gdpr is saying that is wrong and that is punishable. but how do you pursue this scenario?are a facebook user or a user of some otherform of you are a facebook user or a user of some other form of social media or you feel another organisation has misused your data, is it realistic to think you will get some kind of justice through this system? especially where in this situation facebook is saying they haven't done anything wrong but they are going to look back and do an internal investigation into what happened. cambridge analytica as a company is also denying any wrongdoing, as well. so how do you figure out who is at fault and somehow see some sort of reprisal here? what we have at the moment is a very unclear evidentiary situation. so what has to happen over the next days, weeks and months is to clarify fault, who was responsible, did people do as much as they could do in terms of diligence, but under the gdpr, for example, if it happened in the european space or happened to a european space or happened to a european citizen, they would have a right to redress under the

in europe we have gdpr coming in may. how will that affect social media platforms?it specifically european companies or also european-based consumers who use facebook >> it's any company that operates in europe so this means facebook, google, twitter, apple all of the big u.s. tech giants who are clekti icollecting datas will be subject to this. you can get within a month the data being held. fines as well will be enforced if these companies breach any of the rules in gdpr. facebook at the start of the year set out what they will do in terms of gdpr mark zuckerberg also added some new things facebook's data privacy rules are being forced by europe this is something they're being forced to do by the new rules coming in. mark zuckerberg said we'll show you more about what apps are being used, but there's more facebook could do. >> the question is what other social media companies will be forced to reveal what information they have as well. arjun, thanks for joining us >>> switching to another tech topic. bitcoin has dropped below $8,000 on most exchanges after twitter

gdpr is the issue at hand. has a direct relationship with consumer probably does relatively better, but i don't think the regulatory risks meaningfully impact twitter. they are niche offerings aren't affected. they may be a beneficiary. advertisers can say, where else will you spend the money? the obvious place is alphabet and google. they are relatively better positioned if facebook becomes the whipping boy. caroline: ben, can you respond to that? what about the impact on the rest of the social media giants? ben: overall, the political, regulatory, legal risks are risks for the industry. can we take the data to better target advertising? how will that work in the context of political advertising and the context of issues around news we have seen. those are systemic issues around the industry. they have been around since the beginning of the internet. it is not necessarily dramatically new. there is a lot of focus today. you are seeing new regulations put in place, but i don't see it dramatically changing how a

>> gdpr will help, and surveillance capitalism is a great term for this. buying and selling of our data in many cases without our knowledge and consent. we had the major problem with equifax and databases are breached all the time. europeans are heavy regulators, they have the regulatory superpower and massive see change going to go into effect within two months, that affects europeans and affect everyone else too because a company like facebook has european customers. and it's not clear, they can sort out who the europeans are and the non-europeans are, it will be a different world in terms of notice and consent, in terms of being able to inspect our data, demand it be deleted, giving users and customers more control over our data. you know, it's still the early days, not sure how it's going play out, but certainly where we're all looking in the privacy world. liz: bruce, i want to say thank you, but you also made me nervous, especially when you talked in your book and op-eds about how facebook and all these apps, folks they not only keep what you put in

gdpr is a 6% penalty to your global sales if consumer data is taken. now do you think the facebook would have taken privacy more seriously if they had a 6% penalty. >> this is the problem is that everybody feels its penalty-free no matter what hey, the worst it happens they'll's get my credit card and visa won't make me pay don't we have to have someone in the system saying, listen, you use your password and generic password know what, you're in trouble. >> i hate to say it, it's the government hate to say it internet is about free use but the government has to come in and put some regulation around this because the large corporations fundamentally aren't going to care facebook and companies like that are becoming utility there's got to be some regulation around that. >> okay, now, speaking of unregulated, we had on the cybersecurity guy last week talking about how -- >> with dr. merit from splunk. >> cloud king. >> doug called us out as one of the key reasons for their success in security. we've been with them for eight years. it is the future. >> the

in europe, gdpr is going to be instituted may 25th of this year i believe is going to be a blueprint.heir privacy measures over in europe. >> exactly i think that's going to be a blue print for how u.s. regulators are going to going to look to mo or less kind regulate the industry but i think considering the european are a lot more hand on i don't think we are going to go all that much into it. >> when you take what's going on in europe in terms of their regulatory acts what's taking place there in the next month or so and you put that into u.s. business how does that impact earnings in your view? >> interesting i don't think it will affect earnings i think it may impact growth in send ral if you are in advertising the beauty of data, it helps you optimize the last less data the less optimization you can do and les targeting. therefore your return on investment is going to be lower. and other means are more interesting. maybe tv is more interesting i doubt it when you step back and say all right who has the most to dane the parties who has the first party data facebook by far. >> they

it is possible the tertiary players or independent publishers could benefit, the issue and gdpr is atho has a direct relationship with consumer probably does relatively better, but i don't think the regulatory risk impacts twitter. iche offeringsn aren't affected. health of that and google is different. they may be a beneficiary. advertisers can say, where else will you spend the money? the obvious place is alphabet and google. they are better positioned if facebook becomes the whipping boy. caroline: what are the impact on the rest of the social media giants? ,en: overall, the political regulatory, legal risks are risks for the industry. can we take the data to better target advertising? how will that work in the context of political advertising and the issues around news? those are systemic issues across the industry, but these are issues that have been around since the beginning of the internet. this is not necessarily dramatically new. i think there is more focus on it today. you are seeing new regulations put in place, but i don't see it dramatically changing how advertisers are

they have to make sure they can provide privacy controls and comply with regulations like gdpr.d and trying to figure ahead to do both things and that is where we can help them. protectiondpr is the coming into the u.k. on may 25. how do you view that regulation? it will make privacy that much more important. it gives power back to the consumer. in fact, if facebook wasn't going through what it has done, or -- they could have racked up significant finds. how is that affecting your clients? todd: i think it is great for the industry. it does something very simple and powerful. it raises the conversation. it gives us a way to talk about these things and what is sufficient controls and who controls what. that is a simple concept that our industry hasn't wrestled with enough. just by having these regulations and vernacular really gives us the conversation to figure some of these problems out. emily: that was todd mckinnon with a bloomberg's caroline hyde in london. and that does it for this edition of "bloomberg technology" and a reminder we are live streaming on twitter. that is al

think this is just the tip of the iceberg, unfortunately, from a pr standpoint and i think remember, gdpr into effect on may 25th, which will bring even more of these privacy concerns to the floor, but i think if there is one company that or maybe two companies that can weather the storm overall again because from an ry standpoint the platforms continue to perform well for advertisers it is facebook and google >> brian, looking at this ftc headline right now, it seems to me, if the regulators do find potential wrongdoing with facebook you could be looking at a lot of money in penalties or fines. that doesn't sound like it's very good on top of what you're already -- the argument that you're already making for shrinking margins. >> you know, i'm not worried so much about fines because i think investors will look past it, a billion here and there, and eventually we're talking real money. that's not the issue the problem we're going to find is that -- and this is particularly pronounced in europe but also going to be pronounced here, most consumers, although they may have authorized the use

think certainly over the near term europe is the biggest risk both with further regulation besides gdprs but i think one thing you're seeing with these stocks is what was inconceivable 18 months ago was that there is u.s. political risk in these stocks i am absolutely sure, especially dem kra democrats but republicans as well are look at what's happening here and they're going to take their queues from what is going on in europe. they remain immensely popular so i think both on the antitrust side but also the regulatory side period especially for somebody like facebook there is risk. >> we had a professor on from nyu that was incredibly critical of facebook. >> galloway. >> thought they needed to be regulated but i thought his insight was interesting. he said the regulation will come from a red state attorney general. never going to be a democrat it's going to be a red state attorney general i thought that made the most sense of where the risk might come from. >> that's already happening. you have attorney general running for governor of missouri who would like to break up google the wa

stuff they would have needed to have done to be compliant with the new european data protection laws, gdprnk the company was very reluctant to engage in proper questions and answers during our inquiry, certainly when we started it towards the end of last year. i think they have gotten more cooperative because they can see these are really big issues for facebook users there is a problem now in the company with as a company that l keep data safe so they have to step up to the plate and be more transparent and open with these inquiries. i discussed this with people working in the senate and also senators mark warren and richard burr, they shared our frustrations that it's been difficult to bring the companies to the table but they're looking to cooperate now in a way they did not before >> has this facebook episode made you suspicious of other tech firms that are using data as a core to their business models as well >> yeah. obviously these issues are not just questions for facebook, though the spotlight has fallen on them. it's about how all companies gather and use data. there are two thin

especially in concepts of gdpr, which is going to take effect soon there will be a higher likelihood of fines on facebook than a week ago. >> appreciate your time. the other big market story clearly today is the fed announcing its decision on interest rates in less than two hours from now, followed by chairman jay powell's first news conference steve liesman skroining us whjo what to expect >> ipg there's a bunch of resets about the happen the new outlook of a chairman and new people sitting new voters on the committee. a bunch of whom took office not that long ago. a new set of economic projections. of stronger growth and of course maybe the most important, a new set of fiscal policies out there. this will be in the wake of the tax cuts out there so how we process this is how the board processes. you get a new statement. i think the stakes are pretty high today, but i think powell, who's done this, he's been a fed governor for five year, watching for a while. i think he's up to the task, but there is some risk a mistake could be made. something he'll have to correct down the road. >

going to give them a lot more privacy protection if i were google and facebook, instead of fighting gdprbrace it globally because i think if you want to restore trust, you have to accept that some of your past business practices are deeply harmful to people and you have to change them, even if there's a cost to short term earnings, because in the long run the brand is more valuable than the penny of earnings from maintaining the old business practice. >> one last question, roger, beyond social, beyond facebook we've had concerns this week about autonomy, you've had uber, nvidia, tesla, what is happening to sentiment around what's been the most dynamic parts of the markets and economy? >> carl, we have been talking about this for months, we're ten years into a bull market where the fundamentals of the economy remain excellent but where there are a lot of signs we should be more cautious. seems to me investors are making a prudent move here saying you know what, when you add this stuff up, it doesn't make sense to be as bullish as before as you pointed out, even with the massive correction

guys, this is more information than we want of our si citizens in may, you've got this thing calls gdpr and europe is usually first in these things. the united states is typically a follower saw if this going back to the microsoft stuff then google. that's why facebook is down $36 billion in market value. if they can't use as many data point, perhaps it's not as effective. you sold out of about a month ago. >> i didn't like the way the stock was acts i also thought there was too much of a narrative building on this type of stock, but i didn't see this event i think the it's a race k i don't think it's a real risk many the u.s there will be a will the of talk about this there's headline risk k. i associate this with geo political risk, which is usually buying opportunity i don't know if you buy it today or tomorrow, but i believe it will be higher six months from now. it's selling at a cheap principle. you look at other stocks it's wort getting involved >> the only -- i agree that geo political risk typically is a good reason to buy great companies. the only contra i tack on that, is tha

that's why the gdpr is coming in in europe.been harvesting information for years. they do, there is an enormous tech lash, it is just that facebook is getting it in the neck now. the truth is we are all waking up to something we have slightly brought upon ourselves which is for free social media for the last ten years, we have given away our privacy and our data. that is now being harvested, terrible word to use really, it is being harvested and sold. we have a choice in society, what are we going to do about that and i believe we have to ta ke about that and i believe we have to take our social health, our behaviours around how we connect as seriously as we take our physical and mental health. i totally agree, i thought christian was doing one of his terrible puns with overlord! this hasn't been around for long, so we asa this hasn't been around for long, so we as a species have to get smarter about the way we use the internet and social media. what will it take to trigger the learning process and the revolution where we say t

i think that people have been saying that companies around the world are going to prepare for gdpr because in a kind of boundariless virtual world and where do you cross the line? and besides, i think the u.s. is going to begin to follow the eu in terms of both monopoly, anti-trust policies and privacy policies and i think we're going to see only major changes and as i said, we just saw a major piece of legislation pass yesterday with this sesta bill which would ban people from sending you to online sex trafficking sites and remove the safe harbor problems for that google and facebook fought that bill tooth and nail and eventually they had to give in that's perhaps just the first chink in the armor of this safe harbor, which has given them complete liability protection for anything that's on their platforms. >> when you use a number like 60%, i mean, you know, the stock is worth a half a trillion dollars. i mean, is that, is this the highest it will ever be, jonathan that's not what you do for a living, obviously, is it downhill from here >> i think so. i think that there is inevitably the

. >> she said to get the data she needs -- and why this is provisionshat gdpr is when he to be satisfied that the companies are complied, that the appropriate agency in this country should have the power to go behind the curtains and see if what they are doing is appropriate. prime minister may: it is a wider issue with the relationship with tech companies. , companies setem theytirely differently, have a different freedom and working with them in a number of ways to make sure it is possible to do with some of these issues, including looking at the issue of transparency reporting with social media companies in relation to this information. area ofthis is a whole the relationship of giant companies were action is being taken in a number of ways to ensure that we are able to act when the platform is being misused. seen the last worked there is considerable concerns raised about the large-scale data breaches. facebook, which led to 50 million user accounts and access an academicsted by working at cambridge university. facebook as a platform and questions about if it is used by russia and is

have to worry about the tariff, but at the same time morgan stanley likes glaxo we thought that the gdpr was the old name for west germany. we have to factor it in. people have to figure out what this is, figure out the consequences and then they say it didn't impact grub hub. that is how it works we could be really high minded and say jay powell, i parse that many times and i think he is hawkish, but he may be dovish. i think he may want to raise rates a lot, but he may not want to helpful? not helpful. helpful? not helpful. how about this if the president comes out and say questiwe don't care what the chinese do, we will tell they will we are done we don't care if you buy prell and colgate. if he says we need a 10% on bmw, we're done those are negative things. chenault is great. steady hand. >> what is your take on nike a lot to hear from nike. >> nike has great personalization efforts. they where doing a lot of things right. i didn't hear anything bad from foot locker about niknike. i wish they hadn't lost trevor. but when everybody knows that the market is thoughtful, there are buyer