOFEXPRESSION.
ONTHESPECIFICISSUE,IWILL
HAVETOLOOKINTOIT.
IOBVIOUSLYWASN'TAWAREOFIT.
ITCOULDBEANUMBEROFREASONS.
WECONSTANTLYGETREPORTS--
>>IFYOU'REGOINGTOLOOKINTO
IT
ITAPPEARSTOONLYBEHAPPENING
TOCONSERVATIVEREPUBLICANS.
IDON'TSEEANYTHINGINTHENEWS
ORANYTHINGINTHEPRESSOR
OTHERMEMBERSONTHEOTHERSIDE
OFTHEAISLETALKINGABOUTTHEIR
CAMPAIGNEMAILSGETTINGTHROWN
INTOJUNKFOLDERSINGMAIL.
SOWHYISTHISONLYHAPPENINGTO
REPUBLICANS?
ANDIT'SAFACTIT'SHAPPENING,
BECAUSEICANHAVEMYSUPPORTERS
TESTIFYTHEYRECEIVEDMYEMAILS
FOREIGHT,NINEYEARSAND
SUDDENLYTHISLASTYEAR,ALLOF
THEIRGMAIL,MYCAMPAIGNEMAILS
AREGOINGTOTHEIRSPAMFOLDER.
SOIFYOUCANGIVEMESOME
CLARIFICATIONONTHAT,IWOULD
APPRECIATEIT.
>>INGMAIL,WEAREFOCUSEDON
WHATUSERSWANT,ANDUSERSHAVE
INDICATEDTHEYWANTUSTO
ORGANIZETHEIRPERSONALEMAILS,
EMAILSTHEYRECEIVEFROMFRIENDS
ANDFAMILYSEPARATELY.
SOALLWEHAVEDONEISAN
ORGANIZATION,THEPRIMARYTAB
HASE-MAILSFROMFRIENDSAND
FAMILY--
>>WELL,ITWASMYFATHER,WHO
ISNOTRECEIVINGNOWMYCAMPAIGN
EMAILS.
SOCLEARLYTHAT
IN49STATESACROSSTHEU.S.SO
THATWECANCAPTUREALLTHE
POINTS.
>>THANKYOU.
THEGENTLEMAN'STIMEHASEXPIRE.
IRECOGNIZETHEGENTLELADYFROM
FLORIDA.
>>THANKYOU,MR.CHAIRMAN.
LETMEJUSTSAYFORTHERECORD,
I'MADEMOCRATFROMFLORIDAAND
I'VEHEARDCOMPLAINTSABOUTMY
EMAILSGOINGINTOSPAM,ASWELL.
I'MHUROTHERDEMOCRATICMEMBERS
HAVEHADTHESAMEEXPERIENCE.
MR.PACHI,IN2007,GOOGLE
PURCHASEDDOUBLECLICK,THE
LEADINGPROVIDEROFCERTAIN
ADVERTISINGTOOLS,ISTHAT
CORRECT?
>>THAT'SCORRECT,
CONGRESSWOMAN.
>>WHENGOOGLEPROPOSEDTHE
MERGER,ALARMBELLSWERERAISED
ABOUTTHEACCESSTODATAGOOGLE
WOULDHAVE.
SPECIFICALLYTHEABILITYTO
CONNECTAUSER'SPERSONAL
IDENTITYWITHTHEIRBROWSING
ACTIVITY.
GOOGLECOMMITTEDTOCONGRESS
THATTHEDEALWOULDNOTREDUCE
USERPRIVACY.
GOOGLECHIEFLEGALADVISER
TESTIFIEDBEFORETHESENATE
ANTI-TRUSTSUBCOMMITTEETHAT
GOOGLEWOULDN'TBEABLETOMERGE
THISDATA,EVENIFITWANTEDTO,
GIVENCONTRACTUALRESTRICTIONS.
BUTINJUNE2016,GOOGLEMERGED
THISDATAANYWAY,DESTROYING
ANONYMITYONTHEINTERNET.
YOUBECAMECEOOFGOOGLEIN
2015,ISTHATCORRECT?
>>THAT'SRIGHT.
>>OKAY.
ANDTHISCHANGEWASMADEIN
2016,ISTHATCORRECT?
>>THAT'SMYUNDERSTANDING.
>>OKAY.
THANKYOUFORTHAT.
DIDYOUSIGNOFFONTHIS
DECISIONTOCOMBINETHESETSOF
DATATHATGOOGLEHADTOLD
CONGRESSWOULDBEKEPTSEPARATE?
>>CONGRESSWOMAN,ANYCHANGESWE
MADE--
>>WITHALLDUERESPECT,PLEASE,
DIDYOUSIGNOFFONTHEDECISION
ORNOT?
>>IREVIEWEDATAHIGHLEVEL
ALLTHEIMPORTANTDECISIONSWE
MADE.
WEDEEPLYCAREABOUTPRIVACY--
>>SOYOUSIGNEDOFFONTHE
DECISION.
PRACTICALLYTHISDECISIONMEANT
THATYOURCOMPANYWOULDNOT
COMBINEALLOF--WOULDNOW
COMBINE,FOREXAMPLE,ALLOFMY
DATAONGOOGLE,MYSEARCH
HISTORY,MYLOCATIONFROMGOOGLE
MAPS,INFORMATIONFROMMYEMAILS
FROMGMAIL,ASWELLMYPERSONAL
IDENTITYWITHARECORDOFALMOST
ALLOFTHEWEBSITESIVISITED.
THATISABSOLUTELYSTAGGERING.
ACCORDINGTOANEMAILFROMA
DOUBLECLICKEXECUTIVE,THATWAS
EXACTLYTHETYPEOFREDUCTION
ANDUSERPRIVACYTHATGOOGLE'S
FOUNDERSHADPREVIOUSLYWORRIED
WOULDLEADTOABACKLASH.
ANDIQUOTE,THEYWERE
UNWAVERINGONTHEPOLICYDUETO
PHILOSOPHICALREASONS,WHICHIS
NOTWANTINGUSERSASSOCIATED
WITHTHECROSSSITECOOKIE.
THEYWEREALSOWORRIEDABOUTA
PRIVACYSTORM,ASWELLASDAMAGE
TOGOOGLE'SBRAND.
SOIN2007,GOOGLE'SFOUNDERS
FEAREDMAKETHINGCHANGE,
BECAUSETHEYKNEWITWOULDUPSET
THEIRUSERS.
BUTIN2016,GOOGLEDIDN'TSEEM
TOCARE.
ISN'TITTRUETHATWHATCHANGED
BETWEEN2007AND2016ISTHAT
GOOGLEGAINEDENORMOUSMARKET
POWER.
SOWHILEGOOGLEHADTOCARE
ABOUTUSERPRIVACYIN2007,IT
NOLONGERHADTOIN2016.
WOULDYOUAGREETHATWHAT
CHANGEDWASGOOGLEGAINED
ENORMOUSMARKETPOWER?
>>CONGRESSWOMAN,IFICOULD
EXPLAIN.
WETODAYMAKEITVERYEASYFOR
USERSTOBEINCONTROLOFTHEIR
DATA.
WEHAVESIMPLIFIEDTHEIR
SETTINGS.
THEYCANTURNADSONOROFF.
WEHAVECOMBINEDMOSTOF
ACTIVITYSETTINGSINTOTHREE
GROUPINGS.
WEREMINDUSERSTOGOTOA
PRIVACYCHECKUP--
>>THANKYOUSOMUCHFORTHAT.
IAMCONCERNEDTHATGOOGLE'S
BAITANDSWITCHWITHDOUBLE
CLICKISPARTOFABROADER
PATTERNWHEREGOOGLEBUYSUP
COMPANIESFORTHEPURPOSESOF
SURVEILLINGAMERICANSAND
BECAUSEOFGOOGLE'SDOMINANCE,
USERSHAVENOCHOICEBUTTO
SURRENDER.
IN2019,GOOGLEMADEOVER80%OF
ITSTOTALREVENUETHROUGH
SELLINGOFADPLACEMENT,ISTHAT
CORRECT?
>>MAJORITY.
>>ADSTARGETEDTOEACHOFUSAS
INDIVIDUALS,THEMOREUSERDATA
GOOGLECOLLECTS,THEMOREGOOGLE
CANMAKE.
ISTHATCORRECT?
>>INGENERAL,THAT'SNOTTRUE.
FOREXAMPLE--
>>MOREUSERDATA,NOTTHEMORE
MONEYGOOGLECANCOLLECT?
I'MSORRY,PLEASE.
SOYOU'RESAYINGTHEMOREUSER
DATADOESNOTMEANTHEMORE
MONEYTHATGOOGLECANCOLLECT?
>>CONGRESSWOMAN,MOSTOFTHE
DATATHATWECOLLECTISTOHELP
USERS.
>>THANKYOUSOMUCH.
MR.CHAIRMAN,IYIELDBACK.
>>THECHAIRNOWRECOGNIZESTHE
RANKINGMEMBEROFTHEFULL
COMMITTEE,MR.JORDANFORFIVE
MINUTES.
>>THANKYOU,MR.CHAIRMAN.
ISGOOGLEGOINGTOTAILORITS
FEATURESTOHELPJOEBIDENIN
THE2020ELECTION?
>>CONGRESSMAN,WEAPPROACHOUR
WORK--WESUPPORTBOTH
CAMPAIGNSTODAY.
WETHINKPOLITICALADSISAN
IMPORTANTPARTOFFREESPEECH
ANDDEMOCRATICSOCIETIES,ANDWE
ENGAGEWITHCAMPAIGNS,YOUKNOW,
ACCORDINGTOLAWANDWEAPPROACH
OURWORKINANONPARTISANWAY.
>>ITWASAYESORNOQUESTION.
CANYOUASSUREAMERICANSTODAY
YOUWON'TTAILORYOURFEATURES
TOHELPJOEBIDENINTHE
UPCOMINGELECTION?
>>YOUKNOW,WESUPPORTWORK
THATCAMPAIGNSDO.
IJUSTWANTTO--
>>IUNDERSTANDTHAT.
WEALLDOALLKINDSOFONLINE
SOCIALMEDIA,ALLKINDSOFTHAT
OUTREACH,THATCOMMUNICATION.
THISISASIMPLEQUESTION,CAN
YOUTODAYASSUREAMERICANSYOU
WILLNOTTAILORYOURFEATURESIN
ANYWAYTOHELPSPECIFICALLYONE
CANDIDATEOVERANOTHER?
WHATI'MCONCERNEDABOUTIS
HELPINGJOEBIDENOVERPRESIDENT
TRUMP.
>>WEWON'TDOANYWORKTO
POLITICALLYTILTONEWAYORTHE
OTHER.
>>BEYOUDIDITIN2016.
THERE'SANEMAILIN2016THAT
WASWIDELYCIRCULATEDAMONGST
THEEXECUTIVESATYOURCOMPANY
THATGOTPUBLICWHERETHEHEAD
OFYOURMULTICULTURALMARKETING
TALKSABOUTTHESILENTDONATION
GOOGLEMADETOTHECLINTON
CAMPAIGN,ANDYOUAPPLAUDEDHER
WORK.
IFYOUDIDITIN'16,INSPITE
OFTHEFACTYOUDIDITIN
SHEASSUMEDISGOINGTOHELP
CANDIDATECLINTON,ANDSHE'S
DOINGTHATINKEYSTATES.
IT'SONETHINGIFYOU'REGOING
TOINCREASETHELATINOVOTE
AROUNDTHECOUNTRY,YOU'RE
URGINGPEOPLETOVOTE.
IT'SQUITEANOTHERWHENYOU'RE
FOCUSINGONINKEYSTATES.
YOUKNOWWHATTHOSEKEYSTATES
WERE?
NEVADAANDFLORIDA,THESWING
STATES.
SO,AGAIN,IWANTTOMAKESURE
THISISN'TGOINGTOHAPPENIN
2020.
>>ICANASSUREYOUWECOMPLIED
WITHLAWSIN2016.
ANYWORKWEDOAROUNDELECTIONS
ISNONPARTISAN.
USERSCOMETOUSFOR
UNDERSTANDINGWHEREPOLLING
PLACESARE,WHICHISTHEVOTING
HOURSARE.
WEARECOMMITTEDTOPROVIDING
THATINFORMATIONANDWE'LL
APPROACHOURWORK--
>>SOHERE'STHEQUESTIONI
THINKISONSOMANYAMERICAN'S
MINDS.
THEYSAWTHELISTWEREADHERE
EARLIER.
ALLTHETHINGSGOOGLEHASDONE.
GOOGLEISSIDINGWITHTHEWORLD
HEALTHORGANIZATIONOVERANYONE
WHODISAGREESWITHTHEM,EVEN
THOUGHTHEWORLDHEALTH
ORGANIZATIONOBVIOUSLYLIEDTO
AMERICAANDSHILLSFORCHINA.
YOUTUBEANDGOOGLEISSIDING
WITHTHEM.
WEHAVETHEHISTORYOFWHAT
GOOGLEHASDONEANDTHEHISTORY
OF2016,WHERETHEYOBVIOUSLY,
ACCORDINGTOONEOFYOUR
MARKETINGEXECUTIVES,TRIEDTO
HELPCLINTON.
ANDHEREWEARE97DAYSBEFORE
THEELECTIONANDWEWANTTOMAKE
SUREIT'SNOTGOINGTOHAPPEN
AGAIN.
CANYOUASSUREUSYOU'RENOT
GOINGTOTAILORORCONFIGURE
YOURPLATFORMTOHELPJOEBIDEN?
ANDSECOND,THATYOU'RENOT
GOINGTOUSEYOURSEARCHENGINE
TOSILENCECONSERVATIVES?
CANYOUGIVEUSTHOSETWO
ASSURANCESTODAY?
>>CONGRESSMAN,ONOURSEARCH
ENGINE,CONSERVATIVESHAVEMORE
ACCESSTO--
>>THATWASN'TTHEQUESTION.
CANYOUASSUREUSYOU'RENOT
GOINGTOSILENCECONSERVATIVES
ANDASSUREUSTHATYOU'RENOT
GOINGTOCONFIGUREYOURFEATURES
ASYOUDIDFORCLINTONIN'16,
CANYOUASSUREUSYOU'RENOT
GOINGTODOTHESAMETHINGFOR
JOEBIDENIN2020?
>>YOUKNOW,YOUHAVEMY
COMMITMENT.
IT'SALWAYSBEENTRUEANDWE
WILLCONTINUETOCONDUCT
OURSELVESINANEUTRALWAY.
>>IYIELDBACK.
>>THECHAIRRECOGNIZESTHE
GENTLELADYFROMPENNSYLVANIA.
>>THANKYOU,GENTLEMAN.
IWOULDLIKETOREDIRECTYOUR
ATTENTIONTOANTI-TRUSTLAW.
MR.BEZOS,OURINVESTIGATION--
>>MR.CHAIRMAN,WEHAVETHE
EMAIL.
THEREISNO--
>>YOUDONOTHAVETHETIME.
>>BUT,BUT,SHE--
>>PUTYOURMASKON!
>>MR.RASKIN--
>>MR.JORDAN,SHEHOLDSTHE
TIME.
[OVERLAPPINGSPEAKERS]
>>WHATIWANTTOKNOW,WHEN
SOMEONECOMESAFTERMYMOTIVES
FORASKINGQUESTIONS--
>>THEJEMTLELADYIS
RECOGNIZED.
>>THANKYOU,MR.CHAIRMAN.
MR.BEZOS,OURINVESTIGATION
UNCOVEREDDOCUMENTSTHATSHOW
THATAMAZONSOMETIMESDOESN'T
PLAYFAIRLY,CROSSINGTHELINE
FROMCOMPETITIONTOPREDATORY
PRICINGTODESTROYRIVALSRATHER
THANOUTCOMPETETHEM.
LET'STAKETHEEXAMPLEOFQUINCY
THATPROVIDEDONLINEBABYCARE
PRODUCTS.
IN2009,YOURTEAMVIEWED
DIAPERS.COMASAMAZON'SLARGEST
ANDFASTESTGROWINGONLINE
COMPETITORFORDIAPERS.
ONEOFAMAZON'STOPEXECUTIVES
SAIDDIAPERS.COMKEEPSTHE
PRESSUREONPRICINGONUS,AND
STRONGCOMPETITIONFROM
DIAPERS.COMMEANTTHATAMAZON
WASHAVINGTOWORKHARDERSO
CUSTOMERSDIDN'TPICK
DIAPERS.COMOVERAMAZON.
NOW,BECAUSEDIAPERS.COMWASSO
SUCCESSFUL,AMAZONSAWITASA
THREAT.
THEDOCUMENTSTHATWEHAVE
OBTAINEDSHOWTHATAMAZON
EMPLOYEESBEGANSTRATEGIZING
ABOUTWAYSTOWEAKENTHIS
COMPANY.
ANDIN2010,AMAZONHATCHEDA
PLOTTOGOAFTERDIAPERS.COMAND
TAKEITOUT.
INANEMAILTHATIREVIEWED,AND
WEHAVETHESEONTHESLIDES,ONE
OFYOURTOPEXECUTIVESPROPOSED
A"AGGRESSIVEPLANTOWIN"
AGAINSTDIAPERS.COM.
WESAWONEOFYOURPROFITAND
LOSSSTATEMENTS,ANDITAPPEARS
INONEMONTHALONE,AMAZONWAS
WILLINGTOLEADOVER$200
MILLIONINDIAPERPROFITLOSSES.
MR.BEZOS,HOWMUCHMONEYWAS
AMAZONWILLINGTOLOSEONTHIS
CAMPAIGNTOUNDERLINE
DIAPERS.COM?
>>THANKYOUFORTHEQUESTION.
IDON'TKNOWTHEDIRECTANSWER
TOYOURQUESTION.
THISISGOINGBACKINTIME,
MAYBE10,11YEARSORSO.
WHATICANTELLYOUISTHATTHE
IDEAOFUSINGDIAPERSAND
PRODUCTSLIKETHATTOATTRACT
NEWCUSTOMERSWHOHAVENEW
FAMILIESISAVERYTRADITIONAL
IDEA.
>>SURE,BUTLET'SDELVEINTO
THISALITTLEFURTHER.
I'MSORRY,YOUKNOWIONLYHAVE
AFEWMINUTESHERE.
>>OFCOURSE.
>>IWANTTOPRESSON.
YOUROWNDOCUMENTSMAKECLEAR
THATTHEPRICEWARAGAINST
DIAPERS.COMWORKEDANDWITHINA
FEWMONTHSITWASSTRUGGLING.
SOAMAZONBOUGHTIT.
AFTERBUYINGYOURLEADING
COMPETITORHERE,AMAZONCUT
PROMOTIONSLIKEAMAZON.MOMAND
THEDISCOUNTSITUSEDTOLURE
CUSTOMERSAWAYFROMDIAPERS.COM
ANDINCREASEDTHEPRICEOF
DIAPERSFORNEWMOMSANDDADS.
DIDYOUSIGNOFFONTHEPLANTO
RAISEPRICESAFTERAMAZON
ELIMINATEDITSCOMPETITION?
>>IDON'TREMEMBERTHATATALL.
>>THANKYOU.
>>WHATIREMEMBERISTHATWE
MATCHCOMPETITIVEPRICESANDI
BELIEVEWEFOLLOWEDDIAPERS.COM.
ICANTELLYOUAFTERWEBOUGHT
DIAPERS.COM,WEPUT--
>>JUSTMOVINGON.
I'MSORRY.
SOYOUSAIDTHATAMAZONFOCUSES
EXCESSIVELYONCUSTOMERS.
SOHOWWOULDCUSTOMERS,
ESPECIALLYSINGLEMOMS,NEW
FAMILIES,HOWWOULDTHEYBENEFIT
WHENTHEPRICESWEREDRIVENUP
BYTHEFACTYOUELIMINATEDYOUR
MAINCOMPETITOR?
>>IDON'TAGREEWITHGREAT
RESPECT,IDON'TAGREEWITHTHE
PREMISE.
ATTHESAMETIME,YOUSHOULD
RECOGNIZEINCONTEXTDIAPERS--
[OVERLAPPINGSPEAKERS]
>>I'MSORRY,MR.BEZOS,INEED
TOPUSHON.
THEEVIDENCESUGGESTSTHATTHE
PREDATORYPRACTICESWEREN'T
UNIQUEHERE.
IN2013,ITWASREPORTEDTHAT
YOUINSTRUCTEDAMAZONEMPLOYEES
TOAPPROACHDISCUSSIONSWITH
CERTAINBUSINESSPARTNERS,ANDI
QUOTE,THEWAYACHEETAHWOULD
PURSUEASICKLYGAZELLE.
ISTHEGAZELLEPROJECTSTILLIN
PLACE,ANDDOESAMAZONPURSUE
PREDATORYCAMPAIGNSINOTHER
PARTSOFITSBUSINESS?
>>ICANNOTCOMMENTONTHAT,
BECAUSEIDON'TREMEMBERIT.
WHATICANTELLYOUISTHATWE
AREVERY,VERYFOCUSEDONTHE
CUSTOMERASYOUSTARTED,ANDOF
COURSE--
>>I'MCONCERNEDWITHTHE
CUSTOMERS,ASWELL.
ESPECIALLYTHEFAMILIESINMY
DISTRICT.
[OVERLAPPINGSPEAKERS]
I'MCONCERNED,TOO.
ESPECIALLYWITHTHECURRENT
PANDEMIC,ONEOFTHEBIGGEST
NEEDSI'MSEEINGATTHEFOOD
DRIVESANDTHEGIVEAWAYSWE'RE
HAVINGTORUNINMYDISTRICTIS
THATFAMILIESDON'THAVE
DIAPERS,ANDWEHAVETOCOLLECT
THEMTOGIVETHEMOUT.
SOITCERTAINLYISSOMETHING
THATHASAREALLYHARDIMPACTON
FAMILIESANDI'MREALLY
CONCERNEDTHATPRICINGMIGHT
HAVEBEENDRIVENUPHEREBYTHIS
TACTIC.
ANDIYIELDBACK.
>>IJUSTANNOUNCEDTHATBOTH--
WE'REGOINGTOCONTINUEWITHTHE
HEARING,SOIINVITECOLLEAGUES
TOVOTE.
SOVOTEACCORDINGTOYOUROWN
SCHEDULE.
IRECOGNIZETHEGENTLEMANFROM
COLORADOFORFIVEMINUTES.
>>THANKYOU,MR.CHAIRMAN.
IWANTTOTHANKEACHOFTHE
WITNESSESTODAY.
MR.ZUCKERBERG,IN2004,WHEN
YOUHADLAUNCHEDFACEBOOK,IT'S
FAIRTOSAY,ITHINKYOUWOULD
AGREEWITHME,YOUHADQUITEA
FEWCOMPETITORS.
WOULDYOUAGREEWITHTHAT?
>>CONGRESSMAN,YES.
>>MYSPACE,FRIENDSTER,YAHOO
360,AOL,THEYWEREALL
COMPETITORS?
NONEOFTHOSECOMPANIESIJUST
IDENTIFIEDEXISTED.
YOU'RECERTAINLYAWAREOFTHAT?
THEYWEREALLBASICALLYGONE.
FACEBOOK,INMYVIEW,WASINA
MONOPOLYBYTHEN.
IWONDERWHETHERYOUWOULDAGREE
WITHTHAT.
ITAKEITYOUDON'T?
>>CONGRESSMAN,THAT'SCORRECT.
IDON'T.
WEFACEALOTOFCOMPETITORS.
ANDEVERYPARTOFWHATWEDO,
FROMCONNECTINGWITHFRIENDS
PRIVATELYTOPEOPLEIN
COMMUNITIESTOALLYOURFRIENDS
ATONCE,TOCONNECTINGWITHALL
KINDINGOFUSERGENERATED
CONTENT.
IWOULDBETTHATYOUORMOST
PEOPLEHEREHAVEMULTIPLEAPPS
FOREACHOFTHOSEONYOUR
PHONES.
>>MR.ZUCKERBERG,WHYDON'TWE
DIGINTOTHISABITFURTHER.
WECLEARLYDISAGREEABOUTTHAT.
IN2012,I'MLOOKINGATA
DOCUMENTPRODUCEDBYFACEBOOK.
IT'SAPRESENTATIONPREPAREDFOR
CHERYLSANDBERGTODELIVERTO
THEBOARDOFA
TELECOMMUNICATIONSFIRM,
BOASTINGTHATFACEBOOKIS95%OF
ALLSOCIALMEDIAINTHEUNITED
STATES.
THETITLEOFTHESLIDEISEVEN
THEINDUSTRYCONSOLIDATESASIT
MATURES.
SOASILOOKATTHATGRAPH,I
THINKMOSTFOLKSWOULDCONCEDE
THATFACEBOOKWASAMONOPOLYAS
EARLYAS2012.
WOULDYOUAGREEWITHMETHAT
FACEBOOK,ITSSTRATEGYSINCE
THATTIME,TOESSENTIALLY
PROTECTWHATIDESCRIBEASA
MONOPOLY,BUTOBVIOUSLYWHATYOU
WOULDDESCRIBEASMARKETPOWER,
THATFACEBOOKHASBEENENGAGED
INPURCHASINGCOMPETITION,IN
SOMECASESREPLICATING
COMPETITION,ANDINSOMECASES
ELIMINATINGCOMPETITION.
WOULDTHATBEAFAIRSTATEMENT?
>>CONGRESSMAN,THESPACEOF
PEOPLECONNECTINGWITHOTHER
PEOPLEISAVERYLARGEFACE.
IWOULDAGREETHATTHEREWERE
DIFFERENTAPPROACHESWETOOKTO
ADDRESSDIFFERENTPARTSOFTHAT
SPACE.
BUTALLINSERVICEOFBUILDING
THEBESTSERVICES--
>>IAPPRECIATETHAT,MR.
ZUCKERBERG.
ITSOUNDSLIKEYOUARECONCEDING
ATLEASTSOMEOFTHOSE
STRATEGIESAREWHATI
IDENTIFIED.
IN2014,HERE'SANEMAIL.
IT'SFROMFACEBOOK'SCURRENT
CHIEFFINANCIALOFFICER
DESCRIBEDATTHECOMPANY'S
ACQUISITIONSTRATEGYASALAND
GRAB.
ANDSAYINGTHATWEAREGOINGTO
SPEND5%TO10%OFOURMARKET
CAPEVERYCOUPLEOFYEARSTO
SHOREUPOURPOSITION.
MYSENSEOFTHEFACTSISTHAT
THATINFACTISWHATOCCURRED.
FACEBOOKASYOUCONCEDED
EARLIER,THATINSTAGRAMWASA
COMPETITOROFFACEBOOK.
SOYOUACQUIREDINSTAGRAMIN
2012.
INSTAGRAMISNOWTHESIXTH
LARGESTSOCIALMEDIAPLATFORMIN
THEWORLD,ISTHATRIGHT?
>>CONGRESSMAN,I'MNOTSURE
WHATRANKITIS,BUTIT'S
CERTAINLYGROWINGBEYONDOUR
WILDESTEXPECTATIONS.
>>STATISTICSSHOWIT'STHE
SIXTHLARGEST.
IN2014,FACEBOOKBROUGHT
WHATSAPP,ISTHATCORRECT?
>>CONGRESSMAN,YES,WHATSAPP
WASACOMPETITORAND
COMPLEMENTARY.
THEYCOMPETEDWITHUSINTHE
SPACEOFMOBILEMESSAGING,WHICH
ISAGROWINGANDIMPORTANT
SPACE.
ITIS,AGAIN,ONEPARTOFTHE
GLOBALSPACEOFHOWPEOPLE
CONNECT.
>>ANDATTHATTIME,ITHAD400
MILLIONMONTHLYUSERS.
ANDWHATSAPPISNOWTHESECOND
LARGESTSOCIALMEDIAPLATFORMIN
THEWORLDWITH2MILLIONUSERS
WORLDWIDE,MORETHANFACEBOOK
MESSENGERANDYOURCOMPANYOWNS
WHATSAPP.
FACEBOOKTRIEDTOBUYOTHER
COMPETITIVESTARTUPS.
ASCHAIRMANNADLERNOTED,YOU
DIDTELLASENIORENGINEERIN
2012,THATYOUCANLIKELYBUY
ANYCOMPETITIVESTARTUP,BUTIT
WILLBEAWHILEBEFOREWECAN
BUYGOOGLE.
DOYOURECALLWRITINGTHAT
EMAIL?
>>IDON'TSPECIFICALLY,BUTIT
SOUNDSLIKEAJOKE.
>>WELL,IDON'TTAKEITASA
JOKE,ASIREVIEWTHEEMAIL.
ITWASINREGARDSTOHAVINGJUST
CLOSEDTHEINSTAGRAMSALEAND
THERESPONSEFROMTHIS
INDIVIDUAL,THISENGINEERTOYOU
WAS,"WELLPLAYED."
YOURRESPONSEWAS,"THANKS.
ONEREASONPEOPLEUNDERESTIMATE
THEIMPORTANCEOFWATCHING
GOOGLEISWECANLIKELYBUYANY
COMPETITIVESTARTUPS,BUTIT
WILLBEAWHILEBEFOREWECAN
BUYGOOGLE."
GIVENTHEPURCHASESFACEBOOKHAD
MADEPREVIOUSTOTHIS,FACEBOOK
MADESEVERALOVERTURESTOSNAP
CHAT,CLEARLYDEMONSTRATESTHAT
EMAILWASNOTINJEST.
HERE'SWHYIASKTHESE
QUESTIONS,MR.ZUCKERBERG.
ITSTRIKESMETHATOVERTHE
COURSEOFTHELASTSEVERAL
YEARS,FACEBOOKHASUSEDITS
MARKETPOWERTOEITHERPURCHASE
ORREPLICATETHECOMPETITION.
ANDFACEBOOK,FACEBOOK
MESSENGER,INSTAGRAM,WHATSAPP
ARETHEMOSTDOWNLOADEDAPPSOF
THELASTDECADE.
YOURCOMPANYOWNSTHEMALL.
WEHAVEAWORDFORTHAT,THAT
WORDISMONOPOLY.
WITHTHATIWOULDYIELDBACK,
MR.CHAIRMAN.
>>YOUKNOWRECOGNIZETHEGENTLE
LADYFROMGEORGIAMS.McBATH.
>>MR.BEZOS,YOUREFERREDTO
THIRDPARTYSELLERSASAMAZON'S
PARTNERSANDYOURSUCCESS
DEPENDSONTHEIRSUCCESS.
BUTOVERTHEPASTYEAR,WE'VE
HEARDACOMPLETELYDIFFERENT
STORY.
ASPARTOFTHISINVESTIGATION,
WEHAVEINTERVIEWEDMANYSMALL
BUSINESSES,ANDTHEYUSETHE
WORDSLIKEBULLYING,FEAR,AND
PANICTODESCRIBETHEIR
RELATIONSHIPWITHAMAZON.
I'MGOINGTOSHARETHESTORYOF
ASMALLBUSINESSOWNERWHOIS
ALSOAWIFEANDAMOTHER.
SOYOUCANUNDERSTANDHOWTHIS
ISACTUALLYAFFECTINGTHELIVES
OFEVIDENCEPEOPLEANDWHYTHIS
TRULYMATTERS.
>>WEAREABOOKSELLERON
AMAZON.COM.
WEWORKEDHARDDAYANDNIGHT
TOWARDSGROWINGOURBUSINESSAND
MAINTAININGAFIVE-STARFEEDBACK
RATING.
THEBUSINESSFEEDSATOTALOF14
PEOPLE,ANDASWEGREW,IN
RETALIATION,AMAZONSTARTED
RESTRICTINGUSFROMSELLING.
THEYSTARTEDWITHAFEWTITLES
IN2019,ANDWITHINAFEW
MONTHS,AMAZONBLOCKEDUSFROM
SELLINGTHEFULLTEXTBOOK.
WEHAVEN'TSOLDASINGLEBOOKIN
THEPASTTENMONTHS.
AMAZONDIDN'TEVENPROVIDEWITH
USANOTICEASTOWHYWEWERE
BEINGRESTRICTED.
THEREWASNOWARNING,THEREWAS
NOPLAN.
>>SOMR.BEZOS,AFTERAMAZON
DELISTEDTHISSMALLBUSINESS
WITHOUTANYPPARENTREASONOR
NOTICE,SHESAIDTHEYSENTMORE
THAN500SEPARATECOMMUNICATIONS
TOAMAZON,INCLUDINGTOYOU,MR.
BEZOS,OVERTHEPASTYEAR,AND
THEREWASNOTASINGLE
MEANINGFULRESPONSE.
DOYOUTHINKTHISISAN
ACCEPTABLEWAYTOTREATSOMEONE
THATYOUDESCRIBEASBOTHA
PARTNERANDACUSTOMER?
>>NO,CONGRESSWOMAN.
ANDIAPPRECIATEYOUSHOWINGME
THATANECDOTE.
IWOULDLIKETOTALKTOHER.
ITDOESNOTATALLTOMESEEM
LIKETHERIGHTWAYTOTREATHER.
ANDI'MSURPRISEDBYTHAT.
ANDIT'SNOTTHESYSTEMATIC
APPROACHWETAKE,ICANASSURE
YOU.
IDON'TUNDERSTANDWHAT'SGOING
ONINTHATANECDOTE,BECAUSEWE
WOULDLOVEFORTHIRDPARTY
SELLERSTOSELLBOOKS--
>>RESPECTIVELY,SIR--
>>IDON'TUNDERSTANDIT,BUTI
WOULDLIKETOUNDERSTANDIT
BETTER.
WITHYOURPERMISSIONIWOULD
LIKETOGETINTOUCHWITHHER.
>>ITHINKYOU'REMISSINGTHE
POINT.
THISISNOTJUSTABOUTONE
BUSINESS.
I'MCONCERNEDTHATTHISISA
PATTERNOFBEHAVIOR.
ANDBASICALLY,THISPATTERNOF
BEHAIORHASTOCHANGE.
MR.BEZOS,MYQUESTIONIS
SIMPLY,AREYOUWILLINGTOMAKE
SUREGOINGFORWARDTHAT,YOU
KNOW,THENUMEROUSSELLERSTHAT
WEHAVETALKEDTO,THEYHAVE
PROBLEMSJUSTLIKETHIS.
ANDTHEREAREMORESELLERSWHO
TOLDUSTHATTHEYHAVEEXHAUSTED
ALLOFTHEIROPTIONSBEFORE
FINALLYREACHINGOUTTOYOU
DIRECTLYASALASTRESORT,BUT
THEY'RESTILLWAITINGFORYOUR
RESPONSE.
WHATDOYOUHAVETOSAYTOSMALL
BUSINESSESTHATARETALKINGTO
CONGRESSBECAUSEYOUWON'T
LISTENTOTHEM?
>>IWOULDSAYTHAT'SNOT
ACCEPTABLE.
IFFERNOTLISTENINGTOYOU,I'M.
IDON'TTHINKTHAT'S
SYSTEMATICALLYWHAT'SGOINGON.
THEEVIDENCETOCONSIDERINTHAT
REGARDISTHATTHIRDPARTY
SELLERSINAGGREGATEAREDOING
EXTREMELYWELLONAMAZON.
THEYGREWFROM20YEARSAGOIT
WASZERO,ANDTODAYIT'S60%OF
SALES.
THIRDPARTYSELLERSAREGROWING
EVENFASTER.
>>THANKYOUSOMUCH.
MR.BEZOS,YOUSAIDTHATSELLERS
HAVEMANYOTHERATTRACTIVE
OPTIONSTOREACHCUSTOMERS.
BUTTHAT'SNOTATALLWHATWE
FOUNDINOURINVESTIGATION.
ACCORDINGTOE-MARKETER,A
SOURCEAMAZONSITEDIN
SUBMISSIONSTOTHISCOMMITTEE,
AMAZONHASSEVENTIMESTHE
MARKETSHAREOFITSCLOSEST
E-COMMERCECOMPETITOR.
ONESELLERTOLDUSTHATAMAZON
CONTINUESTOBETHEONLYSHOWIN
TOWN.
NOMATTERHOWANGRYSELLERSGET,
THEYHAVENOWHEREELSETOGO.
SOAREYOUSAYINGTHATTHESE
PEOPLERESPECTBEINGTRUTHFUL
WHENTHEYSAYTHATAMAZONISTHE
ONLYGAMEINTOWN?
>>YEAH.
CONGRESSWOMAN,WITHGREAT
RESPECT,IDODISAGREEWITH
THAT.
IBELIEVETHEREAREALOTOF
OPTIONS.
ANDSOMEOFTHEMARENOTEVEN
LISTEDONTHATCHARTIJUST
LOOKEDAT.
BUTIDIDSEESOMETHATIKNOW
OF.
ITHINKTHEREARE--
>>ALLRIGHT,THANKYOUFOR
THAT.
MR.BEZOS,MYTIMEISSHORT.
IFAMAZONDIDN'THAVEMONOPOLY
POWEROVERTHESESELLERS,DOYOU
THINKTHEYWOULDCHOOSETOSTAY
INARELATIONSHIPCHARACTERIZED
BYBULLYING,FEAR,ANDPANIC?
>>WITHALLRESPECT,
CONGRESSWOMAN,IDONOTACCEPT
THEPREMISEOFYOURQUESTION.
THATISNOTHOWWEOPERATETHE
BUSINESS.
INFACT,WEWORKVERYGOODTO
PROVIDE--
>>THANKYOUFORTHAT.
MR.BEZOS,I'MGOINGTOCLOSE
WITHGIVINGTHEBOOKSELLERTHE
OPPORTUNITYTOFINALLYBEHEARD
BYYOU.
>>MR.BEZOS,WEINCREASEDOUR
SALESONAMAZONBYFIVETIMESIN
THEPASTTHREEYEARS.
ANDWEHAVECONTRIBUTEDTHAT
MUCHOFSELLERFEESTOAMAZON.
WEHAVECONTRIBUTEDTHATMUCHTO
YOURBUSINESS,TOFIVETIMES.
WEFOLLOWEDALLTHERULESTHAT
WERESETBYYOU.
PLEASEJUSTHELPUS,WEBEGYOU,
THEREARE14LIVESATSTAKE.
PLEASE,PLEASE,PLEASEHELPUS
GETBACKONTRACK.
>>WITHTHAT,IYIELDBACKTHE
BALANCEOFMYTIME.
>>CLUDEDOUR
FIRSTROUND.
MR.BEZOS,THEMARKETPLACEIS
COMPETITIVE.
BUTAMAZONCONTROLSASMUCHAS
75%OFALLONLINEMARKETPLACE
SALES.
ANDEMARKETERS,ASOURCEYOU
CITEDTOUS,REPORTSTHATAMAZON
HASSEVENTIMESTHEMARKETSHARE
OFITSCLOSESTCOMPETITOR.
ISN'TITTRUETHATSMALL
BUSINESSESHAVENOREALOPTION
BUTTORELYONAMAZONTOCONNECT
WITHCUSTOMERSANDMAKEONLINE
SALES?
>>NO,SIR.
WITHGREATRESPECT,IDOHAVEA
DIFFERENTOPINIONONTHAT.
IBELIEVETHEREAREALOTOF
OPTIONSFORSMALLSELLERS.
IBELIEVEAMAZONISAGREATONE
ANDWEHAVEWORKEDVERYHARD.
ITHINKWEARETHEBESTONE.
WEHAVEALOTOFDIFFERENT
PROGRAMSTHATHELPSELLERS.
>>THANKYOU.
THEREARE2.2MILLIONSELLERSAS
OFYESTERDAY,37%OFTHEMRELY
ONAMAZONASTHEIRSOLESOURCE
OFINCOME.
THATISOVER800,000PEOPLE
RELYINGONAMAZONTOFEEDTHEIR
FAMILIESANDKEEPAROOFOVER
THEIRHEADS.
YOUHAVEREFERREDTOTHIRDPARTY
SELLERSASPARTNERSAND
CUSTOMERS.
BUTAMAZONALSOREFERSTOTHEM
ASINTERNALCOMPETITORS?
>>ITHINKITWOULDN'TSURPRISE
MEINSOMEWAYSWEARE
COMPETING,ANDTHEY'RECOMPETING
WITHEACHOTHER.
>>YOUROWNDOCUMENTSTHATYOU
PRODUCEDREFERTOTHEVERYSAME
SELLERSTHATYOUDESCRIBEDAS
AMAZONPARTNERSASINTERNAL
COMPETITORS.
WEHEARDFROMTHIRDPARTY
SELLERSAGAINANDAGAINDURING
THECOURSEOFTHEINVESTIGATION
THATAMAZONISTHEONLYGAMEIN
TOWN.
ONESMALLBUSINESSOWNER
DESCRIBEDITTHISWAY.
ANDIQUOTE,WE'RESTUCK.
WEDON'THAVEACHOICEBUTTO
SELLTHROUGHAMAZON.
ANOTHERSAID,ANDIQUOTE,
THEY'VENEVERBEENAGREAT
PARTNER,BUTYOUHAVETOWORK
WITHTHEM.
DURINGTHISINVESTIGATION,WE
HEARDSOMANYHEARTBREAKING
STORIESOFSMALLBUSINESSESWHO
SUNKSIGNIFICANTTIMEAND
RESOURCESINTOBUILDINGA
BUSINESSANDSELLINGONAMAZON,
ONLYTOHAVEAMAZONPOACHTHEIR
BESTSELLINGITEMSANDDRIVE
THEMOUTOFBUSINESS.
SOONECOMPANYTHATSTOODOUT
FROMTHEREST.
IWANTYOUTOPAYCLOSE
ATTENTIONTOHOWTHEYDESCRIBE
YOURPARTNERSHIP.
WEHEARDFROMASMALLAPPAREL
COMPANYTHATMAKESANDSELLS
WHATTHEYCALLUSEFULAPPAREL
FORPEOPLETHATWORKONTHEIR
FEETANDWITHTHEIRHANDSLIKE
CONSTRUCTIONWORKERSAND
FIREFIGHTERS.
THISBUSINESSDISCOVEREDABOUT
STARTEDSELLINGAUNIQUEITEM.
THEYWEREMAKINGABOUT$60,000A
YEARONJUSTTHISONEITEM.
ONEDAYTHEYWOKEUPANDFOUND
THATAMAZONHADSTARTEDLISTING
THEEXACTSAMEPRODUCT,CAUSING
THEIRSALESTOGOTOZERO
OVERNIGHT.
AMAZONUNDERCUTTHEIRPRICE,
SETTINGITBELOWWHATTHE
MANUFACTURERWOULDALLOWITTO
BESOLD,SOEVENIFTHEYWANTED
TO,THEYCOULDN'TMATCHTHE
PRICE.
HERE'SHOWTHEAPPARELCOMPANY
DESCRIBEDWORKINGWITHAMAZON,
ANDIQUOTE,AMAZONSTRINGSYOU
ALONGFORAWHILEBECAUSEIT
FEELSSOGOODTOGETTHAT
PAYCHECKEVERYWEEK.
ANDINTHEPAST,FORLACKOFA
BETTERTERM,WECALLEDITAMAZON
HEROIN,BECAUSEYOUJUSTKEPT
GOINGANDYOUHADTOGETYOUR
NEXTCHECK.
BUTATTHEENDOFTHEDAY,YOU
FINDOUTTHISPERSON,WHOIS
SEEMINGLYBENEFITYOU,WASJUST
ULTIMATELYGOINGTOBEYOUR
DOWNFALL.
SOTHISISONEOFYOURPARTNERS,
MR.BEZOS.
WHYONEARTHWOULDTHEYCOMPARE
YOURCOMPANYTOADRUGDEALER?
>>SIR,IHAVEGREATRESPECTFOR
YOUANDTHISCOMMITTEE,BUTI
COMPLETELYDISAGREEWITHTHAT
CHARACTERIZATION.
WHATWEHAVEDONEISKREEY5I9
INTHESTOREAPLACE--CREATE
INTHESTOREAPLACE--WESOLD
ONLYOUROWNINVENTORY.
WEDIDTHATBECAUSEWEWERE
CONVINCEDITWOULDBEBETTERFOR
THECONSUMERANDTHECUSTOMER.
>>MR.BEZOS--
>>ITHINKWEWERERIGHT,ANDI
THINKIT'SWORKEDOUTWELL.
>>RECLAIMINGMYTIME.
THISISONEOFMANYSMALL
COMPANIESTHATHAVETOLDUS
DURINGTHISYEAR-LONG
INVESTIGATIONTHATTHEYWERE
MISTREATEDANDTOLSEDASIDEBY
AMAZON.
YOUSAIDTHATAMAZONISONLY
FOCUSEDONWHAT'SBESTFORTHE
CUSTOMER.
HOWISTHATPOSSIBLEWHENYOU
COMPETEDIRECTLYWITHTHIRD
PARTYSELLERSWITHYOUROWN
PRODUCTSTHATUNDERCUTTHE
COMPETITION?
--
>>THANKYOU.
NO,IDON'TBELIEVEITIS.
WEHAVE--WEHAVETHECONSUMERS
ISTHEONEULTIMATELYMAKINGTHE
DECISIONS.
THEY'REMAKINGTHEDECISIONS
ABOUTWHATTOBUY,WHATPRICETO
BUYITAT,WHOTOBUYITFROM.
>>THAT'SNOTTHEQUESTION,MR.
BEZOS,THEQUESTION,ISISTHERE
ACONFLICTOFINTEREST,BECAUSE
YOUAREADATACOMPANY,YOUKNOW
WHENCUSTOMERSPUTSOMETHINGIN
THEIRCART,WHENTHEYTAKEIT
OUT,TRADITIONALBRICKAND
MORTARSTORESDON'THAVETHAT.
SOIWANTTOFOLLOWUPAND
ANSWERTOTHEQUESTIONYOUGAVE,
YOUSAIDYOUCAN'TGUARANTEETHE
POLLTYOFNOTSHARINGTHIRD
PARTYSELLER'SDATAHASN'TBEEN
VIOLATED.
CANYOUPLEASEEXPLAINTHATTO
ME.
CANYOULISTEXAMPLESWHERETHAT
POLICYHASBEENVIOLATED?
BECAUSEIT'SCONCERNINGTOME,
MR.BEZOS,SHOULDN'TTHIRD
PARTIESKNOWFORSURETHEDATA
SUSPECTBEINGSHAREDWITHYOUR
OWNLINE?
WHYSHOULDATHIRDPARTYSELLER
LISTTHEIRPRODUCTONAMAZONIF
THEY'REJUSTGOINGTOBE
UNDERCUTBYAMAZON'SONLY
PRODUCTASARESULTOFDATAYOU
TAKEFROMTHEM?
>>SIR,ITHINKWHATIWANTYOU
TOUNDERSTAND,ANDITHINKIT'S
IMPORTANTTOUNDERSTAND,ISTHAT
WEHAVEAPOLICYAGAINSTUSING
INDIVIDUALSELLERDATATO
COMPETEWITHOURPRIVATELABELED
PRODUCTS.
>>YOUCOULDN'TASSURETHATTHAT
POLICYISN'TVIOLATEDROUTINELY.
>>WEAREINVESTIGATINGTHAT.
ANDIDONOTWANTTOSITHERE
ANDIDONOTWANTTOGOBEYOND
WHATIKNOWRIGHTNOW.
BUTWEARE,ASARESULTOFTHAT
"WALLSTREETJOURNAL"ARTICLE,
WEARELOOKINGATTHATVERY
CAREFULLYAND--
>>THANKYOU,MR.BEZOS.
THEEVIDENCEWEHAVECOLLECTED
SHOWSTHATAMAZONISONLY
INTERESTEDINEXPLOITINGITS
MONOPOLYPOWERTOFURTHEREXPAND
ANDPROTECTTHISPOWER.
THISINVESTIGATIONMAKESCLEAR
THATAMAZON'SDUALROLEASA
COMPETINGSELLERONTHAT
PLATFORMISFUNDAMENTALLY
ANTI-COMPETITIVEANDCONGRESS
MUSTTAKEACTION.
WITHTHAT,IRECOGNIZETHE
RANKINGMEMBEROFTHE
SUBCOMMITTEEFORFIVEMINUTES.
>>MR.CHAIRMAN,ITHINKHISTORY
PROVESTHATHISTORYDOESAPOOR
JOBINPICKINGWINNERSAND
LOSERS.
I'VELOOKEDOVERALOTOFTHE
MATERIALTHATHASBEEN
ASSEMBLED.
I'VEBEENWORKINGWITHTHE
CHAIRMANFOROVERAYEARONTHIS
BIPARTISANINVESTIGATION.
ANDIHAVEREACHEDTHE
CONCLUSIONTHATWEDONOTNEED
TOCHANGEOURANTI-TRUSTLAWS.
THEYHAVEBEENWORKINGJUST
FINE.
THEQUESTIONHEREIS,THE
QUESTIONOFENFORCEMENTOFTHOSE
ANTI-TRUSTLAWS.
NOW,WEHEARDALOTABOUTTHE
FACEBOOKACQUISITIONOF
INSTAGRAM.
THATHAPPENEDIN2012.
OBAMA'SFTCSIGNEDOFFONTHAT.
SOREGARDLESSOFWHATYOUTHINK
HASHAPPENEDATTHATTIME,THE
FACTIS,THISACQUISITIONDID
PASSTHESMELLTESTOFTHE
REGULATORSINVOLVED.
MAYBETHEYMADEAMISTAKEOR
MAYBESOMETHINGELSEHAPPENED,I
DON'TKNOW.
BUTTHEFACTIS,THEREISNOTA
PROBLEMWITHTHELAW.
NOW,BACKABOUT35YEARSAGO,
AT&TWASBROKENUPBECAUSEIT
WASDETERMINEDTHATONE-STOP
SHOPSWEREMONOPOLIES.
ANDAT&T,BECAUSEYOUHAVETO
GETYOURLONGDISTANCESERVICE
FROMYOURLOCALPHONECOMPANY,
THATWASMONOPOLYISTIC.
SOAWHOLELOTHASHAPPENED
SINCETHEN.
THEREWEREMERGERSAND
ACQUISITIONSINTHETELECOM
INDUSTRY.
TECHNOLOGYADVANCEDAHUGE
AMOUNTANDGUESSWHAT?
WE'REBACKTOEXACTLYWHEREWE
WEREIN1984.
SOTHISGOESTOSHOWTHE
CONGRESSIONALPRESSUREISNOT
THEBEST.
USINGTHEAT&TEXAMPLE,WHICHI
THINKWASABIGFLOPAND
COUNTERPRODUCT
COUNTERPRODUCTIVE,LETMEASK
MR.BEZOS,SAYTHEAT&TEXAMPLE
WASACQUIREDTOAMAZON,SOYOU
MIGHTNOTHAVENOMOREOFAONE
STOPSHOP,BUTYOUHAVETOGOTO
SEPARATEPLACESFORBOOKSOR
GROCERIESORELECTRONICS,HOW
ARETHECONSUMERSHELPEDBY
THAT?
>>SIR,THANKYOU.
THEYWOULDNOTBE.
>>RIGHT.
>>VERYCLEAR.
>>NOW,MR.PACHI,LETMEASK
ABOUTGOOGLE.
IFYOUWEREFORCEDTOSPLITUP
YOURBUSINESSLINE,SAYSPINOFF
YOUTUBE,CANYOUDESCRIBEWHAT
HAPPENSTOCONSUMERSTHERE?
>>CONGRESSMAN,TODAYCONSUMERS
INMOSTOFTHEAREASWEARE
DEALINGWITH,THEYSEEPRICES
FALLINGANDTHEYGETMORECHOICE
THANEVERBEFORE.
SOITHINKITSERVESTHEMWELL.
>>ANDYOU'RERIGHTTHERE.
SOI'MNOTGOINGTOBEONTHIS
COMMITTEEINTHENEXTCONGRESS.
IAMGOINGTOPUTMYFEETUPAND
BECOMEASENIORSTATESMAN.
BUT,YOUKNOW,LETMESAYTHAT
WEHAVEHEARDAWHOLELOTOF
COMPLAINTSABOUTBIGTECH.
SOMEOFTHEMAREPOLITICALIN
NATURE,ANDISHARETHE
COMPLAINTSANDTHECONCERNOF
MR.JORDANANDOTHERS.
ANDOTHERSTALKABOUTALLEGEDLY
ANTI-COMPETITIVEACTIVITY.
ITSEEMSTOMETHATIT'SNOTFOR
CONGRESSTHATLEGISLATESTOTOSS
ALLOFOURANTI-TRUSTLAWSAND
THEPRECEDENTTHATHASBEEN
ESTABLISHEDTHROUGHLITIGATION
OVERTHELASTHUNDREDPLUS
YEARS.
BUTIT'SSOMETHINGWHEREWE
OUGHTTOGOBACKTOTHE
REGULATORS,TOTHEENFORCERS,
HAVETHEMLOOKATTHISSTUFFAND
HAVETHEMMAKEADETERMINATION
ONWHETHERORNOTTHELAWSHAVE
BEENVIOLATED.
ITHINKTHELAWISGOOD.
ONTHAT.
ANDWEDON'TNEEDTOTHROWIT
ALLINTHEWASTEBASKET.
BUTTHEREARESOMEMATTERSOF
CONCERNTHATWEHAVEHEARDFROM
BOTHSIDESOFTHEAISLE,THATI
THINKNEEDTOBEADDRESSED.
ANDIFITREQUIRESANAGENCY
LIKETHEFTCTOSAYTHATTHEY
HAVEMADEMISTAKESINTHEPAST,
SOBEIT.
WE'REALLHUMAN.
WEALLMAKEMISTAKES.
EVENGOVERNMENTAGENCIESDO
THAT.
IYIELDBACK.
>>THEGENTLEMANYIELDSBACK.
IRECOGNIZETHEGENTLELADYFROM
WASHINGTON.
>>THANKYOU,MR.CHAIRMAN.
MR.ZUCKERBERG,INMARCHOF
2012,YOUSUGGESTEDBYEMAILTO
YOURMANAGEMENTTEAMTHATMOVING
FASTERANDCOPYINGOTHERAPPS
COULDPREVENTOURCOMPETITORS
FROMGETTINGFOOTHOLDS.
CHERYLSANDBERGRESPONDEDTHAT,
ITISBETTERTODOMOREANDMOVE
FASTER,ESPECIALLYIFTHATMEANS
YOUDON'THAVECOMPETITORSBUILD
PRODUCTSTHATTAKESOMEOFOUR
USERS.
FACEBOOK'SPRODUCTMANAGER
ADDED,IWOULDLOVETOBEFAR
MOREAGGRESSIVEANDNIMBLEIN
COPYINGCOMPETITORS.
HASFACEBOOKEVERTAKENSTEPSTO
PREVENTCOMPETITORSFROMGETTING
FOOTHOLDSBYCOPYING
COMPETITORS?
>>CONGRESSWOMAN,IVIEWITAS
OURJOBTOUNDERSTANDWHAT
PEOPLEAREFINDINGVALUABLEIN
ALLOFTHESERVICESTHATTHEY
USE.
ANDCERTAINLYIFSOMEONE--
>>DOYOUCOPYYOURCOMPETITORS?
>>CONGRESSWOMAN,WEHAVE
CERTAINLYADAPTEDFEATURESTHAT
OTHERSHAVE--ASOTHERSHAVE
COPIEDANDADAPTED--
>>I'MNOTCONCERNEDABOUT
OTHERS.
SINCEMARCHOF2012,AFTERTHAT
EMAILCONVERSATION,HOWMANY
COMPETITORSDIDFACEBOOKENDUP
COPYING?
>>CONGRESSWOMAN,ICAN'TGIVE
YOUANUMBEROFCOMPANIES.
>>LESSTHANFIVE?
>>CONGRESSWOMAN,IDON'TKNOW.
>>LESSTHAN50?
ANYESTIMATES?
YOURTEAMWASMAKINGAPLAN.
HOWDIDITPLAYOUT?
>>CONGRESSWOMAN,I'MNOTSUREI
AGREEWITHTHEPREMISEHERE.
OURJOBISTOMAKESUREWEBUILD
THEBESTSERVICESFORPEOPLETO
CONNECTWITHALLTHEPEOPLETHEY
CAREABOUT.
ANDALOTOFTHATISDONEBY
INNOVATINGANDBYBUILDING
NEW--
>>THANKYOU,THANKYOU,MR.
ZUCKERBERG.
LETMEGOON.
HASFACEBOOKEVERTHREATENEDTO
CLONETHEPRODUCTSOFANOTHER
COMPANYWHILEATTEMPTINGTO
ACQUIRETHATCOMPANY?
>>CONGRESSWOMAN,NOTTHATI
WOULD--NOTTHATIRECALL.
>>ANDIWOULDLIKETOREMIND
YOUTHATYOUAREUNDEROATHAND
THEREAREQUOTESFROMFACEBOOK'S
OWNDOCUMENTS.
PRIORTOACQUIRINGINSTAGRAM,
FACEBOOKBEGANDEVELOPINGA
SIMILARPRODUCTCALLEDFACEBOOK
CAMERA,CORRECT?
>>CONGRESSWOMAN,THAT'S
CORRECT.
I'VESAIDMULTIPLETIMESTHAT
WE--WE'RECOMPETINGINTHE
SPACEOFBUILDINGMOBILECAMERAS
WITHINSTAGRAM.
THAT'SWHATTHEYNEEDATTHE
TIME.
THEY'RESETWASCOMPANIESLIKE
WHATWEWEREBUILDINGWITH
FACEBOOKCAMERAANDVSCOCAM--
>>THANKYOU,MR.ZUCKERBERG.
DIDYOUEVERUSETHISVERY
SIMILARFACEBOOKCAMERAPRODUCT
TOTHREATENINSTAGRAM'SFOUNDER?
>>CONGRESSWOMAN,I'MNOTSURE
WHATYOUMEANBYTHREATEN.
WEWEREBUILDINGACAMERAAPPAT
THETIME.
THATWASAWELL-DOCUMENTED
THING.
>>LETMETELLYOUTHAT--INA
CHATYOUSAIDTHATFACEBOOKWAS,
QUOTE,DEVELOPINGOUROWNPHOTO
STRATEGYSOHOWWEENGAGENOW
WILLALSODETERMINEHOWMUCH
WE'REPARTNERSVERSUS
COMPETITORSDOWNTHELINE.
INSTAGRAM'SFOUNDERSEEMEDTO
THINKTHATWASATHREAT.
HECONFIDEDINANINVESTORAT
THETIMETHATHEFEAREDYOU
WOULDGO--THATYOUWOULDGO
INTO,QUOTE,DESTROYMODEIFHE
DIDN'TSELLINSTAGRAMTOYOU.
SOLET'SJUSTRECAP.
FACEBOOKCLONEDAPOPULAR
PRODUCT,APPROACHEDTHECOMPANY
YOUIDENTIFIEDASACOMPETITIVE
THREATEXPERTTOLDTHEMTHATIF
THEYDIDN'TLETYOUBUYTHEMUP,
THEREWOULDBECONSEQUENCES.
WERETHEREANYOTHERCOMPANIES
THATYOUUSEDTHISSAMETACTIC
WITHWHILEATTEMPTINGTOBUY
THEM?
>>IWANTTORESPECTFULLY
DISAGREEWITHTHE
CHARACTERIZATION.
ITHINKITWASCLEARTHATTHIS
WASASPACETHATWEWEREGOING
TOCOMPETEINONEWAYOR
ANOTHER.
IDON'TVIEWTHOSECONVERSATIONS
ASATHREATINANYWAY.
>>IJUST--I'MJUSTUSINGTHE
DOCUMENTSANDTHETESTIMONYTHAT
THECOMMITTEEHASCOLLECTEDFROM
OTHERS.
DIDYOUWARNTHEFOUNDEROF
SNAPCHATTHATFACEBOOKWASIN
THEPROCESSOFCLONINGTHE
FEATURESOFHISCOMPANYWHILE
ALSOATTEMPTINGTOBUYSNAPCHAT?
>>CONGRESSWOMAN,IDON'T
REMEMBERTHESPECIFIC
CONVERSATIONS.
THATWASALSOANAREAWHEREIT
WASVERYCLEARTHATWEWERE
GOINGTOBEBUILDINGSOMETHING.
PEOPLEWANTTOBEABLETO
COMMUNICATEPRIVATELYANDWITH
ALLOFTHEIRFRIENDSATONCE.
WE'REGOINGTOMAKESURETHATWE
BUILDTHEBESTPRODUCTSINALL
OFTHESPACESTHATWECANAROUND
HELPINGPEOPLESTAYCONNECTED
WITHTHEPEOPLETHEYCAREABOUT.
>>IAPPRECIATETHAT.
WHENTHEPLATFORMTHREATENSITS
RIVALS,THATSHOULDNOTBEA
NORMALBUSINESSPRACTICE.
FACEBOOKISACASESTUDYIN
MONOPOLYPOWERBECAUSEYOUR
COMPANYHARVESTSANDMONETIZES
OURDATAANDTHENYOURCOMPANY
USESTHATDATATOSPYON
COMPETITORSANDTOCOPY,
ACQUIRE,ANDKILLRIVALS.
YOU'VEUSEDFACEBOOK'SPOWERTO
THREATENSMALLERCOMPETITORSAND
TOENSUREYOUALWAYSGETYOUR
WAY.
THESETACTICSREINFORCE
FACEBOOK'SDOMINANCEWHICHYOU
USEININCREASINGDESTRUCTIVE
WAYS.
FACEBOOK'SVERYMODELMAKESIT
IMPOSSIBLEFORNEWCOMPANIESTO
FLOURISHSEPARATELYANDTHAT
HARMSOURDEMOCRACY,ITHARMS
MOMANDPOPBUSINESSESAND
CONSUMERS.
MR.CHAIRMAN,IYIELDBACK.
>>THEGENTLEWOMANYIELDSBACK.
MR.BUCKISRECOGNIZEDFORFIVE
MINUTES.
>>THANKYOU.
MR.BEZOS,THANKYOUFORBEING
HERETODAY.
I'MCONCERNEDTHATYOU'VEUSED
AMAZON'SMARKETPOSITIONTO
UNFAIRLYHARMCOMPETITION.
WE'VEHEARDFROMANUMBEROF
COMPANIESTHATAMAZONUSES
PROPRIETARYDATA.
MEETSWITHSTART-UPSTODISCUSS
INVESTINGINTHEPRODUCTAND
USESTHEDATATOCREATEITSOWN
PRIVATELABELPRODUCTS.
ALLOWSTHESALEOFCOUNTERFEIT
ITEMSTHROUGHITSWEBPLATFORM.
DURINGTHISFIELDHEARINGIN
JANUARY,POPSOCKETSCEO
DETAILEDHOWAMAZONALLOWED
COUNTERFEITPRODUCTSTOAPPEAR
ONAMAZON'SMARKETPLACEAHEADOF
POPSOCKET'SPRODUCTS.
HESAIDTHATPOPSOCKET'SFOUND
1,000COUNTERFEITPRODUCTSFOR
SALEONAMAZON'SMARKETPLACE
WHICHAMAZONALLEGEDLYFAILEDTO
REMEDYUNTILPOPSOCKET'SAGREED
TOANEARLY$2MILLIONMARKETING
DEALWITHAMAZON.
WE'VEALSOSEENTROUBLING
REPORTSIN"THEWALLSTREET
JOURNAL"DETAILINGAMAZON'SUSE
OFTHIRD-PARTYSELLERS
PROPRIETARYDATATODEVELOPAND
MARKETSITSOWNCOMPETITIVE
PRIVATELABELPRODUCTS.
"THEWALLSTREETJOURNAL"
REPORTEDLASTWEEKTHATAMAZON'S
VENTURECAPITALFUNDUSED
MEETINGSWITHSTART-UPCOMPANIES
TOGAINACCESSTOSECRETPRODUCT
INFORMATIONANDFINANCIAL
DETAILS.
AMAZONTHENREPORTEDLYUSEDTHAT
INFORMATIONTOLAUNCHCOMPETING
PRODUCTSOFTENDISASTROUS
RESULTSFORTHEORIGINAL
START-UPCOMPANY.
THEREAREMANYEXAMPLESOFTHIS
BEHAVIOR.
ONEALLEGATIONINTHEREPORTING
STICKSOUTINPARTICULAR.
IN2011,AMAZONCONTACTEDVOCAL
LIFE'SINVENTORABOUTTHE
POSSIBILITYOFINVESTINGINTHE
TECHNOLOGY.
THEFOUNDERACCEPTEDTHEMEETING
THINKINGTHISWASTHECOMPANY'S
BIGBREAK.
AFTERDISPLAYINGTHEMICROPHONE
TECHNOLOGYANDPROVIDING
INFORMATIONTOAMAZONEMPLOYEES
THERELATIONSHIPCAMETOAHALT.
EMPLOYEESSTOPPEDRESPONDINGTO
EMAILSBEFORETHETECHNOLOGY
EVENTUALLYFOUNDITSWAYINTO
THEAMAZON'SECHODEVICE.
THESEALLEGATIONSARESERIOUS.
ESPECIALLYBECAUSETHESIZEAND
SCOPEOFTHESEPRACTICES
COULDN'THAPPENWITHOUTAMAZON'S
MONOPOLISTICCONTROLOFTHE
MARKETPLACE.
I'MCONCERNEDTHATGIVEN
AMAZON'SALLOWANCEOF
COUNTERFEITGOODSONITS
MARKETPLACE,THATAMAZON'S
MARKETPLACEMAYBEKNOWINGLYOR
UNKNOWINGLYFURTHERINGCHINA'S
USEOFSLAVELABORCONDITIONS.
THISISIMPORTANTFOLLOWING
RECENTREPORTSTHATATLEAST80
GLOBALCOMPANIESTHATSELLON
THEAMAZONMARKETPLACE,
INCLUDINGNIKE,STARBUCKSAND
SAMSUNG,HAVETIESTOCHINESE
FACTORIESTHATUSEENSLAVED
UYGHURMUSLIMS.
ABILLWASINTRODUCEDLASTWEEK
REQUIRINGAMERICANBUSINESSESTO
CERTIFYTHATTHEIRSUPPLYCHAIN
DOESNOTRELYONFORCEDLABOR.
IWILLINTRODUCEABILLLATER
THISAFTERNOON.
IDONOTEXPECTYOUTOHAVE
KNOWLEDGEOFTHELEGISLATION,I
DOWANTTOASKALLFOUROFOUR
WITNESSESASIMPLEYESORNO
QUESTION.
WILLYOUCERTIFYHERETODAYTHAT
YOURCOMPANYDOESNOTUSEAND
WILLNEVERUSESLAVELABORTO
MANUFACTUREYOURPRODUCTSOR
ALLOWPRODUCTSTOBESOLDON
YOURPLATFORMTHATARE
MANUFACTUREDUSINGSLAVELABOR.
MR.COOK,YOUWEREKINDENOUGH
TOVISITWITHMEONTHEPHONE.
WEBRIEFLYDISCUSSEDTHISISSUE.
IFYOUCAN,GIVEAYESORNO.
IUNDERSTANDYOUHAVEN'TREAD
THEDETAILSOFTHEBILL.
BUTWOULDYOUAGREETOTHIS
IDEA?
>>IWOULDLOVETOENGAGEONTHE
LEGISLATION.
BUTLETMEBECLEAR,FORCED
LABORISABHORRENTANDWEWOULD
NOTTOLERATEINAPPLE.
IWOULDLOVETOGETWITHYOUR
OFFICEANDENGAGEONTHE
LEGISLATION.
>>THANKYOU.
>>CONGRESSMAN,ISHAREYOUR
CONCERNINTHISAREA.
IFINDITABHORRENTASWELL.
HAPPYTOENGAGEWITHTHEOFFICE
ANDDISCUSSTHISFURTHER.
>>IREALLYDON'TWANTTOENGAGE
WITHMYOFFICEHALFTHETIME.
WILLYOUAGREETHATSLAVELABOR
ISNOTSOMETHINGTHATYOUWILL
TOLERATEINMANUFACTURINGYOUR
PRODUCTSORINPRODUCTSTHATARE
SOLDONYOURPLATFORMS.
>>IAGREE,CONGRESSMAN.
>>MR.COOK?
WEWOULDN'TTOLERATEIT.
WEWOULDTERMINATEA
RELATIONSHIPIFITWEREFOUND.
>>MR.ZUCKERBERG?
>>IAGREE.
WEWOULDN'TTOLERATETHIS.
IFEWITHFOUNDANYTHINGLIKE
THIS,WEWOULDALSOTERMINATE
ANYRELATIONSHIP.
>>MR.BEZOS?
>>YES,IAGREECOMPLETELY.
>>THANKYOUVERYMUCH,
GENTLEMEN,ANDIYIELDBACK.
>>IRECOGNIZETHEGENTLEMAN
FROMMARYLAND.
>>THANKYOU.
IWANTTOTHANKMR.BUCKFOR
THATLINEOFQUESTIONINGANDFOR
THEUPCOMINGLEGISLATION.
ILOOKFORWARDTOJOININGTHAT.
INTHE19thINDUSTRY,WEHADTHE
ROBINBEARINGSANDNOWWEHAVE
THECYBERBEARINGS.
WEWANTTOMAKESURETHATTHE
EXTRAORDINARYPOWERANDWEALTH
THATYOU'VEBEENABLETOAMASS
ISNOTUNITEDSTATESAGAINST
HUMANRIGHTSAROUNDTHEWORLD
ANDNOTAGAINSTTHEINTERESTOF
AFREEMARKETATHOME.
MR.BEZOS,LETMETURNTOYOU.
I'MINTERESTEDINTHEROLETHAT
YOUPLAYASAGATEKEEPER.
ALOTOFPEOPLEWANTTOKNOW
WHENTHEHBOMAXAPPWILLBE
AVAILABLEONYOURDEVICESANDI
UNDERSTANDTHATNEGOTIATIONSARE
ONGOING.
BUTYOURCOMPANYISNOTONLY
ASKINGFORFINANCIALTERMS,BUT
ALSOFORCONTENTFROMWARNER
MEDIA.
ISTHATRIGHTANDISTHATAFAIR
WAYTOPROCEED?
INOTHERWORDS,ISITFAIRTO
USEYOURGATEKEEPERSTATUSROLE
TOPROMOTEYOURPOSITIONASA
COMPETITORINTHEVIDEO
STREAMINGMARKETWITHRESPECTTO
CONTENT?
>>I'MNOTFAMILIARWITHTHE
DETAILSOFTHOSENEGOTIATIONS.
ASYOUSAID,THEY'REUNDERWAY
RIGHTNOW.
IPREDICTTHATTHECOMPANIES
WILLEVENTUALLYCOMETOAN
AGREEMENTANDITHINKTHISIS
KINDOFTWOLARGECOMPANIES
NEGOTIATINGAGREEMENTS,KINDOF
NORMALCASEOF--
>>HERE'SWHYIPURSUE.
IT'SALARGECOMPANYANDINA
WAY,THEYSTANDINFORHUNDREDS
OFTHOUSANDSOFMUCHSMALLER
COMPANIESWHOAREEVENINAMORE
DISADVANTAGEDPOSITIONWITH
RESPECTTONEGOTIATINGWITHYOU.
IGUESSTHEGENERALPROPOSITION
YOUCANSPEAKTO,IFYOUDON'T
KNOWTHEDETAILSOFTHIS,ISIT
OKAYTONEGOTIATENOTJUSTFOR
FINANCIALTERMSINHAVING
SOMEONEBEPARTOFYOURFIRE
UNIT,BUTALSOTOTRYTOEXTRACT
INTHATNEGOTIATIONLEVERAGE
WITHRESPECTTOGETTINGCONTENT
FROMTHEM?
>>WELL,AGAIN,I'MNOTFAMILIAR
WITHTHEDETAILS--
>>I'MNOTASKINGABOUTTHAT
ONE.
INGENERAL.
>>INGENERAL,ITHINKWHENTWO
COMPANIESARENEGOTIATING,
YOU'RENEGOTIATINGNOTJUSTTHE
AMOUNTOFMONEYTHAT'SGOINGTO
CHANGEHANDS,BUTALSOWHAT
YOU'REGOINGTOGETINEXCHANGE
FORTHEAMOUNTOFMONEY.
THAT'SAFUNDAMENTALWAYTHAT
BUSINESSWORKS.
>>DOYOUSEEATLEAST--DOYOU
SEEATLEASTTOOUTSIDERSTHAT
WOULDLOOKLIKEASTRUCTURAL
CONFLICTOFINTEREST.
YOU'REUSINGYOURCONTROLOVER
ACCESSTOPEOPLE'SLIVINGROOMS,
ESSENTIALLY,YOU'REUSINGTHAT
INORDERTOOBTAINLEVERAGEIN
TERMSOFGETTINGCREATIVE
CONTENTTHATYOUWANTANDARE
YOUESSENTIALLYCONVERTINGPOWER
INONEDOMAININTOPOWERIN
ANOTHERDOMAINWHEREITDOESN'T
BELONG.
>>ISHOULDOFFERTOGETYOU
INFORMATION--I'LLGETITTO
YOUROFFICEFORYOUBECAUSEI'M
NOTFAMILIARENOUGHWITHTHIS
ANDICOULDIMAGINETHATTHERE
WOULDBESCENARIOSIFWE'RE
TALKINGINABSTRACTWHEREIT
WOULDBEINAPPROPRIATEANDI
COULDIMAGINESCENARIOSWHEREIT
WOULDBEVERYNORMALBUSINESS
ANDVERYAPPROPRIATE.
>>FAIRENOUGH.
IWANTTOTALKABOUTSMARTHOMES
ANDIWANTTOSTARTWITHSMART
SPEAKERS.
DOESAMAZONPRICETHEECHO
DEVICEBELOWCOST?
>>NOTITSLISTPRICE.
IT'SOFTENONPROMOTION.
SOMETIMESWHENIT'SON
PROMOTION,ITMAYBEBELOWCOST,
YES.
>>SEVERALOTHERCOMPANIESSAID
THATAMAZONISPRICINGECHO
DEVICESWAYBELOWCOSTMAKINGIT
NEARLYIMPOSSIBLEFORTHEMTO
COMPETEANDAGGRESSIVELY
DISCOUNTINGALEXAENABLED
SPEAKERSISASTRATEGYTOOWN
THESMARTHOME.
LIKEMANYMARKETS,SMART
SPEAKERSALONGWITHTHEMYRIAD
OFSMARTHOMEAPPLIANCESMAKEUP
THENEXTPLATFORMFORTECH
COMPANIESTOLOCKINCUSTOMERS.
WOULDYOUSAYTHESMARTHOME
MARKETFORWHICHTHEECHO,RING
SECURITYSYSTEMSISAWINNER'S
TAKEALLMARKET?
YESORNO?
>>NO,IWOULDN'T.
ESPECIALLYIFWE--IFWE'RE
ABLETOSUCCEEDATWHATWEWANT,
WEWOULDLIKEOUR--OURVISION
FORTHISISTHATSMARTHOME
SPEAKERSSHOULDANSWERTO
DIFFERENT--
>>WHENCONSIDERINGTHE
ACQUISITION--
>>ONACASE-BY-CASEBASIS.
IFWECOULDACHIEVETHAT,THENI
THINKYOUWOULDGETREALLYGOOD
BEHAVIORONTHEPARTOF
COMPETITIVEVOICEAGENTSHELPING
YOU.
>>YOUWROTE,WE'REBUYING
MARKETPOSITION,NOTTECHNOLOGY
ANDTHATMARKETPOSITIONISVERY
VALUABLE.
SOIFSMARTHOMESARENOTA
MARKETWITHLOCK-INEFFECTS,WHY
WOULDALEADINGMARKETPOSITION
ANDMOMENTUMBESOVERY
VALUABLE?
>>SIR,MARKETPOSITIONIS
VALUABLEATALMOSTANYBUSINESS
ANDIT'SONEOFTHEPRIMARY
THINGSTHATONEWOULDLOOKATIN
ANACQUISITION.
THEREAREMULTIPLEREASONSTHAT
WEMIGHT--SOMETIMESWE'RE
TRYINGTOBUYTECHNOLOGYORIP,
SOMETIMESIT'STALENT
ACQUISITION.
BUTTHEMOSTCOMMONCASEIS
MARKETPOSITION.
THECOMPANYHASTRACTIONWITH
CUSTOMERS.
MAYBETHEYWERETHEFIRSTMOVER,
ANYNUMBEROFREASONSWHYTHEY
HAVETHATMARKETPOSITION.
THAT'SACOMMONREASONTO
ACQUIREACOMPANY.
>>ONCEACOMPANYBECOMES
DOMINANTINAMARKET,ITCAN
FAVORITSOWNPRODUCTSAND
SERVICES.
WHENIASKALEXATOPLAYMAY
FAVORITESONG,PRIMEMUSICIS
THEDEFAULTMUSICPLAYER?
>>ITHINKTHAT'STRUEIFYOU'RE
APRIMEMEMBER,YES.
>>ANDA"NEWYORKTIMES"REPORT
FOUNDTHATWHENUSERSSAY,
ALEXA,BUYBATTERIES,SHE
RESPONDSWOULDYOULIKETOBUY
AMAZONBATTERIES?
HASALEXABEENTRAINEDTOFAVOR
AMAZONPRODUCTS?
>>IDON'TKNOWIFIT'SBEEN
TRAINEDINTHATWAY.
I'MSURETHEREARECASESWHERE
WEDOPROMOTEOUROWNPRODUCTS.
OFCOURSE,ACOMMONPRACTICEIN
BUSINESS.
ITWOULDN'TSURPRISEMEIFALEXA
SOMETIMESDOESPROMOTEOUROWN
PRODUCTS.
>>THANKYOU,ANDIYIELDBACK.
>>THECHAIRRECOGNIZESTHE
GENTLEMANFROMFLORIDAFORFIVE
MINUTES.
>>DURINGOURPRIORDURGS
EARLIERTODAYYOUSAIDTHAT
GOOGLEDOESN'TWORKWITHTHE
CHINESEMILITARY.
THATANSWERWASDECEPTIVE
BECAUSEGOOGLEWORKSWITHMANY
OFTHEENTITIESTHATWORKWITH
THECHINESEMILITARYINCOMMON
COLLABORATIONANDJUSTASONE
EXAMPLEWOULDBEAUNIVERSITY
WHEREJEFFDEAN,WHOISTHEHEAD
OFGOOGLEAISERVEDONTHE
COMPUTERSCIENCEADVISORY
COMMITTEEFORTHEUNIVERSITYAND
THENTHEUNIVERSITYTAKESA
NEARLY$15MILLIONFROMCHINA'S
CENTRALMILITARYCOMMISSION.
IFYOUDON'TSHOWUPATTHE
OFFICESOFTHECHINESEMILITARY,
IFYOU'REALLSHOWINGUPATTHE
SAMEPLACE,WORKINGTOGETHERON
AI,THATWOULDLEADTOMY
CONCERN.
IWANTTOTALKABOUTSEARCH
BECAUSETHAT'SANAREAWHEREI
KNOWGOOGLEHASREALMARKET
DOMINANCE.
ONDECEMBER11thYOURECEIVEDIN
RESPONSETOAQUESTIONFROMMY
COLLEAGUEABOUTSEARCH,YOU
SAID,WEDON'TMANUALLY
INTERVENEONANYPARTICULAR
SEARCHRESULT.
LEAKEDMEMOSOBTAINEDSHOWTHAT
THATISN'TTRUE.
INFACT,THOSEMEMOSWERE
ALTEREDDECEMBER3rdJUSTAWEEK
BEFOREYOURTESTIMONYANDTHEY
DESCRIBEADECEPTIVENEWS
BLACKLIST,ANDAPROCESSFOR
DEVELOPINGTHATBLACKLIST
APPROVEDBYSOMEONEWHOLEADS
SEARCHWITHINYOURCOMPANYAND
SOMETHINGCALLEDAFRINGE
RANKINGWHICHSEEMSTOBEGTHE
QUESTION,WHOGETSTODECIDE
WHAT'SFRINGE.
ANDINYOURANSWER,YOUKNOW,
YOUSAIDTHATTHEREISNOMANUAL
INTERVENTIONOFSEARCH.
THATWASYOURTESTIMONY.
NOWI'MGOINGTOCITE
SPECIFICALLYFROMTHISMEMO,
FROMTHEDAILYCALLEROBTAINED
FROMYOURCOMPANY,THEBEGINNING
OFTHEWORKFLOWSTARTSWHENA
WEBSITEISPLACEDONAWATCH
LIST.
ITCONTINUESTHISWATCHLISTIS
MAINTAINEDANDSTOREDWITH
ACCESSRESTRICTEDTOPOLICYAND
ENFORCEMENTSPECIALISTS.
ITBEGSTHEQUESTIONWHOTHESE
ENFORCEMENTSPECIALISTSARE.
ACCESSTOTHELISTINGCANALSO
BESHAREDONANEEDTOKNOW
BASISTOENFORCEORENRICHTHE
POLICYVIOLATIONS.
THEINVESTIGATIONOFTHEWATCH
LISTISDONEINTHETOOL,THE
REASONABLEREVIEWTOOL.
YOUSAIDTHATTHEREWASNO
MANUALREVIEWTOOLANDTHENYOUR
DOCUMENTSINDICATETHATTHEREIS
AMANUALREVIEWTOOL.
HELPUSUNDERSTANDTHE
INCONSISTENCY?
>>CONGRESSMAN,THEREARETWO
PARTSTOTHIS.
INGENERAL,YOUKNOW,WE
ALGORITHMICAPPROACHOURSEARCH
RESULTS.
WEHAVEROBUSTPOLICIESTODOSO
ANDWETESTTHEFEEDBACKAND
VALIDATEEXPERIMENTSAND
LAUNCHEDAROUND3,000
IMPROVEMENTSTOSEARCH.
ANDWEDON'TMANUALLYTUNE.
ISTHERESOMEONEBEHINDTHE
CURTAINTUNINGASEARCHRESULT?
WEDON'T.
INORDERTOCOMPLYWITHTHELAW
INEVERYCOUNTRYWEOPERATEIN,
FOREXAMPLE,THEREMAYBEAN
ACTORORAWEBSITEIDENTIFIEDAS
INTERFERINGINELECTIONS,ANDWE
THENHAVETOPUTTHATSITEONA
LISTSOTHATDOESN'TAPPEARIN
OURSEARCHRESULTSAGAINST
QUERIES.
VIOLENTEXTREMISM--
>>ISTHATDONEMANUALLY,THAT
PROCESSYOUDESCRIBED?
ISTHATDONEMANUALLY.
>>WECOULDGETREPORTSFROMLAW
ENFORCEMENTAGENCIES,YOUKNOW,
WE'RECOMPLYINGWITH--ORIT'S
AKNOWN--
>>THERE'SAMANUALCOMPONENTOR
THERE'SNOTAMANUALCOMPONENT.
WHICHISIT?
>>FORCREATINGTHOSELISTS,
THATPROCESSCANINVOLVEMANUAL
PORTIONS.
>>THAT'STHECONCERNTHATI
HAVE.
YOU'VENOWSAIDSOMETHING
DIFFERENTTODAYTHANYOUSAID
EARLIERBECAUSEYOU'VECONFESSED
THATTHEREISAMANUALCOMPONENT
TOTHEWAYINWHICHYOU
BLACKLISTCONTENT.
ANDITSEEMSTOBENO
COINCIDENCETHATITSCITESLIKE
THEWESTERNJOURNAL,AMERICAN
SPECTATOR,DAILYCALLER,AND
BREITBARTTHATRECEIVEDTHEIRE
ORTHENEGATIVETREATMENTASA
CONSEQUENCEOFYOURMANUAL
TOOLINGANDITALSOSEEMS
NOTEWORTHYTHATWHISTLE-BLOWERS
ATYOUROWNCOMPANYHAVESPOKEN
OUT.
YOUSAIDTHATONEOFTHEREASONS
YOUMAINTAINTHISMANUALTOOLIS
TOSTOPELECTIONINTERFERENCE.
IBELIEVEITISINFACTYOUR
COMPANYTHATISENGAGINGIN
ELECTIONINTERFERENCEANDIT'S
NOTJUSTMYVIEW.
MIKEWHACKERCAMEOUTANDWASA
WHISTLE-BLOWERINDICATINGTHAT
THEMANUALBLACKLISTTARGETS
THATGOOGLESPECIFICALLYGOES
AFTERARETHOSEWHOSUPPORT
PRESIDENTTRUMP,WHOHOLDA
CONSERVATIVEVIEWPOINT,ANDHE
LEFTYOURCOMPANYIN2019
BECAUSEHEWASSPEAKINGOUT
AGAINSTTHESEOUTRAGEMOBS.
CANYOUSEEHOWWHENYOUEMPOWER
INDIVIDUALS,SOMEOFTHESAME
INDIVIDUALSTHATPROJECTVERATAS
HASEXPOSED,THATCANBETHE
VERYELECTIONINTERFERENCETHAT
WE'RECONCERNEDABOUTANDYOU'RE
USINGYOURMARKETDOMINANCEIN
SEARCHTOACCOMPLISHTHAT
ELECTIONINTERFERENCE?
>>CONGRESSMAN,WITHRESPECT,I
STRONGLYDISAGREEWITHTHAT
CHARACTERIZATION.
WEDON'TAPPROACHTHISWORKWITH
ANYPOLITICALVIEWPOINT.
WEDOTHATTOCOMPLYWITHLAW,
COPYRIGHTVIOLATIONS,ANDWE
HAVETODOTHATTOCOMPLYWITH
THELAW.
INMANYCASES,THOSEREQUESTS
CANCOMEFROMLAWENFORCEMENT
AGENCIES.
>>YOU'REOWNEMPLOYEESARE
SAYINGIT'SAPOLITICALBIAS.
IYIELDBACK.
MR.CHAIRMAN,JUSTGIVENTHE
PRODUCTIVITYOFOURDISCUSSION,
IWOULDREQUESTTHATWEBE
PERMITTEDATHIRDROUNDOF
QUESTIONING.
>>WITHOUTOBJECTION.
>>INOWRECOGNIZETHECHAIRMAN
OFTHEFULLCOMMITTEE,
MR.NADLER.
>>YEAH.
YOUKNOW,THEDOCUMENTSPROVE--
THEJOURNALISMINDUSTRYINTHIS
COUNTRYAREINECONOMICFREE
FALL.
OVER200COUNTIESINAMERICANO
LONGERHAVEALOCALNEWSPAPER
ANDTENSOFTHOUSANDSOF
JOURNALISTSHAVEBEENLAIDOFF
INRECENTYEARS.
THEREASONJOURNALISMISINFREE
FALLISTHATGOOGLEANDFACEBOOK
NOWCAPTURETHEVASTMAJORITYOF
DIGITALADREVENUE.
NEWSPUBLISHERSPRODUCEVALUABLE
CONTENT,IT'SGOOGLEAND
FACEBOOKTHATINCREASINGLY
PROFITOFFTHATCONTENT.
ESTABLISHERSHAVETOLDUSTHAT
GOOGLEANDFACEBOOKMAINTAIN
THEIRDOMINANCEINTHESEMARKETS
THROUGHANTICOMPETITIVECONDUCT
ASWELLASCONFLICTOF
INTERESTS.
MR.ZUCKERBERG,IN2015,
FACEBOOKREPORTEDHIGHAND
QUICKLYGROWINGRATESOFVIDEO
VIEWERSHIPONITSPLATFORM.
BASEDONTHESEMETRICS,NEWS
PUBLISHERSFIREDHUNDREDSOF
JOURNALISTS,CHOOSINGTOBOOST
THEIRVIDEODIVISIONS.
IN2018,ITWASDISCOVEREDTHAT
FACEBOOKHASINFLATEDTHESE
METRICSANDHADKNOWNABOUTTHE
INACCURACYSEVERALYEARSBEFORE
FACEBOOKDISCLOSEDTHIS.
MR.ZUCKERBERG,DIDYOUKNOW
THATTHESEMETRICSWEREINFLATED
BEFORETHEYWEREPUBLICLY
RELEASED?
>>CONGRESSMAN,NO,IDIDNOT.
ANDWEREGRETTHATMISTAKEAND
WEHAVEPUTINPLACEANUMBEROF
OTHERMEASURESSINCETHENTO
MAKESURETHATWE--
>>ANDDOYOUREALIZETHEHARM
THATTHISCAUSEDJOURNALISTS
ACROSSTHECOUNTRY?
>>CONGRESSMAN,ICERTAINLYKNOW
HOWIMPORTANTITISTHATTHE
METRICSTHATWEREPORTARE
ACCURATEANDWE'VEPUTINPLACE
ADDITIONALMEASURESTOMAKESURE
WECANAUDITTHOSE.
>>WHATDOYOUHAVETOSAYTO
THEJOURNALISTSWHOLOSTTHEIR
JOBSBECAUSEOFFACEBOOK'S
DECEPTION?
>>CONGRESSMAN,IDISAGREEWITH
THATCHARACTERIZATION.
ANDALSOYOURDESCRIPTIONOF--
>>RECLAIMINGMYTIME.
GOOGLE,MEANWHILE,MAINTAINSITS
DOMINANCETHROUGHAGGREGATING
DATAFROMACROSSITSPRODUCTS
ANDSERVICES.
IUNDERSTANDTHATGOOGLE
COLLECTSUSERDATAONBROWSING
ACTIVITYTHROUGHITSCHROME
BROWSER.
DOESGOOGLEUSETHATFORITSOWN
PURPOSESEITHERINADVERTISING
ORDEVELOPANDREFINEITS
ALGORITHMS?
>>MR.CHAIRMAN,WEDOUSEDATA
TOIMPROVEOURPRODUCTSAND
SERVICESFOROURUSERS.
ANYTIMEWEDOIT,WEBELIEVEIN
GIVINGUSERSCHOICE,CONTROLAND
TRANSPARENCY.
WEGIVETHEMSETTINGSTOCHOOSE
HOWTHEYWOULDLIKETHEIRDATA
USED.
>>YOUDOUSETHEDATATHATYOU
GETFROMTHESECOMPANIESFOR
YOURPURPOSES?
>>MYUNDERSTANDWASWHETHERWE
USEDATAINGENERALTOIMPROVE
OURPRODUCTSANDSERVICES.
WEUSEDATATOSHOWADS.
BUTWEGIVEUSERSACHOICE.
THEYCANTURNSADS
PERSONALIZATIONONOROFF.
>>THISOBVIOUSLY--USEOFTHAT
DATAFROMALLOFTHESE--FROM
ALLOFTHESECOMPANIESGIVESYOU
ATREMENDOUSADVANTAGEOVERTHEM
ANDOVERANYCOMPETITOR.
DOESTHEABILITYTOMAKEMONEY
INANYWAYAFFECTGOOGLE'S
ALGORITHMINTERMSOFWHATNEWS
APPEARSINSEARCHRESULTS?
>>THEWAYWERANKOURSEARCH
RESULTS,WEDON'TTAKEINTO
ACCOUNTCOMMERCIALRELATIONSHIP
THATWEHAVE.
>>OKAY.
BUTFACEBOOKANDGOOGLEHAVE
GRAVELYTHREATENEDJOURNALISMIN
THEUNITEDSTATES.
REPORTERSHAVEBEENFIRED,LOCAL
NEWSPAPERSHAVEBEENSHUTDOWN,
ANDNOWWEHEARTHATGOOGLEAND
FACEBOOKAREMAKINGMONEYOVER
WHATNEWSTHE--THEYLETTHE
AMERICANPEOPLESEE.
THISISAVERYDANGEROUS
SITUATIONANDUNFORTUNATELYMY
TIMEISEXPIREDANDIHAVETO
YIELDBACK.
>>INOWRECOGNIZETHEGENTLEMAN
FROMFLORIDAFORFIVEMINUTES.
>>THANKYOU,MR.CHAIRMAN.
I'MGOINGTOPICKUPWHEREI
LEFTOFF.
THEREARERIOTINGGROUPSTHAT
AREGOINGUNCHECKEDWITHTHE
POSTINGOFWHATIWOULDCONTEND
ISVERYVIOLENTVIDEO.
YESTERDAYIWASSENTAYOUTUBE
VIDEOABOUTDOCTORSDISCUSSING
HYDROXYCHLOROQUINEAND
DISCUSSINGTHENOTDANGERSOF
CHILDRENRETURNINGTOSCHOOL.
WHENICLICKEDONTHELINK,IT
WASTAKENDOWN.
IWASSENTADIFFERENTLINKON
YOUTUBEANDITWASTAKENDOWN.
IJUSTCHECKEDAGAINTOMAKE
SURE,ITSAYSTHISVIDEOHAS
BEENREMOVEDFORVIOLATING
GUIDELINES.
HOWCANDOCTORSGIVINGTHEIR
OPINIONONADRUGTHATTHEY
THINKISEFFECTIVEFORTHE
TREATMENTOFCOVID-19AND
DOCTORSWHOTHINKIT'S
APPROPRIATEFORCHILDRENTO
RETURNBACKTOSCHOOLVIOLATE
YOUTUBE'SCOMMUNITYGUIDELINES?
WHENALLOFTHESEVIDEOSOF
VIOLENCEISALLPOSTEDON
YOUTUBE?
>>CONGRESSMAN,WEBELIEVEIN
FREEDOMOFEXPRESSIONAND
THERE'SALOTOFDEBATEON
YOUTUBEABOUTEFFECTIVEWAYSTO
DEALWITHCOVID.
WEALLOWROBUSTDEBATE.
BUTDURINGAPANDEMIC,WELOOK
TOLOCALHEALTHAUTHORITIES.
FOREXAMPLE,INTHEU.S.,IT
WOULDBECDC,FORGUIDELINES
AROUNDMEDICALMISINFORMATION
WHICHCOULDCAUSEHARMINTHE
REALWORLD.
FOREXAMPLE,IFTHERE'SA
ASPECTSOFAVIDEOANDIFIT
STATESSOMETHINGCOULDBEA
PROVENCURE,THATDOESN'TMEET
CDCGUIDELINES,WEWOULD--
>>IT'SFREEEXPRESSIONOF
SPEECHANDYOUHAVETHESE
DOCTORSWHOAREGIVINGTHEIR
OPINIONASDOCTORSANDIDON'T
UNDERSTANDWHYYOUTUBEAND
THEREFOREGOOGLETHINKSIT'S
APPROPRIATETOSILENCE
PHYSICIANSANDTHEIROPINIONOF
WHATCANHELPANDCUREPEOPLE
WITHCOVID-19.
I'MGOINGTOSWITCHTO
MR.ZUCKERBERG.
ITHINKIT'SOBVIOUSLYTHAT
TECHNOLOGYPLATFORMSHAVEBEEN
STIFLINGCONSERVATIVENEWSAND
OPINIONS.
YOUEMPLOYAPANELOFCONTENT
MODERATORS.
CANYOUEXPLAINHOWFACEBOOK
CHOOSESWHOTHESEMODERATORS
ARE?
>>THANKS,CONGRESSMAN.
WEDOHIREALOTOFPEOPLE
AROUNDTHEWORLDTOWORKON
SAFETYANDSECURITY.
OURTEAMISMORETHAN30OR
35,000PEOPLEWORKINGONTHAT
NOW.
WECERTAINLYTRYTODOTHISINA
WAYTHATISNEUTRALTOALL
VIEWPOINTS.
WEWANTTOBEAPLATFORMFORALL
IDEAS.
IDON'TTHINKYOUBUILDASOCIAL
PRODUCTWITHTHEGOALOFGIVING
PEOPLEAVOICEIFYOUDON'T
BELIEVETHATPEOPLEBEINGABLE
TOEXPRESSAWIDEVARIETYOF
THINGSISULTIMATELYVALUABLE
FORTHEWORLDANDWETRYTOMAKE
SURETHATYOURPOLICIESAND
OPERATIONSULTIMATELYREFLECT
ANDCARRYTHATOUT.
>>ISTHEREANIDEOLOGICAL
DIVERSITYAMONGSTTHECONTENT
MODERATORS?
>>CONGRESSMAN,IDON'TTHINKWE
CHOOSETOHIRETHEMONTHEBASIS
OFANIDEOLOGY.
THEY'REHIREDALLOVERTHE
WORLD.
THERE'SCERTAINLYABUNCHINTHE
U.S.
THERE'SDIVERSITYINWHERE
THEY'REHIRED.
BUTCERTAINLYWEDON'TWANTTO
HAVEANYBIASEDINWHATWEDO
ANDWEWOULDN'TTOLERATEITIF
WEDISCOVEREDTHAT.
>>YOUDON'TSPECIFICALLYHIRE
CONSERVATIVEMODERATORSAND
DEMOCRATORLIBERALMODERATORS
SOTHERE'SABALANCEINYOUR
CONTENTMODERATORS?
>>CONGRESSMAN,INTERMSOFTHE
30TO35,000PEOPLEORMOREAT
THISPOINTWHOAREDOINGSAFETY
ANDSECURITYREVIEW,THATIS
CORRECT.
INTERMSOFTHEPEOPLESETTING
THEPOLICIES,ITHINKITIS
VALUABLETOHAVEPEOPLEWITHA
DIVERSITYOFVIEWPOINTSINVOLVED
SOWECANMAKESUREWEHAVETHE
DIFFERENTVIEWPOINTSREPRESENTED
INTHEPOLICYDEVELOPMENT
PROCESSANDWEALSOCONSULTWITH
ANUMBEROFOUTSIDEGROUPS
WHENEVERWEDEVELOPNEWPOLICIES
TOMAKESURETHATWE'RETAKING
INTOACCOUNTALLPERSPECTIVES.
>>WHATARESOMEOFTHOSE
OUTSIDEGROUPSTHATWOULDBE
CONSERVATIVE-LEANING?
>>CONGRESSMAN,INEEDTOGET
BACKTOYOUWITHALISTOF
SPECIFICGROUPS.
BUTITWOULDDEPENDONWHATTHE
TOPICIS.
>>CANYOUJUSTTHINKOFONE?
YOUSAIDYOUREACHOUTTO
OUTSIDEGROUPS.
CANYOUTHINKOFONEKREF
--
CONSERVATIVEGROUPTHATYOU
REACHOUTTO?
>>CONGRESSMAN,I'MTALKING
ABOUTTHEDIFFERENTEXTERNAL
STAKEHOLDERSANDGROUPSTHATARE
INPUTSTOOURPOLICYDEVELOPMENT
PROCESSANDI'MNOTINVOLVEDIN
THOSECONVERSATIONSDIRECTLY.
SOIWOULDHAVETOGETBACKTO
YOUWITHSPECIFICSONTHAT.
BUTI'MQUITECONFIDENTTHATWE
SPEAKWITHPEOPLEACROSSTHE
IDEOLOGICALSPECTRUMWHENWE'RE
DEVELOPINGOURPOLICIES.
>>IWOULDVERYMUCHAPPRECIATE
AFOLLOWUPONTHAT.
CANYOUBRIEFLYEXPLAINTHE
APPROVALPROCESSFORTHIRD-PARTY
FACT-CHECKERSANDHOWMANY
FACT-CHECKERSDOESFACEBOOK
EMPLOY?
>>YES.
THANKS.
WEWORKWITHABOUT70
FACT-CHECKINGPARTNERSAROUND
THEWORLDANDTHEGOALOFTHE
PROGRAMISTOLIMITTHE
DISTRIBUTIONOFVIRALHOAXES,SO
THINGSTHATARECLEARLYFALSE,
FROMGETTINGALOTOF
DISTRIBUTION.
BUTWEDON'TOURSELVESWANTTO
BEINTHEBUSINESSOF
DETERMININGWHATISTRUEAND
WHATISFALSE,THATFEELSLIKE
ANINAPPROPRIATEROLEFORUSTO
PLAY.
WERELYONANORGANIZATION
CALLEDTHEPOINTERINSTITUTEAND
ITHINKIT'SCALLEDTHE
INDEPENDENTFACT-CHECKING
ORGANIZATIONTHATHASASETOF
GUIDELINESOFWHATMAKESAN
INDEPENDENTFACT-CHECKERAND
THEYCERTIFYTHOSEFACT-CHECKERS
ANDANYORGANIZATIONTHATGETS
CERTIFICATIONFROMTHATGROUPIS
QUALIFIEDTOBEAFACT-CHECKING
PARTNERWITHINFACEBOOK.
>>THANKYOU.
THEGENTLEMAN'STIMEISEXPIRED.
I'MGOINGTORECOGNIZE
MR.JOHNSONFORFIVEMINUTESAND
TAKEASHORTBREAKOFTHE
COMMITTEE.
MR.JOHNSON,YOU'RERECOGNIZED.
>>THANKYOU,MR.CHAIRMAN.
MR.BEZOS,AMAZONHASA
SIGNIFICANTPROBLEMWITH
COUNTERFEITPRODUCTSBEINGSOLD
ONITSPLATFORM.
COUNTERFEITPRODUCTSNOTONLY
RIPOFFTHEOWNER'SOF
LEGITIMATEBUSINESSES,THEYALSO
CANBEDANGEROUS.
COUNTERFEITMEDICINE,BABYFOOD,
AUTOMOBILETIRESANDOTHER
PRODUCTSCANKILL.
AMAZONHASSAIDITSFIXINGITS
COUNTERFEITPROBLEM,BUT
COUNTERFEITINGSEEMSTOBE
GETTINGWORSE,NOTBETTER.
AMAZONISATRILLIONDOLLAR
COMPANYBUTAMAZONCUSTOMERSARE
NOTGUARANTEEDTHATTHEPRODUCTS
PURCHASEDONYOURPLATFORMARE
AUTHENTIC.
AMAZONACTSLIKEIT'SNOT
RESPONSIBLEFORCOUNTERFEITS
BEINGSOLDBYTHIRD-PARTY
SELLERSONITSPLATFORMANDWE
HEARDTHATAMAZONPUTSTHE
BURDENANDCOSTONBRANDOWNERS
TOPOLICEAMAZON'SSITE,EVEN
THOUGHAMAZONMAKESMONEYWHENA
COUNTERFEITGOODISSOLDONITS
SITE.
MORETHANHALFOFAMAZON'SSALES
COMEFROMTHIRD-PARTYSELLER
ACCOUNTS.
WHYISN'TAMAZONMOREAGGRESSIVE
INENSURINGTHATCOUNTERFEIT
GOODSARENOTSOLDONITS
PLATFORMANDWHYISN'TAMAZON
RESPONSIBLEFORKEEPINGALL
COUNTERFEITPRODUCTSOFFOFITS
PLATFORM?
>>THANKYOU.
THISISANINCREDIBLYIMPORTANT
ISSUEANDONETHATWEWORKVERY
HARDON.
COUNTERFEITAREASCOURGE.
THEYAREAPROBLEMTHATIS
NOT--DOESNOTHELPUSEARN
TRUSTWITHCUSTOMERS.
IT'SBADFORCUSTOMERS.
IT'SBADFORHONESTTHIRD-PARTY
SELLERS.
WEDOALOTTOPREVENT
COUNTERFEITING.
WEHAVEATEAMOFMORETHAN
1,000PEOPLETHATDOESTHIS.
WEINVESTHUNDREDSOFMILLIONS
OFDOLLARS.
WEHAVEPROJECTZEROWHICHHELPS
BRANDSSERIALIZEINDIVIDUAL
PRODUCTSWHICHREALLYHELPSWITH
COUNTERFEITING.
WEHAVE--
>>I'MGLADTHATYOUHAVE
THOSE--I'MGLADTHATYOUHAVE
THOSEFEATURESINPLACE.
BUTWHYISN'TAMAZONRESPONSIBLE
FORKEEPINGALLCOUNTERFEIT
PRODUCTSOFFOFITSPLATFORM?
>>WECERTAINLYWORKTODOSO,
CONGRESSMAN,ANDWEDONOTNOT
JUSTFOROUROWNRETAIL
PRODUCTS,BUTFORTHIRD-PARTY
PRODUCTSASWELL--
>>OKAY.
THANKYOU.
WE'VEHEARDFROMNUMEROUS
THIRD-PARTYSELLERSANDBRAND
OWNERSTHATAMAZONHASUSED
KNOCKOFFSASLEVERAGETO
PRESSURESELLERSTODOWHAT
AMAZONWANTS.
FOREXAMPLE,THEFOUNDEROFPOP
SOCKETTESTIFIEDINJANUARYTHAT
AMAZONITSELFWASSELLING
KNOCKOFFSOFITSPRODUCT.
AFTERREPORTINGTHEPROBLEM,IT
WASONLYAFTERHISCOMPANY
COMMITTEDTOSPENDING$2MILLION
ONADVERTISEMENTSTHATAMAZON
APPEARSTOHAVESTOPPED
DIVERTINGSALESTOTHESE
KNOCKOFFS.
WHATISYOUREXPLANATIONFOR
THATBUSINESSPRACTICE?
>>THAT'SUNACCEPTABLE.
IFTHATIS--IFTHOSEARETHE
FACTSANDIFSOMEONESOMEWHERE
INSIDEAMAZONSAID,YOUKNOW,BY
"X"DOLLARSINADSANDWE'LL
HELPYOUWITHYOURCOUNTERFEIT
PROBLEM.
THATISUNACCEPTABLE.
I'LLLOOKINTOTHAT.
WEHAVEACOUNTERFEITCRIMES
UNIT.
WEATTEMPTTOPROSECUTE
COUNTERFEITERS.
IWOULDENCOURAGETHISBODYTO
PASSSTRICTERPENALTIESFOR
COUNTERFEITERS.
IFITDOES,ITWOULDONLYBEIN
THESHORTTERM.
IWOULDMUCHRATHERLOSEASALE
THANACUSTOMER.
>>FAIRENOUGH,SIR.
MAKINGCOMPANIESPAYEXTRATO
AVOIDHAVINGTHEIRPRODUCTS
DISAPPEARINRANKINGSSEEMSTO
BESOUNFAIR,ESPECIALLYTHE
SMALLBUSINESSES,THEAMERICAN
DREAMISTHREATENEDWHENTHAT
HAPPENS,DON'TYOUTHINKSO?
>>SIR,I'MNOTEXACTLYSURE
WHATYOU'REREFERRINGTO.
IFYOU'RETALKINGABOUTWHATWE
WEREJUSTTALKINGABOUTASECOND
AGO,IAGREECOMPLETELY--
>>TOTALLYDIFFERENTSITUATION
NOW,WHEREACOMPANYTHATIS
SELLINGONYOURPLATFORMBUTIS
NOTPAYINGANYTHINGEXTRAGETS
BURIEDINTHERANKINGSAND--
BUTCOMPANIESTHATPAYEXTRAARE
ABLETOGETTHEIRPRODUCTS
PUSHEDUPANDTHEYAVOIDGETTING
PUSHEDDOWN.
ISTHATANACCEPTABLEPRACTICE?
>>SIR,ITHINKWHATYOU'RE
REFERRINGTOISTHEFACTTHATWE
OFFERA--ANADVERTISING
SERVICEBASICALLYFOR
THIRD-PARTYSELLERSTODRIVE
ADDITIONALPROMOTIONTOTHEIR
PRODUCTS.
SOMESELLERSUSEIT.
SOMEDON'T.
IT'SBEENVERYEFFECTIVEAT
HELPINGPEOPLEPROMOTETHEIR
PRODUCTS.
>>WITHTHAT,IYIELDBACK.
THANKYOU.
>>THEGENTLEMANYIELDSBACK.
THECOMMITTEEWILLSTANDIN
BRIEFRECESS.
>>>THANKYOU,CHAIRMAN,RANKING
MEMBER,ANDMEMBERSOFTHE
SUBCOMMITTEE.
IWASBORNINTOGREATWEALTH.
NOTMONETARYWEALTH,BUTTHE
WEALTHOFALOVINGFAMILY.
AFAMILYTHATFOSTEREDMY
CURIOSITYANDENCOURAGEDMETO
DREAMBIG.
MYMOM,JACKIE,HADMEWHENSHE
WASA17-YEAR-OLDHIGHSCHOOL
STUDENT.
BEINGPREGNANTINHIGHSCHOOL
WASNOTPOPULAR.
THESCHOOLTRIEDTOKICKHER
OUT,BUTSHEWASALLOWEDTO
FINISHAFTERMYGRANDFATHER
NEGOTIATEDTERMSWITHTHE
PRINCIPAL.
SHECOULDN'THAVEALOCKER,NO
EXTRACURRICULARSANDCOULDN'T
WALKACROSSTHESTAGEAT
GRADUATION.
MYDADADOPTEDMEWHENIWAS4.
HEWAS16WHENHECAMETOTHE
U.S.FROMCUBABYHIMSELF
SHORTLYAFTERCASTROTOOKOVER.
MYDADDIDN'TSPEAKENGLISHAND
HEDIDNOTHAVEANEASYPATH.
WHATHEDIDHAVEWASGRITAND
DETERMINATION.
HERECEIVEDASCHOLARSHIPTO
COLLEGEWHICHISWHEREHEMETMY
MOM.
TOGETHERWITHMYGRANDPARENTS,
THESEHARD-WORKINGRESOURCEFUL
ANDLOVINGPEOPLEMADEMEWHOI
AM.
IWALKEDAWAYFROMASTUDYJOB
ONWALLSTREET.
ITFEELSLIKEJUSTYESTERDAYI
WASDRIVINGTHEPACKAGESTOTHE
POSTOFFICEMYSELF,DREAMING
THATONEDAYWEMIGHTAFFORDA
FORKLIFT.
CUSTOMEROBSESSIONHASDRIVEN
OURSUCCESS.
ANDITAKEITASANARTICLEOF
FAITHTHATCUSTOMERSNOTICEWHEN
YOUDOTHERIGHTTHING.
YOUEARNTRUSTSLOWLYOVERTIME
BYDOINGHARDTHINGSWELL,
DELIVERINGONTIME,OFFERING
EVERYDAYLOWPRICES,MAKING
PROMISESISKEEPINGTHEMAND
MAKINGPRINCIPLEDDECISIONSEVEN
WHENTHEYAREUNPOPULAR.
ANDOURAPPROACHISWORKING.
80%OFAMERICANSHAVEA
FAVORABLEIMPRESSIONOFAMAZON
OVERALL.
WHODOAMERICANSTRUSTMORETHAN
AMAZONTODOTHERIGHTTHING?
ONLYTHEIRDOCTORSANDTHE
MILITARY.
THERETAILMARKETWEPARTICIPATE
INISEXTRAORDINARILYLARGEAND
COMPETITIVE.
AMAZONACCOUNTSFORLESSTHAN1%
OFTHE$25TRILLIONGLOBAL
RETAILMARKETANDLESSTHAN4%
OFU.S.RETAIL.
THERE'SROOMINRETAILFOR
MULTIPLEWINNERS.
WECOMPETEAGAINSTLARGE
ESTABLISHEDPLAYERSLIKETARGET,
COSTCO,KROGERANDOFCOURSE
WALMART,ACOMPANYMORETHAN
TWICEAMAZON'SSIZE.
20YEARSAGO,WEMADETHE
DECISIONTOINVITEOTHERSELLERS
TOSELLINOURSTORE,TOSHARE
THESAMEVALUABLEREALESTATEWE
SPENTBILLIONSTOBUILD,MARKET
ANDMAINTAIN.
WEBELIEVETHATCOMBININGTHE
STRENGTHSOFAMAZONSTOREWITH
THEVASTSELECTIONOFPRODUCTS
OFFEREDBYTHIRDPARTIESWOULD
BEABETTEREXPERIENCEFOR
CUSTOMERS.
ANDTHEGROWINGPIEOFREVENUE
ANDPROFITSWOULDBEBIGENOUGH
FORALL.
WEWEREBETTINGTHATITWASNOT
AZERO-SUMGAME.
FORTUNATELYWEWERERIGHT.
THEREARE1.7MILLIONSMALLAND
MEDIUM-SIZEDBUSINESSESSELLING
ONAMAZON.
THETRUSTCUSTOMERSPUTINUS
EVERYDAYHASALLOWEDAMAZONTO
CREATEMOREJOBSINTHEUNITED
STATESOVERTHEPASTDECADETHAN
ANYOTHERCOMPANY.
HUNDREDSOFTHOUSANDSOFJOBS
ACROSS42STATES.
AMAZONEMPLOYEESMAKE$15AN
HOUR,MORETHANDOUBLETHE
FEDERALMINIMUMWAGEANDWE
OFFERTHEBESTBENEFITS,
BENEFITSTHATINCLUDE
COMPREHENSIVEHEALTHINSURANCE
ANDPARENTALLEAVE.
ENTREPRENEURIALCOMPANIESSTART
ANDGROWHEREINTHEU.S.
WENURTUREENTREPRENEURSAND
START-UPSWITHSTABLERULEOF
LAW,THEFINESTUNIVERSITY
SYSTEMINTHEWORLD,THEFREEDOM
OFDEMOCRACY,ANDADEEPLY
ACCEPTEDCULTUREOFRISK-TAKING.
OFCOURSE,THISGREATNATIONOF
OURSISFARFROMPERFECT.
EVENASWEREMEMBERCONGRESSMAN
JOHNLEWISANDHONORHISLEGACY,
WE'REINTHEMIDDLEOFA
MUCH-NEEDEDRACERECKONING.
WEALSOFACETHECHALLENGESOF
CLIMATECHANGEANDINCOME
INEQUALITYANDSTUMBLINGTHROUGH
THECRISISOFAGLOBALPANDEMIC.
STILL,WITHALLOFOURFAULTS
ANDPROBLEMS,THERESTOFTHE
WORLDWOULDLOVEEVENTHE
TINIESTSIPOFTHEELIXIRINA
WEHAVEHEREINTHEU.S.
IMMIGRANTSLIKEMYDADSEEWHAT
ATREASURETHISCOUNTRYIS.
THEYHAVEPERSPECTIVEANDOFTEN
CANSEEITEVENMORECLEARLY
THANTHOSEOFUSWHOARELUCKY
ENOUGHTOBEBORNHERE.
ITISSTILLDAYONEFORTHIS
COUNTRYANDEVENINTHEFACEOF
TODAY'SHUMBLINGCHALLENGES,I
HAVENEVERBEENMOREOPTIMISTIC
ABOUTOURFUTURE.
I'MVERYHAPPYTOTAKEYOUR
QUESTIONS.
>>THANKYOU,MR.BEZOS.
YOUARERECOGNIZEDFORFIVE
MINUTES.
>>THANKYOU,MR.CHAIRMAN,
RANKINGMEMBERSENSENBRENNERAND
MEMBERSOFTHESUBCOMMITTEE.
BEFOREISTART,IKNOWTHIS
HEARINGWASDELAYEDBECAUSEOF
THECEREMONIESTOHONORTHELIFE
OFYOURCOLLEAGUE,
REPRESENTATIVEJOHNLEWIS.
BECAUSEOFHISCOURAGE,THIS
WORLDISABETTERPLACE.
HE'LLBEDEEPLYMISSED.
ADISCUSSIONABOUTCOMPETITION
ISADISCUSSIONABOUT
OPPORTUNITY.
IT'SNEVERBEENMOREIMPORTANT
ASTHEGLOBALPANDEMICFORCES
DUALCHALLENGESTOOURHEALTH
ANDECONOMY.
EXPANDINGACCESSTOOPPORTUNITY
THROUGHTECHNOLOGYISPERSONAL
TOME.
IDIDN'THAVEMUCHACCESSTOA
COMPUTERGROWINGUPININDIA.
SOYOUCANIMAGINEMYAMAZEMENT
WHENIARRIVEDINTHEU.S.FOR
GRADUATESCHOOLANDSAWAN
ENTIRELABOFCOMPUTERSTOUSE
WHENEVERIWANTED.
ACCESSINGTHEINTERNETFORTHE
FIRSTTIMESETMEONAPATHTO
BRINGTECHNOLOGYTOASMANY
PEOPLEASPOSSIBLE.
ITINSPIREDMETOBUILDGOOGLE'S
FIRSTBROWSERCHROME.
I'MPROUDTHAT11YEARSLATER
EXPERIENCECHROMEFORFREE.
GOOGLETAKESPRIDEINTHENUMBER
OFPEOPLEWHOCHOOSETHEIR
PRODUCTS.
WE'REPROUDEROFWHATTHEYDO
WITHTHEM.
FROMTHE140MILLIONSTUDENTS
ANDTEACHERSUSINGG-SUITFOR
EDUCATIONTOSTAYCONNECTED
DURINGTHEPANDEMICTOTHE5
MILLIONAMERICANSGAINING
DIGITALSCALESTO,ALLTHE
PEOPLEWHOTURNTOGOOGLEFOR
HELP,TOFINDINGTHEFASTEST
ROUTEHOME,TOLEARNINGHOWTO
COOKANEWDISHONYOUTUBE.
GOOGLE'SWORKWOULDNOTBE
POSSIBLEWITHOUTTHELONG
TRADITIONOFAMERICANINNOVATION
ANDWEAREPROUDTOCONTRIBUTE
TOITSFUTURE.
WEEMPLOYMORETHAN75,000
PEOPLEINTHEU.S.ACROSS26
STATES.
ITWASESTIMATEDTHATIN2018,
WEENLISTEDMORETHAN
$20BILLIONINTHEU.S.,CITING
USASTHELARGESTCAPITAL
INVESTORFORTHATYEAR.
ONEWAYWECONTRIBUTEISBY
BUILDINGHELPFULPRODUCTS.
RESEARCHFOUNDTHATFREE
SERVICESLIKESEARCH,GMAIL,
MAPSANDPHOTOSPROVIDE
THOUSANDSOFDOLLARSAYEARIN
VALUETOTHEAVERAGEAMERICAN
ANDMANYARESMALLBUSINESSES
USINGOURDIGITALTOOLSTOGROW.
AFAMILY-OWNEDSTONECOMPANY
USESGOOGLEMYBUSINESSTODRAW
MORECUSTOMERS.
AFAMILY-OWNEDAPPLIANCESTORE
INRHODEISLANDCREDITSGOOGLE
ANALYTICSWITHHELPINGTHEM
REACHCUSTOMERSONLINEDURING
THEPANDEMIC.
NEARLYONE-THIRDOFSMALL
BUSINESSOWNERSSAYTHATWITHOUT
DIGITALTOOLS,THEYWOULDHAVE
HADTOCLOSEALLORPARTOF
THEIRBUSINESSDURINGCOVID.
ATTHEENDOF2019,OURR&D
SPENDHASINCREASEDTENFOLDOVER
TENYEARSFROM$2.8BILLIONTO
$26BILLIONANDWEHAVEINVESTED
OVER$90MILLIONTHELASTFIVE
YEARS.
OURENGINEERSAREHELPING
AMERICAREMAINAGLOBALLEADER
INEMERGINGTECHNOLOGIESLIKE
ARTIFICIALINTELLIGENCE,
SELF-DRIVINGCARSANDQUANTUM
COMPUTING.
JUSTASAMERICA'STECHNOLOGY
LEADERSHIPISNOTINEVITABLE,
GOOGLE'SCONTINUEDSUCCESSESIS
NOTGUARANTEED.
TODAYUSERSHAVEMOREACCESSTO
INFORMATIONTHANEVERBEFORE.
COMPETITIONDRIVESUSTO
INNOVATEANDITLEADSTOBETTER
PRODUCTS,LOWERCHOICESANDMORE
CHOICESFOREVERYONE.
FOREXAMPLE,COMPETITIONHELPED
LOWERONLINEADVERTISINGCOSTS
BY40%,THESAVINGSPASSEDDOWN
TOCONSUMERS.
OPENPLATFORMSLIKEANDROID
SUPPORTTHEINNOVATIONOF
OTHERS.
USINGANDROID,THOUSANDSOF
MOBILEOPERATORSSELLTHEIROWN
DEVICESWITHOUTPAYINGANY
LICENSINGFEESTOUS.
THISHASENABLEDBILLIONSOF
CONSUMERSTOAFFORDCUTTING-EDGE
CELLPHONES.
WHETHERBUILDINGTOOLSFORSMALL
BUSINESSESORPLATFORMSLIKE
ANDROID,GOOGLESUCCEEDSWHEN
OTHERSSUCCEED.
COMPETITIONSETSHIGHER
STANDARDSFORPRIVACYAND
SECURITY.
IBELIEVETHATPRIVACYISA
UNIVERSALRIGHTANDGOOGLEIS
COMMITTEDTOKEEPINGTHE
INFORMATIONSAFE,TREATINGIT
REASONABLY,PUTTINGYOUIN
CONTROLANDWE'VELONGSUPPORTED
THECREATIONOFCOMPREHENSIVE
FEDERALPRIVACYLAWS.
GOOGLEAIMSTOBUILDPRODUCTS
THATINCREASEACCESSTO
EVERYONE,NOMATTERWHEREYOU
LIVE,WHATYOUBELIEVE,ORHOW
MUCHMONEYYOUEARN.
WE'RECOMMITTEDTODOINGTHIS
RESPONSIBLYINPARTNERSHIPWITH
LAWMAKERSTOENSUREEVERY
AMERICANHASACCESSTOTHE
INCREDIBLEOPPORTUNITYTHAT
TECHNOLOGYCREATES.
THANKYOU.
>>THANKYOU.
MR.COOKISRECOGNIZEDFORFIVE
MINUTES.
>>CHAIRMAN,RANKINGMEMBER,
MEMBERSOFTHESUBCOMMITTEE,
THANKYOUFORTHEOPPORTUNITYTO
OFFERTESTIMONY.
BEFOREIBEGIN,IWANTTO
RECOGNIZETHELIFEANDLEGACYOF
JOHNLEWIS.
IJOINYOUINMOURNINGNOTONLY
AHERO,BUTSOMEONEIKNEW
PERSONALLYWHOSEEXAMPLE
INSPIRESANDGUIDESMESTILL.
EVERYAMERICANOWESJOHNLEWISA
DEBTANDIFEELFORTUNATETO
HAILFROMASTATETHAT
BENEFITTEDFROMHISLEADERSHIP.
MYNAMEISTIMCOOK.
I'VEBEENAPPLE'SCEOSINCE2011
ANDAPROUDEMPLOYEEOFTHIS
UNIQUELYAMERICANCOMPANYSINCE
1998.
ATAPPLE,WEMAKEOURSELVESA
PROMISEANDOURCUSTOMERSA
PROMISE.
IT'SAPROMISETHATWE'LLONLY
BUILDTHINGSTHATMAKEUSPROUD.
ASSTEVEPUTIT,WEONLYMAKE
THINGSTHATWEWOULDRECOMMEND
TOOURFAMILYANDFRIENDS.
YOUCANTRYTODEFINETHIS
DIFFERENCEINALOTOFWAYS,YOU
CANCALLITTHESEAMLESS
INTEGRATIONOFSOFTWAREOR
HARDWARE.
BUTIFYOUWANTTOPUTIT
SIMPLY,PRODUCTSLIKEiPHONE
JUSTWORK.
WHENCUSTOMERSCONSISTENTLYGIVE
iPHONEA99%SATISFACTION
RATING,THAT'STHEMESSAGE
THEY'RESENDINGABOUTTHEUSER
EXPERIENCE.
BUTWEALSOKNOWTHATCUSTOMERS
HAVEALOTOFCHOICESANDTHAT
OURPRODUCTSFACEFIERCE
COMPETITION.
COMPANIESLIKESAMSUNG,LG,
HUAWEIANDGOOGLEHAVEBUILT
SUCCESSFULBUSINESSESWITH
DIFFERENTAPPROACHES.
WE'REOKAYWITHTHAT.
OURGOALISTHEBEST.
NOTTHEMOST.
INFACT,WEDON'THAVEA
DOMINANTSHAREINANYMARKETOR
INANYPRODUCTCATEGORYWHEREWE
DOBUSINESS.
WHATDOESMOTIVATEUSISTHAT
TIMELESSDRIVETOBUILDNEW
THINGSTHATWE'REPROUDTOSHOW
OURUSERS.
WEFOCUSRELENTLESSLYONTHOSE
INNOVATIONS,ONDEEPENINGCORE
PRINCIPLESLIKEPRIVACYAND
SECURITY,ANDONCREATINGNEW
FEATURES.
IN2008WEINTRODUCEDANEW
FEATURECALLEDTHEAPPSTORE.
LAUNCHEDWITH500APPS,WHICH
SEEMEDLIKEALOTATTHETIME,
THEAPPSTOREPROVIDEDASAFE
ANDTRUSTEDWAYFORUSERSTOGET
MOREOUTOFTHEIRPHONE.
WEKNEWTHEDISTRIBUTIONOPTIONS
FORSOFTWAREDEVELOPERSATTHE
TIMEDIDN'TWORKWELL.
BRICK-AND-MORTARSTORESCHARGED
HIGHFEES,PHYSICALMEDIALIKE
CDsHADTOBESHIPPEDANDWERE
HARDTOUPDATE.
FROMTHEBEGINNING,THEAPP
STOREWASAREVOLUTIONARY
ALTERNATIVE.
APPSTOREDEVELOPERSSETPRICES
FORTHEIRAPPSANDNEVERPAYFOR
SHELFSPACE.
WEPROVIDEEVERYDEVELOPERWITH
CUTTING-EDGETOOLSLIKE
COMPILERS,PROGRAMMINGLANGUAGES
ANDMORETHAN150,000ESSENTIAL
SOFTWAREBUILDINGBLACKSCALLED
APIs.
THEGUIDELINESENSUREAHIGH
QUALITY,RELIABLE,ANDSECURE
USEREXPERIENCE.
THEY'RETRANSPARENT.
FORTHEVASTMAJORITYOFAPPS,
DEVELOPERSKEEP100%OFTHE
MONEYTHEYMAKE.
THEONLYAPPSTHATARESUBJECT
TOACOMMISSIONARETHOSEWHERE
THEDEVELOPERACQUIRESA
CUSTOMERANDWHERETHE
EXPERIENCESWILLBECONSUMEDON
ANAPPLEDEVICE.
INTHEAPPSTORE'SMORETHAN
TEN-YEARHISTORY,WEHAVENEVER
RAISEDTHECOMMISSION.
WE'VEREDUCEDITFOR
SUBSCRIPTIONS.
I'MHERETODAYBECAUSESCRUTINY
ISREASONABLEANDAPPROPRIATE.
WEAPPROACHTHISPROCESSWITH
RESPECTANDHUMANITY.
BUTWEMAKENOCONCESSIONONTHE
FACTS.
WHATBEGANAS500APPSISNOW
MORETHAN1.7MILLION.
ONLY60OFWHICHAREAPPLE
SOFTWARE.
IFAPPLEISAGATEKEEPER,WHAT
WE'VEDONEISOPENTHEGATE
WIDER.
WEWANTTOGETEVERYAPPWECAN
ONTHESTORE,NOTKEEPTHEMOFF.
THEAPPSTORE'SECONOMIC
CONTRIBUTIONSARESIGNIFICANT.
THEECOSYSTEMISRESPONSIBLEFOR
1.9MILLIONJOBSINALL50
STATESANDITFACILITATED138
BILLIONINCOMMERCEINTHEU.S.
IN2019ALONE.
ISHARETHECOMMITTEE'SBELIEF
THATCOMPETITIONPROMOTES
INNOVATION,THATITMAKESSPACE
FORTHENEXTGREATIDEA,AND
THATITGIVESCONSUMERSMORE
CHOICES.
SINCEAPPLEWASFOUNDED,THESE
THINGSHAVEDEFINEDUS.
THEFIRSTMACBROUGHT
OPPORTUNITYANDPOSSIBILITYINTO
THEHOME.
THEiPODHELPEDMUSICIANSAND
ARTISTSSHARETHEIRCREATIONS
ANDBEPAIDFAIRLYFORIT.
THISLEGACYDOESMUCHMORETHAN
MAKEUSPROUD.
ITINSPIRESUSTOWORK
TIRELESSLYTOMAKESURETOMORROW
WILLBEEVENBETTERTHANTODAY.
THANKYOUVERYMUCH.
ILOOKFORWARDTORESPONDINGTO
YOURQUESTIONS.
>>THANKYOU,MR.COOK.
MR.ZUCKERBERGISRECOGNIZEDFOR
FIVEMINUTES.
>>THANKYOU,BEFOREIBEGIN,I
WANTTOADDMYVOICETOTHOSE
HONORINGCONGRESSMANJOHNLEWIS
ANDHISSERVICETOOURCOUNTRY.
AMERICAHASLOSTAREALHEROWHO
NEVERSTOPPEDFIGHTINGFORTHE
RIGHTSOFEVERYPERSON.
CHAIRMANCICILLINE,RANKING
MEMBERSENSENBRENNER,MEMBERSOF
THESUBCOMMITTEE,THANKYOUFOR
THEOPPORTUNITYTOTESTIFY.
THETECHINDUSTRYISANAMERICAN
SUCCESSSTORY.
THEPRODUCTSWEBUILDHAVE
CHANGEDTHEWORLDANDIMPROVED
PEOPLE'SLIVES.
OURINDUSTRYISONEOFTHEWAYS
THATAMERICASHARESITSVALUES
WITHTHEWORLDANDONEOFOUR
GREATESTECONOMICANDCULTURAL
EXPORTS.
FACEBOOKISPARTOFTHISSTORY.
WESTARTEDWITHANIDEA,TOGIVE
PEOPLETHEPOWERTOSHAREAND
CONNECT.
ANDWEBUILTSERVICESTHAT
BILLIONSOFPEOPLEFINDUSEFUL.
I'MPROUDTHATWE'VEGIVEN
PEOPLEWHOHAVENEVERHADA
VOICEBEFORETHEOPPORTUNITYTO
BEHEARD.
ANDGIVENSMALLBUSINESSES
ACCESSTOTOOLSTHATONLYTHE
LARGESTPLAYERSUSEDTOHAVE.
SINCECOVIDEMERGED,I'MPROUD
THATPEOPLEHAVEUSEDOUR
SERVICESTOSTAYINTOUCHWITH
FRIENDSANDFAMILYWHOTHEY
CAN'TBEWITHINPERSONANDTO
KEEPTHEIRSMALLBUSINESSES
RUNNINGONLINEWHENPHYSICAL
STORESARECLOSED.
IBELIEVETHATFACEBOOKANDTHE
U.S.TECHINDUSTRYAREAFORCE
FORINNOVATIONANDEMPOWERING
PEOPLE.
BUTIRECOGNIZETHATTHEREARE
CONCERNSABOUTTHESIZEAND
POWEROFTECHCOMPANIES.
OURSERVICESAREABOUT
CONNECTIONANDOURBUSINESS
MODELISADVERTISING.
WEFACESOMETENSECOMPETITION
INBOTH.
MANYOFOURCOMPETITORSHAVE
HUNDREDSOFBILLIONSORBILLIONS
OFUSERS--
BUTIRECOGNIZETHAT
OFUSERS--
>>>COMMITTEEWILLCOMETO
ORDER.
IRECOGNIZETHEGENTLELADYFROM
FLORIDA,MS.DEMINGS--I'M
SORRY.
IRECOGNIZETHEGENTLEMANFROM
NORTHDAKOTAFORFIVEMINUTES.
>>THANKYOU.
MR.BEZOS,EARLIERMYCOLLEAGUE
BROUGHTUPWHATITHINKISAN
IMPORTANTISSUEANDTHEYWERE
DISCUSSINGAMAZON'SSTATED
POLICYAGAINSTUSINGTHIRDPARTY
SELLERINFORMATIONTOINFORM
BUSINESSDECISIONSREGARDING
AMAZON'SPRIVATELABELBRANDS.
ITWASSPECIFICALLYNOTEDTHATA
POSSIBLELOOPHOLETHATALLOWS
AMAZONTOLOOKATDATAIN
INSTANCESWHERETHEREAREONLYA
FEWTHIRD-PARTYSELLERS.
IWANTTODRILLDOWNONTHATA
LITTLEMORE.
WHEREDOESAMAZONDRAWTHELINE?
>>I'MSORRY.
AGGREGATEDATAWOULDBEMORE
THANONESELLER.
ANDYOUHAVETOREMEMBERTHAT
THEPERSONSEEINGTHEREPORT
WOULDHAVENOWAYOFKNOWINGHOW
MANYSELLERSAREINSIDETHAT
GROUPORWHATTHE--YOUKNOW,
WHATTHEBREAKDOWNWOULDBE
BETWEENTHOSESELLERS.
IT'SNOTTHATDIFFERENTFROM
PERHAPSALISTORAPRODUCT
RANKINGWHICHWEMAKEPUBLICFOR
ALL.
>>DOESAMAZONALLOWTHEUSEOF
AGGREGATEDATATOINFORMPRIVATE
LABELBRANDSWHENTHEREAREONLY
THREESELLERSFORAPRODUCT.
>>YES,SIR.
>>AMICORRECTINMY
UNDERSTANDINGTHATAMAZONIS
CONDUCTINGANINTERNAL
INVESTIGATIONONTHEUSEOF
THIRD-PARTYYES.
WE'REBASICALLYTRYINGTO
UNDERSTANDSOMEOFTHEANECDOTES
THATWESAWINTHE"WALLSTREET
JOURNAL"ARTICLE.
>>WILLYOUCOMMITTOINFORMING
THISCOMMITTEEONTHEOUTCOMEOF
THATINVESTIGATIONINCLUDINGTHE
EXACTCIRCUMSTANCESOFWHEN
AMAZONISALLOWEDTOVIEWAND/OR
USEAGGREGATEDATA?
>>YES,WEWILLDOTHAT.
>>NOWIWANTTOMOVE--JUST
REALLYQUICK,MUSICCANBEUSED
TODRIVEREVENUE.
OBVIOUSLYTHERE'SAREASONIT'S
IMPORTANTNOW.
I'LLTALKABOUTTWITCHFORA
SECOND.
NEWSREPORTSHAVEINDICATEDTHAT
TWITCHUSERSARERECEIVING
NOTICEANDTAKEDOWNREQUESTS
PURSUANTTOTHEDIGITAL
MILLENNIALCOPYRIGHTACT.
MYUNDERSTANDINGISTHATTWITCH
ALLOWSUSERSTOSTREAMMUSICBUT
DOESNOTLICENSETHEMUSIC.
ISTHATCORRECT?
>>I'MGOINGTOHAVETOASKTHAT
ICOULDGETBACKTOYOUROFFICE
WITHANANSWERTOTHATQUESTION.
IDON'TKNOW.
>>SO,THATWOULDBEGREAT.
ANDTHENIJUSTHAVETWOMORE
QUESTIONSRELATEDTOTHAT.
IFTWITCHISRESPONDINGTODMCA
NOTICEANDTAKEDOWN
REQUIREMENTS,SHOULD,ONE,
TWITCHCONSIDERPROACTIVE
LICENSINGMUSICINSTEADOF
RETROACTIVELYADHERINGTOTHOSE
NOTICES?
THESEARETHEQUESTIONSI'M
CONCERNEDIN.
I'MPRIMARILYCONCERNEDABOUT
SMALLUPANDCOMING,MAKINGIT
EASYFORTHEMTOGETCEASEAND
DESISTNOTICESOUTASWELLAND
ASWECONTINUETOMOVEFORWARD.
>>YES,CONGRESSMAN,THAT'SAN
IMPORTANTISSUEANDWE
UNDERSTANDIT.
ANDIWILLGETBACKTOYOUR
OFFICEONTHAT.
>>ALLRIGHT.
EARLIERTHISYEAR,GOOGLE
ANNOUNCEDPLANSTORETIRETHIRD
PARTYCOOKIESTHATWEBSITES
ATTACHTOUSERSWEBBROWSERS.
ANDTHISALLOWSUSERSTOBE
TRACKEDACROSSTHEINTERNET.
THECONSEQUENCEOFTHATCHANGE
ISTHATITWILLPUTOTHER
PARTICIPANTSATADISADVANTAGE
BECAUSETHEYCANNOLONGERTRACK
USERS.
ATTHEVERY,VERYDANGEROF
BEINGPRO-COOKIE,BECAUSEI'M
NOTWHENIUSEMYCOMPUTERAS
WELL,ANDIUNDERSTANDTHEREARE
LEGITIMATEPRIVACYCONCERNWITH
THIRDPARTYCOOKIES,BUTIWANT
TOFOCUSONTHECOMPETITION
ASPECT.
DIDTHISACTIONALSOPLACE
GOOGLEATADISADVANTAGEORDOES
GOOGLEHAVEALTERNATIVEMEANSOF
COLLECTINGTHEDATATOINFORM
ACTIVITIES?
>>THISISANAREAWHEREWEHAVE
FOCUSEDONUSERPRIVACY,AND
USERSCLEARLYDON'TWANTTOBE
TRACKEDWITHTHIRDPARTY
COOKIES.
INFACT,OTHERBROWSERWINDOWS
INCLUDINGAPPLEHAVEALSO
IMPLEMENTEDTHESECHANGES.
WEAREDOINGIT,THOUGHTFULLY
GIVINGTIMEFORTHEINDUSTRYTO
ADAPTBECAUSEWEKNOW
PUBLISHERINGDEPENDONREVENUE
INTHISAREA.
BUTIT'SANIMPORTANTCHANGE,
ANDITHINKWEHAVETOBE
FOCUSEDONPRIVACYTODRIVETHE
CHANGEFORWARD.
>>BUTYOUHAVEOTHERWAYOF
COLLECTINGTHATINFORMATION,
CORRECT?
>>ONOURFIRST-PARTYSERVICES,
WEDON'TRELYONCOOKIES.
ANDOBVIOUSLYWHENPEOPLECOME
ANDTYPEINTO--
>>I'MNOTASKINGIFYOURELYON
COOKIES.
I'MASKINGIFYOUHAVEOTHER
WAYSOFCOLLECTINGTHROUGH
G-MAILORCONSUMERFACING
PLATFORMS,RIGHT?
>>WEDON'TUSEDATAFROMG-MAIL
FORADS,CONGRESSMAN.
TOTHEEXTENTONTHESERVICES
WHEREWEPROVIDEADSANDIF
USERSHAVECONSENTEDTOADS
PERSONALIZATION,YES,WEDOHAVE
DATA.
>>THANKYOU.
IYIELDBACK.
>>THEGENTLEMANYIELDSBACK.
IRECOGNIZETHEGENTLELADYFROM
FLORIDAFORFIVEMINUTES.
>>THANKYOUSOMUCH.
DURINGDISCUSSIONSOFCHANGING
FACEBOOK'SPLATFORMPOLICYIN
2012,YOUSAIDTHAT,ANDI
QUOTE,INANYMODELI'MASSUMING
WEENFORCEPOLICIESAGAINST
COMPETITORSMUCHMOORESTRONGLY.
ITSOUNDSLIKEFACEBOOK
WEAPONIZESITSPOLICIESTO
TARGETCOMPETITORS.
WHYWOULDFACEBOOKENFORCEITS
POLICIESAGAINSTCOMPETITORS
MORESTRONGLY?
>>CONGRESSWOMAN,WHENWEWEREA
MUCHSMALLERCOMPANY,WESAW
THAT--
>>THISIS2012,NOW.
THISWASIN2012,SOPLEASEGO
RIGHTAHEAD.
>>SURE.
WE'VEHADPOLICIESINTHEPAST
THATHAVEPREVENTEDOUR
COMPETITORS,WHICHATTHETIME
WEWEREPRIMARILYWORRIEDABOUT
LARGERCOMPETITORSFROMUSING
OURPLATFORMSTOGROWAND
COMPETEWITHUS.
SO,WEHADSOMEOFTHOSE
POLICIES.
WECONTINUALLYREVIEWEDTHEM
OVERTIME,AND--
>>SINCE2013,ASENIORFACEBOOK
EMPLOYEEIDENTIFIEDMEASAFAST
GROWINGAPPLEONFACEBOOKAND
SAIDWEWOULDRESTRICTTHEIR
ACCESS.
WASTHISANOTHEREXAMPLEOF
ENFORCINGFACEBOOK'SPOLICIES
AGAINSTCOMPETITORSMUCHMORE
STRONGLY?
MESSAGEME?
>>I'MNOTFAMILIARWITHTHAT
SPECIFICEXAMPLE,BUTWEDID
HAVETHATPOLICY.
>>LET'SMOVETOANOTHERONE.
IN2014,OTHERFACEBOOKPRODUCT
MANAGERSOPENLYDISCUSSREMOVING
PINTEREST'SACCESSTOFACEBOOK'S
PLATFORMTOOLSASONEEMPLOYEE
SAID,IAM100%INFAVOROFTHE
IDEAOFMOVINGITFROM
PINTEREST,BUTIAMNOT
RECOMMENDINGREMOVINGITFROM
NETFLIXGOINGFORWARD.
WHYWOULDFACEBOOKPRODUCT
MANAGERSWANTTORESTRICT
PINTEREST'SACCESSTOFACEBOOK
BUTNOTNETFLIX?
>>CONGRESSWOMAN,I'MNOT
FAMILIARWITHTHATEXCHANGE.
IDON'TTHINKIWASONTHAT.
>>WHYDOYOUTHINKYOUWOULD
HAVETOBEONTHAT,BUTWHYDO
YOUTHINKTHEYWOULDMAKETHAT
DECISIONORWOULDMAKEA
DECISIONLIKETHAT?
>>WELL,CONGRESSWOMAN,ASI
SAID,WEUSEDTOHAVEAPOLICY
THATRESTRICTEDCOMPETITORSFROM
USINGOURPLATFORMANDPINTEREST
ISASOCIALCOMPETITORWITHUS.
IT'SONEOFTHEMANYCOMPETITORS
THATALLOWPEOPLETOSHARE--
>>ALLRIGHT.
MR.ZUCKERBERG,THESEEXAMPLES
ANDSUPPORTINGDOCUMENTS
STRONGLYSUGGESTTHATFACEBOOK
DOESWEAPONIZEITSPLATFORM
POLICIES,ENFORCINGTHEM
SELECTIVELYTOUNDERMINE
COMPETITORS.
BUTLET'SMOVEON.
MR.COOK,IAMCONCERNEDTHAT
APPLE'SPOLICIESAREALSO
PICKINGWINNERSANDUSERSINTHE
APPECONOMYANDTHATAPPLERULES
MEANAPPLEAPPSALWAYSWIN.
MR.COOK,IN2019,APPLEREMOVED
FROMTHEAPPLESTORECERTAIN
APPSTHATHELPEDPARENTSCONTROL
THEIRCHILDREN'SDEVICES.
DOYOUREMEMBERWHAT
JUSTIFICATIONAPPLECITED?
>>YES,CONGRESSWOMAN,IDO.
ITWASTHATTHEUSEOF
TECHNOLOGYCALLEDMDM,MOBILE
DEVICEMANAGEMENT,PLACEDKID'S
DATAATRISK.
SO,WEWEREWORRIEDABOUTTHE
SAFETYOFKIDS.
>>OKAY.
ALLRIGHT.
SO,YOUWERECONCERNEDABOUT
THATTHEAPPBASICALLY
UNDERMINEDKID'SPRIVACY.
BUTANOTHERAPPTHATUSEDTHIS
SAMETOOLWASAPPURE,ANAPP
CONTROLLEDBYTHESAUDIARABIAN
GOVERNMENT.
DOYOURECALLAPPLE'SPOSITION
ONTHIS?
>>I'MNOTFAMILIARWITHTHAT
APP.
>>OKAY.
APPLEALLOWEDTHISSAUDIAPPTO
REMAIN.
THEREARETWOTYPESOFAPPSTHAT
USETHESAMETOOL.
APPLEKICKSONEOUTANDSAID
THATTHATWASONETHATWAS
HELPINGPARENTSBUTKEEPSTHE
ONEOWNEDBYAPOWERFUL
GOVERNMENT.
IFTHATISCORRECT,MR.COOK,
THATAPPSTHATSUPPOSEDLYDID
THESAMETHING,WHYDOYOU--
WHYWOULDYOUKEEPTHEONEOWNED
BYAPOWERFULGOVERNMENT?
>>I'DLIKETOLOOKINTOTHIS
ANDGETBACKWITHYOUROFFICE.
>>ITSOUNDSLIKEYOUAPPLIED
DIFFERENTRULESTOTHESAME
APPS.
>>WEAPPLYTHERULESTOALL
DEVELOPERSEVENLY.
>>DOTHEFACTTHATAPPLEHAD
ITSOWN--LETMEJUSTASKYOU
THIS.
DIDTHEFACTTHATAPPLEHADITS
OWNPARENTALCONTROLAPPSTHAT
WERECOMPETINGWITHTHESETHIRD
PARTYAPPSCONTRIBUTETOAPPLE'S
DECISIONTOKICKTHEMOFFTHE
APPLESTORE,MR.COOK?
WHATDOYOUTHINKABOUTTHAT?
>>ITDIDNOT.
THERE'SOVER30PARENTAL
CONTROLSONTHEAPPSTORETODAY
SO,THERE'SPLENTYOF
COMPETITIONINTHISAREA.
IWOULDPOINTOUTTHATTHISIS
NOTANAREAWHEREAPPLEGETSANY
REVENUEATALL.
WEDO--
>>MR.COOK,IDIDN'TASK
ANYTHINGABOUTREVENUE.
THATWASNOTMYQUESTION,BUT
I'MOUTOFTIME,ANDTHANKYOU
SOMUCH.
MR.CHAIR,IYIELDBACK.
>>THANKTHEGENTLELADY,FOR
YIELDINGBACK.
IYIELDTOMR.JORDANFORFIVE
MINUTES.
>>THANKYOU,IYIELDTOTHE
GENTLEMANFROMFLORIDA.
>>THANKYOUFORYIELDING.
JUSTASMR.PACHIGAVE
INFORMATION,YOUHAVEGIVEN
TESTIMONYTOCONGRESSSAYING
THEREISNOTEDITORIAL
MANIPULATIONTHATDISADVANTAGES
CONSERVATIVESANDJUSTLIKEIN
THECASEOFGOOGLETHEREHAVE
BEENWHISTLEBLOWERSFROM
FACEBOOKTHATNOTONLYHAVE
OFFEREDEVIDENCEINDICATINGTHE
TESTIMONYWASNOTTRUTHFULBUT
THERE'SEVENVIDEOTHATSUGGEST
CONTENTMODERATORSYOUEMPLOY
AREOUTTHEREDISADVANTAGING
CONSERVATIVECONTENT.
I'MWONDERINGIFYOUARE
FAMILIARWITHTHEEXPERIENCESOF
ZACKMcILROYANDRYANELWIGAND
WHATISYOURRESPONSETOTHE
VERYDAMNINGVIDEOEVIDENCEAND
THETESTIMONYFROMTHEMTHATTHE
CULTURETHATYOULEADWITHIN
FACEBOOKISONETHAT
DISADVANTAGESCONSERVATIVESAND
LEADSTOCONTENTMANIPULATION?
>>CONGRESSMAN,I'MSOMEWHAT
FAMILIARWITHTHECONCERNSTHEY
HAVERAISED.
ASI'VESAID,WEAIMTOBEA
PLATFORMFORALLIDEAS.
WEGOTINTOTHISBECAUSEWEWANT
TOGIVEEVERYONEAVOICE.
ICERTAINLYDONOTWANTOUR
PLATFORMSTOBERUNINAWAY
THATHASANYIDEOLOGICALBIAS,
ANDIWANTPEOPLETOBEABLETO
DISCUSSARANGEOFISSUES.
WHENPEOPLERAISECONCERNSLIKE
THAT,WEDOLOOKINTOTHEMTO
MAKESURETHATEVERYONEINOUR
OPERATIONISBEHAVINGAND
UPHOLDINGTHESTANDARDSTHATWE
WOULDLIKE.
ANDIFTHEBEHAVIORTHATTHEY
CITEDISTRUE,THENTHATWOULD
BEUNACCEPTABLEINOUR
OPERATION.
>>ANDFOLLOWINGTHERELEASEOF
THOSEVIDEOSANDTHATEVIDENCE
FROMPROJECTVARYTAS,WHENYOU
DESCRIBETHEINFORMATION
FACEBOOKUNDERTOOKTOROOTOUT
THECORROSIVEEFFECTSONYOUR
PLATFORM?
>>CONGRESSMAN,IWOULDHAVETO
GETBACKTOYOUWITHMORE
DETAILSONTHAT,BUTIKNOWTHAT
WEHAVEONGOINGTRAININGINWHAT
WEDO,ANDWECERTAINLYWILL
LOOKINTOANYCOMPLAINTSTHAT
COMEUP.
ANDWEWANTTOMAKESURETHAT
HOWWERUNTHECONTENTREVIEW
TEAMSTHATIT'SDONEINAWAY
THATREFLECTSTHEVALUESOFTHE
COMPANYAROUNDGIVINGAVOICE
ANDBEINGAPLATFORMFORALL
IDEAS.
>>I'MCONCERNEDTHATTHE
CONTENTREVIEWDOESREFLECTTHE
VALUESOFTHECOMPANYBUTTHOSE
VALUESDON'TGIVEEVERYONEA
VOICE.
THEYPREJUDICEAGAINSTCONCERN
CONTENT.
WHILEIAPPRECIATETRAININGASA
PROPHYLACTICENDEAVORTOTRYTO
GUIDEFUTURECONTENT,ITSEEMS
DISINGENUOUSFORYOUTOSUGGEST
THATTHESEVIDEOSCOMEOUTTHAT
AREVERYDAMNINGTHATSHOWTHE
PEOPLETHATYOUTRUSTWITH
CONTENTMODERATIONADMITTINGON
VIDEOTHATTHEYDISADVANTAGED
CONSERVATIVES,THEYTHEYLABEL
PEOPLEWHOSUPPORTTHE
PRESIDENT,FORYOUTOTHENCOME
TOUSMANYMONTHSLATERAFTER
THATWASALLOVERTHENEWSAND
THEINTERNETANDSAY,WELL,
YOU'LLGETBACKTOUSANDDOA
LITTLETRAINING.
ITSEEMSTOSUGGESTTHATYOU
DON'TTAKETHESEALLEGATIONSAND
THISEVIDENCEVERYSERIOUSLY.
SO,I'LLASKTHEQUESTION,
PERHAPS,INADIFFERENTWAY.
WOULDYOUREVISE--INYOUR
PRIORTESTIMONYATENERGYAND
COMMERCE,YOUSAIDTHISDOESNOT
HAPPEN,ITCANNOTHAPPEN.
WOULDYOUATLEASTBEWILLINGTO
ACKNOWLEDGEBASEDONTHE
IRREFUTABLEEVIDENCEBEFOREUS
THATYOUDON'TSEEMTOHAVE
INVESTIGATEDTHATITISTHATAT
FACEBOOKYOUREMPLOYEESDOHAVE
THEPOWERTODISADVANTAGE
CONSERVATIVEVIEWPOINTSANDTHEY
INFACTHAVEUSEDTHATPOWERIN
WAYSTHATWENEEDTOROUTOUT?
>>CONGRESSMAN,MYTESTIMONYIN
THEPASTANDTODAYISABOUTWHAT
OURPRINCIPLESAREASACOMPANY
ANDWHATWETRYTODO.
OFCOURSEWHENYOUHAVETENSOF
THOUSANDSOFEMPLOYEES,PEOPLE
MAKEMISTAKE,PEOPLEHAVESOME
OFTHEIROWNGOALS.
SOTIMEANDIT'SOURJOBIN
RUNNINGTHECOMPANYTOMAKESURE
THATWEMINIMIZEERRORSANDTHAT
WEMAKESURETHATTHECOMPANY'S
OPERATIONSREFLECTTHE
PRINCIPLESTHATWEINTENDTORUN
ITON.
>>ANDWHENYOUFIREPEOPLEASA
CONSEQUENCEOFTHEIRPOLITICS,
DOYOUTHINKTHATIMPACTSTHE
CULTUREANDEMPOWERSTHECONTENT
MODERATORSTOALSOTREATPEOPLE
WORSEASACONSEQUENCEOFTHEIR
POLITICS?
>>CONGRESSMAN,I'MNOTSURE
WHATYOU'REREFERRINGTO.
I'MNOTAWAREOFANYCASEWHERE
WEHAVEFIREDSOMEONEONBEHALF
OFTHEIRPOLITICS.
IWOULDSAYTHATWOULDBEAN
INAPPROPRIATETHINGFORUSTO
DO.
>>WHYDIDYOUFIREPAUL?
>>CONGRESSMAN,I'MNOTSURE
IT'SAPPROPRIATETOGETINTOA
SPECIFICPERSONNELISSUE
PUBLICLY.
>>IMEAN,ICOULDJUSTTELLYOU
THATIONLYHAVETENMINUTES.
ITDOESN'TALLOWHIMTOTALKTO
ANYONEEXCEPTGOVERNMENT
OFFICIALS.
OOIPGOVERNMENTOFFICIAL.
I'VESEENTHEMESSAGESWHEREYOU
HAVESPECIFICALLYDIRECTED
MR.LUCKYTOMAKESTATEMENTS
REGARDINGHISPOLITICSFORTHE
BENEFITOFYOURCOMPANY.
ITHINKBOTHINTHECASEOFTHE
CONTENTMODERATORSANDTHECASE
OFTHETESTIMONYYOUJUSTGAVE
REGARDINGMR.LUCKYANDFIRING
PEOPLEOVERTHEIRPOLITICS,
THERE'SSERIOUSQUESTIONASTO
WHETHERORNOTYOU'REGIVING
TRUTHFULTESTIMONYHEREOR
WHETHERIT'SLYINGBEFORELONG.
ISEEMYTIMEHASEXPIREDAND
I'LLYIELDBACK.
>>GENTLEMANYIELDSBACK.
IRECOGNIZETHEGENTLELADYFROM
PENNSYLVANIA.
>>THANKYOU.
IWANTEDTOFOCUSALITTLEBIT
ONGOOGLE'SACQUISITIONOF
YOUTUBEANDSOMEOFTHE
CONSEQUENCEOSSOFFTHATMOVEFOR
CONSUMERPRIVACYAND
COMPOSITION.
IT'SMYUNDERSTANDINGGOOGLE
PAID1.65BILLIONMORETHAT
ACQUISITION.
SO,COULDYOUTELLUSWHYGOOGLE
WASWILLINGTOPAYSOMUCHMORE
BEYONDTHEINITIALPROPOSEDBID
ANDWASTHISTHERESULTOFANY
HARM?
>>CONGRESSWOMAN,WEACQUIRED
YOUTUBEIN2006ANDTHISIS
RELEVANTFORMYTIMEASCEO.
BUTIRECALLISWESAWITASA
NEWEMERGENTAREAANDWESAWIT
ASOPPORTUNITY.
>>WASMR.PAGEINCHARGEOF
THATDECISION?
ORYOUDON'TKNOW?
OKAY.
>>I'MPRETTYSURESENIOR
LEADERSHIPTEAMATTHETIME
LOOKEDINTOIT.
>>IWOULDENCOURAGETHE
SUBCOMMITTEETOTAKEWHATEVER
STEPSTOHEARFROMTHAT.
GOOGLEISTHETOPONLINESITE
WHEREAMERICANSWATCHVIDEOS
INCLUDINGCHILDREN'SVIDEOS.
ASI'MSUREYOU'REAWAREFEDERAL
LAWPREVENTSCOMPANIESFROM
COLLECTINGDATAONCHILDREN
UNDER13.
THEFEDERALTRADECOMMISSION
FOUNDTHATGOOGLESPENTYEARS
KNOWINGLYCOLLECTINGDATAON
CHILDRENUNDER13ONYOUTUBEAND
OFFERINGADVERTISERSTHEABILITY
TOTARGETTHOSEUSERSDIRECTLY.
DIDYOUTUBEUSETHEDATAIT
ILLEGALLYACQUIREDTOTARGETADS
TOCHILDREN?
>>WEARE--YOUKNOW,THISAN
AREA,TAKEITVERYSERIOUSLY.
I'MAPARENTTOO?
WEMAKESUREWEHAVECLEAR
POLICIES.
WEENFORCETHEMRIGOROUSLY.
JUSTINQ4OF2019WEREMOVED
ALMOSTCLOSETOAMILLIONVIDEOS
POTENTIALLYFORCONCERNSAROUND
CHILDSAFETY.
SO,ITISANAREAWEARE
ENLISTINGRIGOROUSLYANDWILL
CONTINUETODOSO.
>>I'MMORECONCERNEDABOUTTHE
FACTYOU'REINVESTINGRIGOROUSLY
INLURINGINADVERTISERSLIKE
TOYMAKERSMATELLANDHASBROBY
TELLINGTHEMYOUTUBEISTHE
NUMBERONEWEBSITEREGULARLY
VISITEDBYKIDS.
SO,THATSOUNDSLIKEYOU'RE
TARGETINGTHEKIDSANDTHEN
TARGETINGADVERTISERSTOBRING
THEMONBOARD.
ISTHATCORRECT?
>>THEREARESCENARIOSTOBE
FAMILYVIEWINGANDCONTENT
ORIENTEDTOWARDSFAMILIESAND
THEREAREADVERTISERSWHICHARE
INTERESTEDINCONNECTINGWITH
THOSEUSERS.
BUTEVERYTHINGHEREWEOBVIOUSLY
COMPLYWITHALLTHEAPPLICABLE
REGULATIONS.
>>OKAY.
LET'SLOOKATSOMEOFTHE
CONTENTTHATISSPECIFICALLYFOR
CHILDREN.
IFASHOWLIKE"SESAMESTREET"
DOESN'TWANTTOSHOWADSFOR
JUNKFOODONYOUTUBE,DOES
YOUTUBEALLOWITTOMAKETHAT
CHOICE?
>>TODAYWEHAVECHOICESFOR
BOTHCREATORSINTERMSOFTOOLS
ANDPREFERENCESANDWEHAVE
EXTENSIVETOOLSFORADVERTISERS.
ANDALTHOUGHFORUSERSWEGIVEA
CHOICETHEYCANEITHERUSE
YOUTUBEASASUBSCRIPTION
SERVICEWITHOUTSEEINGTHOSE
TYPESOFADSORTHEYCANUSEIT
FORFREEWITHADS.
SO,WEGIVECHOICE.
ANDFORUS,ITISMOST
IMPORTANCETHATYOUTUBEISA
PLACEWHEREPEOPLECOMETOLEARN
ANDWEFINDINCREASINGLYSMALL
ANDMEDIUMBUSINESSUSEYOUTUBE.
>>OKAY.
LET'SGOBACKTOCONTENTTHAT'S
DESIGNEDFORCHILDREN.
SO,IFTHERE'SANORGANIZATION
LIKE"SESAMESTREET"THATWANTS
TOPROVIDECHILD-CENTERED
CONTENT,BUTTHEYDON'TWANT
THATCONTENTTOBESULLIED,
SHALLWESAY,WITHJUNKFOODADS
ORSOMETHING,MYUNDERSTANDING
ISYOUSAYTHECONTENTCREATORS
CANDOTHAT.
BUTWE'VEGOTARECENTREPORT
FROMTHE"WALLSTREETJOURNAL"
SAYINGYOUTUBEHASN'TBEEN
HONORINGTHATREQUESTANDIT'S
BEENMAKINGITDIFFICULTTO
INDEPENDENTLYAUDITTHATAND
REPORTBACKTOTHECONTENT
CREATORSABOUTWHETHERORNOT
YOUTUBEISHONORINGTHOSE.
ISTHATCORRECT?
>>I'MNOTFAMILIARWITHTHE
PARTICULARREPORT,BUTI'MHAPPY
TOUNDERSTANDITBETTERANDHAVE
MYOFFICEFOLLOWUPWITHYOUR
STAFF,CONGRESSWOMAN.
>>IWOULDAPPRECIATETHAT.
MYTIMEHASEXPIRED.
IYIELDBACK.
>>THEGENTLEWOMANYIELDSBACK.
THESHAREWILLNOWRECOGNIZE
HIMSELFFORFIVEMINUTES.
MR.BEZOS,THANKYOUFORBEING
HERETODAY.
INYOUROPENINGSTATEMENTYOU
REVIEWEDYOURWRITTENTESTIMONY,
YOUINDICATEDAMAZONACCOUNTS
FORLESSTHAN1%ANDLESSTHAN
4%OFTHERETAILINTHEU.S.
WHENYOUREFERTORETAIL,ITAKE
ITBASEDONTHEEMPIRICAL
STUDIESYOU'REREFERRINGTOA
BROADDEFINITIONOFRETAILTHAT
INCLUDESRESTAURANTS,BARS,GAS
STATIONS.
IT'SAFAIRLYALLENCOMPASSING
VIEWOFRETAIL.
IWONDERIFYOUKNOWWHAT
PERCENTAGEOFAMAZON'SSALESARE
REPRESENTEDINTHETERMSOF
ONLINERETAILSALES,eCOMMERCE,
MARKETS?
>>THEFIGURESI'VESEEN.
WITHALLRESPECT,IDON'TACCEPT
ISeCOMMERCEISADIFFERENT
MARKET.
I'VESEENTHEOUTSIDESTUDIES
WEREAMAZON'SSHAREOFTHE
eCOMMERCECHANNEL.
>>THAT'SCONSISTENTWITHTHE
DATAI'VESEEN.
THELATESTFIGUREISAWWAS40%.
INTERMSOFHOWWEDEFINEIT
WHETHERIT'SASTREAMORA
CHANNEL,NONETHELESS,FACTUALLY
IT'SANIMPORTANTDISTINCTIONI
WANTTOMAKESUREWECLEARHERE.
OBVIOUSLYISUSPECTYOU
UNDERSTANDMORETHANMOSTTHAT
THEEARLYSTAGESOFASTARTUP
WHEREENTREPRENEURSARE
UNDERTAKINGRISKSTOBRING
PRODUCTSANDSERVICESTOMARKET,
OVERTHECOURSEOFTHE
INVESTIGATION,WE'VEHEARDFROM
STARTUPSWHORELYONSERVICE
WITHRESPECTTOCONCERNSABOUT
THEWAYINAMAZONUSES
CONFIDENTIALINFORMATION.
WE'VEALSOHEARDAMAZON'SCLOUD
COMPUTINGARM,AWS,THENOTION
THATTHATCOMPUTINGARM
IDENTIFIESSTARTUP,BEST
TECHNOLOGIES,ANDROLLSOUT
REPLICAPRODUCTSANDERISVISS.
MR.BEZOSDOESAMAZONUSE
CONFIDENTIALINFORMATIONTO
BUILDCOMPETINGSERVICES?
>>NO,SIR,NOTTHATI'MAWARE
OF.
AWSDOESOFTEN--THEYDOKEEP
EXPANDINGTHEIRSERVICES.
AWSSTARTED15YEARSAGO--
>>LETMEJUSTCLARIFYTHAT,
MR.BEZOS.
IAPPRECIATETHAT.
APOLOGIESFORINTERRUPTS.
LASTWEEK,ONEOFAMAZON'S
FORMERENGINEERSPOSTEDONLINE
THATHEANDHISTEAMPROACTIVELY
IDENTIFIEDGROWINGBUSINESSESON
AWS,THEYBUILTCOMPETING
PRODUCTSANDTARGETEDPRODUCTS
TOTHEBUSINESS'SCUSTOMERS.
THERE'SBEENPUBLICREPORTINGON
THATSTRATEGY.
SO,IGUESSIWONDERIFYOUCAN
COMMENTONTHATANDHOWYOU
WOULDACCOUNTFORTHOSE
STATEMENTS.
>>WELL,ITHINKTHEREMAYBE
CATEGORIES--DATABASESOF
DIFFERENTKINDSANDSOONWHERE
WESEEANIMPORTANTPRODUCTFOR
CUSTOMERSANDMAKEOUROWN
PRODUCTOFFERINGINTHATARENA.
BUTITDOESN'TMEANWESTOP
SERVICINGTHEOTHERCOMPANIES
THATAREALSOMAKINGTHOSE
PRODUCTS.
WEHAVECOMPETITORSUSINGAWS,
ANDWEWORKVERYHARDTOMAKE
THEMSUCCESSFUL.
NETFLIXISONEEXAMPLE.
HULUISANOTHERANDSOON.
>>ITHINKTHECONCERN,
MR.BEZOS,WITHRESPECTISTHAT
THEPATTERNEMERGESACROSSTHE
DIFFERENTCOMPONENTSINAMAZON,
WHETHERIT'STHEMARKETOR
WHETHERIT'STHECLOUDSERVICE
ASIMENTIONED.
INADDITIONTHEREWASAN
ARTICLE,I'MSUREYOU'REAWARE,
INTHE"WALLSTREETJOURNAL"
REGARDINGTHEALEXAFRONT,
ACCORDINGTONEWSREPORTS,ALEXA
FUNDINVESTEDINFOREXAMPLE
DEFINEDCROWDCORP.DOESTHAT
RINGABELL?
>>NO,SIR,I'MAFRAIDIT
DOESN'T.
>>WELL,I'LLREPRESENTTOYOU
ACCORDINGTO"THEWALLSTREET
JOURNAL,"ANDI'LLJUSTQUOTE
FROMTHEM,WHENAMAZON
INCORPORATEDVENTURECAPITAL
FUND,ITGAINEDACCESSTOTHE
STARTUPFINANCESANDOTHER
CONFIDENTIALINFORMATION.
FOURYEARSLATERINAPRIL
AMAZON'SUNITLAUNCHED
ARTIFICIALINTELLIGENCEPRODUCT
THATDOESWHATDEFINEDCROWD
DOESSAIDDEFINEDCLOUD.
AREYOUAWAREOFTHOSEALGASE.
>>IREADTHATARTICLEBUTI
DON'TKNOWTHESPECIFICSOFTHAT
SITUATION.
IWOULDBEHAPPYTOGETBACKTO
YOUROFFICEWITHMORE
INFORMATIONBTTHAT.
>>IWOULDAPPRECIATE--I
CERTAINLYWOULDWELCOMETHATTO
THEEXTENTYOUALLCANFOLLOWUP
WITHTHESUBCOMMITTEEWITH
RESPECTTOTHISPARTICULAR
ARTICLEANDTHEDIFFERENT
EPISODESTHATAREREFERENCED
BOTHINTERMSOFDEFININGCROWD
CORP.THERE'SANOTHERNUCLEUS
YOUMIGHTBEFAMILIARWITH.
THEREASONIASKTHESE
QUESTIONS,THEREASONITMATTERS
TOMEISWEAREVERYCONCERNED
ABOUTTHISINNOVATIONKILLZONE
THATSEEMSTOBEEMERGING.
IREPRESENTBOULDERANDFORT
COLLINS,ENTTREMENDOUS
PRENEUROSANDFOUNDERSSHARED
THESESTORIESWITHOURFIELD
HEARINGJUSTEARLIERTHISYEAR
ANDTHEYAREEXTREMELYDEPENDENT
ONBIGTECHNOLOGYFIRMS
INCLUDINGINTERMSOFINVESTMENT
ANDCAPITALYETTHEYLIVEIN
CONSTANTFEARTHATTHEPLATFORMS
COULDSTEALTHEIRCORE
TECHNOLOGIESORIDEASMAKINGIT
IMPOSSIBLETOCOMPETEBECAUSEOF
THOSEEXISTINGADVANTAGES.
ISEEMYTIMEHASEXPIREDBUT
WE'LLBEFOLLOWINGUPWITH
RESPECTTOTHEEPISODESI
REFERENCEDW.THAT,IYIELD
BACK.
THEGENTLEMAN'STIMEHAS
EXPIRED.
ANDTHEGENTLEWOMANIS
RECOGNIZEDFORFIVEMINUTES.
>>THANKYOU,MR.CHAIR.
FACEBOOKACQUIREDWHATSAPPIN
2014ANDATTHETIME,THEDEAL
WASCRITICALFORCOUNTERINGTHE
APPSTOREPOWEROFAPPLEAND
GOOGLEWHOCHOKEOFFFACEBOOK'S
ACCESSTOMOBILEDEVICES.
DOESAPPLEHAVETHEPOWERTO
EXCLUDEAPPSFROMTHEAPPSTORE?
>>IFYOULOOKATTHEHISTORYOF
THIS,CONGRESSWOMAN,WE'VE
INCREASEDTHENUMBEROFAPPS
FROM500TO1.7MILLION.
SO,THERE'SAVERYWIDEGATE
FROMTHEAPPSTORE.
ANDTHERE'SFIERCECOMPETITION
FORDEVELOPERS.
ANDWEWANTEVERYAPPWECANON
THEPLATFORM.
>>OKAY.
SO,BUTMR.COOK,THENWHAT
YOU'RESAYINGISTHATAPPLECAN
EXCLUDEAPPSFROMTHEAPPSTORE
N.FACT,ITHAS.
IN2018,APPLEINTRODUCEDANAPP
CALLEDSCREENTIMEWHICHHELPS
PEOPLELIMITTHEAMOUNTOFTIME
THEYORTHEIRKIDSSPENDON
THEIRiPHONES.
ISTHATCORRECT?
>>ITSOUNDSRIGHT.
>>OKAY.
BUTBEFORESCREENTIMEEXISTED,
THEREWEREOTHERAPPSINTHEAPP
STORETHATGAVEPARENTSCONTROL
OVERTHEIRKIDSPHONEUSAGE,
APPSLIKEOURPACTANDKIDS
LOCKS.
ANDPARENTSDEPENDEDONTHEM.
SOONAFTERYOUINTRODUCEDSCREEN
TIMES,HOWEVER,YOUREMOVEDTHE
COMPETINGAPPSFROMTHEAPP
STORE.
ONEMOTHERWROTETOAPPLE
SAYING,ANDIQUOTEHER,IAM
DEEPLYDISAPPOINTEDTHATYOU
HAVEDECIDEDTOREMOVETHISAPP
ANDOTHERSLIKEIT,THEREBY
REDUCINGCONSUMERACCESSTO
MUCH-NEEDEDSERVICESTOKEEP
CHILDRENSAFEANDPROTECTTHEIR
MENTALHEALTHANDWELL-BEING.
MR.COOK,WHYDIDAPPLEREMOVE
COMPETINGAPPSRIGHTAFTERYOU
RELEASEDSCREENTIME?
>>WEWERECONCERNED,
CONGRESSWOMAN,ABOUTTHEPRIVACY
ANDSECURITYOFKIDS.
THETECHNOLOGYTHATWASBEING
USEDATTHATTIMEWASCALLED
NDM,ANDITHADTHEABILITYTO
SORTOFTAKEOVERTHEKID'S
SCREEN,ANDATHIRDPARTYCOULD
SEEIT.
SO,WEWEREWORRIEDABOUTTHEIR
SAFETY.
>>OKAY.
THANKYOU.
IAPPRECIATETHAT.
>>TODAYWEHAVE--
>>IAPPRECIATETHAT,BUTTHE
TIMINGSEEMSCOINCIDENTAL.
IFAPPLEWASN'TINTENDINGTO
HARMCOMPETITORSTOHELPITSOWN
APP,WHYDIDPHILPROMOTETHE
SCREENTIMEAPPTOCUSTOMERSWHO
COMPLAINEDABOUTTHEREMOVALOF
RIVALPARENTALCONTROLAPPS?
>>CONGRESSWOMAN,ICAN'TSEE
THISEMAIL.
I'MSORRY.
MYEYESARENOTGOODENOUGHTO
READIT.
BUTISEESCREENTIMEASJUSTAN
ALTERNATIVE.
BUTTHEREAREOVER30PARENTAL
CONTROLAPPSTHATAREINTHEAPP
STORETODAY.
SO,THERE'SVIBRANTCOMPETITION
FORPARENTALCONTROLSOUTTHERE.
>>WELL,MR.COOK,THEFACTIS
THATAPPLESIDELINEDSCREEN
TIME'SCOMPETITIONBYKEEPING
THEMOUTOFTHEAPPSTORE.
ANDWHILEAPPLECLAIMSTHESE
COMPETITORSWEREN'TMEETING
APPLE'SPRIVACYSTANDARDS,THESE
APPSCREATORSSAYTHATYOU
ADMITTEDTHEMBACKINSIXMONTHS
LATERWITHOUTREQUIRING
SIGNIFICANTPRIVACYCHANGES.
ANDOFCOURSE,SIXMONTHSIS
TRULYANETERNITYFORSMALL
BUSINESSESTOBESHUTDOWN,EVEN
WORSEIFALLTHEWHILEALARGER
COMPETITORISACTUALLYTAKING
AWAYCUSTOMERS.
ANDTHISISNOTTHEFIRSTTIME
SOMETHINGLIKETHISSEEMSTO
HAVEHAPPENED,MR.COOK.
LETMEGIVEYOUANOTHEREXAMPLE
OFTHEHARMTHAT'SBEENCAUSED
TOYOURCOMPETITORSN.2010,
APPLEINTRODUCEDANONLINE
BOOKSTORECALLEDTHEiBOOKSTORE
WHEREITOFFEREDeBOOKSANDTHE
ONLYMAJORPUBLISHERTHATDIDN'T
AGREETOJOINiBOOKSTOREWAS
RANDOMHOUSE.
RANDOMHOUSEWANTEDTOOFFERITS
OWNeBOOKSTHROUGHITSOWNAPPS
ANDSUBMITTEDTHEIRAPPSTOBE
ADDEDTOTHEAPPSTORE.
AMIDSTCONTINUEDNEGOTIATIONS
BETWEENAPPLEANDRANDOMHOUSE,
SENIORVPEDDIEQ.SAID,IT
PREVENTEDANAPPFROMRANDOM
HOUSEFROMGOINGLIVEINTHEAPP
STORE.
Q.HIMSELFCITEDTHISAPP
REJECTIONASAFACTORINFINALLY
GETTINGRANDOMHOUSETOGIVEIN
ANDJOINiBOOKSTORE.
ISITFAIRFORAPPLETOUSEITS
POWEROVERTHEAPPSTORETO
PRESSUREABUSINESSTOJOIN
APPLE'SOWNAPP?
>>ICAN'TSEETHEEMAIL,SOI
DON'TKNOWTHECONTEXTOFIT.
BUTTHEREAREREASONSWHYANAD
MIGHTNOTINITIALLYGOTHROUGH
THEAPPSTOREGATE.
ITMAYNOTWORKPROPERLY.
THEREMAYBEOTHERISSUESWITH
IT.
SO,IT'SVERYDIFFICULTTOSEE.
WHATIWOULDSAYTHOUGH,ONA
MACROBASIS,THEGATETOTHEAPP
STOREISVERYWIDE.
WEHAVE1.7MILLIONAPPSINIT.
IT'SBECOMEANECONOMIC
MIRACLE--
>>OKAY.
>>--WITHOVER$138BILLIONOF
COMMERCEJUSTSNTUNITEDSTATES.
>>IREALLY,REALLYAPPRECIATE
THATSENTIMENT.
IWANTTOSAYTOYOUAPPLE
ENJOYSENORMOUSPOWERTOWHICH
APPSCANREACHCONSUMERS.
EVENSOMEOFTHELARGESTINTHE
COUNTRYFEARYOURPOWER.
OUREVIDENCESUGGESTSYOUR
COMPANYHASUSEDTHEPOWERTO
BOOSTYOURBUSINESS.
THISISFUNDAMENTALLYUNFAIRAND
HARMSSMALLBUSINESSESTHATRELY
ONYOUTOREACHCUSTOMERS.
ITSTIFLESTHEINNOVATIONTHAT
ISTHELIFEBLOODOFOUR
ECONOMY.
ULTIMATELYITREDUCESTHE
COMPETITIONANDCHOICESTHATARE
MADEAVAILABLETOCONSUMERS,AND
THATISAGREATCONCERNTOALL
OFUS.
ANDIYIELDBACK.
>>THEGENTLELADYYIELDSBACK.
THATCONCLUDESTHATROUND.
INLIGHTOFTHEREQUESTOF
MR.GAETZFORATHIRDROUNDAND
BECAUSEMANYOFMYCOLLEAGUES
WOULDLIKETOGETMOREANSWERS
ONANUMBEROFISSUES,WE'LL
PROCEEDTOAFINALROUND.
MYEXPECTATIONS,WEWILL
CONCLUDEWITHINTHEHOUR.
I'LLRECOGNIZEMYSELFFORFIVE
MINUTES.
MR.ZUCKERBERG,WE'VESEENTHE
DOMINANCEOFSEVERALOFTHE
COMPANIESAPPEARINGBEFOREUS
TODAYTHATIT'SNOTJUSTHARMFUL
TOOURECONOMYANDCOMPETITION
BUTIT'SHARMFULTOTHEFOUNDING
PRINCIPLESOFOURDEMOCRACY.
FACEBOOKANDGOOGLEAREDESIGNED
TOKEEPUSERSONTHEIRPLATFORMS
WHATEVERTHECOSTBECAUSE
DISINFORMATION,PROPAGANDAAND
HATEFULSPEECHAREGOODFOR
ENGAGEMENT,THEY'REGOODFOR
BUSINESS.
BUTOVER-100YEARSAGOTHE
SUPREMECOURTOLIVERWINDAL
HOLMESJR.WROTEWOULDNOT
PROTECTAMANFROMFALSELY
SHOUTINGFIREINATHEATERAND
CAUSINGPANIC.
DOYOUAGREEWITHTHAT
PRINCIPLE,THATTHEREARELIMITS
TOHARMFULANDFALSESPEECH,AND
THATAREPARTICULARLYIMPORTANT
WHENITCOMESTOTHEHEALTHAND
SAFETYOFTHEPUBLIC?
>>CONGRESSMAN,ICERTAINLYDO,
ANDIACTUALLYTHINKTHATOUR
POLICIESGOFURTHERTHANJUST
LIMITINGTHOSETYPESOFTHINGS.
>>WELL,MR.ZUCKERBERG,YOU
HAVEABILLIONUSERSANDALMOST
50,000EMPLOYEESSOYOUAGREE
YOUHAVEARESPONSIBILITYTO
REMOVEHARMFULLIESFROMYOUR
PLATFORM,CORRECT?
>>CONGRESSMAN,ITHINKWEHAVE
ARESPONSIBILITYTOLIMITTHE
SPREADOFCONTENTTHAT'SGOING
TOBEHARMFULFORPEOPLE.
ANDALSOIWOULDLIKETOADD
THATIDONOTBELIEVETHATWE
HAVEANYINCENTIVETOHAVETHIS
CONTENTONOURSERVICE.
>>EXCEPTTHAT,MR.ZUCKERBERG,
WITHALLDUERESPECT,EXCEPT
THATITISOFTENTHEMOST
ENGAGING.
IT'STHEMOST--ITBRINGSTHE
MOSTLIKESORBRINGSTHEMOST
ACTIVITYWHICHOFCOURSE
PRODUCESGREATPROFIT.
SO,YOUDOHAVEANINCENTIVE.
THEMOREENGAGEMENTTHEREIS,
THEMOREMONEYYOUMAKEON
ADVERTISING.
LETMEASKYOUAQUESTION.
LETMEGIVEYOUSPECIFIC
EXAMPLESTHATILLUSTRATEBY
CONCERNS.
THESEARESOMEOFTHETOPTEN
MOSTSHAREDASPECTSON2020.
TRUMPSUGGESTSINJECTIONOF
DISINFECTANTTOBEATTHE
CORONAVIRUS.
CORONAVIRUSHYPEBIGGESTHOAXIN
HISTORY.
U.S.HOSPITALSGETTINGPAIDTO
LABELFORCAUSEOFDEATHAS
CORONAVIRUS.
INTHEPUBLICHEALTHCRISISOF
OURLIFETIME,DON'TYOUAGREE
THATTHESEARTICLESVIEWEDBY
MILLIONSONYOURPLATFORMWILL
COSTLIVES?
>>CONGRESSMAN,WITHRESPECT,WE
CERTAINLYHAVEPOLICIESTHAT
PROHIBITFALSEINFORMATIONABOUT
COVIDTHATWOULDLEADTO
IMMINENTHARM,ANDWE'VEBEEN
QUITEAGGRESSIVEABOUTTAKING
THATDOWNASSOMEOFTHE
QUESTIONINGFROMTHEOTHERSIDE
OFTHEAISLEHASSHOWNSOFAR.
I'MPROUDOFOUREFFORTSHERE.
>>MR.ZUCKERBERG,WITHALLDUE
RESPECT,THEPROBLEMISFACEBOOK
ISPROFITINGOFFANDAMPLIFYING
DISINFORMATIONTHATHARMSOTHERS
BECAUSEIT'SPROFITABLE.
THISISN'TASPEECHISSUE.
IT'SABOUTFACEBOOK'SBUSINESS
MODELTHATPRIORITIZES
ENGAGEMENTINORDERTOKEEP
PEOPLEONFACEBOOK'SPLATFORMTO
SERVEUPMOREADVERTISEMENTS.
I'LLASKYOUSPECIFICALLYWHAT
AREYOUDOINGRIGHTNOWTO
PROTECTPEOPLEFROMDEMONSTRABLY
FALSECLAIMSRELATEDTOTHE
DEADLYPANDEMIC?
>>CONGRESSMAN,I'LLCERTAINLY
ANSWERTHAT,BUTIHAVETO
DISAGREEWITHTHEASSERTIONTHAT
YOU'REMAKINGTHATTHISCONTENT
ISSOMEHOWHELPFULFOROUR
BUSINESS.
ITISNOTWHATPEOPLEWANTTO
SEE,ANDWERANKOURWHATWE
SHOWINFEEDBASEDONWHATIS
GOINGTOBETHEMOSTMEANINGFUL
TOPEOPLEANDISGOINGTOCREATE
LONG-TERMSATISFACTION,NOTJUST
WHAT'SGOINGTOGETENGAGEMENT
ORCLICKSTODAY.
>>IFTHAT'STRUE,
MR.ZUCKERBERG,HOWDOYOU
EXPLAINTHATONMONDAYTHE
SECONDMOSTPOPULARPOSTON
FACEBOOKWASABREITBARTVIDEO
CLAIMINGTHATYOUDON'TNEEDA
MASKANDHYDROXYCHLOROQUINEISA
CUREFORCOVID.
ANDINTHEFIRSTFIVEHOURS
AFTERBEINGPOSTEDONFACEBOOK,
ITWRACKEDUP20MILLIONVIEWS
ANDOVER100,000COMMENTSBEFORE
FACEBOOKACTEDTOREMOVEIT.
>>CONGRESSMAN,ALOTOFPEOPLE
SHAREDTHATANDWEDIDTAKEIT
DOWNBECAUSEITVIOLATESOUR
POLICIES.
>>AFTER20MILLIONPEOPLESAW
ITOVERTHEPERIODOF5HOURS.
DOESN'TTHATSUGGEST,
MR.ZUCKERBERG,THATYOUR
PLATFORMISSOBIGTHATEVEN
WITHTHERIGHTPOLICIESIN
PLACE,YOUCAN'TCONTAINDEADLY
CONTENT?
>>CONGRESSMAN,IDON'TTHINK
SO.
ITHINKWEHAVEONCOVID
MISINFORMATIONINPARTICULARA
RELATIVELYGOODTRACKRECORDOF
FIGHTINGANDTAKINGDOWNLOTSOF
FALSECONTENTASWELLASPUTTING
UPAUTHORITATIVEINFORMATION.
WEHAVEBUILTACOVID
INFORMATIONCENTERWITH
AUTHORITATIVEINFORMATIONFROM
HEALTHOFFICIALS--
>>THANKYOU,MR.ZUCKERBERG.
ONEMOREQUESTION.
IAPPRECIATETHAT.
MR.ZUCKERBERG,ATELEVISION
RUNSAFALSEPOLITICAL
ADVERTISEMENT,THEY'REHELD
LIABLEFORTHAT.
WHYSHOULDFACEBOOKORANYOTHER
PLATFORMBEDIFFERENT?
WHILEYOUMAYNOTBEA
PUBLISHER,YOU'RERESPONSIBLE
MAYBENOTFORTHEFIRSTPOSTING
BUTYOUTAKETHEPOSTINGAND
APPLYALGORITHMSTHATDECIDEHOW
TODISSEMINATETHATWHICHISA
BUSINESSDECISION,NOTAFIRST
AMENDMENTDECISION.
IT'SHARDTOUNDERSTANDWHY
FACEBOOKSHOULDNOTBE
RESPONSIBLEFORTHOSEBUSINESS
DECISIONS.
>>INTERMOFPOLITICALADS,WE
FOLLOWALOTOFPOLICIESOFFFCC
GUIDELINESONBROADCASTERSAND
THEIRREQUIREMENTSTORUN
POLITICALADSEQUALLYFROMALL
DIFFERENTSIDES.
>>ITHINKTHISDID--YEAH.
ITHINKTHESEEXAMPLES
UNFORTUNATELYMR.ZUCKERBERGARE
JUSTTHETIPOFTHEICEBERG.
IT'SNOTJUSTABOUTCOVID.
FACEBOOKHOSTSCOUNTLESSPAGES
ANDADSDEDICATEDTOCONSPIRACY
THEORIESANDCALLSTOVIOLENCE
INCLUDINGCONTENTTHATLEDTO
THEWHITESUPREMACYRALLYIN
CHARLOTTESVILLEIN2018.
FACEBOOKGETSAWAYWITHIT
BECAUSEYOU'RETHEONLYGAMEIN
TOWN.
THERE'SNOCOMPETITIONFORCING
YOUONYOURPLATFORM.
ALLOWINGTHISTOSPREADCANLEAD
TOVIOLENCEANDSTRIKESATTHE
HEARTOFTHEAMERICANDEMOCRACY.
WITHTHAT,IRECOGNIZETHE
GENTLEMANFROMFLORIDAFORFIVE
MINUTES.
>>IN2016,THEREWASAN
INTERNALGOOGLEMEETING.
YOUATTENDEDTHATMEETINGALONG
WITHSERGEYBRIN.
AVIDEOOFTHATMEETINGWAS
LEAKEDTOBREITBARTANDCAMP
WALKERLAMENTEDTRUMP'SVICTORY,
COMPAREDTRUMPVOTERSTO
EXTREMISTS,ANDTHEREWAS
ATTEMPTTOMANGETHETRUMPWIN
INTHEPOPULISTMOVEMENTIN
HISTORY.
IKNOWYOUTESTIFIEDINRESPONSE
TOMYQUESTIONSANDMR.JORDAN'S
QUESTIONSTHATYOUDON'TINTEND
THISTIMETOENGAGEINELECTION
NEARINGONBEHALFOFTHEFORMER
VICEPRESIDENT,BUTGIVENTHE
VIDEOEVIDENCEOFSENIORMEMBERS
OFYOURTEAMINYOURPRESENCE
SAYINGTHATTHEYHADTHEINTENT
TOMAKETHETRUMPVICTORYA
BLIP,WHYSHOULDWEBELIEVETHAT
TESTIMONYTODAY?
>>CONGRESSMAN,WEDONOTHAVEA
VIEWON--WERESPECTTHE
DEMOCRATICPROCESS.
WEAREDEEPLYCOMMITTEDTOIT.
ASACOMPANY,WETAKEPRIDEIN
THEINFORMATIONWEPROVIDETO
HELPPEOPLEPARTICIPATEINFREE
ELECTIONSANDWEAREDEEPLY
COMMITTEDTOIT.
>>DOYOUREMEMBERTHATMEETING?
2016?
>>YES,IDO.
ITWASINTHECONTEXTOFTHE
ELECTION.
ACROSSBOTHSIDESTHEREWASA
LOTOFOPINIONS.
ANDASYOUKNOW,ELECTIONSARE
KINDOFAPOLARIZINGMOMENT
GENERALLYINTHECOUNTRY,AND
THEREWASALOTOFRHETORIC
ABOUTCERTAINISSUESWHICH
WERE--
>>IUNDERSTANDRHETORIC.
IGUESSTHEQUESTIONISWHENTHE
SENIORMEMBERSOFYOURTEAMIN
YOURPRESENCESAIDTHATTHEYDID
HAVETHEINTENTTOCHANGETHE
OUTCOMEINASUBSEQUENTELECTION
ANDTHENSINCETHATMOMENTIN
TIMEWHEREWE'VESEENALLTHESE
CONSERVATIVEWEBSITESAND
CONSERVATIVEVIEWPOINTS
CENSORED,YOUCANUNDERSTANDWHY
PEOPLEWOULDBECONCERNED.
AFTERYOUREMPLOYEESANDTOP
EXECUTIVESSAIDINYOURPRESENCE
THATTHEYINTENDEDTOMALKTHE
TRUMPVICTORYABLIP,WHAT
ACTIONDIDYOUTAKEASTHECEO
TOPROTECTANDPRESERVETHEKNEW
TRAILOFYOURPLATFORM?
>>CONGRESSMAN,NOONEHADA
VIEWONEVERINTERFERINGWITH
THEELECTIONSORSOON.
BUTWHATICANTELLYOUISWE
MADEITVERYCLEARABOUTTWO
YEARSAGO.
WEANNOUNCEDNEWCOMMUNITY
GUIDELINES,ORBITANDGOOGLE,
CLEARLYMAKEITCLEARTHAT
EMPLOYEESOBVIOUSLYAREFREETO
HAVETHEIRPOLITICALVIEWS,BUT
NONEOFTHATSHOULDEVER--THEY
SHOULDN'TBRINGTHATASTHEY
WORKONANYOFOURPRODUCTS.
ANDIFWEFOUNDANYEVIDENCE
THATPEOPLEAREUSINGPOLITICAL
AGENDATOMANIPULATEANYOF
OUR--
>>UNFORTUNATELYTHERE'SA
STRINGOFEVENTSHERE.
WEHADTHE2016MEETINGWHERE
PEOPLEDEMONSTRATEDINTENTTO
HURTTHEPRESIDENT.
THENWEHAVETHETESTIMONY
DIFFERENTFROMTHETESTIMONY
FROMDECEMBERWHEREPEOPLESAY
PEOPLECANMANIPULATEBLACKLISTS
ANDYOUHAVETHEOUTCOMEWHERE
SITESLIKEBRIGHTBARTAND
GATEWAYPUNDITANDOTHERSSEE
THATRETREATMENT.
ITDOESN'TTAKESHERLOCKHOLMES
HERETOSEEWHATGOOGLEIS
DOING.
MR.BEZOS,IAMDEEPLYMOVEDBY
YOURPERSONALSTORY.
IAMNOTACCUSINGYOUOFSOMEONE
THATWOULDTRAFFICINHATE.
BUTITSEEMSYOUHAVEEMPOWERED
PEOPLEWHODO.
I'MTALKINGABOUTTHESOUTHERN
POVERTYLAWCENTERWHOCAN
RECEIVEDONATIONSONYOURAMAZON
SMILEPLATFORMHAVESAIDTHE
CATHOLICFAMILYNEWS,CATHOLIC
FAMILYMINISTRIES,FEDERATION
FORAMERICANIMMIGRATIONREFORM,
FAMILYRESEARCHCOUNCIL,JEWISH
DEFENSELEAGUE,ANDEVENDR.BEN
CARSONAREEXTREMISTSANDSHOULD
BETREATEDDIFFERENTLY.
DR.CARSONISONTHECABINETAS
ONEOFTHEMOSTRENOWNEDMINDS
INAMERICA.
I'MJUSTWONDERINGWHYYOUWOULD
PLACEYOURCONIIFDENSEINA
GROUPTHATSEEMSTOBESOOUTOF
STEPANDSEEMSTOTAKEMAIN
STREAMCHRISTIANDOCTRINEAND
LABELITASHATE.
>>AMAZONSMILEISAPROGRAM
THATALLOWSCUSTOMERSTO
DESIGNATEACERTAINFRACTIONOF
THEIRPURCHASESTOGOTOCHARITY
THATWETHENPAYFORANDTHEY
CANSELECTFROMANYONEOF
MILLIONSOFCHARITIES.
ANDWEUSETHESOUTHERNPOVERTY
LAWCENTERDATATOSAYWHICH
CHARITIESAREEXTREMIST
ORGANIZATIONS.
WEALSOUSETHEU.S.FOREIGN
OFFICETODOTHESAMETHING.
>>WHYSINCETHEY'RECOMMON
CATHOLICSANDJEWISHPEOPLE
GROUPS,WHYWOULDYOUTRUST
THEM?
>>SIR,I'MGOINGTOACKNOWLEDGE
THISISANIMPERFECTSYSTEM--
>>NODOUBT.
>>--ANDIWOULDLIKE
SUGGESTIONSONADDITIONAL
SOURCES--
>>MYSUGGESTIONWOULDBEA
DIVORCEFROMTHESPLCANDISEE
I'MOUTOFTIME.
IYIELDBACK.
>>THEGENTLEMANYIELDSBACK,I
RECOGNIZEMR.JOHNSON.
>>THANKYOU,MR.CHAIRMAN.
FACEBOOKISDOMINANTNOTJUSTIN
THESOCIALMEDIAMARKETBUTALSO
INITSDIGITALSURVEILLANCE
CAPABILITIES.
IN2012,FACEBOOKHADSEVERAL
TOOLSTHATALLOWEDITTOCONDUCT
DIGITALSURVEILLANCEINCLUDING
TRACKERS,FACEBOOK'SLIKE
BUTTON,FACEBOOKLOGIN,ANDA
SERIESOFAPPLICATION
PROGRAMMINGINTERFACESORAPIs.
MR.ZUCKERBERG,THESETOOLS
PROVIDEFACEBOOKWITHINSIGHTS
INTOITSCOMPETITORSWEBSITES
ANDAPPS,ISN'TTHATCORRECT?
YESORNO?
>>CONGRESSMAN,ITHINKBROADLY
THEANSWERTOWHATYOU'RESAYING
ISYES.
>>OKAY.
>>WE--EVERYOTHERCOMPANY
HEREDOMARKETRESEARCHTO
UNDERSTANDWHATPEOPLEARE
FINDINGVALUABLE.
>>ALLRIGHT.
OKAY.
SO,YOU'REGOINGBEYONDTHE
SCOPEOFMYQUESTION.
IAPPRECIATETHATANSWERTHOUGH.
MR.ZUCKERBERG,AFEWDAYS
BEFOREFACEBOOKACQUIRED
INSTAGRAM,AFACEBOOKVICE
PRESIDENTEMAILEDYOUSUGGESTING
WAYSTOIMPROVEFACEBOOK'S,
QUOTE,COMPETITIVERESEARCH,END
QUOTE.
BYBUILDINGACUSTOMMODEL,
FACEBOOKCOULDIMPROVEITS
UNDERSTANDINGOFITSCOMPETITORS
AND,QUOTE,MAKEMOREBOLD
DECISIONSONWHETHERTHEYARE
FRIENDSORFOES,ENDQUOTE.
MR.ZUCKERBERG,HOWDOES
FACEBOOKIMPROVERESEARCHTO
DISTINGUISHFRIENDSFROMFOE?
>>CONGRESSMAN,I'MNOTSURE
EXACTLYWHATHEWASREFERRINGTO
INTHATEMAILTHERE.
BUTHEISONEOFTHEPEOPLE
INVOLVEDINRUNNINGOUR
ANALYTICSORGANIZATION.
ANDITHINKIT'SNATURALTHATHE
WOULDASPARTOFHIS
RESPONSIBILITYBEFOCUSEDON
MARKETRESEARCHAND
UNDERSTANDINGMORETHERE.
>>CERTAINLYISN'TITTRUETHAT
FACEBOOKAFTERTHATCONVERSATION
PURCHASEDTHEWEBANALYTICS
COMPANYIN2013TOGIVEFACEBOOK
MORECAPABILITYTOMONITORITS
COMPETITORS?
>>CONGRESSMAN,ITHINKYOUHAVE
THETIMINGCORRECT.
WEPURCHASEDO-NAVOASPARTOF
BROADERMARKETRESEARCH.
>>ANDTHATWOULDGIVEYOUTHE
CAPABILITYTOMONITORYOUR
COMPETITORS,CORRECT?
>>CONGRESSMAN,ITGAVE
AGGREGATEANALYTICSASTOWHAT
PEOPLEWEREUSINGANDWHAT
PEOPLEWEREFINDINGVALUABLE.
SORTOFLIKETHETYPEOFPRODUCT
YOUWOULDGETFROMNIELSENOR
COMESOURCE,THESEOTHERTHIRD
PARTIESTHATPROVIDEDATA.
>>MR.ZUCKERBERG,THAT
ACQUISITIONGAVEYOUNON-PUBLIC
REALTIMEDATAABOUTENGAGEMENT,
USAGEANDHOWMUCHTIMEPEOPLE
SPENDONAPPS.
ANDWHENITBECAMEPUBLICTHAT
FACEBOOKWASUSINGONNAVOTO
CONDUCTDIGITALSURVEILLANCE,
YOURCOMPANYGOTKICKEDOUTOF
THEAPPSTORE.
ISN'TTHATTRUE?
>>CONGRESSMAN,I'MNOTSUREI
WOULDCHARACTERIZEITINTHAT
WAY.
ITHINK--
>>O-NAVODIDGETKICKEDOUTOF
THEAPPSTORE,ISN'TTHATTRUE?
>>WETOOKITOUTAFTERTHEY
CHANGEDPOLICIES.
>>ANDITWASBECAUSEOFTHEUSE
OFTHESURVEILLANCETOOLS.
>>CONGRESSMAN,I'MNOTSURE
THATTHEPOLICYWASWORDEDTHAT
WAYORTHATTHAT'SEXACTLYTHE
RIGHTCHARACTERIZATIONOFIT.
>>OKAY.
LETMEASKYOUTHISQUESTION.
AFTERONAYVOWASBOOTEDOUTOF
THEAPPSTORE,YOUTURNEDTO
OTHERSURVEILLANCETOOLSSUCHAS
FACEBOOKRESEARCHAPP,CORRECT?
>>CONGRESSMAN,INGENERAL,YES,
WEDOABROADVARIETYOF--
>>SO,ALSOISN'TITTRUE
MR.ZUCKERBERGTHATFACEBOOK
PAIDTEENAGERTOSELLTHEIR
PRIVACYBYINSTALLINGFACEBOOK
RESEARCHAPP?
>>CONGRESSMAN,I'MNOTFAMILIAR
WITHTHAT,BUTITHINKIT'SA
GENERALPRACTICETOBEABLE
TO--THATTHECOMPANIESUSETO
HAVEDIFFERENTSURVEYS--
>>FACEBOOK--
>>--ANDUNDERSTANDDATAAND
WHATPREFERENCESARE.
>>FACEBOOKRESEARCHAPPGOT
THROWNOUTOFTHEAPPSTORETOO,
ISN'TTHATTRUE?
>>CONGRESSMAN,I'MNOTFAMILIAR
WITHTHAT.
>>OKAY.
WELL,OVERNEARLYADECADE,
MR.ZUCKERBERG,YOULEDA
SUSTAINEDEFFORTTOSURVEIL
COMPETITORSTOBENEFITFACEBOOK.
THESEWERESTEPSTAKENTOABUSE
DATA,TOHARMCOMPETITORS,AND
TOSHIELDFACEBOOKFROM
COMPETITION.
YOUTRIEDONETHINGANDTHENYOU
GOTCAUGHT,MADESOMEAPOLOGIES,
THENYOUDIDITALLOVERAGAIN.
ISN'TTHATTRUE?
>>CONGRESSMAN,IRESPECTFULLY
DISAGREEWITHTHAT
CHARACTERIZATION.
ITHINKEVERYCOMPANYENGAGESIN
RESEARCHTOUNDERSTANDWHAT
THEIRCUSTOMERSAREENJOYINGSO
THATTHEYCANLEARNANDMAKE
THEIRPRODUCTSBETTER.
THAT'SWHATWEWERETRYINGTO
DO.
THAT'SWHATOURANALYTICSTEAM
WASDOING.
ITHINKITALLOWSUSTOMAKEOUR
SERVICESBETTERFORPEOPLETOBE
ABLETOCONNECTINALOTOF
DIFFERENTWAYSWHICHISOUR
GOAL.
>>DIDYOUUSETHATCAPABILITY
TOPURCHASEWHATSAPP?
>>CONGRESSMAN,ITWASONEOF
THESIGNALSTHATWEHADABOUT
WHATSAPP'STRAJECTORY,BUTWE
DIDN'TNEEDIT.
WITHOUTTHAT,ITWASPRETTY
CLEARTHATWHATSAPPWASAGREAT
PRODUCT.
>>ANDITWASACOMPETITOR--
>>THEGENTLEMAN'STIMEHAS
EXPIRED.
INOWRECOGNIZETHEGENTLEMAN
FROMFLORIDA,MR.STEUBE.
>>THANKYOU.
IHAVEAQUESTIONFORALLFOUR,
YESORNOANSWER.
DOYOUBELIEVETHATTHECHINESE
GOVERNMENTSTEALSTECHNOLOGY
FROMU.S.COMPANIES?
STARTWITHMR.COOK.
>>IDON'TKNOWOFSPECIFIC
CASESWHEREWEHAVEBEENSTOLEN
FROMBYTHEGOVERNMENT.
>>SO,YOUDON'TBELIEVETHAT
THECHINESEGOVERNMENTIS
STEALINGTECHNOLOGYFROMU.S.
COMPANIES,ORYOU'REJUSTSAYING
THATNOTFROMYOURS?
>>I'MSAYINGIKNOWOFNOCASE
ONOURSWHEREITOCCURRED,WHICH
ICANONLYSPEAKTOFIRST-HAND
KNOWLEDGE.
>>DOYOUBELIEVETHATTHE
CHINESEGOVERNMENTSTEALS
TECHNOLOGYFROMUNITEDSTATES
COMPANIES?
>>CONGRESSMAN,IHAVENO
FIRST-HANDKNOWLEDGEOFANY
INFORMATIONSTOLENFROMGOOGLE.
>>MR.ZUCKERBERG?
>>CONGRESSMAN,ITHINKIT'S
WELLDOCUMENTEDTHATTHECHINESE
GOVERNMENTSTEALSTECHNOLOGY
FROMAMERICANCOMPANIES.
>>THANKYOU.
MR.BEZOS?
YOU'REONMUTE.
>>MR.BEZOS,IBELIEVEYOU'RE
ONMUTE.
>>I'MSORRY.
IWASSAYINGIHAVEHEARDMANY
REPORTSOFTHAT.
IHAVEN'TSEENITPERSONALLY,
BUTI'VEHEARDMANYREPORTSOF
IT.
>>SO,OFALLTHEDIFFERENT
PRODUCTSAMAZONCARRIESYOU
HAVEN'TSEENITINTHEPRODUCTS
ONAMAZONORYOURCOMPANYOR
YOURSELF?
>>CERTAINLYTHEREAREKNOCKOFF
PRODUCTSIFTHAT'SWHATYOU
MEAN.
THEREARECOUNTERFEITPRODUCTS
ANDALLOFTHAT.
BUTTHECHINESE--THEANSWERIS
THECHINESEGOVERNMENTSTEALING
TECHNOLOGY,THAT'STHETHINGI
READREPORTSOFBUTDON'THAVE
PERSONALEXPERIENCEWITH.
>>IT'SNOSECRETTHATEUROPE
INCREASINGLYSEEMSTOHAVE
AGENDAOFATTACKINGLARGE
SUCCESSFULTECHCOMPANIESYET
EUROPE'SAPPROACHTOREGULATION
INGENERALANDANTITRUSTIN
PARTICULARSEEMSTOHAVEBEEN
MUCHLESSSUCCESSFULTHAN
AMERICA'SAPPROACH.
ASYOUALLKNOWFROMDIRECT
EXPERIENCE,THISISACOUNTRY
WHEREIT'SPOSSIBLETOSTARTA
COMPANYANDSEERNSTREMENDOUS
SUCCESS.
DOYOUHAVEANYRECOMMENDATIONS
ONHOWCONGRESSCANBETTER
PROTECTU.S.FIRMSANDU.S.
COMPANIESFROMAGGRESSIONAND
GOVERNMENTINTERVENTIONABROAD,
NOTJUSTINEUROPEBUTINCHINA
ASWELL?
ANYBODYTHATWOULDLIKETOCHIME
IN?
I'LLOPENITUPTOANYOFYOU.
NONEOFYOUHAVEANY
RECOMMENDATIONSONHOWCONGRESS
CANBETTERPROTECTU.S.
COMPANIESLIKEYOURSELF?
--
>>INTHEEMAILSTHATYOUR
COMPANYPRODUCEDTOTHE
COMMITTEE,THERE'SONEFROM
DAVIDWAYNERIN2014WHEREHE'S
DESCRIBINGUNDERTHEMERGERSAND
ACQUISITIONSADVICEWITHINTHE
COMPANYWHEREYOUNEEDTOENGAGE
INALANDGRAB.
HESAYSIHATETHEWORDLAND
GRABBUTTHAT'STHEMOST
CONVINCINGARGUMENTANDWE
SHOULDOWNTHAT.
HEGOESONTODESCRIBEMARKET
CAPEACHYEAR.
DOESTHATREFRESHYOUR
RECOLLECTION?
YES,CONGRESSMAN.
THANKSFORTHEOPPORTUNITYTO
ADDRESSTHIS.
ANDFRANKLYCORRECTTHERECORD
BECAUSEIBELIEVEWHATHEWAS
REFERRINGTOWASAQUESTIONTHAT
WASINCOMINGFROMINVESTORS
ABOUTWHETHERWEWOULDCONTINUE
TOACQUIREDIFFERENTCOMPANIES.
IDON'TTHINKTHATTHATWAS--
THATWASN'TREFERRINGTOAN
INTERNALSTRATEGY.
ITWASREFERRINGTOANEXTERNAL
QUESTIONTHATWEWEREFACING
ABOUTHOWWEWOULD--HOW
INVESTORSSHOULDEXPECTUSTO
ACTGOINGFORWARD.
ANDITHINKHEWASDISCUSSING
THEFACTTHATASMOBILEPHONES
WEREGROWINGINPOPULARITY,
THEREWEREALOTOFNEWWAYS
THATPEOPLECOULDCONNECTAND
COMMUNICATETHATWEREPARTOF
THISOVERALLBROADERSPACEAND
MARKETAROUNDHUMANCONNECTION
ANDHELPINGPEOPLESTAY
CONNECTEDANDSHARETHEIR
EXPERIENCES.
>>MR.ZUCKERBERG,ITSEEMSTO
BEBOTHINTERNALANDEXTERNAL
BECAUSETHENINANEMAILFROM
YOUIN2012WESEEASIMILAR
SENTIMENTEXPRESSED.
YOUWRITE,WECANLIKELYALWAYS
JUSTBUYANYCOMPETITIVESTART
UPS.
SO,ISYOURDESIRETOLIMIT
COMPETITIONBYPURCHASINGYOUR
COMPETITORSCONSISTENTWITHTHE
MESSAGETOYOURINVESTORSTHAT
THEWAYYOU'LLRUNYOURCOMPANY
ISTHROUGHDIGITALLANDGRABS?
>>CONGRESSMAN,I'MNOTSUREI
AGREEWITHTHECHARACTERIZATION
OFHOWWECOMMUNICATEDWITH
INVESTORS.
>>IT'SYOURWORDS,
MR.ZUCKERBERG.
>>BUTITHINKTHEBROADERPOINT
ISTHATTHEREWEREALOTOFNEW
WAYSTHATPEOPLECANCONNECT
THATWERECREATEDBY
SMARTPHONES.
>>THISISABOUTYOURMERGERAND
ACQUISITIONSTRATEGY.
YOUWENTONTOSAYONETHING
ABOUTSTARTUPSISYOUCANOFTEN
ACQUIRETHEM.
SO,I'MNOTINTERESTEDINHOW
PEOPLECONNECT.
I'MINTERESTEDINHOWYOU
ACQUIREBUSINESSESTOLIMIT
COMPETITION.
>>THEGENTLEMAN'STIMEHAS
EXPIREDBUTTHEWITNESSMAY
ANSWERTHEQUESTION.
>>CONGRESSMAN,INORDERTO
SERVEPEOPLEBETTERANDHELP
PEOPLECONNECTINALLTHEWAYS
THEYWOULDWANT,WEINNOVATED
ANDBUILTALOTOFNEWUSECASES
INTERNALLYANDACQUIREDOTHERS.
ANDTHAT,ITHINK,HASBEENA
VERYSUCCESSFULSTRATEGYAT
SERVINGPEOPLEWELL.
ANDALOTOFTHECOMPANIESTHAT
WE'VEBEENABLETOACQUIREHAVE
DONE--HAVEGONEONTOREACH
ANDHELPCONNECTMANYMORE
PEOPLETHANTHEYWOULDHAVEBEEN
ABLETOONTHEIROWN.
>>YOU'VEGRABBEDALOTOFLAND.
IYIELDBACK.
>>IRECOGNIZETHECHAIROFTHE
FULLCOMMITTEE,MR.NADLER,FOR
FIVEMINUTES.
>>THANKYOU,MR.CHAIRMAN.
MR.COOK,WE'VEHEARDFROM
BUSINESSESTHATAPPLEIS
CANVASSINGTHEAPPSTORETO
DETERMINEWHETHERITCANEXTRACT
COMMISSIONSFROMAPPSTHATHAVE
CHANGEDTHEIRBUSINESSMODELSIN
RESPONSETOTHEPANDEMIC.
BUSINESSESTHATRELIEDONIN
PERSONINTERACTIONSHAVEMOVED
ONANDAPPLEISLOOKINGFORITS
CUT.
MYSTAFFHASHEARDFROMSOMEOF
THEAFFECTEDBUSINESSES.
THEYSAYYOU'RECALLINGTHEMUP
DEMANDINGYOUR30%.
ISN'TTHISPANDEMIC
PROFITEERING?
>>WEWOULDNEVERDOTHAT,
MR.CHAIRMAN.
THEPANDEMICISATRAGEDY,AND
IT'SHURTINGAMERICANSANDMANY
PEOPLEALLAROUNDTHEWORLD.
ANDWEWOULDNEVERTAKE
ADVANTAGEOFTHAT.
IBELIEVETHECASESTHATYOU'RE
TALKINGABOUTARECASESWHERE
SOMETHINGHASMOVEDTOADIGITAL
SERVICEWHICHTECHNICALLYDOES
NEEDTOGOTHROUGHOUR
COMMISSIONMODEL.
BUTINBOTHOFTHECASESTHAT
I'MAWAREOF,WEAREWORKING
WITHTHEDEVELOPERS.
TOZOOMOUTANDGIVEYOU
HISTORICALCONTEXTONTHIS,WE
ENTEREDTHEAPPSTOREMARKET.
THECOSTOFDISTRIBUTING
SOFTWAREWAS50%TO70%.
SO,WETOOKTHERATEINHALFTO
30%ANDWE'VEHELDNITTHATSAME
LEVELOVERTIMEORLOWEREDIT.
IT'SNOWRESPONSIBLEFOR2
MILLIONJOBSACROSSAMERICA,AND
84%OFTHEAPPSONTHESTOREARE
DISTRIBUTEDFORFREEWHERE100%
OFTHEPROCEEDSGOTOTHE
DEVELOPER.
ONLYTHAT16%ISSUBJECTTOA
COMMISSIONOFEITHER15OR30%.
>>ANDSCHOOLISABOUTTOSTART
AROUNDTHECOUNTRY.
MILLIONSOFPARENTSANDSTUDENTS
WILLATTENDSCHOOLONLINE.
THEYWILLRELYONAPPSTOTALK
TOTEACHERS,TUTORS,ANDVIRTUAL
LEARNINGTOOLS.
ARETHESEONLINELEARNINGTOOLS
NEXTONAPPLE'S--ARETHEYON
APPLE'SLISTTOMONETIZE?
>>THEY'RENOT,MR.CHAIRMAN.
WEWOULD--WEWILL--WE'RE
VERYPROUDOFWHATWE'VEDONEIN
EDUCATION.
WEARESERVINGTHATMARKETINA
SIGNIFICANTWAYANDINCLUDING
TONSOFDONATIONS.
ANDWEWILLWORKWITHTHEPEOPLE
THATHAPPENTOMOVEFROMA
PHYSICAL--MOVEFROMAPHYSICAL
TOAVIRTUALWORLDBECAUSEOF
THEPANDEMIC.
WE'VEDONEALOTTOADDRESS
COVIDINGENERALASACOMPANY.
WE'VESOURCEDANDDONATED30
MILLIONMASKS,TURNINGOUR
SUPPLYCHAININTOSOMETHINGTHAT
WOULDBEGREATFORAMERICA.
WE'VEDESIGNEDAFACESHIELD,
DONATED10MILLIONOFTHOSE.
WE'REDONATEDSIGNIFICANT
AMOUNTSOFMONEYACROSSTHEU.S.
>>THANKYOU,THANKYOU.
>>THANKYOU.
>>WE'VEHEARDTHATAPPLEISNOW
TRYINGTOEXTRACTCOMMISSIONS
FROMVARIOUSAPPSTHAT
PREVIOUSLYDIDN'TPAYYOU
ANYTHING.
YOUAPPROVED,WE'RETOLD,THE
EMAILANDDAYSLATERTHREATENED
TOKICKITOUTOFTHEAPPSTORE
UNLESSITFIGUREDOUTAWAYTO
GIVEYOUACUTOFREVENUE.
THECOOOFBASECAMPTESTIFIED
BEFOREOURCOMMITTEETHISYEAR.
HEWASCONCERNEDOVERAPPLE'S
DISTYBUGSOVERDEVICES.
HESEEMSTOSBRNRIGHT.
HESAYSAPPLESERVICESHAVE
REQUIREDTOCUTAPPLEIN.
BUTYOUDIDN'TENFORCEYOUR
RULESTHISWAY.
SO,WOULDYOUCOMMENTONTHIS
PLEASE?
>>YES,MR.CHAIRMAN,IWOULD.
HEYISINTHESTORETODAYAND
WE'REHAPPYTHATTHEY'RETHERE.
IBELIEVETHEYHAVEAVERSIONOF
THEIRPRODUCTISFORFREE,SO
THEY'RENOTPAYINGANYTHINGON
THAT.
IWOULDALSOSAYTHAT30%--I
HOPEYOUGIVEMETIMETOEXPLAIN
THIS--OR15%ISFORLOTSOF
DIFFERENTSERVICESFROM
PROGRAMMINGLANGUAGESTO
COMPILERSTO150,000APIs.
ITHASBEENANECONOMICMIRACLE
TOALLOWTHEPERSONINTHEIR
BASEMENTTOSTARTACOMPANY,A
GLOBALCOMPANY,ANDSERVE175
COUNTRIESINTHEWORLD.
ITISAMAZING.
LIKELYTHEHIGHESTJOBCREATOR
INTHELASTDECADE.
>>ISEE.
ANDYOUHAVEN'TCHANGEDTHE
RULESINSUCHAWAYASTOMAKE
APPSPAYWHENTHEYWEREN'T
PAYINGBEFORE.
>>IKNOWOFNOCASEWHEREWE'VE
DONETHAT.
I'MSUREWE'VEMADEERRORS
BEFORE.
WEGET100,000DIFFERENTAPPS
SUBMITTEDAWEEKANDWEGOT
1.7MILLIONONTHESTORE.
BUTACROSSTHATPEEROFTIME
WE'VENEVERRAISEDCOMMISSIONS
FROMTHEFIRSTDAYTHEAPPSTORE
WENTINTOEFFECTBACKIN2008.
WE'VEONLYLOWEREDTHANKYOU.
ISEEMYTIMEISEXPIREDANDI
YIELDBACK.
>>CHAIRMANYIELDSBACK.
>>THANKYOUFORTHEQUESTION.
>>IRECOGNIZETHEGENTLEMAN
FROMNORTHDAKOTA,MR.
ARMSTRONG.
>>THANKYOUMISTERCHAIRMAN.
MR.PICHAI,GOOGLEANNOUNCEDIT
WOULDNOTALLOWTHIRDPARTIES
TOBUYYOUTUBEADS.
THATMEANSADVICEONYOUTUBE
ARECONDUCTEDONLYTHROUGH
GOOGLEDEMANDSIDEPRODUCTS.
GOOGLEJUSTIFYTHISCHANGEBY
CITINGPRIVACYANDUSER
EXPERIENCE.
MYUNDERSTANDINGISTHATDOUBLE
SIDEDACONCERNTHATTHIRD
PARTYDIGITALADPARTICIPANTS
WOULDDEVELOPUSERPROFILES
BASEDONTHISTHEORY.
IT'SALSOMYUNDERSTANDINGTHAT
EVENUNDERTHEGDPR,YOUALLOW
USERSTOPROVIDECONSENTWHICH
WOULDAUTHORIZETHISTYPEOF
ACTIVITY.
ITSEEMSTHATTHISPOLICY,
REGARDLESSOFTHEPRIVACY
CONCERNS,REDUCEDCOMPETITION
FORDEMANDSIDEPLATFORMSON
YOUTUBE.
DOYOUAGREE?
>>CONGRESSMAN,WEAREALWAYS
LOOKINGTOIMPROVETHEYOUTUBE
EXPERIENCE.
PARTOFBEINGABLETOINTEGRATE
THISSPACEANDWHATWE'VEBEEN
ABLETOINNOVATEANDYOUTUBE
WHEREUSERSGETSCAPABLEADS.
IFTHEYFINDADSNOTTOBE
RELEVANT,THEYCANSKIPPASS
THOSEADS.
MONETIZINGYOUTUBEISWHAT
ALLOWSHUNDREDSOFTHOUSANDSOF
CREATORSEARNINGALIVELIHOOD.
MANYOFTHEMARESMALLAND
MEDIUMBUSINESSES.
WEWANTTOSUPPORTTHATWEALTH
ANDSOWEAREFOCUSEDONTHAT.
ALLOWINGTHISTYPEOF
INTEGRATIONISWHATALLOWSUS
TOCREATETHATUSEREXPERIENCE.
>>AFTERGOOGLESTOPPED
ALLOWINGTHIRDPARTIESTOBUY
GOOGLEATTHEATEX,GOOGLE
LIMITTOTHEINTEROPERABILITY
OFTHIRD-PARTYANALYTICSON
YOUTUBE.
YOUNOWALLOWTHEREQUIRING
ABUSEOFATSOMEDATA.
IT'SBASEDONUSERPRIVACYONCE
AGAIN.
OTHERMARKETPARTICIPANTSMAY
NOTHAVEACCESSTOTHATDATA
WHATITDOESNOTDISAPPEARDOES
IT?
>>CONGRESSMAN,THISIS
CONSISTENTWITHHOWMANY
SERVICESBEATFACEBOOKOR
SNAPCHATORPINTEREST,YOUWORK
TOBUYADSONTHEIRPROPERTIES.
>>IUNDERSTANDTHAT,THE
EXCUSEISPRIVACYBUTTHEDATA
DOESNOTDISAPPEAR.
YOUJUSTHAVEGREATERCONTROL
OVERITRIGHT?
>>CONGRESSMAN,IT'SASERVICE
WEPROVIDETOOURUSERS.
WEOBVIOUSLYWANTTOMAKESURE
WEPROTECTTHEPRIVACYOFUSERS
THERE.
WEDOMONETIZEWITHADS.
WEGIVEUSERSACHOICEOF
EITHERCONSUMINGITASA
SUBSCRIPTIONSERVICEORUSING
ITWITHADS.
WE'VEBEENVERYFOCUSEDON
MAKINGYOUTUBEAGREATPLATFORM
FORCREATORSANDITHINKTHE
MODELISWORKINGWELL.
IT'SREALLYHELPEDMANYSMALL
ANDMEDIUMBUSINESSESTOINVEST
ONTHEPLATFORM.
ASWELLASGROWTHEIR
BUSINESSES.
>>REGARDLESSOFTHEINTENT,
WASTHELESSONCOMPETITIONARE
NOT?
THEACTIONRESULTEDINSMALLER
COMPETITORSNOTBEINGABLETO
PARTICIPATEINPLACINGADSON
YOUTUBE.
ISTHATCORRECT?
>>CONGRESSMAN,WESEEROBUST
CHOICEFORADVERTISERS.
THEREARESEVERALALLINTERNET
AREAS.
THERE'SOBVIOUSLYFACEBOOK.
THERE'SAMAZONWITHTHEIRADS
MARKETPLACE.
THERE'SCOMPANIESLIKESNAPCHAT,
PINTERESTANDTWITTERORNEW
COMPETITORSTHATHAVEEMERGED.
THAT'SWHYWESEEADVERTISING
COSTSDECLINEDBY40%INTHE
LASTTENYEARS.
WESEEDYNAMISMINTHE
MARKETPLACE...>>HERE'SMY
ISSUE.
THEREAREPOLICIESTHAT
ACTUALLYPROTECTUSERPRIVACY.
APPLESPOLICY,MICROSOFTJUST
CAMEOUTONFACIALRECOGNITION
POLICY.
MYCONCERNISTHATYOUR--
ONEWEREUSINGPRIVACY,WE'RE
TRYINGTOUSEPRIVACYASA
SHIELD.
WHATYOURCOMPANYISREALLY
DOINGISUSINGITASACUDGEL
TOBEATDOWNTHECOMPETITION.
WHENWE'RETALKINGABOUT
PRIVACY,IT'SAGREATWORDTHAT
PEOPLECARRYABOUT,BUTNOT
WHENIT'SUTILIZEDTOCONTROL
MOREOFTHEMARKETPLACEAND
SQUEEZEOUTSMALLER
COMPETITORS.
WITHTHATIYIELDTHEREMAINDER
OFMYTIMETOMR.GAETZ.
>>ITHANKYOUFORYIELDING.
MR.BEZOS,WEWERECUTSHORTIN
OURLASTCONVERSATION.
IWANTTODECLARETHISUP.
YOUDON'TBELIEVEDOCTORBEN
CARSONISANEXTREMISTDOYOU?
>>NOSIRIDON'T.
>>HELPMEUNDERSTANDWHYYOU
WOULDPARTNERWITHAGROUPTHAT
LABELSHIMASSOMEONEWORTHYOF
ANEXTREMISTWATCHLIST?
>>IWANTYOUTOHOPEFULLY
APPRECIATETHATWE'RETRYINGTO
MAKEITPOSSIBLEFORPEOPLETO
DONATEMILLIONSOFDIFFERENT
CHARITIES.
WENEEDTOHAVESOMESOURCEOF
DATATOUSE.
IACCEPTWHATYOU'RESAYING
THATTHEU.S.FOREIGNASSET
OFFICEARENOTPERFECTANDI
WOULDLIKEABETTERSOURCEIF
WECOULDGETIT.
THATISWHATWEUSETODAY.
>>THAT'SBREAKINGNEWS.
IT'SGREATTOHEARTHATYOUDO
RECOGNIZETHEINFIRMITIESIN
THESOUTHERNLAWHAVEALOT
CENTER.
IGUESSMR.SUCKERBRICKAND
MR.PICHAICOMPANYUSETHEMAS
WELL.
MR.ZUCKERBERG,DOYOUBELIEVE
DOCTORBENCARSONISAN
EXTREMIST?
>>NOCONGRESSMAN.
>>SO,WHYWOULDYOUTRUSTTHE
PEOPLEWHOTHINKHEIS?
>>CONGRESSMAN,I'MNOTAWARE
OFWHEREWEWORKWITHTHE
ORGANIZATIONTHATYOUARE
SAYING.
>>GENTLEMAN'STIMEHAS
EXPIRED.
IRECOGNIZETHEGENTLEMANFROM
MARYLAND,MR.RASKIN,FORFIVE
MINUTES.
>>THANKYOUMISTERCHAIRMAN.
IREADMR.ACOSTAYEARSTHE
PARANOIDSTYLEOFAMERICAN
POLITICS.
ISUPPOSEITISFUTILETOTRY
TOCURETHEOBSESSIVE
PERSECUTIONCOMPLEXANDVICTIM
ALLEDGYOFSOMEOFOUR
COLLEAGUES.
THEYSHOULDCHECKOUTTHESETOP
PERFORMINGFACEBOOKLINKPOSTS
BYTHEUNITEDSTATESPAGES
TODAYORYESTERDAYORANYDAY
FORTHELASTWEEK.
INSEVENOUTOFTHETENFOR
EACHDAY,THEYARERIGHTWING
SITES.
THENSHAPIRO,FOXNEWS,THEN
BEENGENO,WHOLIVESMATTERAND
SOON.
IFFACEBOOKISOUTTHERETRYING
TOREPRESSCONSERVATIVETO--
SPEECH,THEY'REDOINGA
TERRIBLEJOBATIT.
SOIDON'TUNDERSTANDTHE
ENDLESSWHININGABOUTHOW
FACEBOOKANDTWITTERARE
SOMEHOWDISCRIMINATINGAGAINST
CONSERVATIVES.
THEREMOVALOFDONALDTRUMPAND
DONALDTRUMPJUNIORFROM
TWITTERWASALLABOUTTHEIR
SPREADINGDISINFORMATION.
FALSESTATEMENTSABOUT
COVID-19.
THATWASANABSOLUTEPUBLIC
HEALTHMEASUREWHICHIHOPEALL
OFUSWOULDENDORSE.
WEDON'TWANTANYBODY,
INCLUDINGTHEPRESIDENTOFTHE
UNITEDSTATES,SPREADINGFALSE
INFORMATIONABOUTCOVID-19.
THEYESSENTIALLYDESTROYTHEIR
OWNCASEWHENTHEYPICKTHATAS
THEIRCAUSEFORGOINGAFTERALL
OFYOU.
IDON'TUNDERSTANDFORTHELIFE
OFMETHELINEOFQUESTIONING
ABOUTELECTIONEERINGTAKING
PLACEBYSOMEOFYOUR
COMPANIES.
IFYOUAREOPPOSEDBY
ELECTIONEERINGBYCORPORATIONS,
ASIAM,ANDOPPOSEDTO
CITIZENSUNITED,THENYOUHAVE
NOPROBLEM.
CITIZENSUNITEDISWHATGAVE
CORPORATIONSTHEPOWERTOGO
OUTANDSPENDMONEY.
IFYOUDON'TLIKETHEWAYSOME
COMPANIESARESPENDINGMONEY,
THENEITHERSTARTYOUROWN
COMPANYORTELLTHEMWHATIS
WRONGWITHIT.
BUTTHEIDEATHAT
ELECTIONEERINGISSOMETHINGYOU
ARE--
OPPOSEDTOSTRIKESMEIS
SOMETHINGTHATISCOMPLETELY
INCONSISTENTWITHTHEHISTORY
ANDFACTS.
IWANTTOGOTOMR.COOKIFWE
COULD.
FIRST,AQUICKQUESTION.
AREANYOFYOURCOMPANIES
BENEFITCORPORATIONS?
THATISTHATSOMETHINGYOUHAVE
CONSIDEREDDOING?
ASANYOFYOUCONSIDERED
BECOMINGABENEFITCORPORATION?
IWILLTAKEYOURSILENCEASNO.
MR.COOK,I'MHUNGUPONTHIS
30%QUESTIONTHATSEVERAL
MEMBERSHAVETALKEDTOYOU
ABOUT.
YOUSAYSOMETIMESIT'S15%,
SOMETIMESIT'S30%,CANYOU
EXPLAINWHENIT'S15ANDWHEN
IT'S30ANDWHYIT'S15
SOMETIMESANDWHITES30OTHERS?
>>SURE.
THANKYOUFORTHEQUESTION
CONGRESSMAN.
84%OFTHETIME,IT'SZERO.
16%OFTHETIMEIT'S15OR30.
IT'S15IFIT'SINTHESECOND
YEAROFASUBSCRIPTION.
>>SOYOUJUSTGRADUATEFROM
YOURFIRSTYEAR,YOUARETAKING
NOTICEESSENTIALLY.
THESECONDYEARIT'S15AND
IT'S30AFTERTHE?
ISTHATRIGHT?
>>NO.
IFIT'SASUBSCRIPTIONPRODUCT,
IT'S30%INTHEFIRSTYEAR
ENDEDINDROPS15%ANDTHE
SECONDYEARANDEVERYYEAR
THEREAFTER.
>>IGOTYOU.
OKAY.
WHATTROUBLESMEISWHATONE
BUSINESSWOMANTOLDMEWHENI
WASLOOKINGATTHIS.
SHESAIDIPAYAROUND25%OFMY
INCOMETOUNCLESAM,TOTHE
GOVERNMENT.
THEN,IPAY30%OFMYINCOMETO
APPLE.
SOIGETHALFOFITANDIT'S
VERYHARDTOMAKEENDSMEET.
IJUSTWONDER--
LOOK,ALLOFYOUAREIN
BUSINESSANDTREMENDOUSLY
SUCCESSFULATWHATYOUDO.
OBVIOUSLY,THISMODELHAS
WORKEDFORYOU.
BUTTHEQUESTIONISDOESTHIS
MODELACTUALLYSQUEEZEOUTTHE
NEXTGENERATIONOF
ENTREPRENEURS?
ANDISITANUNJUSTARRANGEMENT
BECAUSEYOUARETHE10,000
POUNDGORILLAANDTHEYAREJUST
TRYINGTOGETSTARTED?
>>IDON'TTHINKSO.
INFACT,KEEPINMINDWE'VE
GONEFROM500APPSTO1.7
MILLION.
SOTHERE'SALOTOFAPPSONTHE
STOREANDALOTOFPEOPLEARE
MAKINGAVERYGOODLIVINGFROM
IT.
>>YOU'VESAIDTHAT.
FORGIVEMEFORINTERRUPTING,
WHATYOUSAIDTHATSEVERAL
TIMES.
THAT,TOME,MIGHTJUST
UNDERSCORETHEMONOPOLYNATURE
OFYOURBUSINESS.
THATEVERYONENEEDSTOGO
THROUGHYOU.
THERE'SREALLYNOALTERNATIVE.
IDON'TBLAMEYOUFORTAKING
THEMALL,BUTTHATDOESN'TMEAN
THATTHETERMSBEINGDICTATED
AREINFACTFAIRTERMS.
SO,HOWWOULDYOUDEFENDTHAT
BARGAINSUBSTANTIVELY?
>>WHETHERYOULOOKATITFROM
ACUSTOMERPOINTOFVIEWORA
DEVELOPERPOINTOFVIEW,THERE
AREENORMOUSCHOICESOUTTHERE.
IFYOUAREADEVELOPER,YOUCAN
WRITEFORANDROID.
YOUCANWRITEFORWINDOWS.
YOUCANWRITEFORXBOXOR
PLAYSTATION.
IFYOUAREACUSTOMERANDYOU
DON'TLIKETHESETUP,THE
CURATEDEXPERIENCEOFTHEAPP
STORE,YOUCANBUYASAMSUNG.
>>IAPPRECIATETHAT.
FORGIVEMEFORCUTTINGYOUOFF
AGAIN.
IHAVEAFINALQUESTIONFORMR.
ZUCKERBERG.
YOUSPENDALOTOFTAKEYOUR
TIMESPEAKINGTOOUR
CONSERVATIVECOLLEAGUESWHOHAD
THISPERSECUTIONCOMPLEXTHAT
YOUARESOMEHOWGOINGAFTER
THEM.
WILLYOUHAVETIMETOMEETWITH
THISBROADCOALITIONOFCIVIL
RIGHTSGROUPSTHATAREENGAGED
INABOYCOTTBECAUSEOFWHAT
THEYTHINKISTHEPROLIFERATION
OFHATESPEECHANDHOLOCAUST
REVISIONISTANDOTHER
AFFILIATEDTOPICSONFACEBOOK?
>>CONGRESSMAN,YES.
I'VEALREADYTAKENTHETIMETO
MEETWITHTHEM.
ITHINKTHETOPICSTHEYARE
PUSHINGONAREIMPORTANTONA
LOTOFTHEGOALSWEAGREE.
THESEAREISSUESAROUND
FIGHTINGHATETHATWEHAVE
FOCUSEDONFORYEARS.
WEARECOMMITTEDTOCONTINUING
TOIMPROVETHEWAYOURCOMPANY
WORKSANDJUSTCONTINUALLY
GETTINGBETTERONTHESEISSUES.
>>IAPPRECIATETHAT.
>>THANKYOUMR.ZUCKERBERG.
INOWRECOGNIZETHEGENTLEMAN
FROMOHIO,MR.JORDAN,FORFIVE
MINUTES.
>>THANKYOU.
MR.COOK,ISTHECANCELCULTURE
MOBDANGEROUS?
>>IT'SSOMETHINGI'MNOTALL
THEWAYUPTOSPEEDON.
IFYOUARETALKINGABOUTWHERE
SOMEONEWITHADIFFERENTPOINT
OFVIEWTALKSANDTHEYARE
CANCELED,IDON'TTHINKTHAT'S
GOOD.
ITHINKIT'SGOODFORPEOPLETO
HEARDIFFERENTPOINTSOFVIEW
ANDDECIDEFORTHEMSELVES.
>>IAGREEWITHTHAT.
IWANTTOREFERENCEALETTER.
BARRYWEISS,WHORESIGNEDASAN
EDITORFROMTHENEWYORKTIMES,
WROTEALETTEREXPLAININGWHY
SHERESIGNED.
IWILLREADTHREESENTENCESFOR
ALLOFYOU.
SHESAYS,FIRSTOFALLMYOWN
FORAYSINTOWRONGTHICKMADEME
THESUBJECTOFCONSTANT
BULLYINGBYMYCOLLEAGUESWHO
DISAGREEDWITHMYVIEWS.
SHELATERSAYS,EVERYONELIVES
INFEAROFTHEDIGITALTHUNDER
DOME.
THEONLINEVENOMOUSEXCUSEAS
LONGASITISDIRECTEDATTHE
PROPERTARGETS.
THETARGETSARENOTONLY
CONSERVATIVE.
MISSVICEISACTUALLYCENTER
LEFT.
SHE'SNOTCONSERVATIVE.
THETARGETSAREANYONEWHO
DISAGREESWITHTHEMOB.
ARETHERESTOFYOUCONCERNED
ABOUTTHECANCELCULTUREMOB
ANDWHATITISUPTO?
MR.PICHAI?
>>CONGRESSMAN,ICOULDN'THEAR
VERYWELLFORTHEMOMENT.
WEBUILDPLATFORMSWHICHALLOW
FORFREEDOMOFEXPRESSION.
WETAKEPRIDEINTHEFACTTHAT
ACROSSOURPLATFORMS,INCLUDING
YOUTUBE,THEREAREMOREDIVERSE
VOICESTHANEVERBEFORE.
ITISSOMETHING...>>THAT'S
FUN.
I'MJUSTCONCERNEDABOUTIT.
AGAIN,I'MNOTJUSTCONCERNED
BECAUSECONSERVATIVESGETS
ATTACKED,I'MCONCERNEDTHAT
ANYONEGETSATTACKEDFOR
EXPRESSINGVIEWPOINT.
ITHOUGHTWEHADAFIRST
AMENDMENTANDYET,THEY
CONSTANTLYGETATTACKED.
HOWABOUTYOUMR.ZUCKERBERG?
>>YESCONGRESSMAN.
IBELIEVESTRONGLYINFREE
EXPRESSION.
GIVINGUPPEOPLEAVOICEISAN
IMPORTANTPARTOFWHATOUR
SERVICESDO.
I'MVERYWORRIEDABOUTSOMEOF
THEFORCESOFILLIBERALISMTHAT
ISEEINTHISCOUNTRYTHATARE
PUSHINGAGAINSTFREE
EXPRESSION.
ITHINKTHATTHISISONEOFTHE
FUNDAMENTALDEMOCRATIC
TRADITIONSTHATWEHAVEINOUR
COUNTRY.
ITISHOWWEMAKEPROGRESSOVER
THELONGTERMONANUMBEROF
ISSUES.
OURCOMPANYISCOMMITTEDTO
DOINGWHATWECANTOPROTECT
MR.--
PEOPLESVOICE.
>>THANKYOUMR.ZUCKERBERG.
MR.BEZOS?
>>YES,SIR.
I'MCONCERNEDINGENERALABOUT
THAT.
IFINDALITTLEDISCOURAGING
THATITAPPEARSTOMETHAT
SOCIALMEDIAISANUANCED
DESTRUCTIONMACHINE.
IDON'TTHINKTHATISHELPFUL
FORADEMOCRACY.
>>DOYOUAGREEWITHTHETERMS
SHEUSED?
DIGITALTHUNDERDOME?
>>ISEETHAT,YES.
>>ISEEITTO.
IGUESSMYPOINTIS,YOUARE
FORPRETTYIMPORTANTGUYS
LEADINGFOUROFTHEMOST
IMPORTANTCOMPANIESONTHE
PLANET.
ITWOULDSHORTBEHELPFULIF
YOUSPOKEOUTAGAINSTTHIS.
MR.COOK,THEREWASA1984
SUPERBOWLADANDBLACKAND
WHITETHATHADTHISBIGBROTHER
TYPEFIGUREASTHENARRATOR
SAYINGOVERTHESCREENTOTHE
WORKERS,OURUNIFICATIONOF
THOUGHTSISMOREPOWERFUL
WEAPONONTHANANYFLEETOR
ARMYONTHEEARTH.
ITSEEMSTOBESTRAIGHTOUTOF
THESOVIETUNION.
THENYOUSEEAWOMENCOMINGIN
ANDSMASHINGTHESCREEN.
BUSTINGTHEGROUPTHINK.
BUSTINGTHEMOBTHANK.
DOYOUREMEMBERTHATADMR.
COOK?
>>IREMEMBERITVERYWELL.
ITWASAPPLEVERSUSIBMATTHE
TIME.
>>YES.
BUTTHEPOINTWAS,MOBTHANK,
CANCELCULTURE,GROUPTHANK,IS
NOTWHATTHISCOUNTRYISABOUT.
WEARESEEINGITPLAYOUTEVERY
SINGLE--
JUSTTAKETHESPORTSWORLDFOR
GOODNESSSAKE.
INTHELASTFEWWEEKS,DREW
BREESHADTO--
BOWEDTOTHEMOBBECAUSEHE
SIMPLYSUGGESTEDYOUSHOULD
STANDFORTHEANTHEM.
THEREISAFOOTBALLCOACHAT
OKLAHOMASTATEWHOWORETHE
WRONGT-SHIRTFISHINGWITHHIS
BOYS.
HEGOTINALLKINDSOFTROUBLE.
JAMESHARDENGETSATTACKEDFOR
SUPPORTINGTHEPOLICE.
WHYDON'TWEJUSTLETTHEFIRST
AMENDMENTWORK?
THATISALLWEAREASKING.
YOUAREFOURINDIVIDUALSWHO
HAVESOMUCHINFLUENCE,IT
WOULDYOURHELPIFYOUAREOUT
THERECRITICIZINGWHATTHE
CANCELCULTUREMOBISDOINGTO
THISCOUNTRY.
PEOPLESEEITEVERYSINGLEDAY.
IHOPEYOUWILLDOIT.
YOUALLSAIDYOUDISAGREEWITH
IT,IHOPEYOUWILLREALLY
SPEAKOUTAGAINSTITANDBE
FAIR.
WITHALLVIEWPOINTS.
IYIELDBACK.
>>THEGENTLEMANYIELDSBACK.
IRECOGNIZETHEGENERAL--
GENTLELADYFROMWASHINGTON.
>>THANKYOUMISTERCHAIRMAN.
MR.PICHAI,IDIRECTMY
QUESTIONSTOYOU.
MANYOFUSFEELADEEPURGENCY
TOPROTECTINDEPENDENT
JOURNALISM.
IWANTEDTOTALKALITTLEBIT
ABOUTADREVENUEAND
INDEPENDENTJOURNALISM.
GOOGLEMAKESMOSTOFITS
REVENUETHROUGHSELLING
ADVERTISINGANDGOGGLES
ADVERTISINGEXCHANGEISAQUOTE,
REALTIMEMARKETPLACETOSELLING
DISPLAYADVERTISINGSPACE.
CORRECT?
>>YESCONGRESSWOMAN,THAT'S
CORRECT.
>>OVER2MILLIONWEBSITES
INCLUDINGNEWSPAPERSUSETHAT
EXCHANGE.
CORRECT?
>>WEAREVERYPROUDTOSUPPORT
PUBLISHERS.
WEDON'TKNOWTHEEXACTNUMBERS,
BUTYESTHATSEEMSCORRECT.
>>THAT'SANESTIMATEPUT
FORWARD--
FORTHBYATECHEXPERT.
YOUROWNWEBSITESAYSYOUHAVE
ACCESSTOOVER2MILLIONSITES.
WHATISGOOGLE'SSHAREOFTHE
ADEXCHANGEMARKET?
>>CONGRESSMAN,I'MNOTEXACT
AREFAMILIAR.
I'VESEENVARIOUSREPORTS.
WEAREPOPULARCHOICE.
>>GREAT,LETMEPUTITUPFOR
YOU.
IFYOULOOKATTHESCREENYOU
WILLSEETHAT50TO60%
ACCORDINGTOONLINEPLATFORMS
ANDDIGITALADVERTISINGMARKET
STUDYTHATWASRELEASED.
INORDERTOEXCHANGE--
WEBSITESANDADVERTISERSGO
THROUGHAMIDDLEMANLIKEGOOGLE
ADS.
IFYOULOOKATTHESLIDE,YOU
CANSEETHATTHESHAREOFTHIS
BYSIDEMARKETTHATGOOGLEHAS
IS50TO90%ACCORDINGTOTHE
SAMESTUDY.
IWANTTOSIMPLIFYHOWTHESE
EXCHANGESWORK.
LET'SSAYINSEATTLE,AMOMAND
POPBUSINESSWANTSTOBUY
ONLINEATSPACEINTHESEATTLE
TIMES.
THECOMPANYWOULDNEEDTOGOTO
AMIDDLEMANLIKABLEADDS,WHICH
WOULDTHENVIVIDFORASPACEON
ANADEXCHANGE.
THEPROBLEMISTHATGOOGLE
CONTROLSALLOFTHEENTITIES.
SOIT'SRUNNINGTHEMARKETPLACE,
IT'SACTINGONTHEBYSIDEAND
IT'SACTINGONTHESILLSIDEAT
THESAMETIMEWHICHISAMAJOR
CONTRACT--
CONFLICTOFINTEREST.
ITALLOWSYOUTOSETRATESVERY
LOWASABUYEROFATSPACEFOR
NEWSPAPERS,DEPRIVINGTHEMOF
THEIRADREVENUE.
THENITALSOALLOWSYOUTOSELL
HIGHTOSMALLBUSINESSESWHO
AREDEPENDENTONADVERTISINGON
YOURPLATFORM.
ITSOUNDSABITLIKEASTOCK
MARKET,EXCEPTUNLIKEASTOCK
MARKET,THERE'SNOREGULATION
ONYOURADEXCHANGEMARKET.
IFTHEREWEREREGULATION,IT
WOULDACTUALLYPROHIBITINSIDER
TRADING.
THATMEANSTHEBROKERCAN'TUSE
THEDATAINTHEBROKERDIVISION
TOBUYANDSELLFORTHEIROWN
INTERESTS.
INSTEAD,BROKERSHAVETOSERVE
THECLIENTS.
DOESGOOGLEHAVEASIMILAR
OBLIGATIONTOSERVEITSCLIENTS?
THEBUSINESSESTHATARESELLING
ANDBUYINGATSPACE.
>>CONGRESSWOMAN,IFICOULD
EXPLAINTHISFORAMINUTE.
WEPAIDOVER14BILLIONDOLLARS
TOPUBLISHERS.
WEAREDEEPLYCOMMITTEDTO
JOURNALISM.
INTHISAREA,ONANAVERAGE,WE
PAYABOUT69%OFTHEREVENUE
WENTPUBLISHERSUSEGOGGLES
SIDEWEBSITES.
IT'SALOWBUSINESSMARGINFOR
US.
WEDOITBECAUSEWEWANTTO
HELPSUPPORTPUBLISHERS.
>>IUNDERSTANDTHAT,WHATI'M
TRYINGTOGETATISTHATWHEN
ANYCOMPANYCONTROLSBOTHTHE
BUYANDSELLSIDE.
IWORKEDATLONG--
WALLSTREETLONGAGO.
THISADEXCHANGEISESSENTIALLY
THESAMETHING.
WITHOUTACCOUNTABILITY,IT
ISN'TMEANINGFULTOJUSTCARE
ABOUTTHENEWSPAPERS.
WEARESEEINGTHEMDIE
EVERYWHEREANDADREVENUEISA
BIGREASON.
LETMEPUTUPAGRAPHICTHAT
SHOWSTHATGOGGLESADREVENUES
INCREASINGLYCOMINGFROMADSON
GOOGLEOWNEDSITESANDLESS
FROMOTHERWEBSITES.
CANYOUEXPLAINTHETREND?
>>ICAN'TQUITESEEIFTHISIS
NETREVENUEORGROSSREVENUE.
WHENITCOMESTONONGOOGLE
PROPERTIES,WESHARETHE
MAJORITYOFREVENUEBACKTO
PUBLISHERS.
ONOUROWNPROPERTIES,WEHAVE
THEINVENTORY.
IWOULDNEEDTOUNDERSTANDMORE,
IJUSTQUICKLYLOOKEDATIT.
>>WECANSENDITTOYOUAND
MAKESUREYOUHAVEIT.
GOOGLEHASNOTMADEITSSEARCH
TRAFFICVOLUMESPUBLICAND
BEARSSOTHERE'SNOWAYFORUS
TOKNOWEXACTLYWHAT'S
HAPPENING.
THEREISNOWAYFORBUSINESSES
TOVERIFYWHETHERTHEYHAVE
BEENTREATEDFAIRLYORLEFT
BEHINDINFAVOROFGOOGLEOWNED
COMPANIES.
ISGOOGLESTARINGADVERTISING
REVENUETOGOOGLESEARCH?
>>CONGRESSWOMAN,USERSON
GOOGLESEARCH,THAT'SWHEREOUR
SOURCEOFREVENUECOMESFROM.
WEWORKHARDTOEARNTHEIR
TRUST.
WEKNOWCOMPETITIONFOR
INFORMATIONISJUSTACLICK
AWAY.
>>THANKYOUMISTERPICHAI.
IWANTTOMAKETHEPOINTTHAT
INDEPENDENTJOURNALISMIS
INCREDIBLYNECESSARYFOROUR
DEMOCRACYANDWEWANTTODO
WHATWECANTOPROTECTIT.
IWANTTOASKONELASTQUESTION
OFMR.ZUCKERBERG.
OVER1100COMPANIESAND
ORGANIZATIONSPULLEDTHEIR
ADVERTISINGBUSINESSFROM
FACEBOOKASPARTOFTHESTOCK
MEATFORPROFITCAMPAIGNTO
PROTESTTHESPREADOFHATE
SPEECHANDDISINFORMATION.
BUTYOUATASTAFFMEETING
EARLIERTHISMONTHTOLD
EMPLOYEESYOUARENOTGOINGTO
CHANGEYOURPOLICIESOR
APPROACHBECAUSEOFATHREATTO
ANYPERCENTOFYOURREVENUE.
MYGUESSISALLTHESE
ADVERTISERSWILLBEBACKONTHE
PLATFORMSOONENOUGH.
MR.ZUCKERBERG,AREYOUSOBIG
THATYOUDON'TCAREHOWYOUARE
IMPACTEDBYAMAJORBOYCOTTOF
1100ADVERTISERS?
>>NOCONGRESSWOMAN.
OFCOURSEWECARE.
BUT,WE'REALSONOTGOINGTO
SETOURCONTENTPOLICIES
BECAUSEOFADVERTISERS.
ITHINKTHATWOULDBETHEWRONG
THINGFORUSTODO.
WE'VECAREDABOUTISSUESLIKE
FINDINGHATESPEECHFORALONG
TIMEANDWE'VEINVESTED
BILLIONSOFDOLLARS.
WEHAVETENSOFTHOUSANDSOF
CONTENTREVIEWERS.
WEBUILTASYSTEMSTHAT
PROACTIVELYIDENTIFYTHE
MAJORITY,WERENINEAT89%OF
THEHATESPEECHREMOVEDBEFORE
ITISEVENREPORTEDTOUS.
WEWILLCONTINUEGETTINGBETTER
ATTHAT.
ITHINKTHERESULTSWEPUTUP
WILLBERECOGNIZEDBYPEOPLE
SINCEIBELIEVETHEYARE
INDUSTRYLEADING.
ITHINKOURADVERTISINGISALSO
THEMOSTEFFECTIVEFORMANY
SMALLBUSINESSES.
>>THANKYOUMR.ZUCKERBERG,MY
TIMEHASEXPIRED.
IWOULDJUSTSAYTHATIKNOW
YOUCOMMISSIONEDYOUROWNCIVIL
RIGHTSAUDIT.
IDON'TTHINKTHATYOU
IMPLEMENTEDALLTHOSE
RECOMMENDATIONSYET.
IHOPEYOUWILLMOVEQUICKLYTO
IMPLEMENTTHOSE.
THISISACRITICALTIMEAS
WE'VEWATCHEDTHEBODYOFJOHN
LEWISLEAVEUSHEREINTHE
CAPITAL,THATWEFOCUSONCIVIL
RIGHTS.
THANKYOUMISTERCHAIRMAN,I
YIELDBACK.
>>BEFOREICALLONTHENEXT
WITNESS,IWANTTORECOGNIZE
MR.PICHAIWHOITHINKWANTSTO
MAKEACORRECTIONFORTHE
HEARING.
>>,THEREWASAQUESTION
EARLIERABOUTINFORMATIONWITH
RESPECTTOCHINA.
IJUSTWANTEDTOACKNOWLEDGEON
RECORDTHATIN2009,WEHADA
WELLPUBLICIZEDCYBERATTACK
WHICHORIGINATEDFROMTHEIR.
IWANTEDTOCORRECTTHAT.
>>THANKYOUMISTERPICHAI,THE
RECORDWILLREFLECTTHAT.
IRECOGNIZETHEGENTLELADY
FROMPENNSYLVANIAFORFIVE
MINUTES.
>>THANKYOUMISTERCHAIRMAN.
INMARCH2020,AMAZONANNOUNCED
ITWOULDSTARTDELAYING
SHIPMENTSOFNONESSENTIAL
PRODUCTSINORDERTOBETTER
SERVECUSTOMERSANDMEETNEEDS
WHILEHELPINGTOENSURETHE
SAFETYOFTHEIRWAREHOUSE
WORKERS.
INPRACTICE,HOWEVER,IT
APPEARSTHATTHISPOLICYWAS
APPLIEDSELECTIVELYASAMAZON
CONTINUETODESIGNATEITSOWN
PRODUCTSASESSENTIALEVENAS
ITDELAYEDCOMPETINGPRODUCTS
FROMTHIRD-PARTYSELLERS.
ESSENTIALITEMSWERESUPPOSED
TOINCLUDEMEDICALSUPPLIES,
HOUSEHOLDSTAPLES,HIGHDEMAND
PRODUCTSANDMANYFACTORSWERE
CONSIDEREDWEREUSEDWHEN
DETERMININGELIGIBILITYFOR
BEINGESSENTIAL.
WE'VEHADSEVERALPEOPLEREPORT
THATAMAZONCONTINUEDTOSHIP
NONESSENTIALITEMSLIKE
HAMMOCKS,FISHTANKS,FLOATY
ETC.
MR.BEZOS,WEREAMAZONDEVICES
LIKEFIRETV,ECHOSPEAKERSAND
RINGINGDOORBELLDESIGNATEDAS
ESSENTIALDURINGTHEPANDEMIC?
>>IDON'TKNOWTHEANSWERTO
THATQUESTION.
WHATICANTELLYOUISTHATWE
HAD--
THEREWASNOPLAYBOOKFORTHIS.
WEMOVEDVERYQUICKLY.
DEMANDWENTTHROUGHTHEROOF.
ITWASLIKEHAVINGHOLIDAY
SELLINGSEASONBUTINMARCH.
WEHADTOMAKEALOTOF
DECISIONSVERYRAPIDLY.
OURGOALWASTOLIMITITTO
ESSENTIALSUPPLIES,BUTI'M
SUREWEDIDNOTDOTHAT
PERFECTLY.
>>OKAY.
IKNOWTHERINGDOORBELLHAS
TWOCOMPETINGPRODUCTS
INCLUDINGOURLOWANDYOUFEET.
DOYOUKNOWIFTHEYWERE
DESIGNATEDASESSENTIAL?
IDONOT.
>>OKAY.
AREYOUABLETOTESTIFYTO
CONGRESSTODAYWHETHERAMAZON'S
PROFITFACTORWASAFACTORIN
GIVINGESSENTIALCLASSIFICATION
DISTINCTION?
>>NO.
NOTTOMYKNOWLEDGE.
WEWEREWORKINGTOTWO
OBJECTIVES.
ONEWASTOGETESSENTIAL
PRODUCTSTOCUSTOMERSANDTHE
SECONDWASTOKEEPOUR
FRONTLINEEMPLOYEESSAFE.
WEDIDATREMENDOUSAMOUNTOF
WORKINBOTHCATEGORIES.
THAT'SWHATWEWEREFOCUSEDON.
WEWERENOTFOCUSEDON
PROFITABILITYATTHATTIME.
>>PUSHINGOUTTHEELUSIVE
CLOROXWIPESIGUESS.
ATANYRATE,MOVINGALONG,
LET'STALKABOUTTHEFEES
AMAZONCHARGESSELLERS.
ACCORDINGTOARECENTREPORT,
SELLERFEESNETTEDAMAZON
ALMOST60BILLIONIN2019.
NEARLYDOUBLETHE35BILLIONIN
REVENUEFROMADOUBLEU.S.,
AMAZON'SMASSIVECLOUD
COMPUTINGDIVISION.
FIVEYEARSAGO,AMAZONTOOKAN
AVERAGEOF19%OFEACHSALE
MADEBYTHIRD-PARTYONITS
SITE.
TODAY,AMAZONKEEPSANAVERAGE
OF30%.
DOESN'TAMAZON'SABILITYTO
HIKETHOSEFEESSOSTEEPLY
SUGGESTTHATAMAZONENJOYS
MARKETPOWEROVERTHOSESELLERS?
>>NO,IDON'TBELIEVESO
CONGRESSWOMAN.
WHENYOUSEEITGOFROM19TO
30%,IT'STHATMORESELLERSARE
TAKINGADVANTAGEOFOUR
INCREMENTALSERVICESTHATWE
OFFER.
BUTTODAY,60%OFSELLERSARE
GOINGTHROUGHTHIRD-PARTY
SELLERSUPFROMZERO20YEARS
AGO.
>>RIGHT,ITHINKALITTLEMORE
CONCERNINGISTHE11%HEIGHT.
SINCE2014,AMAZON'SREVENUE
FROMCELLARFEESHASGROWN
ALMOSTTWICEASFASTASITS
OVERALLSALES.
SELLERFEESNOWACCOUNTFOR21%
OFAMAZON'STOTALREVENUE.
MR.BEZOS,AREN'TSELLERFEES
NOWEFFECTIVELYSUBSIDIZING
AMAZONRETAILDIVISION?
>>CONGRESSWOMAN,IDON'T
BELIEVESO.
WHENYOUSEEFEESGOINGUP,
WHAT'SREALLYHAPPENINGISTHAT
SELLERSARECHOOSINGTOUSE
MOREOFOURSERVICESTHATWE
MAKEAVAILABLE.
THEYARE,YOUKNOW,PREVIOUSLY
THEYWERESHIPPINGTHEIROWN
PRODUCTS.
THEYWOULD'VEHADCOSTDOING
THAT.
BUYINGTRANSPORTATIONSERVICES
TOTHECUSTOMERTHROUGHTHE
POSTALSERVICEORTHROUGHUPS
ORWHOEVERITWOULDBE.
>>LET'STALKABOUTTHE
FULFILLMENTCENTERS.
RIGHT,OKAY.
WE'VEGOTFULFILLMENTBYAMAZON
ANDAYEARAGOWEASKEDWHETHER
AMERCHANTWHOISENROLLEDIN
FULFILLMENTBYAMAZONISA
FACTORINIFTHEYCANBE
AWARDEDTHEBYBOX.
ATTHATTIME,AMAZONSAIDNO.
BUTTHEEVIDENCEISINDICATING,
ANDYOUROWNDOCUMENTSARE
SHOWING,THATBEINGENROLLEDIN
THATPROGRAMISAMAJORFACTOR
ANDEFFECTIVELYFORCESSELLERS
TOPAYFORFULFILMENTSSERVICES
FROMAMAZONIFTHEYWANTTO
MAKESALES.
MR.BEZOS,ASAMAZON'SBYBOX
ALGORITHMEVERYFAVORED
THIRD-PARTYSELLERSWHOBY
FULFILLMENTSERVICESFROM
AMAZONOVEROTHERSELLERS?
>>ITHINK,DIRECTLYOR
INDIRECTLYI'MNOTSURE,BUT
INDIRECTLYITHINKTHEBUYBOX
DISFAVORPRODUCTSWHICHCANBE
SHIPPEDWITHPRIME.
ESPECIALLYIFYOU'REAPRIME
MEMBER,THEBUYBOXESTRYINGTO
PICKTHEOFFER.
IFWEHAVEMULTIPLEOFFERSFROM
MULTIPLESELLERSFORTHESAME
ITEM,THECUSTOMERWANTSTOBUY
THATITEM.
THEBUYBOXTRIESTOPICKTHE
OFFERTHATTHECUSTOMERWE
PREDICTEDWOULDMOSTLIKE.
IFYOUAREAPRIMEMEMBER,AND
INCLUDESIFTHEITEMIS
ELIGIBLEFORPRIME.
>>THANKYOUMR.BEZOS.
ITHINKMYTIMEHASEXPIRED.
>>BEFOREIRECOGNIZEOURLAST
TWOCOLLEAGUES,ITHINKMR.
ZUCKERBERGWOULDLIKETO
CLARIFYSOMETHINGFORTHE
RECORDASWELL.
>>CHAIRMAN,THANKYOU.
INRESPONSETOCONGRESSMAN
JOHNSON'SQUESTION,ISAIDI
WASNOTFAMILIARWITHTHE
FACEBOOKRESEARCHAPP.
IWASN'TFAMILIARWITHTHENAME
FORIT,BUTIWANTTOBECLEAR
THATIDORECALLTHATWEUSEDA
APPFORRESEARCHTHATHASSINCE
BEENDISCONTINUED.
IWOULDBEHAPPYTOFOLLOWUP
WITHHISSTAFFONANYMORE
DETAILSTHANHEWOULDLIKEON
THAT.
>>THANKYOUMR.ZUCKERBERG.
THERECORDSSHALLSOREFLECTED.
IRECOGNIZETHEDEBTGENTLEMEN
FROMCOLORADO.
>>THANKYOUCHAIRMAN.
IWANTTODIRECTAFEW
QUESTIONSTOYOUMR.
ZUCKERBERG.
IWANTTOTALKABOUTTHEAPP
STOREANDATDEVELOPMENT.
TAKINGASTEPBACK,MY
UNDERSTANDINGFROMYOUR
TESTIMONYISTHATAPPLEHASTO
OPERATEBYTHESAMERULESTHAT
THEAPPDEVELOPERSOPERATEBY
INTERMSOFBEINGABLETO
ACCESSTHEAPPSTORE.
ISTHATCORRECT?
>>WEHAVE60APPSONTHEAPP
STORE.
THEYGOTHROUGHTHESAMERULES
THATTHE1.7MILLIONDO.
>>OKAY.
HEREISWHYIASKEDTHE
QUESTION.
MYUNDERSTANDINGISTHEAPP
STOREREVIEWGUIDELINESTELL
APPDEVELOPERSNOTTOSUBMIT
COPYCATAPPS.
ISTHATCORRECT?
>>I'MNOTTOTALLYFAMILIAR,
BUTIBELIEVETHAT'STHECASE
BECAUSEWEWEREGETTINGA
NUMBEROFAPPSTHATWERE
ESSENTIALLYTHESAMETHING.
ASORTOFCOOKIECUTTER.
>>ICOULDREPRESENTTOYOU
THATWE'VEREVIEWEDTHE
GUIDELINESANDTHEYSAYTHAT
APPDEVELOPERSSHOULDHAVE
ORIGINALIDEAS,THATCOPYCAT
IDEASARENOTFAIRANDTHAT
APPLESCUSTOMERSDONOTWANT
THOSE.
ONTHEOTHERHAND,THEAPP
DEVELOPERAGREEMENTWHICHYOU
REQUIREEVERYDEVELOPERTO
AGREETODOESGIVEAPPLETHE
RIGHTTOCOFFEEOTHERAPPS.
THEQUESTIONISWHYONERULE
FORTHEDEVELOPERSTHEYCOMPETE
WITHYOUANDTHEOPPOSITERULE
FORAPPLE?
>>CONGRESSMAN,I'MNOT
FAMILIARWITHTHAT.
ICANFOLLOWUPWITHYOUR
OFFICEONIT.
>>IWOULDAPPRECIATEIFYOU
COULDFOLLOWUPWITHOUR
OFFICE.
MYUNDERSTANDINGISTHATTHE
APPDEVELOPERAGREEMENT
EXPLICITLYSAYSTHATAPPLECAN
USEANYINFORMATIONTHAT
INACTIVELUPPERTHE--
PROVIDESFORANYPURPOSE.
OBVIOUSLY,WEHAVECOMPLAINTS
FROMANUMBEROFAPPDEVELOPERS
WHOHAVETESTIFIEDBEFOREOUR
COMMITTEE.
WEHEARDFROMACOMPANYCALLED
TILEWHICHSAIDAPPLEHAD
ACCESSTOCONFIDENTIAL
INFORMATIONABOUTTHEAPPS
DISTRIBUTEDBYTHEAPPSTORE.
GIVENTHAT,JUXTAPOSEDAGAINST
THELANGUAGEINTHEEXCLUSIVE
AGREEMENT,YOUCANUNDERSTAND
WHYWEWOULDHAVECONCERNS
ABOUTANTICOMPETITIVECONDUCT.
>>CONGRESSMAN,WERUNTHEAPP
STORETOHELPDEVELOPERS,NOT
HURTTHEM.
WERESPECTINNOVATION.
IT'SWHATOURCOMPANYISBUILT
ON.
WEWOULDNEVERSTEALSOMEBODY'S
IP.
BUTIWILLFOLLOWUPWITHYOUR
OFFICEONMOREDETAILONTHIS.
>>IAPPRECIATETHATMR.COOK.
ITHINKTOTHEEXTENTTHAT
APPLEISGOINGTOCOMMIT,I
WOULDASKMR.PICHAISIMILAR
QUESTIONINGBECAUSETHISIS
CONSISTENTACROSSSEVERAL
PLATFORMS,WITHINTHEDEVELOPER
AGREEMENTWHICHSAYSYOUHAVE
ACCESSTOTHEDATAWHICHWILL
NOTUSEITTOREPLICATEYOUR
OWNMAP.
THATWOULDCERTAINLY,INMY
VIEW,THEREFLECTIONOFASTEP
AWAYFROMANYTYPEOFANTI
COMPETITIVECONDUCT.
ITSOUNDSLIKEYOU'LLFOLLOWUP
ANDWECANLEARNMOREWITH
RESPECTTOTHATISSUE.
MR.PICHAI,SIMILARLY,THERE
WASANARTICLEJUSTTODAYOR
YESTERDAYRATHERFROMTHE
VERGE.
THETITLEISGOOGLEREPORTEDLY
KEEPSTABSONUSAGEOFRIVAL
ANDROIDAPPSTODEVELOP
COMPETITORS.
IWILLQUOTEFROMTHEARTICLE.
GOOGLESAIDTHATTHEDATA
DOESN'TGIVEINFORMATIONABOUT
HOWPEOPLEBEHAVEWHILETHEY
AREUSINGINDIVIDUALAPPS,BUT
ITWOULDN'TSAYWHETHERITHAD
BEENUSEDTODEVELOPCOMPETING
APPS.
FIRST,ITAKEITYOUWOULD
CONFIRMTHATGOOGLEDOESHAVE
ACCESSTOCONFIDENTIAL
INFORMATIONORCOMPETITIVE
SENSITIVEINFORMATIONON
ANDROIDAPPDEVICES.
>>CONGRESSMAN,IFICAN
CLARIFYTHIS.
TODAYWEHAVEANAPIWHICHIS
AVAILABLEFORDEVELOPERSAS
LONGASUSERSCONSENT.
THISGIVESUSSYSTEMHEALTH
METRICS.
THISISHOWWECANLAUNCH
DIGITALFEATURESONANDROID.
THISISHOWWEUNDERSTANDWHICH
APPSAREUSINGABATTERY.
ITWILLSHOWFORCRASHINGOR
QUALITYCONTROLORDIGITAL
WELL-BEINGORBETTERUSAGE.
THISDATAISAVAILABLETHROUGH
APUBLICAPIANDOTHER
DEVELOPERSCANUSEITASLONG
ASTHEUSERSTOGIVECONSENTTO
IT.
>>MR.PICHAIIJUSTWANTTO
CLARIFY.
THEARTICLEREFERSTOTHISDATA
ASSENSITIVEDATAABOUTOTHER
APPSINCLUDINGHOWOFTENTHEY
AREOPENANDFORHOWLONGTHEY
AREUSED.
I'MNOTASKINGHOWYOUUSETHAT
INFORMATION,I'MJUSTASKING
WHETHERORNOTTHEARTICLEIS
CORRECT.
THATYOUHAVEACCESSTOTHAT
DATA.
>>YES,WITHUSERCONSENTAND
THEAPIS,WEDO.
IT'SCRITICALFORUSTOHAVE
ACCESSTOTHATSOWECAN
MAINTAIN,THISISHOWWE
UNDERSTANDANDIMPROVE
RESOURCES,USEOFAPPLICATIONS
...>>UNDERSTOOD.
MYTIMEISLIMITED.
IWANTTOGETTOTHISCORE
QUESTION.
GIVENTHATGOOGLEDOESHAVE
ACCESSTOTHATDATA,DOES
GOOGLEUSETHATDATATODEVELOP
COMPETINGAPPS?
IFYOURANSWERISNO,WILL
GOOGLECOMMITTOMAKINGTHE
NECESSARYCHANGESWITHINITS
ANDROIDDEVELOPERAPP
AGREEMENTSTOENSURETHAT
DEVELOPERSHAVETHATSENSEOF
CLARITY?
THAT,INFACT,THEDATAWILL
NOTBEUSEDFORGOOGLETO
DEVELOPACOMPETING
APPLICATION.
>>CONGRESSMAN,WELOOKAT
TRANSANDWEPUBLISHEDANUMBER
OFRESULTSINTHEBOOSTER.
WETRYTOUNDERSTANDWHAT'S
HAPPENINGINTHEMARKETIN
VARIOUSWAYS.
IAPPRECIATEYOURCONCERNABOUT
MAKINGSURETHEREISCLARITYIN
THISAREAANDWEWILLCONTINUE
TOINVESTIGATE.
>>IWANTTOFOLLOWVERY
QUICKLY,MISTERCHAIRMANIF
YOU'REWILLING.
IWANTYOUTOANSWERTHAT
FUNDAMENTALQUESTION.
DOESGOOGLEUSETHAT
INFORMATIONTODEVELOP
COMPETINGAPPS?
IUNDERSTANDTHEPURPOSES
YOU'VEDESCRIBEDINTERMSOF
HOWYOUUSETHEINFORMATION.
I'MASKINGIFONEOFTHOSEIS
TODEVELOPCOMPETINGAPPS?
>>THEGENTLEMAN'STIMEHAS
EXPIREDBUTTHEWITNESSMAY
ANSWERTHEQUESTION.
>>CONGRESSMAN,BECAUSEWETRY
TOUNDERSTANDWHATISGOINGON
INTHEMARKETANDWEAREAWARE
OFPOPULARITYOFAPPS,IWANT
TOBEACCURATEANDMYANSWER.
BUTINGENERAL,THEPRIMARYUSE
OFTHEDATAISTOIMPROVETHE
HEALTHOFANDROID.
ANYDATATHATWEGET,WEHAVE
USERCONSENTFORITANDWEMAKE
ITAVAILABLETHROUGHANAPITO
OTHERDEVELOPERSASWELL.
>>THEGENTLEMAN'STIMEHAS
EXPIRED.
INOWRECOGNIZETHEGENTLELADY
FROMGEORGIA.
>>THANKYOUMISTERCHAIRMAN.
GENTLEMEN,THANKYOUSOMUCH
FORSPENDINGSOMUCHOFYOUR
TIMEWITHUSTODAY.
WEREALLYAPPRECIATEIT.
MANYOFYOUHAVEMENTIONEDJOHN
LEWISTODAY.
IKNOWALLMYCOLLEAGUESANDI
WILLBURNCARRYONHISFIGHT
FOREQUALITY.
CANYOUCOMMITTOENSURING
RACIALANDGENDEREQUITYMAJOR
COMPANIESINCLUDINGBLACK
LEADERSHIPANDWOMENINYOUR
SENIORRANKS?
JUSTAYESORNOANSWERPLEASE.
MR.ZUCKERBERG?
>>YES.
>>MR.COOK?
>>YES,IAMVERYPERSONALLY
COMMITTED.
>>THANKYOU.
MR.BEZOS?
>>ABSOLUTELY,YES.
>>THANKYOU.
MR.PICHAI?
>>U.S..
WE'VEMADEPUBLICCOMMITMENTS
TOTHISREGARD.
>>THANKSVERYMUCH.
MR.ZUCKERBERG,IN2004THERE
WEREDOZENSOFSOCIALMEDIA
COMPANIES.
FACEBOOKDISTINGUISHEDITSELF
FROMCOMPETITORSBYFOCUSING
SPECIFICALLYONPRIVACY.
YOUHAVEASHORTCLEARPRIVACY
POLICYTHAT'SJUST950WORDS.
ITMADEAPROMISETOUSERS,AND
IQUOTE,WEDONOTANDWILLNOT
USECOOKIESTOCOLLECTPRIVATE
INFORMATIONFROMANYUSER.
YOUSAIDWEWILLNOT.
THAT'SACOMMITMENTABOUTTHE
FUTUREANDTHATWAS2004.
MR.ZUCKERBERG,TODAY,DOES
FACEBOOKUSECOOKIESTOCOLLECT
PRIVATEINFORMATIONONUSERS?
>>CONGRESSWOMAN,MY
UNDERSTANDINGTOTHATISNO.
WEARENOTUSINGCOOKIESTO
COLLECTPRIVATEINFORMATION
ABOUTPEOPLEWHOUSEOUR
SERVICES.
IBELIEVEWEHAVEUPHELDTHAT
COMMITMENT.
>>THANKYOU.
MR.ZUCKERBERG,DOYOUTHINK
YOURCOMPANYWOULDBEAS
SUCCESSFULIFITHADSTARTED
WITHTODAY'SCOOKIESPOLICYIN
PLACE?
>>CONGRESSWOMAN,I'MNOTSURE
EXACTLYWHATYOUAREREFERRING
TO.
INGENERAL,COOKIESISNOTA
BIGPARTOFHOWWE'RE
COLLECTINGINFORMATION.
WEPRIMARILYUSETHEMTOMAKE
SURETHATSOMEONECANSTAY
LOCKEDINONTHEWEB.
WEUSETHEM,TOSOMEDEGREE,
FORSECURITYTOMAKESURETHAT
YOUDON'THAVESOMEONETRYING
TOLOGINUNDERALOTOF
DIFFERENTACCOUNTSFORONE
COMPUTERORSOMETHINGLIKE
THAT.
>>MR.ZUCKERBERG,ONCEAGAIN,
YOUDONOTUSECOOKIES?
>>CONGRESSWOMAN,WEDOUSE
COOKIES.
YES,WEDOUSECOOKIES.
>>MR.ZUCKERBERG,THEBOTTOM
LINEHEREISTHATYOUBROKEA
COMMITMENTTOYOURUSERS.
WHOCANSAYIFYOUMAYORMAY
NOTDOTHATAGAININTHEFUTURE?
THEREALITYISTHATFACEBOOK'S
MARKETPLACEPOWERGREWAND
FACEBOOKSACRIFICEDITSUSERS
POLICY.
MR.BEZOS,MYCOLLEAGUESHAVE
TOUCHEDONCOUNTERFEITGOODS
ANDISHARETHEIRCONCERNSVERY
DEEPLY.
I'MALSOCONCERNEDABOUTSTOLEN
GOODS.
MR.BEZOS,ARESTOLENGOODS
SOLDONAMAZON?
>>CONGRESSWOMAN,NOTTOMY
KNOWLEDGE.
MORE--
THEREISMORETHAN1MILLION
SELLERS,SOI'MSURETHEREHAVE
BEENSTOLENGOODSATTIMES.
>>REALLYMR.BEZOS?
THEREISNOT?
>>I'MSORRY?
>>THATSURPRISESME.
>>WITHOVER1MILLIONSELLERS,
I'MSURETHATITHASHAPPENED.
BUTCERTAINLY,IDON'TTHINK
IT'SALARGEPARTOFWHATWE
ARESELLING.
>>SOBASICALLYMR.BEZOS
YOU'RESAYINGYES.
>>IGUESSSO.
>>IWANTTOASKYOUABOUT
INFORMATIONTHATYOUREQUIRE
FROMSELLERSTOPREVENTTHE
SALEOFSTONEGOODS.
DOYOUREQUIREAREALNAMEAND
ADDRESS,YESORNO?
>>FORSELLERS?
>>ONCEAGAIN,DOYOUREQUIREA
REALNAMEANDADDRESSFROM
SELLERS?
>>IBELIEVEWEDO.
LETMEGETBACKTOYOUROFFICE
WITH--
I'DRATHERGIVEYOUTHEACT
ACCURATEANSWER.
ITHINKWEDO.
>>YESYOUDOREQUIREANAME
ANDADDRESS.
DOYOUREQUIREAPHONENUMBER?
YESORNO.
>>IDON'TKNOWIFIT'S
REQUIRED.
ITHINKWEOFTENHAVEIT,BUTI
DON'TKNOW.
>>SOBRIEFLY,HOWDOYOU
VERIFYTHATEACHOFTHESE
PIECESOFINFORMATIONIS
ACCURATE?
>>IDON'TKNOWTHEANSWERTO
YOURQUESTION.
>>SO,YOUDON'TKNOWHOWMANY
PEOPLEWORKONVERIFYINGSELLER
VERIFICATIONBEFORETHESELLER
ISALLOWEDTOSELLONAMAZON?
>>NOCONGRESSWOMAN,IDON'T.
>>IWILLASKYOUSIR,WILLYOU
COMMITTOREPORTINGALLREPORTS
OFCOUNTERFEITGOODSTOLAW
ENFORCEMENT?
WILLYOUTRACKLARGE-SCALE
VENDORSORGAN--
ENGAGEDINORGANIZEDRETAIL
CRIME?
>>TOTHEDEGREETHATWEARE
AWAREOFIT,WEWILLCERTAINLY
PURSUEIT.
INFACT...>>SIR,CANYOU
MAKEABLANKETCOMMITMENT?
CANYOUJUSTMAKEABLANKET
COMMITMENT?
WHETHERYOUAREAWAREOFITOR
NOT.
>>ABLANKETCOMMITMENTTOWHAT?
I'MSORRY,CONGRESSWOMAN.
>>REPORTINGALLSALESOF
COUNTERFEITGOODSTOLAW
ENFORCEMENTANDVICTIMSTO
TRACELARGE-SCALEOFFENDERS
INVOLVEDINRETAILCRIME?
>>IFWE'REAWAREOFIT,ISEE
NOREASONWHYWEWOULDNOT
REPORTIT.
WEWANTTHECORRECTED
AUTHORITIESTOBEINVOLVED.
>>THANKYOUSOMUCH.
IYIELDBACKMYTIME.
>>THANKYOUGENTLEWOMAN.
IWANTTOTHANKTHEWITNESSES
FOROURTESTIMONYTODAYAND
COLLEAGUESONBOTHSIDESOFTHE
AISLE.
WEALSOWANTTOACKNOWLEDGETHE
EXTRAORDINARYWORKOFOURTEAM
LEDBYSLATEBOND,LENAKHAN,
AMANDALEWIS,PHILBARONBROOKE,
ANDALIONHEARTANDJOEVENUE
IHAVEDONEANEXTRAORDINARY
JOBTHROUGHOUTTHIS
INVESTIGATIONANDPREPARATION
FORTHEHEARINGTODAY.
TODAY,WEHADTHEOPPORTUNITY
TOHEARFROMTHE
DECISION-MAKERSFROMFORTHE
MOSTPOWERFULCOMPANIESINTHE
WORLD.
THISHEARINGHASMADEONEFACT
CLEARTOME,THESECOMPANIESAS
THEYEXISTTODAYHAVEA
MONOPOLYPOWER.
SOMENEEDTOBEBROKENUP,ONLY
TOBEPROPERLYREGULATEDAND
HELDACCOUNTABLE.
WENEEDTOENSURETHEANTI
TRUSTLAWSFIRSTWRITTENMORE
THANACENTURYGOWORKANDTHE
DIGITALAGE.
WHENTHESELAWSWEREWRITTEN,
MONOPOLISTICWEREMENNAMED
ROCKEFELLERANDTRYINGTOGET.
THEIRCONTROLOFTHE
MARKETPLACEALLOWEDTHEMTODO
WHATEVERITTOOKTOCRUSH
INDEPENDENTBUSINESSESAND
EXPANDTHEIROWNPOWER.
THENAMESHAVECHANGED,BUTTHE
STORYISTHESAME.
TODAY,THEMENARENAMED
ZUCKERBERG,KOCHPICHAIAND
BEZOS.
ONCEAGAIN,THEIRCONTROLOF
THEMARKETPLACEALLOWSTHEMTO
DOWHATEVERITTAKESTOCRUSH
INDEPENDENTBUSINESSANDEXPAND
THEIROWNPOWER.
THISMUSTEND.
THISSUBCOMMITTEEWILLNEXT
PUBLISHEDAREPORTONTHE
FINDINGSOFOURINVESTIGATION.
WEWILLPROPOSESOLUTIONSTO
THEPROMISEBEFOREUS.
ASAGREATAMERICANSUPREME
COURTLUISBRANDEISONCESAID,
WEMUSTMAKEOURCHOICE.
WEMAYHAVEDEMOCRACYORWEMAY
HAVEWEALTHCONCENTRATEDINTHE
HANDSOFAFEW,BUTWECAN'T
HAVEBOTH.
THISCONCLUDESTODAY'SHEARING.
THANKYOUAGAINTOOUR
WITNESSESFORATTENDING.
WITHOUTOBJECTION,ALLMEMBERS
WILLHAVEFIVELEGISLATIVEDAYS
TOSUBMITADDITIONALWRITTEN
QUESTIONSFORTHEWITNESSESOR
ADDITIONALMATERIALSFORTHE
RECORD.
WITHOUTOBJECTION,THISHEARING
ISADJOURNED.