[inaudible conversations] [inaudible conversations] is recognized for five minutes. Thank you. Mr. Zuckerberg, thank you for being here today and i want to thank the chairwoman for having this hearing. Youve said a lot of things today that couldnt have been said during the last hearing. Your responses to questions has been very district and very helpful. Thank you for that and thank you very much for being here. I just had a few quick questions about the Libra Association. On the website, one of the benefits before mr. Marcus appeared before our committee was that those contributing, who joined the association, could derive dividends from libra investment tokens and thats since been taken off. Could you elaborate on that . Sure, congressman, i think that there had been an idea that in order to encourage marketing of the payment service, that there might be some investment that other companies could make into this and some return that they could make, but i think that that idea has either morphed or been abandoned at this point. Im not sure exactly what the current state of it is. But thats what youre referring to. Do you think thats a reason some of these bigger named players pulled out of the association . Do you have a theory on that . I dont think thats related to that, would be my guess. Those companies could have invested if they wanted to under that program, but im not sure that they were planning to. And so i want to close on this line of switzerland. I traveled with the chairwoman to switzerland and we found an environment there that seemed to be very pro bringing the association to switzerland and one of the things that was troubling to me was this idea that weve got a Great American company like facebook and a Great AmericanSuccess Story like yourself whos pushing this idea on foreign soil n. Your written testimony, one of the things you said is i believe this will extend americas Financial Leadership as well as our Democratic Values around the world. If america doesnt innovate, our Financial Leadership isnt guaranteed. Those are your words. Why not bring this to the United States, even if it means saying, we tried this, we couldnt get our fellow americans couldnt get congress on board, but we think well have more success here at home . Why not give that a shot. Congressman, our subsidy calibra and a lot of the other organizations are american, a lot of the work were doing is happening in america. The platforms that were building, like whatsapp and Facebook Messenger where people might be able to use libra, those are American Products that carry our values and its contemplated that the reserve would be primarily american dollars. We talked at length today about some of the reasons why it might make sense to headquarter an International Association in the place that a lot of other International Associations are headquartered, but i wouldnt take away from that that this isnt still going to be an American Innovation that is extending americas Financial Leadership around the world. So ill just say this, before this hearing, i kind of had two issues, one was some of the issues facebook has had over the last few years, a lot of them have been voiced in this hearing today and the other was the whole issue of moving this to switzerland and i would say that i think youve done a good job answering our questions today. Any company as large as yours is going to have problems and youll continue to have problems. And so im not so much against the idea of facebook pursuing an innovative idea like perhaps i was in the past. Its difficult for me to get on board with something thats so big being in another country and i would implore you to consider bringing this home, perhaps, as things move forward. Youve said that youll pull out of the association if it goes into a direction you dont want to go. I would argue that you have enough influence to bring this home and i would ask that you consider that. And i yield back. The gentlewoman from iowa, ms. Axne is recognized for five minutes. I asked my constituents what they would like to ask you and i would like to enter those into the record. Without objection, such is the order. Im going to talk about privacy in a second. It says your mission is to give people the power to build community and bring the world closer together. If your goal is to bring the world closer together, i believe that requires you taking your responsibility for our elections very seriously. I know yesterday you revealed new attacks from russia and iran, many of them targeting swing states and i take those very personally because those are my constituents and i would like you to keep that in mind when youre thinking about the people who are being targeted. I dont want to spend too long on this, but facebooks size makes it a target for attacks and if facebook is going to remain essential to how americans communicate, i need you to work harder to prevent these kinds of attacks. Lets start with a couple of basics. How Many American adults have a facebook account . I dont know the exact break down, off the top of my head. I believe u. S. And canada combined is about 240 million or 85 of the adults and the second question would be i know substantially all of facebooks 55 billion in refb last year came from advertising, is that correct . Congresswoman, the vast majority comes from advertising. 50 billion, at least, do you think comes from advertising . Yes. And i believe this year you said you want to make sure that folks have an opportunity to control their data privacy. I believe you said this last year that youre going to make sure that folks have that opportunity even when theyre not logged into facebook, is that correct . Congresswoman, im not sure what youre referring to, but in general, yes, i think people should have control over all of their information in all forms. Do you collect data on people who dont even have an account with facebook . Congresswoman, there are a number of cases where a website or app might send us signals from things that theyre seeing and we might match that to someone whos on our services but someone might send us information about somebody whos not on our services in which case we wouldnt likely use that. You collect data on people who dont have an account, correct . Im not sure thats what i said. If youre able to access that information, thats information about somebody who might not have a facebook account. If youre referring to a person up loading their own contact list and saying that the information on their contact list might include people who are not on facebook, then, sure, yes, in that case so facebook then has a profile of virtually every american and your Business Model is to sell ads based on harvesting as much data as possible from as many people as possible. So you said last year that you believed it was a reasonable principle that consumers should be able to easily place limits on the personal data that Companies Collect and retain. I know facebook users has a setting to opt out of Data Collection and they can download their information but i want to remind you of what you said, facebook is about putting power in peoples hands. If one of my constituents doesnt have a facebook account, how are they supposed to place limits on the information your company has about them when they collect information about them but they dont have the opportunity to opt out because theyre not in facebook . Congresswoman, respectfully, i think i dont agree with the characterization saying that if someone up thats one example. I know theres multiple ways that youre able to collect data for individuals. Im asking you for those folks who dont have a facebook account, what are you doing to help them place limits on the information that your company has about them . Congresswoman, my understanding is not that we build profiles for people who are not on our service. There may be signals that apps and other things send to us that might include people who arent in our community. But i dont think we include those in any kind of understanding of who a person is if the person isnt on our services. I appreciate that. What actions do you know specifically are being taken or are you willing to take to ensure that people who dont have a facebook account, have that power to limit the data that your company is collecting . Congresswoman, what im trying to communicate is that i believe that thats the case today. I can get back to you on all of the Different Things that we do in terms of controls and services that would be great because we absolutely need some specifics around that to make sure that people can protect their data privacy. Mr. Zuckerberg, to conclude, facebook is tracking peoples behavior in numerous ways whether theyre using it or not. Its been used to undermine our elections and of course i know youre aware facebook isnt the most trusted name. Im asking you to think about what needs to be fixed before you bring a currency to market. Thank you. The gentle from virginia is recognized for five minutes. Thank you for appearing today. It seems as though facebook is a regular fixture at the committee these days. My first question is simple, how realist of a trail was the social network . By the way, and the reason i ask that dwe, i think were getting to the begin of social network 2 and i want to be in charge of my own casting. I think your life story is impressive. I think hard work, you can aspire and have the american dream. However, i was part of the r d infrastructure at the secretary of state, i had to do a lot of Quick Reaction and so i know the difficulty of trying to do Something Like this. I have some real questions. And when i was in the dod they played this thing called stump the dummy, i will not do that today. I promise you that. Im going to ask some questions here. The first thing, you talked about the many countries, i think and and i got a question, i looked it up, the power of google, 170 million or so users, 3. 2 billion worldwide for facebook. If this happens and i know the calibra is a part of facebook and a wallet to hold an independent currency like libra. If youre in all of these separate countries, do you believe its possible to build a rules set, some kind of rules based Machine Learning thing where you can comport or have the antimoneylaundering of each country rolled into the algorithm when you buy libra in that geographic entity. I was wondering if thats something thats thats automat when youre logging in or building your libra account through a wallet that might not be coming through . Tz. Congressman, this is a good question. Were certainly looking at whether there are elements of the aml or kyc regulations that can be encoded at the Network Level and not just at the level of the individual wallets or Payment Companies involved. In terms of how this works in Different Countries around the world, what we find is the mesh standard in regulations tend to be pretty strict. Ask that if we can build similar tools for verifying peoples government i. D. S across the world in different places, you can make a centralized investment in that and then have it apply in a number of places. I think if we comply with americas laws on this, we will largely be in compliance with most of what needs to happen around the world. There may be some specific things that need to be done differently in some places, but the technical complexity would be relatively similar. We have usually prepared questions so now im riffing because you talked about the digitizing and we talked about the digital dollar. So my question is this. When it comes to sort of antiMoney Laundering or trafficking, do you believe, this is a technical question not how far we can go into this. Do you believe the aml side you can tag the attributes of the transaction rather than the entity itself to see if theres any nefarious activity with that specific token. By not going to the privacy portions of this, can we track whats happening with that token. And at that point if its doing something wrong without identifying the user for that transaction. I think we likely will explore security measures like that. Just to analogize to another area of our work and preventing nation states from trying to interfere in the democrat you can process. That type of thing of just looking at patterns of activity that kind of clusters of accounts are making so we can build these ai systems that can can find amongst the billions of people using our services when a group isnt behaving in a way that a human would and pass that along to the fbi or the relevant Law Enforcement to help figure out what the right action to take is. Thats certainly been one of the the effective enforcement measures that you would be able to take. So i would imagine we will explore that here as well. It possible to tag a portion of the attributes rather than the people that bought the libra currency token itself . I have 15 seconds left so next week well be talking about location. But i really am excited about seeing how this goes along that we are concerned based on aml and bsa. Where youre going to go with this you want to end with tom cruze. He will be play iing me in soci network 2. The gentleman from illinois is recognized for five minutes. Its always a privilege had to follow you mr. Cruise. Thank you, madame chair. I understand about a month ago you had a meeting in the oval office with the president and several senators in both parties. Is that correct . Thats correct. Was there a note taker present at that meeting . Tz. Congressman, i dont think there were note takers in any of these meetings. Youre not aware of any record of what was discuss ed . Im not aware of any r formal record. Did you or the president at that meeting raise or discuss the antitrust investigations that are underway at the department of justice, federal trade commission . Congressman, i dont think so, but the meeting was private overall. I understand there was no record. Im asking whether the subject came up. Congressman, those subjects didnt come up, but in general, i dont feel like its appropriate for me to comment on too much detail on private conversations. Were in a public office. Did anyone discuss the policy change alone in the kpems of political figures from misinformation on facebook at the course of the meeting . Congressman, no, that did not come up. I want to dive into that a little more detail. Not in the context of your meeting. If i understand your testimony here today, you have an aggressive posture against essentially allowing free speech, but blocking the speaker. So for example, if Jenny Mccarthy were to post dont get your kids vaccinated, would you take that down . Congressman, i think we would probably not take that down, but its hard to comment on a hypothetical without looking at the post. Someone with a large platform spreading misinformation on your platform, youre saying you wouldnt take it down or you would . Congressman, in general, our policy is not to ban people from posting things that are false. It is to you can Say Something on r your page if you want if an independent fact checker mark it is as false, well put a label on it that says an independent fact checker marked it as false. We will reduce the distribution and spread of it through the network. So the let me follow my colleagues comment. You said you were trying to police and block hate crimes and hate speech. If a member of the American Nazi Party posted antisemitic messaging, would you block that . Congressman, our policies against hate speech do lead to us taking down completely. Misinformation so now let me follow. In the last election art jones ran against dan live pin skit in illinois. Would he be allowed to speak on your platform in a different fashion . Congressman, im not familiar with who this person is. Im asking whether you can spread hate speech if youre an elected official or try iing toe an elected official that you would not be allowed to if you were not in that capacity . I think that depends on a bunch of specifics that im not familiar with this case and cant answer to. Thats rather shocking. I can follow up. I dont think thats a hard question, but fair enough. Let me ask you some hypothetical questions. You dont have to answer any of these and frankly probably dont want to answer any of them. Whether or not the First Amendment allows you to scream fire in a crowded theater is an open question that we struggle with all. How you define that. Whether or not the libra is is a bank or a credit card or a Credit Rating system and what Regulatory Environment it sits under you have the luxury and the privilege not to have to ask those questions or answer those questions. We have to figure that out. Kwour a smart i guy. Youre a wellmeaning guy. I have admiration for what you have built. I would remind you of the wisdom of one of our Supreme Court justices who said the greatest danger to liberty, the greatest dangers to liberty lurk in enapproachment us by men of zeal, well meaning but without understanding. Just as he also described, one of my colleagues likes to ask everybody if they are a capitalist or a socialist. He pointed out when we have tremendous concentration of power, we only have three choices. To embrace fascism, we can allow government to take over that concentration of power, which is to embrace communism, or embrace competition. Your luxury, sir is, your privilege comes from the tact as a country those of us on this side have always chosen door three. And i hope you have the wisdom to appreciate that. Thank you, i yield back. The gentleman from minnesota is recognized for five minutes. Thank you, madame chair. Thank you mr. Zuckerberg for being here and staying here throughout this entire process. Since i have the opportunity to help close out this hearing, i this i can safely say this is at least the second time you ha