PACIFIC for March 20: Inside Facebook: What Mark Zuckerberg thinks

Facebook's existential crisis is getting worse. Lawmakers in the U.S. and the U.K. have called on Mark Zuckerberg to ...

Posted: Mar 20, 2018 6:03 PM
Updated: Mar 20, 2018 6:03 PM

Facebook's existential crisis is getting worse. Lawmakers in the U.S. and the U.K. have called on Mark Zuckerberg to testify; the FTC is starting to ask questions; and Facebook stock is enduring its worst performance in four years.

SUBSCRIBE to PACIFIC

So why is Zuckerberg staying silent? The 33-year-old CEO is playing the long game, sources at the company tell me. Zuckerberg is a product person, not a PR person. He wants to focus on improving Facebook's data protection capabilities, not paying lip service to the public about the company's moral compass. "Mark is about solutions," one source said, "not explanations or apologies."

With Zuckerberg AWOL on messaging, the rest of the Facebook leadership has been left to hash out the appropriate response to the company's metastasizing crisis. Should Facebook be more or less forthcoming about what it knows? Should it issue statements from the top brass, or leave the explanations to the lawyers (as it is doing now)?

Disagreements on this issue have become so severe that the company's chief security officer Alex Stamos now plans to leave the company. Though Stamos and Facebook issued statements last night stressing that he remains in the position, all Facebook sources confirmed that he intended to leave in the near future.

Meanwhile, developments this morning suggest Zuckerberg won't be able to stay behind the scenes forever:

- Sen. Mark Warner joined Sen. Amy Klobuchar in calling for Zuckerberg to testify before Congress. "The American people deserve answers about social media manipulation in the 2016 election," he tweeted.

- In the U.K., MP Damian Collins sent a letter to Zuckerberg asking him to testify before the Digital, Culture, Media and Sport Committee.

- The Federal Trade Commission is asking Facebook for more information about the Cambridge Analytica matter and may launch a probe into whether the company violated terms of 2011 consent decree.

What's next:

- Rob Sherman, Facebook's Deputy Chief Privacy Officer: "We remain strongly committed to protecting people's information. We appreciate the opportunity to answer questions the FTC may have."

- Facebook representatives will go to Capitol Hill this week to brief lawmakers in the House and Senate Intelligence, Judiciary and Commerce committees, a company spokesperson says.

- Facebook will hold a staff-wide meeting in Menlo Park to address questions about the Cambridge Analytica scandal. The meeting will be led by deputy general counsel Paul Grewal.

What's really next:

- The most important day on Zuckerberg's calendar is May 25, one of our sources said. That is when the European Union's General Data Protection Regulation will go into effect, giving users an easy option to stop Facebook and other companies from collecting their data or using it for marketing purposes.

- The GDPR could drain Facebook's ad revenue in Europe and inspire similar legislation in the United States.

---

Today's PACIFIC

What Silicon Valley is talking about: Facebook's trust crisis, Uber's driverless nightmare, Google's new news initiative... What Seattle is talking about: Whole Foods, Toys 'R' Us and FedEx ... What Hollywood is talking about: Time Warner after AT&T ... What Sacramento is talking about: Kamala Harris's new book ...

Good morning. Welcome to a special late edition of PACIFIC, compliments of Facebook and the FTC. The good news is our friends in Washington have something to read at lunch.

Driverless Failure: Uber's new nightmare

My colleague Jordan Valinsky emails: "The moment the self-driving car industry feared has finally happened..."

What happened, via CNN's Matt McFarland:

- "A self-driving Uber SUV struck and killed 49-year-old Elaine Herzberg as she walked her bicycle across a street in Tempe, Arizona, Sunday night."

- A test driver was behind the wheel, but the car was in autonomous mode.

- "Police say the investigation does not at this time show significant signs of the SUV slowing before the crash."

The response:

- Uber has halted tests of autonomous vehicles around North America.

- The company said it is "fully cooperating" with local officials. "Our hearts go out to the victim's family," Uber said in a statement.

- The National Transportation Safety Board and local police are investigating the accident.

The latest:

- Jason Levine, executive director of the Center for Auto Safety, to Bloomberg: The accident "will set consumer confidence in the technology back years if not decades."

- San Francisco Chronicle: "Exclusive: Tempe police chief says early probe shows no fault by Uber"

The Big Picture:

The fatality raises huge questions about law and liability in a world of driverless cars. Most immediately: What responsibility do driverless car companies have to victims of accidents? Today a driver at fault in an accident often doesn't have enough money to cover the full cost of the other party's damages. But what happens when the driver at fault is a company sitting on billions of dollars?

New News: Google courts publishers

"Google says it is committing $300 million... to help 'strengthen quality journalism,'" my colleague Brian Stelter reports:

- "[T]he search company is announcing several new tools and partnerships with newsrooms, all placed under an umbrella called the Google News Initiative."

- "Subscribe with Google [will offer] 'a way for people to easily subscribe to various news outlets...'"

The Big Picture: Both Google and Apple are courting publishers in an effort to replace Facebook as the preferred vehicle for news and information. Apple acquired the digital magazine subscription service Texture earlier this month.

SUBSCRIBE to PACIFIC

---

What Jeff Bezos is Reading

- "Walmart adds 500 FedEx Office locations, seeking edge against Amazon" (Business Insider)

- "Whole Foods calls a supplier summit amid angst over changes under new owner Amazon" (CNBC)

- "Amazon Has Considered Buying Some Toys 'R' Us Stores" (Bloomberg)

Going Vertical: Will Time Warner leave AT&T?

The opening statements in the Justice Department vs AT&T trial aren't til tomorrow, but Vanity Fair's William D. Cohan is already thinking about what might happen after the trial:

- "From Wall Street's perspective... the date to watch is not Wednesday, but June 21. That's when Time Warner can contractually walk away from the deal and once again be a free and independent company."

- "Time Warner could push to get a better deal from AT&T or walk away from AT&T, and go back to running Time Warner independently, while waiting for another suitor to emerge..."

- "Verizon? Apple? Google? Amazon? Facebook? Possibly all of these-and more-could be interested, for a price in excess of what AT&T has offered, and likely without the same legal hassles."

---

2020 Watch: Kamala Harris fuels 2020 talk

One day after Kamala Harris appeared in Vogue, the Daily Beast's Gideon Resnick and Maxwell Tani report that she's shopping a book:

- "Sen. Kamala Harris... shopped a book to a number of New York publishers as recently as a month ago...":

- "[T]he senator's working title for the project was "Speaking Truth: Hard Facts and Hope for America's Future."

- "A national book tour is a rite of passage for any potential White House aspirant... 'Speaking Truth' certainly has all the hallmarks of a pre-campaign-launch book."

SUBSCRIBE to PACIFIC

---

Have a great day, folks. See you tomorrow from L.A.

Indiana Coronavirus Cases

(Widget updates once daily at 8 p.m. ET)

Confirmed Cases: 34211

Reported Deaths: 2125
CountyConfirmedDeaths
Marion9761576
Lake3573186
Allen160069
Cass15877
St. Joseph126634
Elkhart126228
Hendricks116671
Hamilton115493
Johnson1097108
Madison58659
Porter53428
Bartholomew50834
Clark49741
LaPorte43023
Howard40428
Tippecanoe3933
Delaware38536
Jackson3821
Shelby37122
Hancock33127
Floyd31839
Boone31635
Morgan27824
Vanderburgh2662
Montgomery23817
White2338
Noble22821
Clinton2271
Decatur22431
Grant21022
Dubois1993
Harrison19422
Henry17211
Greene16924
Vigo1688
Dearborn16821
Monroe16712
Warrick16628
Lawrence15924
Miami1401
Putnam1367
Jennings1304
Kosciusko1271
Orange12622
Scott1193
Franklin1108
Ripley1086
Marshall1021
Carroll932
Daviess8516
Steuben832
Wayne785
Fayette777
Newton7710
Wabash772
LaGrange762
Jasper661
Washington521
Clay511
Jay500
Fulton491
Randolph473
Rush462
Pulaski460
Jefferson451
Whitley413
Starke393
DeKalb371
Sullivan351
Owen341
Brown331
Perry320
Wells310
Benton300
Knox280
Huntington272
Tipton251
Blackford252
Crawford240
Fountain212
Switzerland200
Spencer201
Parke170
Adams171
Posey160
Gibson152
Ohio130
Warren121
Martin110
Vermillion100
Union90
Pike60
Unassigned0167

Illinois Coronavirus Cases

(Widget updates once daily at 7 p.m. CT)

Confirmed Cases: 118917

Reported Deaths: 5330
CountyConfirmedDeaths
Cook771193603
Lake8238288
DuPage7620368
Kane6259176
Will5510273
Winnebago220955
McHenry153972
St. Clair112180
Kankakee90045
Kendall77819
Rock Island65124
Champaign6277
Madison57259
Boone44117
DeKalb3994
Sangamon34829
Jackson28210
Randolph2694
Peoria2218
McLean21813
Ogle2033
Stephenson2012
Macon19419
Clinton18617
Union15510
LaSalle15013
Whiteside13912
Iroquois1314
Coles12615
Out of IL1181
Warren1150
Jefferson10116
Grundy982
Knox980
Monroe9511
McDonough8711
Lee811
Unassigned800
Cass730
Tazewell725
Henry690
Williamson661
Pulaski560
Marion500
Jasper457
Macoupin452
Adams441
Perry420
Montgomery391
Vermilion391
Morgan361
Christian354
Livingston342
Jo Daviess320
Douglas270
Fayette203
Ford201
Jersey201
Menard200
Woodford192
Mason180
Washington180
Hancock170
Mercer170
Carroll162
Shelby161
Bureau151
Schuyler130
Bond121
Franklin120
Clark110
Crawford110
Fulton110
Moultrie110
Piatt110
Brown100
Cumberland100
Logan100
Wayne91
Alexander80
Henderson80
Johnson80
Effingham71
Massac70
Saline70
Greene50
Marshall50
De Witt40
Lawrence40
Richland30
Stark30
Clay20
Edwards20
Gallatin20
Hamilton20
Wabash20
White20
Calhoun10
Edgar10
Hardin10
Pike10
Pope10
Putnam10
Terre Haute
Clear
65° wxIcon
Hi: 74° Lo: 50°
Feels Like: 65°
Robinson
Clear
66° wxIcon
Hi: 73° Lo: 50°
Feels Like: 66°
Indianapolis
Clear
63° wxIcon
Hi: 71° Lo: 47°
Feels Like: 63°
Rockville
Clear
62° wxIcon
Hi: 72° Lo: 50°
Feels Like: 62°
Casey
Clear
65° wxIcon
Hi: 74° Lo: 52°
Feels Like: 65°
Brazil
Clear
65° wxIcon
Hi: 73° Lo: 50°
Feels Like: 65°
Marshall
Clear
65° wxIcon
Hi: 73° Lo: 50°
Feels Like: 65°
A great Sunday on tap!
WTHI Planner
WTHI Temps
WTHI Radar

WTHI Events