>> WELCOME BACK TO
CHEDDAR EVERYONE. THE HOUSE
JUDICIARY SUBCOMMITTEE ON
ANTITRUST RELEASING A 449 PAGE
REPORT ON TUESDAY SAYING TECH
GIANTS AMAZON APPLE FACEBOOK
AND GOOGLE'S PARENT
COMPANY OUT THE BET ARE
ENJOYING QUOTE MONOPOLY POWER
AND QUOTE AND THEY RECOMMEND
BIG CHANGES. THE REPORT COMING
AFTER A 16 MONTH INVESTIGATION
AND COULD
MAKE IT EASIER TO BREAK UP
THESE BIG TECH COMPANIES
JOINING ME NOW IS JOHN SWARTZ
HE'S THE SENIOR REPORT OR AT
MARKET WATCH. I'M JOHN IT'S
GOOD TO SEE YOU TODAY SO BREAK
DOWN THIS WHAT ARE SOME OF THE
BIG CHANGES BEING PROPOSED.
>> WELL THE REPORT
WHICH WAS A SENSE OVERSEEN BY
REPRESENTATIVE DAVID SICILY OF
RHODE ISLAND TO US ESPECIALLY
CRITICAL OF
HIGH TECH THE
IDEA THE NOTION OF BREAKING UP
THE MOST PROMINENT US TECH
COMPANIES AND LIMITING THEIR
ACQUISITIONS AND
I THINK THE LATTER APPLIES TO
FACEBOOK'S ACQUISITION
ACQUISITION OF INSTAGRAM THAT
WAS SOMETHING THAT WAS HEAT UP
ON IN THE LATE JULY HEARING.
IT'S IMPORTANT GO BACK TO
LATE JULY HEARING BEFORE CEO'S
OF AMAZON APPLE FACEBOOK AND
GOOGLE ALL FACED A GRILLING YS
OVER THERE.
QUOTE UNQUOTE ANTI COMPETITIVE
BUSINESS PRACTICES AND OVER
SOME OF THEIR STRATEGIES OVER
THE PAST
2 YEARS. IT WAS MADE VERY
CLEARLY AT THAT MEETING WHICH
WAS THEN REPEATED
IN THERE A REPORT THAT THE
DEMOCRATS
IN PARTICULAR OR FIND THE
BUSINESS PRACTICES IMPINGING
ANTITRUST VIOLATIONS.
>> OKAY SO LET'S TALK ABOUT THE
REPUBLICANS OBVIOUSLY THE
SENATE WOULD BE PART OF THIS AS
WELL REPUBLICAN LEAD AND
REPUBLICANS ACTUALLY DID NOT
INDOORS. THIS REPORT DOES THAT
MEAN THAT IT DOESN'T HAVE MUCH
LEGS IN D C.
>> WELL, HERE'S WHAT HERE'S AN
INTERESTING THAT'S GOING ON IF
THE DEMOCRATS FLIP THE SENATE
WHICH MANY PEOPLE THINK THAT
THEY
WILL THEY TURN OVER 4 SEATS
THEY'RE GOING TO CONTROL OVER
THE SENATE COMMITTEES INCLUDING
ONE THAT IS CURRENTLY RUN BY
MIKE LEE OF UTAH, THE
RANKING MEMBER WHERE IS AMY
KLOBUCHAR FROM MINNESOTA WHO IS
ESPECIALLY CRITICAL A FACEBOOK
ANOTHER MEMBER OF THAT
COMMITTEE IS RICHARD PROVEN
RICHARD BLUMENTHAL DURING A
HEARING IN SEPTEMBER THOSE 2
SENATORS IN
PARTICULAR APP OKAY TO THE IDEA
OF BREAKING UP TECH COMPANIES
ARE TAKING THEIR EAST STRONG
REGULATORY ACTIONS
AGAINST THEM. THEN YOU ALSO
HAVE TO TAKE INTO
CONSIDERATION. THE FACT THAT
ANY DAY NOW WE'RE GOING TO THE
DEPARTMENT
OF JUSTICE. FILE A LAWSUIT
AGAINST GOOGLE AROUND ITS
SEARCH
ENGINE POLICIES. AND YOUR
EVENTUAL GOING TO HAVE AN FTC
FILING HER SUIT AGAINST
FACEBOOK BY THE END OF THE
YEAR. SO THIS IS GOING TO
PROCEED IS GOING TO GO ON TO
NEXT YEAR IN THE
YEARS BEYOND SO IF WE HAVE THE
SENATE FLIP AS WELL AS THE
HOUSE REMAINING THE SAME WHICH
WAS MORE THAN LIKELY GOING TO
HAPPEN. PLUS A IF WE HAVE
ABIDED MINISTRATION OR EVEN A
TRUMP ADMINISTRATION I THINK
YOU'RE GOING TO SEE AN
ESCALATION OF ANTITRUST ACTIONS
IN LITIGATION AGAINST THESE
COMPANIES.
>> STUART WHAT DOES THIS MEAN
JOHN I MEAN HOW WOULD THEIR
EXPERIENCES POTENTIALLY CHANGE.
>> I DON'T THINK THEY WILL IN
PARTICULAR ACTUALLY I THINK
THINGS WILL PROBABLY REMAIN THE
SAME FOR THEM I THINK WHAT'S
GOING TO HAPPENED OR WHAT IF
SOMETHING WERE
TO HAPPEN.
>> THESE COMPANIES, THESE
COMPANIES IT EITHER SPLIT OFF
DIVISIONS OR THEY WOULD JUST
KIND OF RECONSTITUTE THE WAY
THEY
DO BUSINESS. I DON'T THINK
WOULD HAVE AN IMPACT ON ON
CONSUMERS. I THINK YOU MIGHT
HAVE AN IMPACT ON DEVELOPERS,
ESPECIALLY THOSE WHO COMPLAIN
ABOUT PAYING THESE ONEROUS
FEES TO GOOGLE AND I THINK THE
CONSUMER EXPERIENCE WILL
LARGELY GOING TO CHANGE.
>> AND IN TERMS OF THE
DEVELOPERS OBVIOUSLY THIS THAT
EPIC GAMES IS
WAGING AGAINST APPLE. THE MAKER
OF FORTNITE IN SUNDAY'S OTHER
COMPANIES LIKE SPOTIFY THAT I'M
JOINED ON DO YOU THINK THAT
THAT IS GOING TO MAKE REAL
CHANGE FOR THESE 2 LUBBERS SOME
OF WHICH I DON'T HAPPEN MAJOR
BUDGET OBVIOUSLY THE AMAZON
WOULD HAVE IN TERMS OF GANG
PRESENCE ON THE APP STORE AND
COLLECTING REVENUE.
>> WITHIN THAT REPORT THAT WAS
ISSUED YESTERDAY WAS POINTED
OUT THAT APPLE MAY NEARLY
3 BILLION DOLLARS. BEFORE EVEN
CALCULATING TO 30% COMMISSION
FEE IT GETS
FROM DEVELOPERS. SO THAT WAS
THAT WAS IT WAS INTERESTING
DISCLOSURE BECAUSE IT IN THE
SENSE THAT AS WELL AS SOME OF
WHAT
WAS SAID IN JULY TOWARDS
TIM COOK WAS THIS IDEA THAT
WAIT A SECOND YOU GUYS ARE
CHARGING EXORBITANT FEE FOR
THESE COMPANIES THAT YOU'RE
DOING BUSINESS WITH
AND I THINK THERE'S GOING TO BE
SOME SORT OF PUSH TO MAYBE
LOWER THAT PERCENTAGE. ALTHOUGH
AGAIN WHAT HAPPENS WITH APPLE
IS GOING TO LARGELY BE TURMAN
IN FEDERAL COURT WHICH
IS ONGOING.
>> THE CHARGES COMING FORTH
AGAINST GOOGLE I MEAN IS NOT A
MARKET MOVING EVENT AND HOW BIG
DO YOU THINK THAT NOW BUYING
COULD POTENTIALLY BE.
>> SO I DON'T KNOW ABOUT THE
THE MAGNITUDE THE FINE BUT I
THINK IT WOULD BE A MARKET
MOVING EVENT NOW YOU SAW WHAT
HAPPENED YESTERDAY ALL WITH
THIS NEWS CAME OUT IT
CAME OUT ROUGHLY AROUND THE
TIME THE MARKETS ARE CLOSING
NOW, I KNOW THAT
THERE WAS THE PRESIDENTS OF OWL
NOT TO HAVE
A STIMULUS PACKAGE READY BY BY
THE ELECTION OR ORGAN MEDIA
DAYS THAT HAD AN IMPACT BUT
EVEN BEFORE THEN THE STOCK
PRICES FOR ALL FOR THE
COMPANIES THAT ARE UNDER THE
MICROSCOPE
WENT DOWN, ESPECIALLY GOOGLE SO
I DO THINK IT WOULD HAVE A
MATERIAL EFFECT ON GOOGLE WHICH
IS INTERESTING BECAUSE IN A
SENSE. THESE COMPANIES THESE
TECH COMPANIES IN THIS IS OUR
OUR DRIVING THE MARK IT'S SO IF
YOU LOOK AT
THE MARKET IT'S GOING TO TAKE A
HIT IF. IF AND WHEN THESE
ACTIONS ARE FORMALLY FILED.
>> YEAH JUST ONE YEAR IN TERMS
OF THE DOLLAR AMOUNT HOW BIG IT
WOULD BE BECAUSE WE SAW
FACEBOOK GET HIT WITH
A FINE. YOU KNOW, 10'S OF
MILLIONS OF DOLLARS GETTING OF
THAT STOCK AND STILL SEEMINGLY
EVEN WHEN THESE COMPANIES GET
HIT WITH SOME OF THESE
EU LAWSUITS. THE STOCK DOESN'T
SEEM TO MOVE MUCH SO WHETHER OR
NOT IT'S GREAT MOVING EVENT I
TOTALLY GET
YOUR POINT. YES, THE TECH
COMPANIES ARE HUGE PORTIONS OF
THIS BUT I GUESS WE'LL JUST
HAVE TO WAIT AND SEE HOW
INVESTORS DIGEST IT.
>> RIGHT YOU KNOW IT'S IT IS
ALSO THE FACT THESE COMPANIES
ARE TRILLION DOLLAR COMPANIES
IN TERMS OF MARKET VALUE AND
THEY'RE SITTING ON. 10'S IF
NOT HUNDREDS OF BILLIONS OF
DOLLARS IN CASH, IT IS KIND OF
A NEEDED A BILLION
DOLLAR FINE IS A BILLION DOLLAR
FINE BUT I MEAN THEY THEY CAN
ABSORB THE BLOW I THINK WHAT
WOULD HURT THEM OR WOULD BE
JUST A SHORT TERM IMPACT TO
THEIR STOCK PRICE.
>> OKAY SO LET'S TALK ABOUT
FACEBOOK THAT COMPANY ACTUALLY
COMING OUT AND BANNING QUE AN
ON FROM
ITS PLANS FORM ONE DID THIS
SURPRISE YOU AND WHAT DOES THIS
DO FOR Q A NON.
>> WELL IT DIDN'T NECESSARILY
SURPRISE ME BECAUSE REMEMBER
BACK
IN AUGUST. FACEBOOK HAD
ELIMINATED ABOUT 1500
COMMUNITIES ARE GROUPS
OR ACTIONS OF CUMIN ON ON ON
THE FACEBOOK PLATFORMS SO IS
INEVITABLE IN A PLUS FACEBOOK
SAID AN INORDINATE AMOUNT
OF PRESSURE TO DO SOMETHING
SIGNIFICANT BEFORE THE ELECTION
COME IF ANYTHING THE ARGUMENT
I'VE HEARD FROM PRIVACY
ADVOCACY GROUPS IS THAT
FACEBOOK WAITED SHOES LONG
SHOULD HAVE DONE THIS 6 MONTHS
AGO. I THINK THE MESSAGE THAT
HE RAN ON WAS TRYING TO SEND
OUT TO ITS FOLLOWERS IS
PROBABLY
ALREADY RESONATED AND WE'RE
ALREADY IN THE ELECTION CYCLE
AND PEOPLE ARE ALREADY VOTING
SO IN A SENSE, MAYBE THEY
WAITED TOO LONG THE FEC, THE
FACT THEY DID SOMETHING USING
ENCOURAGING BUT IN THE CASE OF
FACEBOOK WHAT WE NORMALLY SEE
IS ONCE THE
ELECTION COMES THEN THERE IS A
DISCLOSURE OF SOMETHING THAT
HAPPENED AT FACEBOOK WILL THE
AL VOWED TO FIX NEXT TIME.
SO I THINK THERE'S THIS GREAT
UNKNOWN THAT THEY MIGHT BE
CONCERNED ABOUT SOMETHING MAY
HAPPEN THAT THERE THEY'RE
UNAWARE OF THAT WE MIGHT LEARN
ABOUT LATER. SO CUTE ON WAS
GOOD POINT YOU MAKE A GOOD
ACTION. BUT THERE SO MANY OTHER
MOVING PARTS RIGHT NOW IN
SPENDING PLACE THAT THINK
FACEBOOK THEY'RE PROBABLY
HOLDING THEIR BREATH FOR THE
NEXT FEW WEEKS.
>> OF COURSE IN JUST A REMINDER
TO OUR VIEWERS THAT Q A NON
REPRESENTS A FAR RIGHT CAN
SPIRA
SEE THEORY SO FACEBOOK CLAMPING