Lawmakers unleash on Zuckerberg
Facebook CEO Mark Zuckerberg on Wednesday fielded sharp criticism and tough questions about nearly all aspects of his company’s business practices at a hearing about Facebook’s new cryptocurrency project Libra.
The aggressive questioning underlined how difficult it will be for the Libra project to move past the baggage of Facebook’s various controversies, which have angered lawmakers on both sides of the aisle.
During the House Financial Services Committee hearing, Zuckerberg found some allies in Republican lawmakers who praised the tech executive’s “entrepreneurial spirit” and the “innovation” of the Libra coin.
But over the course of the day, Republicans and Democrats alike pummeled Zuckerberg over Facebook-related issues, including the continued presence of hate groups on the platform, the company’s struggles to stave off foreign election interference, its policies on disinformation, how the company treats its content moderators and why it hopes to move into the financial services space when it is already facing intensifying scrutiny of its market dominance.
Waters didn’t hold back: “As I have examined Facebook’s various problems, I have come to the conclusion that it would be beneficial for all if Facebook concentrates on addressing its many existing deficiencies and failures before proceeding any further on the Libra project,” House Financial Services Chairwoman Maxine Waters (D-Calif.) said during her opening remarks.
“You have opened up a serious discussion about whether Facebook should be broken up,” Waters said, adding her voice to the chorus of policymakers around the world who have questioned whether Facebook is too big and powerful.
Zuckerberg’s mood: Zuckerberg remained serious and reserved throughout the six-hour hearing and even seemed aggravated during particularly rough lines of questioning as the day wore on.
“We’ve faced a lot of issues over the past few years,” Zuckerberg conceded. “I’m sure there are a lot of people who wish it was anyone but Facebook who is helping to put this forward.”
“But there’s a reason we care about this,” he continued. “Facebook is about putting power in peoples’ hands.”
Zuckerberg offered a staunch defense of the controversial cryptocurrency project, which has faced skepticism and pushback from regulators around the world since Facebook announced its plans over the summer. He said the cryptocurrency project could help bring financial services into the hands of billions of people worldwide.
Libra vs. Facebook: “Libra is Facebook, and Facebook is you,” said Rep. Ayanna Pressley (D-Mass.). “You’ve proven we cannot trust you with our emails, with our phone numbers, so why should we trust you with our hard-earned money?”
Libra’s complex structure and massive scale will likely be subject to a vast array of banking, securities, money laundering and illicit finance laws enforced by close to a dozen agencies and departments.
