INVESTIGATORS ARE TRYING TO
DETERMINE IF THE DEALS WE'RE
PART OF A PLAN TO TAKE OVER
POSSIBLE RIVALS AND BLOCK
COMPETITION. JOINING US NOW IS
JOE MITNICK ANTITRUST PARTNER.
INTERNATIONAL LAW FIRM AND
FORMER TRIAL LAWYER AT THE FTC.
JOEL IS GOING TO HAVE YOU WITH
US OBVIOUSLY YOU'VE GOT SOME
KEEN INSIGHT HERE AND HOW THE
FTC WORKS IF YOUR
FACEBOOK WHAT ARE YOU MOST
CONCERNED ABOUT RIGHT NOW.
>>THANKS FOR HAVING ME HERE AND
GOOD MORNING. SO
IF YOUR FACEBOOK I THINK YOU'RE
MOST CONCERNED IF THE FTC IS
ZEROING IN ON SOME SPECIFIC
CONDUCT. IF THE WALL STREET
JOURNAL IS CORRECT THE FTC'S
ACTUALLY LOOKING AT PAST
ACQUISITIONS AND MAYBE EVEN
LOOKING TO BREAK FACEBOOK UP
COMPLETELY THAT MUCH MUCH
BIGGER LIFT FOR THE FTC.
OF COURSE IS A BIGGER THREAT TO
FACE.
>>OUTSIDE BUT ARE WE LIVING IN
A CAPITALISTIC SOCIETY, A
UNITED STATES. IT IS A FREE
MARKET THEY CAN DO WHATEVER
THEY WANT AS A COMPANY THAT
THEY WANT TO CUT THE
COMPETITION. MY THEY HAVE THAT
IS THEIR
RIGHT WHAT'S THE DEAL.
>>WELL WE CERTAINLY LIVE IN A
FREE MARKET SOCIETY BUT EVER
SINCE 1890 THAT'S BEEN
CONSTRAINED BY THE ANTITRUST
LAWS THAT WAS WHEN THE SHERMAN
ACT WAS FIRST ENACTED WE ALSO
HAVE A MIXED MARKET ECONOMY IS
NOT REALLY A FREE MARKET
ECONOMY. SO THERE. THERE IS
GOVERNMENT REGULATION. I'M HERE
WHAT THE WALL STREET
JOURNAL IS TALKING ABOUT IF
IT'S TRUE IS THE GOVERNMENT
THINKING ABOUT COMING INTO
FORCE FACEBOOK TO DIVEST
CERTAIN COMPANIES THAT IT'S
ALREADY ACQUIRED PRETTY
A CASE TO MAKE IF YOU'RE THE
FTC. BUT ALSO AS YOU'RE WELL
AWARE THERE ARE CERTAIN
PRESIDENTIAL CANDIDATES, WE'RE
CALLING
FOR FACEBOOK TO BE BROKEN UP
REALLY HARD TO DO AND VERY FEW
PRESIDENTS OKC MENTIONED AT THE
LEGAL ROAD AHEAD HERE WHAT IS
THE FTC NEED TO PROVE WHAT
DOCUMENTS DO THEY NEED WHAT
EVIDENCE DO THEY NEED TO HAVE
HELD UP IN A COURT OF LAW.
>>SO THAT'S REALLY THE
IMPORTANT QUESTION HERE OF
COURSE IT DEPENDS ON
WHAT IT IS THAT THEY'RE TRYING
TO DO IF THEY'RE TRYING TO
BREAK UP THE COMPANY HAS
ELIZABETH WARREN IS CALLED FOR
THAT'S
SOMETHING THAT THE GOVERNMENT
SUCCESSFULLY DID IN THE ATNT
CASE BACK IN
THE EARLY 1980'S. IT FAILED
MISERABLY WHEN THEY TRIED TO DO
IT AGAIN WITH MICROSOFT THAT 20
YEARS LATER HERE. IF THE
GOVERNMENT IS REALLY
LOOKING FOR FACEBOOK TO BE
FORCED TO DIVEST SAY INSTAGRAM
AND WHAT'S APP THEY HAVE A MUCH
MORE TRADITIONAL LEGAL CASE.
SO THEY HAVE TO PROVE WHAT THE
RELEVANT AND I TRUST THE MARKET
IS MEANING WHAT IS FACEBOOK
COMPETE IN AND SO THE
QUESTION IS DOES FACEBOOK
REALLY COMPETE WITH INSTAGRAM
WELL HIS INSTAGRAM MUCH CLOSER
TO SNAPCHAT
AND HOW DOES THAT AFFECT
COMPETITION AND DOES THE AND IS
FACEBOOK REALLY COMPETE WITH
WHAT SAPPED PROBABLY NOT THOSE
BUSINESSES ARE VERY DIFFERENT.
SO YOU NEED ALMOST BEING NEW
THEORY OF
THE UP. YOU KNOW THE EXTENT OF
SOCIAL MEDIA AS A NEW MARKET
TO EVALUATE THAT MERGER BUT IN
THE WAKE OF A LITTLE DIGITAL
MEDIA HAS ONLY BEEN AROUND FOR
YOU KNOW.
>>20 YEARS AND THESE COMPANIES
ARE GROWING OUT NOW INTO A
CONGLOMERATE I MEAN IN SOME
WAYS THAT
THEY'VE GOT PORTFOLIO OF
COMPANIES AND THAT'S HOW
FACEBOOK HAS POSITIONED IN THAT
IN THAT SAME ARGUMENT YOU JUST
MADE I DIDN'T HAVE MESSAGING IN
THE SAME WAY BEFORE AND SO
ADDING THAT TO THE COFFERS
THAT'S NOT TAKING OUT
QUOTE UNQUOTE COMPETITIONS.
>>SO 2 WAYS TO LOOK AT THIS ONE
IS THAT THESE ARE COMPLETELY
NEW MARKETS AND INNOVATION
CHANGES REALLY QUICKLY IN THE
HIGH TECH SPACE. SO IN THE
UNITED STATES WHICH IS WHITE
DIFFERENT THAN THE APPROACH IN
THE EU THE UNITED STATES
ANTITRUST AUTHORITIES HAVE BEEN
VERY RELUCTANT TO GET INVOLVED
IN YOU KNOW RESTRUCTURING HIGH
TECH MARKETS BECAUSE THE
INNOVATION CHANGES WHO'S WHO'S
ON TOP AND WHO'S NOT.
BUT AT THE SAME TOKEN WE DO
HAVE THIS RIGHT RAPID EXPANSION
OF SOCIAL MEDIA PLATFORMS.
AND THERE IS A REAL QUESTION
WHETHER THE AND I TRUST SCHOOLS
AND THE UNDERSTANDING OF THE
GOVERNMENT HAS BEEN SUFFICIENT
TO KEEP PACE WITH THAT. DO YOU
THINK BIG TECH SHOULD BE BROKEN
UP. PERSONALLY I DON'T THINK
BIG TECH SHOULD BE BROKEN UP
WHY I THINK MARKETS CHANGE TOO
QUICKLY IN THE HIGH-TECH
SPHERE. I THINK IT TAKE BY THE
TIME YOU START A
LAWSUIT AND YOU GET TO THE END
OF IT. THE MARKET HAS
COMPLETELY CHANGED AND I THINK
THE MARKETS WE'LL LIKELY SOLVE
MOST OF THE PROBLEMS. BUT I'D
LIKE TO MAKE
A POINT THAT I THINK GETS LOST
TOO OFTEN HERE WHICH IS THAT
MOST OF THE CONCERN ABOUT THE
LARGE SOCIAL MEDIA PLATFORM
TIMES IS THAT THEY HAVE SO
INVASIVE LEE TAKEN OVER SO MANY
AREAS OF OUR LIVES AND HAVE SO
MUCH INFORMATION. I THINK FOR
THE AMERICAN PUBLIC THAT REALLY
TOOK OFF AFTER CAMBRIDGE
ANALYTICA AND THOSE ARE MOSTLY
CONCERNS ABOUT PRIVACY, NOT AND
I TRUST IN THE UNITED STATES
WHAT WE REALLY NEED
IS NOT TO BREAK UP THESE
COMPANIES BUT TO DEVISE AND
LEGISLATE A
PRIVACY LAW LIKE THEY HAVE IN
THE REST OF THE WORLD.
>>I WANT TO ASK ABOUT CHRIS
HUGHES, A YOU KNOW THE NUMBER
OF PEOPLE A SORT OF INFORMING
THE GOVERNMENT ON THEIR
INVESTIGATION REALLY REALLY
KEY. THE FACT THAT WE'RE
HEARING IT FACEBOOK NOW MAYBE
18 GOVERNMENT. HOW CRUCIAL IS
THAT TO THE CASE OVERALL.
IT'S.
>>FASCINATING. I'VE NEVER SEEN
THAT HAPPEN BEFORE AND I WOULD
THINK IF YOU'RE LOOKING FOR A
WITNESS. CHRIS HUGHES HAS GOT
TO BE THE BEST KIND OF WITNESS
YOU CAN GET. THE WALL STREET
JOURNAL DID REPORT THAT THE FTC
NOW IS LOOKING TO TALK TO THE
FOUNDERS OF ALL OF THESE OTHER
APPS THAT FACEBOOK HAS ACQUIRED
AND I THINK CHRIS HUGHES HAS
GIVEN THEM A ROAD MAP OF
EXACTLY HOW YOU FIND EVIDENCE
AND DEVELOP THE CASE HE ALSO I
THINK THAT'S A HUGE IS ALSO
CONVENIENT THEY ALL QUIT SO
THEY ARE NOT
BEHOLDEN TO OF COURSE MY MOTHER
ALL FORMER.
>>BOYS ABSOLUTELY HAVE THEIR
OWN MOTIVATIONS ARE OR HELLO TO
LEAVE IT AT THAT FOR YOU TODAY
SO GREAT TO HAVE YOU ON WITH