♪ chang, and this is "the best of bloomberg technology," where we bring you the best interviews from this week in tech. this week, mark zuckerberg wraps up his grilling before congress. the biggest takeaways from those who hold the power in washington. plus, a bloomberg exquisite. our conversation with anthony noto on his plans to rewrite the rules in the online loan refinance errors, and revamp the culture. and it's the big apple versus silicon valley. the new york texting, and the

ceo of the fin tech startup, betterment. but first, it has been a long week for mark zuckerberg. still he emerged mostly unruffled after two hearings before congress. cool, eveny kept his as lawmakers downplayed his apologies over failures to protect user privacy and his assurances to do better. they came at the ceo with stern words. take a listen. >> how can consumers have control over their data when facebook doesn't have control over the data itself? >> who was going to protect us from facebook, is also a question. >> mr. zuckerberg, i think your cozy community, as dr. martin jamieson recently said, is beginning to look a lot like the truman show, where people's identities and relationships are made available to people who they don't know. >> your platform is still being used to bend the law and allow people to buy highly addictive drugs without a prescription.

with all due respect, facebook is enabling an illegal activity and in so doing, you are hurting people. >> you said everyone controls their data, that you are collecting data on people that are not facebook users, and you are collecting their data. >> so where does the social network go from here? the post that question to roger mcnamee, and our very own sarah frier. times duringse that 10 hours of testimony that zuckerberg said, i will have my team follow up with you on that, now that is happening. are gettingmaen their questions to facebook staff, facebook staff has to go through and meticulously answer them all, then we will get some really interesting answers that take a little longer than those five seconds zuckerberg had to respond. >> and he said i will have my team follow-up with you many,

many, many times. roger, i'm sure you were listening. how satisfied are you with what you heard from mark zuckerberg, and how satisfied were you with the questions from lawmakers? >> i would give both mixed results for reasons that i think are obvious about the structures of the hearings themselves. during the senate hearing, in the first hour and a half, there were at least a dozen different issues that senators raise, there is a serious concern, and mark didn't have to worry about prosecutorial technique being applied at him, hammering at the same issue. he was able to say i will get back to you and move on to the next topic. the problem with that, and this is where i think he has a real issue here, is that facebook may be like a rock, but this scandal is like water pouring over it. it will erode the rock.

in the trust of facebook is in severe jeopardy right now, and mark and cheryl have no one to blame but themselves. they have handled this thing in a cavalier fashion, and it is really serious. we are talking about democracy, about civil liberties, about the rights of human beings in places like myanmar and the philippines. they have to be more focused. >> that said, mark zuckerberg told us that it hasn't had a meaningful impact on usage. sheryl sandberg told me and sarah frier that only a few advertisers have caused spending. then we had this opinion survey. how do we make sense of that? >> i don't know about the opinion survey. it's really easy to say you deleted the app whether you have or haven't. i would be stunned if we don't see a change in usage, both in the march and june quarters, because of this in north america and western europe. i just think the erosion of trust is so staggering at this point. from facebook's point of view,

they -- it goes after just what the business really is, and i think they have forgotten that they don't have a birthright here. they require consumers willingness to work with them. mark's responses to a lot of those questions, particularly senator dick durbin's question about his hotel room, would you divulge where he had stayed, and then the comments about the business model and the inherent invasions of privacy, those things are a tell. they give consumers a sense, wait a minute, they view us as fuel for their profit, they don't view us as customers, or even human beings. >> there was another issue that came up several times, specifically in the house hearings, where the questions were, rightfully and luckily, more pointed and better informed in the senate. representative kathy castor asked this of mark zuckerberg, about what happened, and how does facebook track users off facebook, including users who

have never signed up for facebook? take a listen to that exchange. >> you are collecting personal information on people who do not even have facebook accounts, isn't that right? >> congresswoman, i believe -- >> yes or no. >> congresswoman, i'm not sure that's what we are tracking. >> you are collecting -- you have already acknowledged that you are doing that for security purposes and commercial purposes. you are collecting data outside of facebook, funneling those to a website -- that data is being collected by facebook, correct? >> congresswoman -- >> yes or no. >> that is right, that we understand -- in order to show which of your -- >> so for people who don't even have facebook, i don't think the average american understands that. >> roger, is it true that several other internet companies do similar things like google, and if so, what is so bad about

this? >> so i think there are a million things that are wrong with it. yes, lots of internet companies do it. i use a product on my phone and on my computer to block trackers exactly like this. it is simply frightening. for any given page or land on, there will be between half a dozen, 15 different trackers of people attempting to insert into my browser as i'm searching around the web. in my mind, the whole thing is a massive invasion of privacy, predicated on a lie, on this notion that none of this is really going on. as consumers begin to understand the degree to which they are being used as fuel for business models, that they have no real benefit from, i think that is -- the trustee roads, and it goes way beyond facebook. i think facebook is in the crosshairs because of its impact on elections, but on reality --

but in reality, google has a profound impact, instagram, snapchat, and especially youtube have an unbelievable impact on society and on mental health. >> but roger, one of the reasons people are really upset with facebook in particular is because facebook is going out there and saying you are in control of your data, we built this for you, you own everything you do on our platform, it's all about you. this questioning from castor really caught at that point for zuckerberg. it's not your choice to share your data. facebook is tracking data on people who don't even have accounts. >> i think you are exactly correct, exactly correct. and i think representative -- that was a brilliantly well-informed question from a legislator charged with protecting the

public interest. we all owe her a massive thanks, because she and literally a couple dozen other members of congress did us a public service. they exposed a lot of the nonsense that is going on, and one representative asked an important question, sunder blumenthal, senator klobuchar. it was a really long list -- senator kennedy. when i look at this, the problem is that we were asleep. we love the products, we love the convenience, we love the fun, we love the kitten photos, but at the end of the day, in order to monetize that, these companies got involved in surveillance, and the surveillance they did is every bit as intrusive as what a spy agency would do. the difference is that they are not doing it for the national interest, but for profit. >> roger, you will stay with us. sarah, i have to let you go, but before you go, you are following

up on things in the hearing that were surprising, like cambridge university and what zuckerberg had to say about that, that they are investigating whether something bad is happening there. what else are we, the bloomberg news team, looking into? >> one of the important points in the testimony was that ai was going to solve everything. all these questions about whether facebook is treating its content the right way, whether there are biases, taking down hateful content fast enough, they offered ai as a solution to all of that. ai is trained by humans, that have the same biases as any of us. it's not going to end well. >> that was roger mcnamee and bloombergs sarah frier. google's youtube is being accused of violating u.s. law on children's privacy. a coalition of child advocacy has asked the government to investigate. the groups say youtube uses the information to illegally target

ads. youtube seven's statement that it will look into the complaint to determine if improvements are necessary. coming up, our exclusive conversation with anthony noto on how he is shaping the company's future, now that he is at the helm. and later, we will hear from representatives from california and new jersey, their reaction to the facebook hearings and thoughts on the future of tech regulation. this is bloomberg. ♪

>> in the battle for e-commerce supremacy in india, walmart may be about to leave amazon in its wake. india's leading e-commerce company is said to be leaning towards selling to walmart, according to people familiar with the matter. both are bidding for a controlling stake at a $20 billion valuation, $8 billion more than their 2017 valuation. if completed, it would give walmart a major stake in an

emerging market of 1.3 billion people. gill, a foreman goldman sachs executive, is the next ceo, filling the role that has been vacant since last summer. it is the first major appointment by the new ceo anthony noto. they also announced they surpassed half a million users. we caught up with him in san francisco to talk about his plan since taking the helm at sofi. >> we have to continue to build on our corporate docs -- core products, mortgages. we need to continue to build out. but the real opportunities to add financial services product, including sofi money, wallet, sofi credit card and sofi advice. much of 2018 will be building those products, while still making sure core products perform well. >> you have been there six weeks. what is it you want to do differently? >> the most important thing we

do is a company is filled with culture we are proud of, the culture that is welcoming and inclusive, a culture that reflects society. we have to have a diverse employee base if we will serve our members, and our number one core values is that members always come first. to serve them well, we have to reflect society, and we have to have a diverse employee base. >> you mentioned culture. the former ceo left amid sexual harassment allegations, the cfo as well. half a dozen employees are so have stepped down as a result of the chaos. when you walk into a company, what is your first order of business, knowing that the culture has been toxic for a really long time? >> we focused on three things in my first six-weeks. one was re-forecasting 2018, making sure we have our top priorities, building objectives. third, critically important to your question, what core values do you want to have as a

company? we are building of a process that took place after the change in management, and i have worked with leadership teams to define our core values. they will build the foundation of the culture we are trying to build. next important step is educating the company on the core values, the behaviors that we accept, and rewarding those that are culture carriers. we will have no tolerance for employees that can't help build a great culture. >> you just tired of cfo, michelle gill, from goldman, which is interesting, since goldman is increasingly your competitor. is this an effort to take on the goldman -- or the rest of the financial world? >> not at all, it is an effort to build a diverse company. michelle is a unique combination of a phenomenal leader, a financial expert, and the culture builder, and that set her apart from the rest of the candidates. we saw a great slate of candidates, so we are pleased we are able to hire michelle.

i really enjoyed the hours i spent with her, talking about the vision for the company, where we can go, and building a strong culture. that's a rare combination, we are lucky to join our team. >> you have had a couple stumbles. the ipo, for example, has been delayed a couple times. why is that, and what are the challenges? >> it is important to recognize the incredible success the company has achieved, $12.9 billion of volume last year, up more than 60%. the company not only achieved positive, growing the top line, but also free cash flow. we want to build on that success in 2018. one important area is the culture, but we have to invest in these other products that create more of the daily habit and more of a recurring revenue stream to a compass the overall mission, which is to help people achieve financial independence. >> do you see them as a

public company? >> if not a priority in 2018, but we want to make sure we put in place the building blocks, strengthen our core products, invest in new products, and most critically, building up the membership experience. our ability to achieve an emotional benefit is bringing an emotional experience. >> so, two years? three years? what's a reasonable timeframe? >> i am not putting a time frame on it as much as i am conditions. >> mark zuckerberg is testifying this week in d.c. before congress. facebook is in the middle of a huge controversy, and speaking of facebook, twitter has been dragged down as facebook has over the last few weeks. where does facebook go wrong? >> it's a very complicated situation for them in particular. i'd have to spend more time with you to go through my thoughts on it. i can say is what we are focused

on, which is making sure we have the right core values and leadership at the top of the company to ensure that our members are never surprised, to make sure their interests come first, which involves not just transparency, but also information and education. as long as we put their information first, and making sure they are educated what they are doing, we won't surprise them and will avoid the pitfalls we are hearing about. >> do you think tech needs to be regulated? >> i think an industry is regulated when they can't adequately abide by some standards that they established in running their business. the leadership can step up in different companies, the right consumer environment, then they will do it themselves. >> the financial industry has been regulated for a long time, someone say it is clear that tech can't regulate itself. so does that mean tech needs regulation? >> tech is a pretty broad term, from software to hardware, to

consumer technology and media. in the media landscape, there's a fair amount of regulation. the ftc, some of the other important regulatory bodies, do have regulation that they all have to comply with, including personal, private information. there are new areas that require greater scrutiny, and leaders within the industry should focus on solving those areas. >> that was anthony noto. coming up, for smart capital is one of the biggest vc firms in new york. we will talk about the investment climate in new york versus silicon valley. this is bloomberg. ♪

>> will is launching -- apple is launching two versions of the iphone 8, the second year in a

row it has rolled out a new version. of the new color option could boost sales of the overshadowed iphone line, part of the product red initiative which donates a percentage of sales to fight hiv and aids. we have been covering all the angles of the unprecedented testimony of mark zuckerberg in washington over the last two days. since the cambridge analytica data scandal broke, it has put serious pressure on the staff, waiting out its gains in 2018. but what about investor sentiment in the private market? discussed.ss -- we >> i think the sentiment in the public market mirrors very much the private market. yes, yesterday people were pleasantly surprised that mark was able to handle the scrutiny and held his own. in the private market, we feel the same way. the overarching question is whether or not there's going to be increased regulation. i think he made a good point

that increased regulation for bigger companies like his are going to be able to weather the storm. the smaller companies that we come -- becomes a much bigger burden. but ultimately i don't see any slow down in private market investing. >> are these questions you are asking about -- how are you collecting this data? is this really not necessarily legal, but does this meet our moral standard of what is possible? >> privacy has always been a concern, and these are questions we ask when any company is collecting personal data. gives how do you use the data. facebook is taking the stance that they are a tool company, and that piece wasn't important, or wasn't part of their curve

purview. >> and is the public market volatility in the tech market impacting private valuations at all? >> we haven't seen it. if anything, private company valuations have been steady, if not accelerating. >> we often compare new york to silicon valley. new york, there are a lot of exciting things happening in the texting, but there hasn't been that multibillion dollar exit. will that happen? >> we are seeing a continued acceleration. there has been a lot of buzz in the market about new york and how it will grow. we have seen over the last five in not onlyincrease the number of companies that have been founded here, but the number of exits. seen a nice pipeline of potential companies that will accept at multiple billion-dollar valuations, whether it is health, there are some of the pipeline.

the other question is where those venture dollars go. i get asked a lot, is new yorker real market? -- is new york a real market? deal almost every single we have looked at over the last two years has had silicon valley competing for them. capital's first mark first female partner, which is awesome. i just wrote a whole book about diversity in silicon valley. anecdotally, i have heard that new york feels like a more inclusive place. do you think there's any truth to that idea, that new york is less of a brotopia than silicon valley proper? >> new york has always been an open, not only for the people that -- been a melting pot. we know that 40% of tech workers here are women, 20% are people

of color. that's a dramatic difference than silicon valley. so yes, i believe here it is a little more diverse. there is access to different types of talent across many industries. >> but what still needs to happen? it is certainly not enough. >> certainly not enough, that's true. it's still a developing market, so we are seeing really nice trends here. i think we will continue to see more dollars come in, in the third quarter of 2017 we saw more dollars coming to new york. i think it will continue to see that trend. >> that was best for era. coming up, washington's reaction to facebook ceo mark zuckerberg's testimony. reminder, all episodes of "bloomberg tech" are live streaming on twitter.

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emily: welcome back to "best of bloomberg technology." mark zuckerberg's time on capitol hill in his testimony is over, and a new bill has already been introduced to protect consumer rights. to act would require the ftc create new online privacy protections for users of sites like facebook and google. congressman ro khanna of joinsrnia's 17 district us to discuss what new laws might be to come. i was pleased that mark agreed to testify that he subjected himself to five hours of testimony, both in the senate

and the house. this was long overdue. facebook should have been testified much earlier. i am pleased that he is at least open to well-crafted regulation. i was concerned with two areas. it seems like the senate as a knowledge gap. many of the senators have not used facebook or twitter, and it was apparent after they asked their first question. they were unable to press mark zuckerberg. zuckerberg's job to clean up the mess, but it is also congress's job to pass laws, and provide strong protection for the american public. there was not sufficient discussion about what an internet bill of rights would look like. emily: what should congress do? ro: i think that there is some very common sense things that we should do. you ought to have a right to

know your data. if you want to know your financial information, you can go get your credit report. you can know who has asked for that credit information, who is trying to get information about you. you should have the ability to do that with all of your data. inquireld be able to facebook, google, or cambridge analytica to give you a report of your data. second, you should be able to update your data. third, you should be able to move, and delete your data. europe has a comprehensive set of these rights. i think the european regulation goes too far, but we should take some of those principles and have a robust framework here in the u.s. emily: we're talking aboutemily: a massive data breach that happened on facebook's platform, on facebook's watch. we are talking about an election that was meddled in by state actors. facebook had warnings and new about these issues before the

company revealed them to the public. where did facebook fall short, in your opinion? did fall short, and they need to assume responsibility. they fell short in disclosure. -- and theyhave knew about this breach back in 2015. they did not notify the users or the ftc. they did not notify the press. and the harm might have been avoided had they done that. they clearly did not have sufficient oversight. have played in rubles, and russians buying advertisements, and that not setting off alarm bells is deeply concerning. they allowed false propaganda to spread and go viral on their site without any verification. i am glad they are not owning up to their mistakes. i still believe in the power of social media to do good, but they were clear abuses and

need to be transparent going forward, and make real efforts to fix it. congress also needs to regulate. we cannot rely on the self-regulation of facebook or tech companies. emily: a lot of the questions today focused on facebook's tracking of users, including users who never signed up for it in the first place. should facebook be able to track it user behavior across the internet, off of facebook, even if they do not have a facebook account? ro: this is exactly why we need an internet bill of rights. for example, if you use firefox, facebook would never be able to do that. firefox contains your data. browser,e the safari they may give the cookies, or that data to facebook if they have agreements with facebook. you actually have to go change on your iphone the default

settings on safari to say no, i do not want my data shared. this is where members of congress need to be using these platforms mark. they have to understand what these platforms do. we need to have laws saying that we need to move to a -- like mozilla firefox. searches. it is why you can go on the internet, surf the internet and want to buy ties, and then suddenly on facebook you start seeing advertisements popping up with ties, and they are marketing to you. that is because facebook often has information that advertisers have shared with them. i do think that an internet bill of rights would stop that from happening. emily: you said that we cannot leave the security of our elections up to an internet entrepreneur.

do you believe that they will have new measures in place to prevent that before the next election? is it really on facebook at this point to make sure that does the applicant? ro: i do believe they are acting with good intent, but think about this, emily. they have grown from a platform 2 a few thousand people to billion people in 12-14 years. it is really an extraordinary platform and an extraordinary problem. i do not think we could just rely on facebook's word. to significantly fund the national science foundation, m.i.t., carnegie mellon research university, so that we can do the kind of research in machine learning, and artificial intelligence that is going to be necessary to protect our national security, and to prevent this kind of interference.

that is for congress to make those kind of investments in research and development. we are not making those investments right now. secondly, we need to have a right to individuals having a right to secured data, and making sure that there are advertisement disclosures. senator klobuchar has a bill along those lines, so that facebook is required by law to comply. that would put added incentive on their engineers to come up with a solution if they have a legal liability that incentivizes them to do it. emily: that is not necessarily going to happen before november? ro: you are right. i am not optimistic that these laws are going to be passed before that. all i would say is that until then, congress should try to act as much as we can, because we are putting ourselves at risk without those laws. and hope that facebook

other tech companies will realize that the more of these breaches is going to further a road the public trust -- erode the public trust. i still think as we travel around the country there are people who look at technology with a positive framework, a positive sense. they risk losing that if there are more of these breaches. facebook'sis in interest to put as much resources behind us to solve the problem. it is not going to be easy. there is vulnerability there. emily: that was congressman ro khanna. we also caught up with representative leonard lance of new jersey, who filled mark zuckerberg -- grilled mark zuckerberg on capitol hill. leonard: i asked him a direct question and he responded. i tend to disagree with his response. the ftc is now investigating the matter and i hope the investigation occurs in a timely fashion. emily: what are you most concerned about? leonard: i'm concerned about the

privacy of the american people and certainly the privacy of the american people was violated in this situation. moving forward, we have to make sure that it does not happen again. emily: do you think that regulation -- more regulation is necessary? leonard: i am a cosponsor of a bill sponsored by marsha blackburn of tennessee, the browser though -- bill. ist would have a system that more protective of the privacy of the american people, and you have to opt in. the browser bill is for all isp's and i think that is the way to proceed. emily: is there any regulation beyond that that you would support, given that there are a ride range of topics -- wide range of topics here? leonard: i want to make sure

that companies have the ability to innovate, but that does not mean that they have -- it should be in a situation where they invade the privacy of the american people. certainly congress wants to make sure that does not occur. i think the browser bill would go a very long way in that regard. emily: speaker paul right now reportedly will not run for reelection. i feel like i have to ask you -- speaker paul ryan right now reportedly will not run for reelection. i will -- i thought i have to ask you about this. he will remain speaker into the end of the year and continue to engage in fundraising. i think this was a personal decision based on the fact that he wants to help raise his children in wisconsin. this is a very cynical town. i believe the speaker when he

says he wants to be involved in the raising of his children with his wife. moving forward, he will be working on the behalf of republicans across the country over the course of this year. there will be a new speaker come january. emily: do you believe it has anything to do with friction with the president? leonard: i do not. i believe that has to do with the fact that paul is a young man and has a whole life ahead of him. he will be very successful in whatever he does, and i take him at his word. he and his wife are raising their three children in wisconsin, and he wants to be more involved with that. emily: back to facebook. i know you have got the browser , but bigger- bill sure, how much of the responsibility to protect, to self regulate falls on facebook? and how much do you think this falls on congress and the law? leonard: i think it is a combination of both.

the coo of facebook, sheryl sandberg, last week indicated that she thought the company had not done as good a job as it should do. that is obviously the case. mr. zuckerberg in effect said the same thing both to the senate yesterday and to the house today. therefore, i think we should move forward with the browser legislation, and we should not rely on what facebook or any other company says, because it of allresponsibility of of us working together to protect the privacy not only of the american people, but frankly of people across the globe. this affected people in other countries. that is why the british parliament is investigating this matter as well. emily: that was congressman leonard lance joining us from washington. isnwhile, alibaba's -- telling mark zuckerberg to fix

facebook. the cambridge analytica scandal could have shared data on tens of millions of users. china's richest man said that the social network was valuable and the issues could have resulted from facebook's unprecedented expansion. coming up, what the management to the masses with robo advisors. will hear from the ceo next -- we will hear from the ceo next. this is bloomberg. ♪

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new york-based betterment is looking to disrupt the finance industry, going after high net worth clients with robo advising. would this help usher in more clientele into the start of? we asked the ceo of that company. used have always technology to reduce cost, to help people reduce their taxes, and give them full holistic financial planning. it takes processing of that data to deliver financial advice. we want to give them more delightful experiences. terms of what it is actually doing in better managing your money is in the early stages. i think that is true of most of these companies. emily: what does that mean? what can you not do now that you might be able to do in two years? >> if you believe we will have

self driving cars, of course you believe that we will have self ets.ging while it's -- wall all of that can be better done by technology than humans. it is much less annoying when you do not have to do it yourself. emily: does this become a commodity? >> one of the things that is exciting for us is that incumbents are coming in. they are driving customers to us. all of them are conflicted and sound their own products. if you go to vanguard, you expect to get vanguard funds. if you go to merrill lynch you are getting funds that they are getting paid to offer you. at betterment we do not get paid by anyone to sell you certain funds. the only way that we make money is the fee that you pay to advise you. that makes us unique in the robo divisor space. emily: do you have any plans to expand? some of your competitors are

partnering with banks. is that something that you would do? >> what i am excited about is how we make customers make the most of their money. i don't want to give you just a checking account. i want to give you something better. i want to make your checking account smarter, and help you make more money off of everything that you won't. you will not see us launch just a debit card or check account like all of these other players. you will see us launch things that make you more money. emily: how fast you expect your assets to grow? >> weaker 120% year-over-year, q1 this year to q1 last year. i expect that same type of growth. emily: there is lots of market volatility and uncertainty with what is happening with facebook. interesting ins the broader sense of wanting to regulate these bigger tech companies. i want that regulation as well.

when we get asked that question i like to remind people that we have always been highly regulated. part of the reason i got into this business is that regulation has stifled innovation for a long time, and i felt a need to break through. we are regulated by the fcc. emily: does that same regulation need to apply to tech? >> i think regulation needs to apply to every industry. i think over time, most of the tech industry is doing bad -- brand-new things, and you need brand-new regulations to protect consumers. emily: has the facebook scandal affected how you think of user data? >> because we have always been highly regulated, we have always had to think about checking user data. if you think about the traditional advisor relationship, you would bring a shoebox full of receipts and papers and handed over to your visor to help make a plan. we have automated the process and made it digital, and

seamless. we never sell your data. whenever rent your data to anyone else. no one else has access to what. we do not use any proprietary passwords. known else can user data. emily: that was the ceo of betterment. european, overseas regulators are keeping a close eye on the mark zuckerberg's testimony on capitol hill. we will take a look at what is facing the social media giant in europe. this is bloomberg. ♪

♪ emily: finally, one more conversation on facebookemily:. heated reactions

to ceo mark zuckerberg's appearance in washington, including those in the eu you. europeans do not seem convinced. -- took to twitter, citing zuckerberg's pledge that he would except responsibility for his company's failure. alex webb infly's new york and caroline hyde in london joined us to wait in this .ay and -- weigh in new sethas driven us a of regulations on the european level, the general data protection regulation. more broadly looking at facebook in europe, there has always been aboutain question mark why these companies need some which data. -- need so much data. i think there is that certain sort of -- in that respect. interestingly, the

zuckerberg has said that he thinks that europe's data privacy rules and gdp are is a standard that should be applied around the world and facebook will apply it around the world. also very interesting that mark zuckerberg was one of the cambridge analytica 87 million, so his data was potentially misused as well. what should we make of this leadership shuffle over there? give us some more context. >> we have to remember that cambridge analytica still feels that it has done nothing wrong. we keep on hearing from the company throughout the testimony of mark zuckerberg. they have been claiming that they have not broken any laws. they have taken to twitter saying this. they are saying that they did not use this 87 million user data treasure trove in the 2016 election or in the eu referendum. i think that is why there is so much reshuffling at the top of

cambridge analytica. the channel four news had secret video footage they took of him bragging about some of the more questionable tactics that he used in his ad campaigns with cambridge analytica. he has now fully resigned. waschief data officer who acting as ceo has gone back to his usual role. i think there is more confusion at the helm of cambridge analytica. emily: speaking of confusion, zuckerberg said that they are looking more deeply at cambridge university and whether there is something bad going on more broadly. what did he mean by that? >> shock, horror, at the very heart throwing them under the bus, it would seem. vanguard ofm very the academic institution at the heart of the u.k. he is saying whether they are going to investigate researchers

at cambridge university. notably, there was really firm rhetoric coming from cambridge university itself in response to this. i said that the reason they said they were really surprised that the reason mark zuckerberg has not overall known what was going on at the university of cambridge. he himself is saying that you need to understand --. in response, cambridge university said look, we have made them aware. not only have we were in them a letter asking them to provide evidence against aleksandr kogan. saying, we did publish findings of our data and recent -- we have been publishing findings of our data and research since 2013. you should know about this. a facebooknow that

executive will be testifying in the u.k. in a few weeks. how will be -- how will it be different from what we have seen here in the u.s.? >> i think there were a lot of lawmakers asking questions and they were constrained by time. it was very hard to pose follow-up questions. in the u.k. that is not going to be the case. there are fewer people in the select committees, and some more time. hopefully they can get more substantial answers, which is zuckerberg was not able to deliver in the states. emily: that was bloomberg's alex webb and caroline hyde. that does it for this edition of the "best of bloomberg technology." ine in every day, 5:00 p.m. new york, 2:00 p.m. in san francisco. that is all for now. this is bloomberg. ♪

♪ >> europe's next big deadline. the general data production of legislation, known as gdp art, goes into effect next month. how significant will it be for business? mifid ii back in business. the dodd-frank begin -- debate begins again. how many changes will be made in congress? we get the latest from washington. >> i am nejra cehic in london. this is the show where we