Facebook chief, Mark Zuckerberg, will testify in front of Maxine Waters led House Committee for Financial Services on in two weeks. After David Marcus sat through two days of difficult questions, the committee insisted on Zuckerberg coming down himself, and he has obliged. As per Bloomberg, the committee plans to focus on Libra, but will not shy away from bringing up their shoddy privacy and discriminatory advertisements, October 9, 2019.
Zuck Testimony Could Make or Break
In April 2018, Mark Zuckerberg was brought in to explain Facebook’s actions in light of privacy leaks and ties with Cambridge Analytica. This congressional hearing supposedly set the tone for Facebook would try to conduct themselves in the future.
BTCManager previously reported that Zuckerberg was summoned for testimony before January 2020. So his decision to do so in just two weeks may suggest he is confident he can sway regulators and assure them of the safety in Libra.
The committee was planning to bring in Facebook COO Sherly Sandberg but decided that having the founder and CEO would explain more. When David Marcus testified before the committee, he was asked why Mark Zuckerberg was sending him instead of showing up himself.
Concerns regarding Libra are primarily centered on financial stability and money laundering. Implementing anti-money laundering procedures are fairly straightforward, so it’s quite peculiar to see such a huge debacle around this.
One possible explanation, that has escaped most minds because of the company behind this, is that Libra may actually be/turn into an open, decentralized financial network. This is a stretch considering Facebook’s past record, but it does explain the constant concern around money laundering practices.
Housing Issue to Be Brought Up
The House committee also oversees the broader housing sector. It is expected that Zuckerberg will be questioned as to why Facebook thought it was appropriate to facilitate targeted advertisements.
According to several sources, Facebook allowed developers and real estate companies to pitch their ads on Facebook to a certain demographic of users.
While this doesn’t seem very significant on the surface, there is a strong case that this is essentially social discrimination to fulfill client objectives.