emily: that was roger mcnamee and bloombergs sarah frier.oogle'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 said in a 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. ♪ ♪ emily: 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 complet

where people are saying if my government went to cough to my interest then i would look for a strong mcnamee's if he's a fascist i don't care if you promises to secure the stability of my life and my people i will vote for him i think that's where we're heading and i don't think our leaders have the vision to understand that's the threat that we face. we worked hard to take the place that. was. meant to. last us. and. when you get a. place in a. team upset i mean. this is destroying everything was destroyed in the country as a whole people have lost hold because they just don't feel like it will change i was very upset about it i want to remind them that they would do something about it or. just leave it to get worse than it really is. i think it is the best way to do it it's a powerful tool. hassidim of how much. the our house sale about how i have said i might have that house them and how do i see why that happened what happens action. is basically a track and that is just focusing on corruption corruption that is going on in our country that is going on in the government and we see it we we

the post that question to roger mcnamee, and our very own sarah frier.imes 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.

joining us to talk about this is roger mcnamee from the private equity firm elevation partners and annd current invest your in facebook and early mentor to facebook ceo mark zuckerberg. roger has said repeatedly that he warned haerz and sheryl sandberg in early 2016 about bad actors exploiting the platform so i'm dying to hear from you, roger, what you make of everything that happened in the last 24 hours. >> i think it is fantastic that zuck and sheryl have come out of the bunker and started to engage on the issues. this is not small issue. this is democracy and the privacy of -- in their case, more than 2 billion users. the problem with what they're saying right now is that in 2011, the company signed a consent decree with the federal trade commission which required it to protect users' profiles and explicitly required informed consent before sharing user data and informed consent before anyone else could, say, scrape data. and that is 2011. the things they are announcing this week are things they should have done in 2011. so as muches -- as i want to gi them credit for making motio

. >>> let's turn now to silvaon ey veteran and an earl investor in facebook roger mcnamee. he's been publicly sharply critical of the social network. let's get his tughts on facebook and what any future regulation might mean for its sector. he's the managing director at elevation partners. always a pleasure toou have here. >> sue, to great to see you and way too long. >> first, we have another msession from zuckerberg tomorrow morning eastern time. but did anything that you heard from him today change som the criticisms that you've been so public with? >> so t real problem here is that facebook has done many things in its business that were designed to maximize growth and ofitability that, frankly, ran contrary to the public interest and to the interests of users. and what the hearing exposed was that it' not oneroblem we're dealing with, it's not two. it's 10, 15 or 20. the company has been careless in othe handling user data. it has been incredibly aggressive at flaunting past ealctices about how you with data. it has, frankly, ignored regulation, it has ignored criticism

particularly troubling, you had a prior speaker -- roger mcnamee, proposed a european-style privacy rules. because of a violation of a european company, is already subject the european policy rules. this talk is incredibly risky. we have to in analysis of the impact of what is called the gdp it would be very detrimental to the u.s. digital economy. i think we all need to take a deep breath. the other thing i would add here is that facebook has gotten in trouble because it shared data researcherdemic who violate the terms of service. andbook is a well run well-regarded program that academic researchers around the world -- particularly in the u.s. -- have found critically audible to find new insights. for example, they used research to better predict when women are about to have a baby and have a baby, and who is most likely at risk for postpartum depression. a lot of amazing research has been done in a completely privacy productive way that facebook has engaged in. and somehow we are going to throw the baby out with the bathwater, i fear. emily: i want to know why you think this could be

where people are saying if my government went to cough to my interest then i will look for a strong mcnamee's if he's a fascist i don't care if you promises to secure the stability of my life and my people i will vote for him i think that's where we're heading and i don't think our leaders have the vision to understand that's the threat that we face. we work every day since that. day. nobody else was.

question is what's next for big tech joining us, roger mcnamee.to see you again. >> great to see you, carl. >> for a tekch investor, is it what we have been used to in the last couple weeks or is it in addition to that, trade. >> carl, i look at this and go we have several different problems, right? the trade problem at this point is not directly targeting tech but it is hard to imagine if the tit for tat continues that we don't eventually get to tech that causes me to be really nervous. then watch trump's moves against amazon and that's terrifying the notion that a president of the united states would select a single company and for personal reasons and then say things that are factually not true, that is incredibly disturbing. you see it in the stock. for me it is like i look at this and go we don't even get a chance to look at fundamentals now, we have all of the externalities. >> if this results in more chinese purchases of semis or more money for usip, you may say this was worth it. >> i would agree if that's how it turned out. remember, we c

particularly troubling, you had a prior speaker -- roger mcnamee, proposed a european-style privacy ruleause of a violation of a european company, is already subject to european policy rules. i think this kind of talk is incredibly risky. itifve done an analysis at of the gdpr, and it would be very detrimental to the u.s. digital economy. very detrimental. i think we all need to take a deep breath. the other thing i would add here is that facebook has gotten in trouble because it shared data with an academic researcher who then violated the terms of the service. what people have forgotten about, facebook had a very well run and well-regarded program that academic researchers around the world -- particularly in the u.s. -- have found critically valuable to find new insights. for example, they used research to better predict when women are about to have a baby and have a baby, who is most likely to be at risk for postpartum depression. a lot of amazing research has been done in a completely privacy-protected way that facebook has engaged in. somehow we are going to throw the baby out with

i think that was the day roger mcnamee but he said it was basically corporate malfeasance and the stockas trading at 184 and he was really concerned about the stock. he's been right. the stock has turned over tremendous volume but there's no bounce which leads me to be there's another flush to the down side. >> didn't trade badly relative would you take a flyer >> i would not i think they've all got problems i think apple and facebook and google face this idea of peak centralization it's a longer term type of view but i think once you lose the trust of your customer, look what happened with the bank. they lost the trust of their customer in 2008 and that's not the say there's a crisis or anything, i don't want to compare the two, once you lose the trust of your customer you have a hard time getting it back. >>> still ahead, did tell's selloff have you running scared? we are sticking around for the 6:00 p.m. hour to take your phone calls live on the air so stay tuned plus, as spotify gets ready, will it follow dropbox's lead and be the next unicorn do steal tech thunder we'll talk to a t

. >> reporter: silicley entrepreneur roger mcnamee was an early investor in facebook and remains a stockholder. the social network's key role in spreading misinformation has turned him into a vocal critic. >> whatever provokes a religion or anti-immigrant, whatever the issue is that gets people into that emotional state, is what facebook is looking for. and so what they figured out how to do was to take the newsfeed, e core messages that you see and to tailor them to provoke the outrage cycle at a itedictable interval. >> reporter: and ps is an ideal topic to spark that outrage. the 2016 presidential election became the perfect misinformation storm, fueled by hyper-part spammers and russian trolls meddling with our democracy and as worrisome as it iin the u.s., in many countries where fabook is the internet, authoritarian rulers have spread misinformation to incite violence against minorities and political foes. but for all the smoke it is hard to find the re. >> and so we've got to use sort of detective work and in this case sort of internedetective work to find them. >> reporter: cameron hic

like he intended to so he hired a friend from new york city who was also his lawyer, and charles mcnamee came down to north carolina and began acting as george vanderbilt agent and began purchasing many tracts of land to contribute to what would ultimately be biltmore estate. i don't know if george better know at the time that ultimately by the time of george vanderbilt's death he owned about 125,000 acres of land. the fact that george vanderbilt was building his home here in asheville became international news quickly. the good news for george better not however was that the state was so large and he was able to implement security so very few journalists made it to the building site. there were a few that were allowed by mister vanderbilt and they would publish information inspections of the land. even after the house opened. there were a few articles published describing the interior but george vanderbilt had a policy and his staff knew this policy which was that no journalist when the camera was to be allowed inside biltmore house so there were no interior photographs that were publis

one of your mentors, roger mcnamee said your business is based on truth and you're losing trust this is a trust question, why did it take so long especially we're talking about some of the other pieces we need to get to the bottom of? your failure to act on this issue made billions of people potentially vulnerable to from harmful actors. majority of information is from people signed up on facebook, yes or no? >> congressman in general we collect data for people not signed up on facebook for security purposes to prevent thescaping you're referring to. >> these are shadow profiles. is that what they're referred to by some. >> congressman, i'm not familiar with that. >> i will refer to them as shadow profiles for today's hearing. on average how many data points does facebook have on each user? >> i do not know off the top of my head. >> the average for for non-facebook platforms is 1500. it has been reported that facebook has as many as 29,000 data points for average facebook user. do you know how many points of data has on the average non-facebook user? >> congressman, i do not off the