Facebook Inc. CEO Mark Zuckerberg spent two days on Capitol Hill seeking to placate lawmakers by saying he would be open to some sort of regulation to protect the privacy of users on his global social-media platform.
According to The Wall Street Journal, the question now is whether Washington will create regulations that address increasingly widespread concerns about digital privacy, and how any new constraints would squeeze the business models of companies like Facebook that rely on the free flow of data.
That tension was at the heart of Mr. Zuckerberg’s two days of testimony. He signaled repeatedly that he had learned the lesson of the recent data-breach scandals that have been dogging the company. And yet, when the discussion turned to details about how industrywide rules might help protect user data, he often couched his willingness to embrace new rules with warnings about poor regulation leading to unintended consequences.
In response to a question from Rep. Fred Upton (R., Mich.), Mr. Zuckerberg said he thought it was “inevitable that there will need to be some regulation.” Then he immediately warned against going too far. “You have to be careful about what regulations you put in place,” he said.
Big internet companies stopped short of endorsing Mr. Zuckerberg’s qualified support for more privacy regulation in his testimony this week. Michael Beckerman, president of the Internet Association, a trade group, said in a statement late Tuesday that the industry’s leading companies are “committed to giving Americans the information and tools they need to make informed choices about their information online,” and pledge to “continue to work with lawmakers” to protect consumers.
He added, however, that the internet industry already “complies with a host of laws and regulations in the U.S. and around the world.” He emphasized that the internet sector is a bright spot for the U.S. economy and “a great American export.”
Although Zuckerberg, 33, had never testified at a congressional hearing before, he succeeded in deflecting questions like a Washington veteran. Forty times the internet mogul told lawmakers he had no answers at hand and would get back to them later. About one in three lawmakers got that response over the two days.
Wearing a dark suit and tie and politely prefacing almost every remark with “Congressman” or “Congresswoman,” Zuckerberg appeared even more controlled than he did on Tuesday when he testified before senators. He refrained from cracking jokes and flashed few smiles, reports Reuters.
The performance had favorable results. Facebook shares closed up 0.78 percent on Wednesday after rising 4.5 percent Tuesday. Over the two days, the value of Zuckerberg’s stake in the company grew about $3 billion.
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