what we do at the ftc is law enforcement.o what we look at is what the facts show, what are the obligations, and did the company break the law and we try to remediate the violation of the law? we don't come in and tell the company what to do about everything. there are a lot of people in america who have real concern about how facebook conducts itself. that is a conversation that goes on all the time in homes across the country and right now in congress, which is thinking about privacy legislation. what facebook was doing in terms ad practices is not what this case was about. this was about the misrepresentation to users about privacy and several of those things we talked about, and critically, that is what we are aiming to remedy. emily: another colleague who voted against this says the ftc would have done better by suing facebook and zuckerberg himself. why not do that? noah: i don't think that is an accurate characterization of the state of play. the revenues we have achieved are both financial and injunctive, meaning the

there are two ftc commissioners who thought the ftc should have gone to court and fought this out andded greater penalties. what you heard chairman simons say on your last hour's segment was that they made a judgment call that what they were able to get, not just in terms of dollar relief, but also in terms of conduct that will limit the opportunity of facebook to engage in privacy violations going forward, but on balance, that was a good outcome. reasonable minds can disagree on it it looks like at the commission reasonable minds did disagree. >> bill, why does this fall on the ftc? why aren't we talking about something potentially more transformative such as congress doing something and passing laws to actually regulate big technology should that happen why isn't it >> well, i think congress is looking at that, and there have been presidential candidates and members of congress who are examining whether or not our privacy laws are adequate and whether our antitrust laws are adequate to dealwith this new phenomenon, the very successful, high-tech platforms. so the law enforcement age

a $5 billion settlement between the ftc and facebook.ome terms of the deal increased responsibility by the board to protect user data, but little impact to facebook's lucrative advertising business. the agreement was approved by the ftc with a vote along party lines. i want to bring in one of the officials who voted in favor. minutes ago, facebook announced it is being investigated on antitrust one day after the department of justice said it has opened an antitrust probe. ftc commissioner noah phillips joins us from washington. thank you so much for joining us. about the ftcd antitrust investigation into facebook. on top of this settlement news that we heard today, how advanced is this investigation and can you tell anything about what you are exploring? noah: thanks for having me. the details of what we do in terms of investigations and even the existence of those investigations is confidential and we don't reveal it. in this case, because facebook has publicly announced that they are at the subject of a probe, i can confirm that there

is this indicative of a new ftc or a new approach by the u.s.ernment in general under the trump administration that it is far more aggressive on big tech? alistair: i think it says more about how much of these big tech companies make. in 2012, google made quite a lot of money but nowhere near what it makes now. facebook did not make much. emily: it was not a public company until may of 2012. alistair: it has to do more with the fact that there is no way they could fine facebook $50 million for something like that. they would be laughed at if they did. they actually have to have some kind of impact on facebook, even though it will be relatively small at $5 billion. thehink it says a lot about criticisms being lobbed against the ftc in particular on how it might be as forceful. the members did not follow through on antitrust investigation on google. it did have some limits on how it could fine companies, but yeah, it has been criticized for being a bit toothless. emily: a tough week for facebook with the hearings on capitol hill having to do with

>> guest: first, we want the ftc to do their job and that's important.s a we want to make sure they're doing what they're supposed to do. as i mentioned we want that's the great thing about committees and we have oversight. if we don't think a board or commission or agency or department is doing what they're supposed to do that the oversight we have in so if they believe that's the course they will start we have that ability to oversight to see is that the right oversight. when it comes to questions asked to antitrust that is what they need to be doing and also the question is curtis hold hearings on different companies when we have the facebook and equifax hearings last year that's our job and that's where the oversight comes from. it's just like when we have a certain hearings where the laws on the books or regulations are out there and did they do what the law was supposed to do and that's what they look to the ftc or any department out there to do their job to make sure they're on the enforcement side if someone has gone an antitrust violation. at th

what we do at the ftc is law enforcement.t we look at in any case is what do the facts show and what are the legal obligations, and did the company break the law? and we try to remediate the violations of the law. we don't come in and simply tell the company what to do about everything. there are a lot of people in america who have real concern about how facebook conducts itself. that is a fair conversation that goes on all the time in homes across the country, and critically right now in congress, which is thinking about privacy legislation. but what facebook was doing in terms of ad practices is not what this case is about. this case is about the misrepresentations that it made to users about privacy and several other things we have talked about, and critically, that is what we are aiming to remedy. emily: now, another one of your colleagues who voted against this, rebecca slaughter kelly, says that the ftc would have done better by suing facebook and suing zuckerberg himself. why not do that? noah: i don't think that is an

head winds for big tech record ftc fine and the s.e.c.ccusing facebook of misleading investors as the doj launches this antitrust review. >> corporate earnings going to be weighing on some stocks at least this morning boeing and caterpillar disappoint trade worries remain >> u.p.s. shares sinking ahead of the open. profits soaring more than 13% for the quarter. david abney joins us first on cnbc this hour facebook up first. three different government agencies today, the ftc formally announcing that record 5 billion settlement with the company over privacy violations, imposing new requirement oz on mark zuckerberg and making structural changes to the board the s.e.c. simultaneously announcing $100 million settlement accusing the company of misleading investors about the misuse of user data. and lastly, last night, the doj is opening a broad review of tech companies, that will scrutinize leading online market platforms. didn't name any specific companies, but obviously facebook, amazon, alphabet are all in play. of the alphabet soup, what i

afterwards we talked with the ftc. we had a discussion back and forth with the committee that if something is not working, let us know. host: you talked about looking ahead. let's look ahead to 2020 and election security. is that something the committee has looked at? rep. latta: you know, it is important, because we want to make sure americans know that their elections are secure. when you think about this, the -- i talked with other leaders from around the world, other legislators from around the world, we have seen the meddling that has occurred by the russians in other election cycles. the greatest thing they can do is say to people, or have people in the back of your mind and can, is this fair, is it working the way it is supposed to? even if it did, you would have them bringing something out there, you think it is an individual doing this, but you are out there doing one thing, at the same time they might be attacking somebody, you may think reform. with the platforms out there, people saying it is horrible what

split the ftc's board of commissioners along party lines 3-2.ys, that shows how much debate there is about big tech in washington, even inside of the regulators back over to you. >> thank you very much, ylan for more on facebook and the headwinds facing big tech, let's bring in mike isaac, "new york times" technology reporter and kevin arcwit who is at kasowitz, be benson torres thank you for being with us. kevin, let's start with you. let's talk specifically about this possible antitrust investigation by the doj how unusual is it that what is being investigated here is not a case of consumers being injured by pricing issues? >> well -- >> rather by something else? >> it's very unusual, but that's the challenge of applying antitrust to high-tech in the first place. because a lot of times the products are free. >> yes. >> and these companies are not monthsnary institutions so they have to achieve revenue through other means which is maybe through some of these practices or advertising so antitrust does have to reach out to places it typically doe

the ftc and the irs did a a ser scam event in my district. seniors are scammed $37 billion out of their hard earned savings in the last year alone. when they pick up the phone calls, and i've heard these heartbreaking stories were a grandparent will hear my grandson, they called and said he had been arrested, send $5000 to the quote-unquote court, that he would be out actually 5000 more and they wire that money and they lost $10,000. we want to stop this. there's a lot of issues, just not the annoyance but a lot of harm out there. this is legislation that needs to get to the president's desk. >> this is something people can agree on. and i think also on a bipartisan basis there's agreement there needs to be a strong consumer protection data privacy law. that's a place for that hasn't been quite as much agreement. that hasn't moved as fast as some people have hoped. i'm sure you were paying attention yesterday to the ftc facebook settlement, and i was there in the press conference with chairman simons, commissioner phillips and the main messag

what do you think the ftc's role will be in this discussion?ebecca: i hope we can live up to our obligation to protect consumers and competition. i don't think this is just about big tech. i think there are competition problems across the economy, that is something we are charged with dealing with and that we should deal with. i welcome the conversation on capitol hill and the attention in the public and political bodies about how important and dangerous concentration can be across our economy. emily: commissioner slaughter, thank you so much for joining me today. coming up, just what are investors watching for from apple's third-quarter results. the numbers, next. this is bloomberg. ? emily: etf investors have about $58 billion riding on apple's third-quarter results. according to bank of america, the second largest holding across etf's after microsoft. apple reports earnings after the market close tuesday. speaking of apple results, all eyes will be focused on how the company is faring amidst the trade war between the u.s. and china. bloomber

the ftc and the doj share antitrust oversight. i think we are looking at a complementary task horse. is especially interesting as we had believed that doj and ftc had split up the companies. at doj would only be looking google and apple and now it seems like they will be taking something much more high-level. they could be doing criminal referrals to other parts of the agency. they could be working with ftc and some of these companies could be facing scrutiny from both agencies. about thiss talk because the doj had taken oversight over alphabet and apple. to be lookinging at facebook and amazon. both agencies could not be looking at these companies? >> potentially. it looks like the doj is referring for itself a very broad leeway here to take a broad look at these industries to find out whether further action is needed. this is basically them sending the signal that we are casting a wide net, we are not going to limit ourselves. all this talk about us getting this and the ftc getting that, we are not going to be bound by that. we

emily: what do we know about the ftc antitrust investigation?sioner phillips just confirmed? jan: we don't know a lot about it, and i sense that commissioner phillips may not know a lot about it either. it is early days, but they basically have a credible reason to believe that there may be a violation of antitrust laws, that there may be consumer harm that they need to look into. so that is what this investigation and facebook has proposed and the ftse has now confirmed. that is basically what that means. that is about all we know right now. we also know that ftc talks to european regulators, so they may be taking cues there, but often they want to grow their own way, so it really remains to be seen what will happen. emily: what is happening right now? ashkan: it is quite likely that commissioners don't yet know at the staff level. they were probably briefed on it, but do not know all the details, and that is probably by design. they are supposed to keep a wall between the investigation. i do know the practice you just described, in antitrust t

for the need to get ftc. so with a major update the first that would giving new privacy protection for children also apply to any company that has reason to know a child is a user even if have actual knowledge but that is hugely significant for holding these companies accountable. so under the existing rules or updates to require new default privacy settings for devices for all platforms. so should we update the language? and what would you do to make this update as comprehensive as possible quick. >> one problem and those to benefit the company and then to make it difficult to find privacy settings or protecting privacy and then to do what they want to do and even if you make lot of effort to change those privacy settings. >> thank you all for your work. so can you talk about the initiative of the successful and state look like on the ratings quick. >> and then with the general well-being of children. we have been very impressed with the approach. >> what does that look like with the impact on technology pro

>> well, look, i think the key thing here about these new ftc, these new ftc rules is it's really about transparency and oversight. i think it's less about changing the way facebook works in a day-to-day way and more about making sure that it's totally transparent and totally aware of the fact that everything it does is going to have to be communicating to outside third parties. so i think that that's really the change here. i think, though, it's worth noting, kelly, that even though this is a big deal, facebook is clearly trying to make sure this is a big deal. facebook issues are far from over legislators are really watching to see what the reaction is to this because there is privacy legislation that's being considered and there's also a regulatory crackdown from countries all over the world that is in process right now. >> yeah. and the company, it's taken it all in stride. $575 billion market cap now. julia, thanks, julia boorstin. >>> finally, to apple and a report in the "wall street journal" that won't help its case in the doj. the article saying that apple dom united states. bu

what action do you think the ftc itself should take at this point? one of the things to think about is the antitrust issues are not independent of the data privacy issues. part of the dominus of the platform is the ability to collect data, both on individuals and macro data on what other competitors are doing. we know they acquired instagram, whatsapp based on their understanding of how well they were doing relative to facebook. they have the data to know it was not a crazy purchase. i think the interventions, other than the structural interventions of breaking up the company, there needs to be thought on how to prevent the company from regrowing or rejoining or re-exerting anti-competitive practices. that has to do with the data privacy legislation as well. i don't think a pure structure remedy is sufficient. emily: it is because of the models and the vast amount of data they do collect that i have been so dominant in media industry. you actually have a sort of proposal that would protect the news media industry versus breaking up big tech. talk to

actedhe ftc has not publicly in response to any of them. in addition to bringing law enforcement actions, cftc should ensure that the self-regulatory copa safe harbor programs that congress intended to help are actually doing their job. given the large number of websites and online services used by children, it is not easy for the ftc to pursue violations. -- pursue all violations, so i insist they use their authority under section five to hold platforms responsible when they character acts or content as appropriate for children when they are not, and conversely when they say their services are not appropriate for children and yet they know a lot of children use them anyhow. just to give you one example of a recent complaint we filed in december 2018 on behalf of those organizations i mentioned, we asked the ftc to investigate whether the google eyesore was engaging in deceptive cactuses and labeling apps in the family section as family-friendly, when in fact they did not meet will's criteria -- meet googles criteria. criteria was put under

or what they cost, to be examined by the ftc.hose sorts of things can change the competitive landscape even though they are little. that might be something the committee is looking to do. emily: in what direction is the ball going to go? some of these are shorter-term sentiment issues. and of course the antitrust investigation by the ftc could take five or 10 years. if such an investigation happened. what do you see happening over the shorter-term versus the longer-term? >> i think the role of the congressional investigation is really important. because antitrust can take a long time. and these markets move quickly. what i am looking for from the congressional investigation is building a record for legislation that could happen more quickly than the antitrust investigations and certainly more quickly than future antitrust investigations. emily: after this week, what is next? >> then congress goes into recess and the 2020 campaign starts up. i think that is important to realize. because a lot of the congressional work goes on hold

to work atwho used the ftc, how are the agencies going to feel about that argument given the ftc haseen assigned oversight of a potential antitrust investigation into facebook should such an investigation happen? >> i think the antitrust enforcers recognize competition is the best way for these companies to be effective and strong competitors against companies in other countries. we do not do the national champion thing in the united states. we have competitive markets. the antitrust agencies are tasked with making that happen. emily: what are we expecting in terms of a result from these hearings this week? let's talk about the house antitrust hearing in particular. how will this move the ball in one direction or another? >> great question. this hearing is one in a series. impactst one look at the of the big platforms on news. i could see others coming down with small companies that have complained about some of the big companies and how they affect their work and startup culture. lawmakers andto the chairman of the committee and say, what do you think will come out? he says i do not

the ftc was going to be looking at facebook and amazon.ow this means that both agencies could be looking at these companies? a very broad -- it is giving itself a lot of leeway to take a broad look at these industries to find out whether further action is needed. this is basically them sending the signal that we are casting a wide net, we are not going to limit ourselves. all this talk about us getting this and the ftc getting that, we are not going to be bound by that. how there'st about a lot of people who believe that antitrust regulation in the u.s. which dates back more than 100 years needs to be updated for the 21st century to account for social networking, retail platforms that have taken over the internet and are killing the retail industry, need to be updated for search and all of the services being provided digitally from the apples, soogles, amazons, and facebook of the world. this seems to be what the doj is doing. do we need to look at these industries in a ? light?-- nin a new emily: all of these companies appeared on the hil

this is the ftc in my view shows they are serious.g after companies that violate privacy regulations. they are changing terrain as far as privacy is concerned by this particular agreement, creating internal properties an procedures including mark zuckerberg holding him personally responsible on signing off on the specifications. we'll see how it happens in this ever changing privacy era. charles: this is in violation after ftc from 2011. repeat offender. always news, people upset, you are not concerned it stops momentum. >> i don't think so. more than the ftc. there was an agreement reached with the fcc. even when facebook was called out on these practices they were hiding what actually happened to the user's data, not showing the risks that were posed. what i hope comes from this even though i don't think it goes far enough with a find i hope individuals take personal responsibility how they share their information. how they take photos of themselves. whether it is done through a software program that can be used for facial recogniti

that included a legal expense on the ftc settlement. the second quarter is lumpy, because there are extra numbers. it includes $1.1 billion on all terra. line, it handily beats the consensus estimate of 16.49 billion dollars and is better than the highest estimate compiled by analysts. romaine: why do people continue to bet against this company? abigail mentioned this being the anniversary when they had that quarter where they surprised everyone, stock fell, the biggest decline on value basis, but the interesting thing is they still have the eyeballs, people are not leaving the platform, they continue to post revenue growth and profit, even when you factor in the fines and some other hits to profit, they continue to be the juggernaut. >> when it comes to facebook and some other names, people look at the immense growth we have seen and you look at the rise we have seen in share prices over the past decade and people say this can't possibly go on for much longer. you hear it from people coming out and talking about bubbles, then they flag

>>on wednesday ftc. investigators say facebook violated a 2012 settlement with the ftc by continuing to share user information to 3rd party app developers without consent the ftc also says facebook collected users phone numbers telling them it was for security reasons and then use that information for advertising as part of its punishment facebook will now be forced to limit the influence of founder mark zuckerberg we do not have the legal authority to remove mister zuckerberg from the driver's seat. >>but we have imposed a robust system of checks and balances that extinguishes his ability unilaterally to chart the path for consumer privacy in a statement zuckerberg said in part quote these changes go beyond anything required under us law today. the reason i support them is that i believe they will reduce the number of mistakes we make and help us deliver stronger privacy protections, but some lawmakers like senator mark warner say a billion fine doesn't go far enough i think facebook knows just an oblig

and ftc investigations.is chapter and turn our focus and resources towards the future you that report. >> one of the biggest quarterly reports is caterpillar missing analyst estimates on the bottom line. revenue was slightly below expectations those are some of the worst levels we have seen and that is what has the dow down triple digits the market seems a little surprised, players exiting the stock based on what in your view >> so there was an earnings miss i think that right now the market is looking for security and stability and so you have a record wide discount for uncertainty and for the cyclical end of the market. with a miss here, that has the uncertainty a little bit that's what's happening. >> earlier we talked abouthow revenue came in line, but earnings was a big miss. they said part of it is the timing of restructuring costs. they pointed just to the idea that the company still expects price realization to offset manufacturing costs for the full year but, again what they said in the release, tha

>>on wednesday ftc. investigators say facebook violated a 2012 settlement with the ftc by continuing to share user information to 3rd party app developers without consent. the ftc also says facebook collected users phone numbers telling them it was for security reasons and then use that information for advertising as part of its punishment facebook will now be forced to limit the influence of founder mark zuckerberg we do not have the legal authority to remove mister zuckerberg from the driver's seat. >>but we have imposed a robust system of checks and balce that extinguishes his ability unilaterally to chart the path for consumer privacy in a statement zuckerberg said in part quote these changes go beyond anything required under us law today. the reason i support them is that i believe they will reduce the number of mistakes we make and help us deliver stronger privacy protections, but some lawmakers like senator mark warner say a billion fine doesn't go far enough i think facebook knows just an obligat

the ftc, i was meeting at some people with the ftc, and there's a push inside to be more transparentnd to say what happened and what they went through, which i think is a great idea to understand how they came to these settlements i think these numbers are so small, even though they seem like the largest ever. but given the encouragement of not just google, but, you know, so many. yahoo! has billions of people, 3 billion or something like that, it's really amazing that we don't know what our government is doing in terms of investigating them and it's not out in the open. so the question is, if these numbers are so small compared to the breaches, why did they decide to do that would be a really nice thing for citizens to know. and maybe what more does the ftc need in terms of staff, which they have talked about, the head of the ftc has talked about this in terms of doing these investigations they're so outmatched, it's really kind of amazing mat government allows it to happen >> yeah. kara, that's about all we can say about it for now but we'll talk to you soon thanks >> thank you >>

facebook results included a $2 billion charge as part of the settlement with the ftc.oining us to talk about this is dan ives from webbush securities the facebook numbers were impressive and i think the most impressive part is that the advertisers are not leaving facebook and doubles down on this >> if you look at it, the modernization kingdom continues to be there. average revenue per user, and with the antitrust issues t shows they continued to be goig on the offensive >> i will admit i did a bit of a double take. wait a minute, the ftc launched another investigation? i thought i was reading old headlines. the idea that you can announce a settlement one day and then announce there's another ftc investigation. that's a high wall to kind of climb with some of these issues. >> it almost feels like there's a line in the beltd way. you have doj, ftc and others -- >> and especially facebook >> they have the bullseye on their back in terms of what will happen over the next year or two, you will see focus around privacy, modernization and anti-trusz issues you can see that w

. >> the reported $5 million fine against facebook would be the largest the ftc has handed down to ampany. the ftc started investigating facebook last march after news reports that it has allowed cambridge analytica, a social media data company that worked on president trump's 2016 cane, to collect data from millions of users without their knowledge. >> $5 billion is just a quarter of what the company makes annually. it's more like a slap on the wrist, which is some of the criticism we are hearing from a lot of elected officials. >> reporter: the wall street journal says the ftc but was 3- 2. commissioners along party lines with republicans in support and democrats in opposition. last year, facebook ceo mark zuckerberg told cnn the company pledged to fix what he called a breach of trust. >> when we identify apps that are similarly doing sketchy things, we are going to make sure that we tell people. that is something looking back on i regret we didn't do at the time. >> reporter: cnn editor at large says there is no question facebook is going to face increasing scrutiny. >> there is h

you have two antitrust authorities in the doj and the ftc. before one of the agencies can start an investigation of a specific company it has to get basically clearance, approve of the other agency to launch the investigation, and tech is one of those industries where the agencies have fought behind the seen to tackle some of the big high-profile investigations. so it's not clear to me that the doj has gotten clearance to launch an investigation or the ftc, which has launched its own tech task force, so it's not clear so far which agency is going to be looking at what. >> alexis, just quick will with the ftc settlement, do you think the privacy issues are put to bed for five years >> that was a consumers protection action, so i can't say for sure i will say that privacy hasn't traditionally been a theory of harm in any antitrust case there was a german case where law does seem to provide some scope for privacy being a competition harm, but we haven't traditionally pursued privacy theories of harm in the u.s. under any trust law. thanks for jo

los angeles. >>> that ftc investigation that julia just mentioned w officially settled today. commission fined faceboo$5 billion for its mishandling of user data after it was learned that political consultant cambridge analytica secretly gained access to 87 million ts facebook acco the settlement orders facebook to create new layers of oversight a ceo mike zuckerberg will be held personally responsible for making sure that that happens. >> i think mar zuckerberg is held personally accountable. he is signing the order. he is named specifically in the r. the order requires him personally to certify that the companys in compliance wit our order quarterly, and if he les false certifications then he is subjecting himself to civil and criminal penalties. >> now, the ftc is not facebook's as we've been reporting, the justice department has started an antitrust review of some of silicon valley's biggest tech giants to determine if they have purposely been stifling competition. the companies being reviewed have not been named the nt announce but most believe them to be facebook, amazon

this as we are waiting for the final amount of a fine that the ftc will levy on facebook. about this youtube situation. tom: the ftc has been looking into whether or not youtube has violated terms of -- this online protection for minors, for children. the u.s. has strict rules around advertising that can be shown to children and the types of data that companies are allowed to collect and keep on children. the allegations are, and what the ftc has been looking into, is whether youtube has been in violation, as it comes to minors and data collection around minors. the defense is youtube has transgressed those rules in some way and we know they have reached a settlement. we don't know the amount yet. in the case of facebook and we and others have reported, it is going to be in the neighborhood of $5 million. that is separate allegations facebook has transgressed certain rules the ftc may enforce. emily: tom giles, our executive editor, thanks so much. apple is said to be in advanced talks to buy intel smartphone mobildem chip business. it will cover a portfolio patent and sta

the best or nothing. >>> dow jones reporting that the ftc received a $5 billion facebook settlement. both are saying no comments. facebook shares rallied into the close. michael pachte represent r is jn the phone. $5 billion, is that lower than worse case fears >> i think it is about probably worse case fears they guided a $2 billion charge, they get to deducts this, it is a civil fine so about 4.25 billion after tax. so little more than they said, but certainly i don't think that people thought the number would be $10 billion once then 3 so seemed pretty reasonable. >> anything to extrapolate here as far as other regulatory action facebook could be looking at >> i think facebook better clean its act up and it better clean its act up quickly i know that they paid lip service to doing the right thing by their users and they really cannot afford another massive breach so they will have to tighten security, they will have to communicate to regulators clearly that they have it under control. and this is unanticipated. the way cambridge analytica got access to the data was really essentia

in some ways, i'm gratified the ftc was modest.le are disappointed because they say this is pocket change, they don't do anything to them. paul: they imposed a new enforcement mechanism. an outside monitor will have the authority to check and veto privacy policies andens forcement and a -- and enforcement and a committee of the board will have to approve them and be responsible for them and mark zuckerberg will have to attest that those privacy agreements are being adhered to and if he doesn't, he could be both criminally and civilly liable which is no small thing since it's a big company and they could screw up again. >> i'm with bill though. there was some restraint. if they did something wrong, they should be unearned. that's how the -- should be punished. my fear is had they will use this as a an excuse to go after them in a much bigger way and more consequential way. i'm not sure that will be good for consumers at the end of the day. so this is -- and i think congress will have to get involved because we don't -- california pa

and what's interesting that the ftc has five commissioners. the talk from the trump administration on being tough on big tech, it was the two democrats who voted against this settlement from the ftc saying they were going too easy on facebook. >> now i want to ask you about congresswoman tulsi gabbard. she was the most searched candidate and now her campaign is actually suing google. why? >> yeah, that's right. we learned this earlier during the week that during the first democratic debate, there was a huge surge of interest in the u.s. in the days after that, gabbard's google ads account got suspended which means when you search her name, the campaign wanted to provide ads to say vote for gabbard. it was suspended for a few hours. google says it was a mistake. they say it was something more. >> all right. always good to see you. thank you so much. >>> and thank you so much for joining me today. we'll have so many more straight ahead in newsroom. i'll see you again tomorrow. anni it's a win for all of us. (vo) the network more people rely on,

i mentioned the ftc settlement. the ftc has approved their privacy settlement worth $5 billion.marks the most significant action against facebook we have seen over a series of mishaps that have compromised user data and sent the stock reeling from one crisis to another. we want to bring in kurt waggoner on the phone in san francisco. restthis settlement put to all of the regulatory issues in the u.s. for facebook? >> i don't think it does. this is one of the biggest regulatory battles they have been going through and one we have been watching closely. $5 billion is not small. but for facebook, it is not crippling or super dramatic. numbere still facing a of different issues with other regulatory bodies. we know they are trying to launch a cryptocurrency that is under heavy screwed. while i think this is a major think this ist the end of the road. joe:joe: it reminds me of the banks in the wake of the financial crisis, in which legal essentially became a permanent cost of doing business year after year, dealing with the cleanup. that the future big tech is facing around the world

so the ftc and the doj, they share antitrust oversight.ink we are looking at the complementary task force, which is especially interesting to me, we had believed that the doj and ftc had basically split up the companies. the doj would only be looking at google and apple. now it seems like they will he taking something much more high-level that could be doing criminal referrals to other parts of the agency. they could be working with the ftc, and some of these companies could actually be facing scrutiny from both agencies. >> facebook has agreed to pay a record $5 billion in fines to resolve u.s. investigations into years of privacy violations. this is a big slap in the face to facebook, but does actually -- does it actually change anything regarding facebook suture policies? >> i don't think it does. the decision here from the ftc imposes a $5 billion penalty and it imposes some restraint on the business going forward, but not likely anything that will change its basic core business model. >> former special counsel robert mueller finally t

so this ftc fine was perfect except for one thing.y missed a zero. >> can we just remind our audience of that? if you're wondering how powerful facebook is, if they had been fined $50 billion, they could have handled it. amazing. scott, i want to share with regard to the ftc fine, facebook did give us a quote and i want to share it. facebook has agreed to pay a $5 billion penalty, which is one of the largest in history, but even more important, facebook will make some major changes to how it builds products and operates as a company. we also reached out to the major tech companies on data privacy and a facebook spokesperson told us this. quote, this documentary captured in a snapshot in time. since this episode we have made a fundamental shift in the way we approach our work. transparency and accountability are two driving concepts. and privacy is built into everything we do. when we find problems, we fix them, and make sure the public knows. we do have to point out there was an enormous time lag between when facebook knew of what hap