PACIFIC for March 20: Inside Facebook: What Mark Zuckerberg thinks

Facebook's existential crisis is getting worse. Lawmakers in the U.S. and the U.K. have called on Mark Zuckerberg to ...

Posted: Mar 20, 2018 5:03 PM
Updated: Mar 20, 2018 5:03 PM

Facebook's existential crisis is getting worse. Lawmakers in the U.S. and the U.K. have called on Mark Zuckerberg to testify; the FTC is starting to ask questions; and Facebook stock is enduring its worst performance in four years.

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So why is Zuckerberg staying silent? The 33-year-old CEO is playing the long game, sources at the company tell me. Zuckerberg is a product person, not a PR person. He wants to focus on improving Facebook's data protection capabilities, not paying lip service to the public about the company's moral compass. "Mark is about solutions," one source said, "not explanations or apologies."

With Zuckerberg AWOL on messaging, the rest of the Facebook leadership has been left to hash out the appropriate response to the company's metastasizing crisis. Should Facebook be more or less forthcoming about what it knows? Should it issue statements from the top brass, or leave the explanations to the lawyers (as it is doing now)?

Disagreements on this issue have become so severe that the company's chief security officer Alex Stamos now plans to leave the company. Though Stamos and Facebook issued statements last night stressing that he remains in the position, all Facebook sources confirmed that he intended to leave in the near future.

Meanwhile, developments this morning suggest Zuckerberg won't be able to stay behind the scenes forever:

- Sen. Mark Warner joined Sen. Amy Klobuchar in calling for Zuckerberg to testify before Congress. "The American people deserve answers about social media manipulation in the 2016 election," he tweeted.

- In the U.K., MP Damian Collins sent a letter to Zuckerberg asking him to testify before the Digital, Culture, Media and Sport Committee.

- The Federal Trade Commission is asking Facebook for more information about the Cambridge Analytica matter and may launch a probe into whether the company violated terms of 2011 consent decree.

What's next:

- Rob Sherman, Facebook's Deputy Chief Privacy Officer: "We remain strongly committed to protecting people's information. We appreciate the opportunity to answer questions the FTC may have."

- Facebook representatives will go to Capitol Hill this week to brief lawmakers in the House and Senate Intelligence, Judiciary and Commerce committees, a company spokesperson says.

- Facebook will hold a staff-wide meeting in Menlo Park to address questions about the Cambridge Analytica scandal. The meeting will be led by deputy general counsel Paul Grewal.

What's really next:

- The most important day on Zuckerberg's calendar is May 25, one of our sources said. That is when the European Union's General Data Protection Regulation will go into effect, giving users an easy option to stop Facebook and other companies from collecting their data or using it for marketing purposes.

- The GDPR could drain Facebook's ad revenue in Europe and inspire similar legislation in the United States.

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Today's PACIFIC

What Silicon Valley is talking about: Facebook's trust crisis, Uber's driverless nightmare, Google's new news initiative... What Seattle is talking about: Whole Foods, Toys 'R' Us and FedEx ... What Hollywood is talking about: Time Warner after AT&T ... What Sacramento is talking about: Kamala Harris's new book ...

Good morning. Welcome to a special late edition of PACIFIC, compliments of Facebook and the FTC. The good news is our friends in Washington have something to read at lunch.

Driverless Failure: Uber's new nightmare

My colleague Jordan Valinsky emails: "The moment the self-driving car industry feared has finally happened..."

What happened, via CNN's Matt McFarland:

- "A self-driving Uber SUV struck and killed 49-year-old Elaine Herzberg as she walked her bicycle across a street in Tempe, Arizona, Sunday night."

- A test driver was behind the wheel, but the car was in autonomous mode.

- "Police say the investigation does not at this time show significant signs of the SUV slowing before the crash."

The response:

- Uber has halted tests of autonomous vehicles around North America.

- The company said it is "fully cooperating" with local officials. "Our hearts go out to the victim's family," Uber said in a statement.

- The National Transportation Safety Board and local police are investigating the accident.

The latest:

- Jason Levine, executive director of the Center for Auto Safety, to Bloomberg: The accident "will set consumer confidence in the technology back years if not decades."

- San Francisco Chronicle: "Exclusive: Tempe police chief says early probe shows no fault by Uber"

The Big Picture:

The fatality raises huge questions about law and liability in a world of driverless cars. Most immediately: What responsibility do driverless car companies have to victims of accidents? Today a driver at fault in an accident often doesn't have enough money to cover the full cost of the other party's damages. But what happens when the driver at fault is a company sitting on billions of dollars?

New News: Google courts publishers

"Google says it is committing $300 million... to help 'strengthen quality journalism,'" my colleague Brian Stelter reports:

- "[T]he search company is announcing several new tools and partnerships with newsrooms, all placed under an umbrella called the Google News Initiative."

- "Subscribe with Google [will offer] 'a way for people to easily subscribe to various news outlets...'"

The Big Picture: Both Google and Apple are courting publishers in an effort to replace Facebook as the preferred vehicle for news and information. Apple acquired the digital magazine subscription service Texture earlier this month.

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What Jeff Bezos is Reading

- "Walmart adds 500 FedEx Office locations, seeking edge against Amazon" (Business Insider)

- "Whole Foods calls a supplier summit amid angst over changes under new owner Amazon" (CNBC)

- "Amazon Has Considered Buying Some Toys 'R' Us Stores" (Bloomberg)

Going Vertical: Will Time Warner leave AT&T?

The opening statements in the Justice Department vs AT&T trial aren't til tomorrow, but Vanity Fair's William D. Cohan is already thinking about what might happen after the trial:

- "From Wall Street's perspective... the date to watch is not Wednesday, but June 21. That's when Time Warner can contractually walk away from the deal and once again be a free and independent company."

- "Time Warner could push to get a better deal from AT&T or walk away from AT&T, and go back to running Time Warner independently, while waiting for another suitor to emerge..."

- "Verizon? Apple? Google? Amazon? Facebook? Possibly all of these-and more-could be interested, for a price in excess of what AT&T has offered, and likely without the same legal hassles."

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2020 Watch: Kamala Harris fuels 2020 talk

One day after Kamala Harris appeared in Vogue, the Daily Beast's Gideon Resnick and Maxwell Tani report that she's shopping a book:

- "Sen. Kamala Harris... shopped a book to a number of New York publishers as recently as a month ago...":

- "[T]he senator's working title for the project was "Speaking Truth: Hard Facts and Hope for America's Future."

- "A national book tour is a rite of passage for any potential White House aspirant... 'Speaking Truth' certainly has all the hallmarks of a pre-campaign-launch book."

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Have a great day, folks. See you tomorrow from L.A.

Mississippi Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 112123

Reported Deaths: 3223
CountyConfirmedDeaths
Hinds7796173
DeSoto670178
Harrison484483
Jackson435081
Rankin383786
Madison373993
Lee344979
Forrest296377
Jones283782
Washington252197
Lafayette242642
Lauderdale2376131
Lamar217138
Bolivar198377
Oktibbeha195854
Neshoba1814111
Lowndes174962
Panola166337
Leflore160787
Sunflower157649
Warren152755
Monroe145972
Pontotoc143819
Pike137256
Lincoln135555
Copiah135036
Marshall134826
Scott123829
Coahoma123436
Grenada120038
Yazoo119333
Simpson118649
Union115225
Holmes113560
Leake113340
Tate113239
Itawamba110424
Pearl River108958
Adams104343
Prentiss102619
Wayne98721
Alcorn96012
George93917
Marion92942
Covington92525
Tippah85921
Newton84427
Chickasaw82625
Winston82221
Tallahatchie81825
Tishomingo79341
Hancock78127
Attala77626
Clarke72349
Clay67621
Jasper67417
Walthall63327
Calhoun61412
Noxubee59617
Smith58316
Claiborne53216
Montgomery52923
Tunica52217
Lawrence49914
Yalobusha49314
Perry48122
Carroll46312
Greene45518
Stone45014
Amite41713
Quitman4146
Humphreys41216
Jefferson Davis39811
Webster36613
Wilkinson33020
Kemper32015
Benton3154
Sharkey27814
Jefferson27010
Franklin2373
Choctaw2036
Issaquena1063
Unassigned00

Alabama Coronavirus Cases

Confirmed Cases: 153016

Reported Deaths: 2633
CountyConfirmedDeaths
Jefferson22563372
Mobile14335314
Tuscaloosa10023133
Montgomery9759196
Madison904893
Shelby709960
Lee644966
Baldwin640569
Marshall428248
Calhoun412759
Etowah405749
Morgan396833
Houston364632
DeKalb319628
Elmore310752
St. Clair282142
Limestone270828
Walker268892
Talladega258435
Cullman227623
Lauderdale208740
Autauga201029
Jackson200915
Franklin199731
Colbert192228
Russell19053
Dallas185627
Blount184824
Chilton181731
Escambia171328
Coffee16669
Covington166029
Dale163451
Pike130512
Chambers130143
Tallapoosa128686
Clarke127117
Marion104729
Butler99840
Barbour9889
Marengo97221
Winston90413
Geneva8417
Pickens80517
Lawrence80031
Randolph79814
Bibb79114
Hale74529
Cherokee72214
Clay71912
Lowndes70127
Henry6376
Bullock63517
Monroe6319
Washington62212
Crenshaw59330
Perry5806
Wilcox55912
Conecuh55713
Fayette55312
Cleburne5287
Macon52820
Sumter46721
Lamar4565
Choctaw38712
Greene33916
Coosa1973
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