zuckerberg: the big difference between the cases is that, in the aleksandr kogan case, people signed on to the app expecting to share the data with him and he, in violation of our policy and of people's expectations, sold it to a third-party. sold it to camera demo the cap. .- cambridge analytica we were clear about the platform that anyone could sign into an app and bring their information and information from their friends. people had control of that. you could turn off the ability to sign apps or the ability for your friends to bring your information. the platform work the way we designed it. we know that we should have a more restrictive platform where people cannot also bring information from their friends but only their own information. whether in: violation or the agreement, users have an expectations that their information would be protective. protected -- protected, not be sold. i can certainly understand the general public outrage at their concerns regarding the way cambridge analytica require their information. if people are outraged because they use that for political rea

the man who mined that data for cambridge analytica is a scientist named aleksandr kogan.ok controversy, because he developed an app that harvested data from tens of millions of unwitting facebook users. the main infraction, the main charge is that you sold the data. >> aleksandr kogan: so, i mean, at the time i thought we were doing everything that was correct. you know, i was kind of acting, honestly, quite naively. i thought we were doing everything okay. >> stahl: facebook says that you lied to them. >> kogan: that's frustrating to hear, to be honest. if i had any inkling that what we were going to do was going to destroy my relationship with facebook, i would've never done it. if i had any inkling that i was going to cause people to be upset, i would've never done it. this was the blindness we had back then. >> stahl: for someone implicated in the biggest privacy scandal on earth, kogan seems incongruously guileless. before all this happened, what was your job? and what was your field of study? >> kogan: so, i was a social psychologist. i was working as a university l

not only have we were in them a letter asking them to provide evidence against aleksandr kogan. came rate university at the time they are . also saying, we did publish evidence against aleksandr findings of our data and research since 2013. emily: we know that a facebook executive will be testifying in the u.k. in a few weeks. how will it be different from what we have seen here in the u.s.? alex: 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. i think that gives him a far greater opportunity to take into hopefullygritty and get more substantial answers, which mark 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." we will bring you the latest of tech during the week. tune in every day, 5:00 p.m. in new york, 2:00 p.m. in san francisco. that is all for now.

>> congressman, in 2015, when we heard that the developer on our platform aleksandr kogan -- >> is that the first time you heard about it >> that -- >> reported by "the guardian"? >> to cambridge analytica. >> when "the guardian" made the report is that the first time you heard about it >> yes. >> thank you do you routinely learn about these violations through the press? >> congressman, sometimes we do. i generally think that -- >> let me ask you, you had the capability to audit developers' use of facebook data and do more to prevent these abuses but the problem at facebook not only persisted, it proliferated relative to other types of problems you had on your platform, it seems as though you turned a blind eye to this, correct? >> congressman, i disagree with that assessment. i do think that going forward, we need to take a more proactive view of policing what the developers do, but looking back, we've had an app review process, we investigate -- >> mr. zuckerberg, it seems thus that -- it seems like you were more concerned with the attracting and retaining developers on your platform

we written them a of march,k on the 21 asking them, desiring them to provide evidence against aleksandr kogan there at the time. they are saying, we did publish findings of our data and research since 2013. you should know about this. emily: last quick question, alex. we know that a facebook executive will be testifying in the u.k. in a few weeks. we have 30 seconds left. how will it be different from what we have seen here in the u.s.? >> i think there will be -- the problem was there were a lot of lawmakers asking questions and they were constrained by time. they had four minutes today, five minutes yesterday each. that is very little. it meant 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 on each select committees, and some more time. that gives them a far greater opportunity to really dig into the nitty-gritty and hopefully get more substantial answers, which mark zuckerberg was not able to deliver today. emily: that was bloomberg's alex webb and caroline hyde. and that does it for this edition of the "best of bloomberg

>> congressman, the issue with cambridge analytica and aleksandr kogan happened before we ramped those programs up dramatically one thing i think is important to understand overall is the sheer volume of content on facebook makes it that we can't -- no amount of people we can hire will be enough to review all of the content. we need to rely on and build sophisticated a.i. tools that can help us flag certain content. and we're getting good in certain areas. one of the areas i mentioned earlier was terrorist content, for example, where we now have a.i. systems that can identify and take down 99% of the al qaeda and isis related content in our system before a human even flags it to us. we need to do more of that >> the chair recognizes the gentleman from california for four minutes >> i thank the chairman. >> good afternoon. i'm scott wapner we want to step away for a moment from the hearing in washington and bring in a man who knows mark zuckerberg quite well and facebook, for that matter. divian attended harvard with mr. zuckerberg and co-founded the company that would go on to become f

westminster, the developer of a controversial app accused of harvesting facebook users' data, aleksandr kogandon's parliament square, and in london's parliament square, a statue of suffragist leader, millicent fawcett, created by the artist gillian wearing will be unveiled. now it's time to get all the latest from the bbc sports centre. hello, i'm tulsen tollett it and coming up in your tuesday sport briefing. we look forward to a big night of uefa champions league action as liverpool play romain of first leg of their semi—final. nba champions golden state look to close out their series against san antonio and it seems everyone in egypt wants to look like mo salah. —— roma. the countdown is on to tuesday night's uefa champions league semi—final first leg between liverpool and roma at anfield and the five—time winners, liverpool, are attempting to reach a champions league finalfor the are attempting to reach a champions league final for the first time since 2007. mo salah scored 33 in 83 for the serie a club before joining liverpool at the start of the year and this game will be the first time

>> congressman, in 2015 when we heard that the developer on our platform aleksandr kogan -- >> was that the first time you heard about it? when the guardian made the report was the first time you learned about it. >> yes. >> do you routinely learn about these violations through the press? >> congressman, sometimes we do. i generally think that -- >> let me ask you this: you had the capability to audit developers use of facebook user data and do more to prevent these abuses, but the problem at facebook not only persisted, it proliferated. in fact, relatives to other types of problems you had on your platform it seems as though you learned a blind eye to this, correct? >> congressman, i disagree with that assessment. i do think that going forward we need to take a more proactive view of policing what the developers do, but looking back we have had an app review process, we investigate -- >> mr. zuckerberg, it seems to us that it seems like you were more concerned with attracting and retaining developers on your platform than you were with ensuring the security of facebook user data. let m

aleksandr kogan lawfully ran a personality test on facebook four years ago to collect the data of millions of americans. then facebook says he broke company policy by sharing that data with a political consulting firm. kogan tells "60 minutes" what he did was not right or wise. >> if i had any inkling that what we were going to do was going to destroy my relationship with facebook, i would have never done it. if i had any inkling that i was going to cause people to be upset, i would have never done it. this was the blindness we had back then. >> kogan also says what he did was not hacking because facebook created the tools for developers to collect the data. consulting firm cambridge analytica says it deleted that data which it received in 2015. >>> all right, get ready to pay more the next time you visit a gas station. gas prices rose another nine cents per gallon in the last two weeks largely thanks to the increasing cost of oil. now, prices are the highest in three years and are expected to rise through memorial day. now, experts recommend filling up early in the week because stations t

aleksandr kogan, the academic the heart of this, flatly denies, that this didn't help win the election donald trump. he said notably the data was used to help the trump campaign. it cruz's campaign have used and was dissatisfied with it. it is not efficient micro-targeting. why? you would not use the data he ran to run political ends on facebook. he said, to be efficient, you use facebook's own tools, you don't build your own. that was really notable. what was notable was the fact ok,t she was saying, lo facebook should have known i was pacing on data to -- passing on data to third parties. the terms and conditions of the app that it will go on to third parties. he said many companies do that . loose claims in their terms of conditions, and therefore data can be passed on to third parties. he is saying, it is not just me, i am being unfairly targeted. tens of thousands of developers could have done this. you do not need special permission. he did in an email, and not feel there was any misuse. he thinks in hindsight people do not realize what he was up to. emily: hindsight is always 20

aleksandr kogan joins us now. i want to pick up where we left off there, dr. kogan. you say it wasn't technically correct. but mark zuckerberg has accused you of deceiving facebook, violating facebook policy by selling that information to third parties. your response? >> so, i think they're being a little misleading. i mean, the idea that this was a hack is flat-out wrong. it's like imagine a warehouse. we didn't break in, we went on amazon and ordered the data and they delivered it to us. this is a key feature of their system. >> you weren't supposed to sell it, right? >> so even that is a little silly. because if you go and look at facebook apps right now, most have language they say -- they can transfer the data to third parties. so it's a bit like working in a building and everybody is bringing in their dogs. you bring in your dog and your dog pees in the wrong place and management is now saying, how could you bring your dog? with have a clear no pet policy. i'm just looking around and thinking what about everybody else? >> everyone does it isn't necessarily a de

appearances earlier in the month from alexander nix, the former ceo of cambridge analytica, and aleksandr kogane senior associate at cambridge university, both embroiled in the scandal. george soros is planning to trade cryptocurrencies after calling it a bubble in january. credit to people familiar, the family office approved rating of virtual coins in recent months. this is investors face a growing possibility of government intervention. bitcoin has fallen significantly since its december highs. bloomberg has reached for comment, but the spokesperson declined. why the sudden change of heart? caroline hyde live in london. david kirkpatrick with us. caroline, soros not always a fan. by the change of heart? caroline: maybe the bubble has burst. he called it back in january saying it was in a bubble territory and now we're up by 60% or 70% when you are looking at the coin, but also looking at litecoin, a theory him. -- etherium. maybe the time is right to get going in terms of trading this particular asset class. , we know he is not currently made a trade, for the time could be right. i also thin

>> yes. >> i want to show you the terms of service that aleksandr kogan provided to facebook. and note for you that in fact facebook was on notice that he could sell that user information. have you seen these terms of service before? >> i have not. >> who in facebook was responsible for seeing those terms of service that put you on notice that that information could be sold? >> senator, our app review team would be responsible for that. >> has anyone been fired on that app review team? >> senator, not because of this. >> doesn't that term of service conflict with the ftc order that facebook was under at that very time that this term of service was in fact provided to facebook, and you'll note that -- that the ftc order specifically requires facebook to protect privacy. isn't there a conflict there? >> it certainly appears that we should be aware that this app developer submitted a term that was in conflict with the platform. >> it was willful blindness, heedless and reckless which amounted to a violation of the ftc consent decree. would you agree? >> no, senator. it's not my u

bloomberg reports aleksandr kogan had access to large scale public data. in a state twitter says an internal review did not give them personal information like private messages or locations. the company has removed cambridge analytical as advertisers. >>> two cell phone companies are merging after years of talking about it. t-mobile is buying sprint for $26 billion. a spokesperson says their merger will create thousands of jobs. they have combined about 100 million customers. >>> facebook is slowly expanding its down vote feature. some universitiers in australia and new zealand are testing it out and a small group of users in the u.s. has it, too. facebook has repeatedly said this is not a dislike button pefr say. it's just a way for you to provide feedback on posts on public pages. you cannot down vote something that your friends post, whether that's a good or a bad thing. >>> in today's gma first look, inside the jury room during bill cosby's trial. >> one juror is opening up about what led to the comedian's conviction. here is abc's lindsey davis. >> re

developer, if people gave the information to them, aleksandr kogan in this case, goes and violates his agreement with us and sells the data to came originally to, that is a big issue. that isidge analytica, a big issue and i am upset it happened and we need to have systems to prevent it from happening again. it may havei think violated the agreement with the federal trade commission and i'm sure it will be determined in the future. >> we recognize the gentlelady from florida. of the benefits facebook as provided in building communities and connecting families, i think a devil's bargain has been struck. do not like to be manipulated. they do not like to be spied on. we do not like it when someone is watching outside of our home or someone is following us around the neighborhood for following our kids or stalking our children. facebook now has evolved to a place where you are tracking everyone. you are collecting data on just about everybody. yes, we understand facebook users, proactively sign in and part of the platform. you are following facebook users, even after they log off. you are

work and jump through more hoops to make sure they can comply with those regulations >> we had aleksandr koganrcher that worked with cambridge analytica on cnbc a few days ago and he said if he were doing similar research again today, he wouldn't be tapping into facebook. they've changed the way they handle data. he would be tapping into twitter. jack on the call said that twitter is in a different position in all of this because everything you put on twitter is public by default. but are there dangers there, considering the fact that people are going to be using that twitter data set and combining it with other data sets and people might feel like they got exposed even if twitter didn't do anything wrong? >> i think because it's only your public tweets and because, you know, lots of twitter accounts don't have personally identifiable information and there are lots of great reasons for that, people in countries where political speech is oppressed don't want to be able to be identified easily so, you know, the state police can come to their house and arrest them, that puts twitter in a great po

aleksandr kogan, a researcher at the university of cambridge, who lawfully ran a personality test on facebook in 2014 to collect the data of millions of americans. but according to facebook broke company policy when he shared that information with political consultancy cambridge analytica. >> so at the time i thought we were doing everything that was correct. i was kind of acting haonestly naively. i thought we were doing everything okay. >> reporter: kogan telling "60 minutes" what he did on the social network was a common occurrence among researchers. his quiz downloaded about 270,000 times, according to facebook, put as many as 87 million users' information at risk. >> people signed into that app expecting to share the data with kogan, and then he turned around and in violation of our policies and in violation of people's expectations sold it to a third-party firm, to cambridge analytica in this case. >> reporter: the information including everything from user locations to genders to interests, as well as information on their friends, potentially valuable in swaying voters with ta

amy: the facebook data was first obtained by a cambridge university academic named aleksandr kogan, whose company, global science research, built an app that paid facebook users to take a personality test and agree to have their data collected. the app also collected data on these users' friends, meaning it actually collected personal information from tens of millions of users without their knowledge. cambridge analytica then bought this data in order to turn a voter-profiling company into a powerful psychological tool, which began launching targeted political ads aimed at carrying out robert mercer's far-right political agenda. democratic senator kamala harris questioned zuckeberg about why it took facebook 27 months to alert users to the cambridge analytica breach. >> are you aware of anyone in leadership at facebook who was in a conversation where a decision was made not to inform your users or do you believe no such conversation ever took place? >> i am not sure whether there is a conversation about that, but i can say the thought process at the time of the company, which is in 2015 w

amy: the facebook data was first obtained by a cambridge university academic named aleksandr kogan, whose company, global science research, built an app that paid facebook users to take a personality test and agree to have their data collected. the app also collected data on these users' friends, meaning it actually collected personal information from tens of millions of users without their knowledge. cambridge analytica then bought this data in order to turn a voter-profiling company into a powerful psychological tool, which began launching targeted political ads aimed at carrying out robert mercer's far-right political agenda. democratic senator kamala harris questioned zuckeberg about why it took facebook 27 months to alert users to the cambridge analytica breachch. >> are you aware of anyone in leadership at facebook who was in a conversation where a decision was made not to inform your users or do you believe no such conversation ever took place? >> i am not sure whether there is a conversation about that, but i can say the thought process at the time of the company, which is in 2015

or implied that there were many additional individuals, as opposed to just the ones through aleksandr kogan'sen compromised. >> since leaving cambridge analytica earlier this year, the former director of business development has been critical of the company's tactics. kaiser is working alongside jeffrey wornic, early investor in uber and airbnb on initiatives to improve data collection frantransparency brittney and jeffery joins us on a first on cnbc interview. good morning and welcome to both of you >> good morning. how are you? >> first of all, doing great, i want to start with you, more than 87 million, people are alarmed about cambridge analytica, but i want to put the brakes on that a moment because the real issue with the kogan data sense was they were collected under the pretense that they weren't going to be used for commercial purposes at all. there wasn't a problem with having quizes that harvested people's information lots of people were doing that are you saying these other cambridge analytica quizes were above board legit and maybe people just didn't understand how the data was b

you mentioned yesterday that facebook was deceived by aleksandr kogan when he sold user information to cambridge k analytica. does facebook, therefore, plan toto sue aleksandr kogan, cambridge university or uni cambridge analytica perhaps for unauthorized access to computer networks, exceeding access to computer networks or breach of o contract and why or why not?t? >> congressman, it's something that it we're's looking into.dyo we already took action by banning him from the platform, m and we're going to be doing a full audit to make sure that hef gets rid of all of the data that he has as well to. your point about cambridge university what, we found now i that there's a whole program associated with cambridge pr university where a number of researchers, not just aleksandr kogan, although to our current knowledge he's the only one who sold the data to go cambridge y analytica, there were a number of otherat researchers who werer building similar apps, so we dop needs. to understand whether tha is somethingnd bad going on at cambridge university overall that will require a stronger act

>> congressman, in 2015 when we heard that the developer on our platform aleksandr kogan -- >> was that the first time you heard about it? when the guardian made the report was the first time you learned about it. >> yes. >> do you routinely learn about these violations through the press? >> congressman, sometimes we do. i generally think that -- >> let me ask you this: you had the capability to audit developers use of facebook user data and do more to prevent these abuses, but the problem at facebook not only persisted, it proliferated. in fact, relatives to other types of problems you had on your platform it seems as though you learned a blind eye to this, correct? >> congressman, i disagree with that assessment. i do think that going forward we need to take a more proactive view of policing what the developers do, but looking back we have had an app review process, we investigate -- >> mr. zuckerberg, it seems to us that it seems like you were more concerned with attracting and retaining developers on your platform than you were with ensuring the security of facebook user data. let m

your testimony says that aleksandr kogan's app has been banned. has he also been banned? >> yes. my understanding is he has. >> so if he were to open up another account under a name and you were able to find it out, that would be taken -- that would be closed down? >> senator, i believe we're preventing him from building any more apps. >> does he have a facebook account still? >> senator, i believe the answer to that is no, but i can follow up with you afterwards. >> okay. and with respect to cambridge analytica, your testimony is that first you required them to formally certify that they had deleted all improperly acquired data. where did that normal certification takes place. that sounds like a quasi-official thing to formally certify. what did that enfail? >> senator, first, they sent us an e-mail notice from their chief data officers telling us that they didn't have any of the data anymore, that they deleted it and weren't using it, and then later we followed up with i believe a full legal contract where they certified that they had deleted the data. >> in a legal contract? >

that information was then transferred out of our system to servers that this developer, aleksandr kogan had. that person chose to sell the data. the cambridge analytica. that is going to require much more active intervention and auditing from us to prevent going forward. once it is out of our system is a lot harder for us to have a full understanding of what is happening. >> from what you said today and previous statements made by you and other officials at your beta is at the center -- data is at the center of your model. your ability to run your business effectively, although you do not charge users, is based on monetizing data. seems to come down to what you tell the public and users of facebook about what you are going to do with the data. about how you are going to use it. can you give me a couple of examples, to examples of ways in which data is collected by facebook in a way that people are unaware of? two examples of types of data that facebook collects that might be surprising to facebook users. mark: i would hope that what we do with data is not surprising to people. >> hasn't

developers who were collecting and selling data from facebook platform joining us now is aleksand aleksandr kogan. >> thank you for having me >> is that how things went down? >> not quite so the reality is i am a facebook friendly. they were working with me for a long time and it was a good ally they hired my students and so the fact that i did this project, i really believe we are doing something super normal and that nothing to go wrong i thought facebook is going to be upset with it i don't do it. it was business as usual this is a normal thing to do back then. and our project unfortunately blew up and now facebook is saying hey, rogueing actor they're all out there and facebook has no accounting for it >> we talked to a lot of facebook investors as long as there is not another cambridge analytica shoe to drop, we are okay to invest in facebook here you are, how sure are you of that? >> certain facebook has talked about 87 million and the actual number we collected was closer to 50 million. the reality is probably nearly every user in facebook have been collected many times over by many compan

of course, now we know that is exactly what happened, that in 2014 a researcher name aleksandr kogan used a survey app called this is your digital life and was able to attract 270,000 facebook users and through access to those users' friends' data able to obtain personal information, but we heard from facebook yesterday, up to 87 million facebook users. kogan then sold that data to cambridge analytica, political consulting firm that worked with the trump presidential campaign, and the brexit campaign, has bragged about influencing other political outcomes in mexico, australia and kenya, and based on recently released undercover recordings has used bribes and workers as part of its toolbox for influencing political candidates. which brings us to last month. when we learned about how cambridge analytica obtained this data. we also learned that facebook has known about kogan's passing of data to cambridge analytica since 2015 but did little to confirm that this misappropriated data had been deleted other than demanding that cambridge analytica certify it had done so. while facebook also

aleksandr kogan was given one day access to random tweets following a five-month period.s it has removed cambridge analytica and affiliated entities as advertisers but no other details. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm paul allen. this is bloomberg. rishaad: do or die for china startups. here the interview on its way. haidi: coming up, vt earnings surge but can it keep up -- after the recent u.s. sanctions? we will have more on that story. this is bloomberg. ♪ ♪ haidi: this is bloomberg markets asia. i'm haidi lun in hong kong. rishaad: i rishaad salamat. at after kevin burnett quit as chairman, -- own grexit nation 10 days ago. emily is in sydney. how bad are things and how bad is this for amp? emily: it's pretty bad. and shares rose a little this morning. they are still bouncing around a lot and we have seen the longest run of decline since amp floated as a public company. what they have admitted to his both charging customers for services it didn't provide and attempting to mislead the regula

i was listening to that interview that you had with aleksandr kogan, cambridge analytica and the data how much customer privacy is in the news. if you think facebook knows a lot about you, you don't want to know how much google knows. the company harvests all that user data and perhaps not a surprise to anyone out there who's kind of researched products on the web, you see those banner ads next to those things that you looked for. they know so much about you. it speaks more to this idea of the reliance people have on internet and how companies develop business models to track just kind of the data that you have. one other thing to watch if you think data tracking is intrusive, it's nothing compared to hidden cameras. police are investigating a hidden camera found in a starbucks bathroom outside of atlanta, dpgeorgia. a woman found the camera taped under a baby changing station and notified the manager who notified starbucks corporate. of course it comes after all that bad press about the incident in philadelphia, so certainly something to watch, joe, mika, back over to you. >> dominic

spokesperson. insulting to the electorates. campaigns. who win the races. conducted as we speak. and aleksandr koganeveral fronts. updates, and then would use that information to target adverts. here's zoe kleinman on that. working out what makes them tick. them that are going to appeal to that particular type. and you don't work in education not something that... you are interested in education and i can method to get to. and i can target messaging at you. you really looked. they might respond to. correct. advertising is less of a bug. then it's less irritating. was all i could find. facebook says it did nothing and explored the idea. use that information to target advertising. think it would work anyway. distance itself from the idea of using these techniques at all? that means you are the product. in order for you to receive commercial messages. you think it makes his money? it's not making it from you. to say they won't do it completely? i don't know. certainly this is their business model, using the data to make money. really important moment in westminster earlier. the first statue of a woman

they chose to download his app. chose to download his app. the same information purchased by aleksandr koganvoters in 2012. to target voters in 2012. would that be correct? be correct? firm, cambridge analytica in this case. firm, cambridge analytica in this case. case. information if they wanted, and information from their friends. information from their friends. ability for your friends to be a bit to bring in your information. to bring in your information. platform worked the way we have designed it at the time. designed it at the time. the way the system worked at the time. time. would remain private and not be sold? sold? so that is something of the reason we're here today. reason we're here today. that for political reasons, with that these hypocritical? that these hypocritical? facebook users without their consent in 2012? in 2012? do enough to prevent that or understand it soon enough. understand it soon enough. developers cannot abuse people for the data. the data. california, mismatched sirree, recognised for four minutes. recognised for four minutes. platform among friends and col