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Rebecca Kelly Slaughter

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157
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2019-09-30
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2019-09-30
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  1. I'm trying to think. Right. I think it's really hard to do. Listen, we're talking about companies that made popular products that people liked and continue to like to use, right? And that were free to consumers.

    2019-09-30 · Decoder with Nilay Patel · Recode Decode: FTC Commissioner Rebecca Kelly Slaughter · IDENTIFIED FROM THE TRANSCRIPT

  2. You got Senator Klobachar. I'm trying to think Michael Bennett is involved. There's all kinds of congressmen and states attorney generals. Do you think government is now against big tech? And you can't also put them all in one basket, right?

    2019-09-30 · Decoder with Nilay Patel · Recode Decode: FTC Commissioner Rebecca Kelly Slaughter · IDENTIFIED FROM THE TRANSCRIPT

  3. Yes. So we investigated, they bought a US company called Musically. And you can make funny dance videos, karaoke videos. And they were collecting a lot of children's information in violation of KAPPA. So when that settlement came down, it was at the time the largest KAPPA penalty, which was $5.7 million. And every time anybody said the largest Kappa penalty of $5.7 million, I was like, maybe we shouldn't say that it's the largest one. I mean, it's a ton of money to me personally. Me too.

    2019-09-30 · Decoder with Nilay Patel · Recode Decode: FTC Commissioner Rebecca Kelly Slaughter · IDENTIFIED FROM THE TRANSCRIPT

  4. Very fresh in my head. Anyway, so the FDC finalized a consent order with Uber that imposed on them some really meaningful data security program and they're now under order so that if they screw up again, we can We can't issue a fine, but we can negotiate a fine or sue them for a fine.

    2019-09-30 · Decoder with Nilay Patel · Recode Decode: FTC Commissioner Rebecca Kelly Slaughter · IDENTIFIED FROM THE TRANSCRIPT

  5. Go ahead. Yeah, well, I just finished reading Super Pumped literally this morning. So this is all very worked for me. He started his career. That book was great. He is. He's a wonderful.

    2019-09-30 · Decoder with Nilay Patel · Recode Decode: FTC Commissioner Rebecca Kelly Slaughter · IDENTIFIED FROM THE TRANSCRIPT

  6. We had a settlement with Uber. So Uber had a data breach in 2014. And then another one in 2016, while the first one was being investigated. So not long after we, the new commission, started, the commission finalized a consent order with Uber that imposed some requirements for data security on it that had been sorely lacking. And I just finished non-existent.

    2019-09-30 · Decoder with Nilay Patel · Recode Decode: FTC Commissioner Rebecca Kelly Slaughter · IDENTIFIED FROM THE TRANSCRIPT

  7. Things on the table are not enough to get me to yes, but there are other situations where I will say listen, if you can make this change, I will come on board. Or I like what you've negotiated. Most of our decisions are still 5-0. And that's a good thing. Right.

    2019-09-30 · Decoder with Nilay Patel · Recode Decode: FTC Commissioner Rebecca Kelly Slaughter · IDENTIFIED FROM THE TRANSCRIPT

  8. But one of the things you want is cooperation among you all, right? Because one of your jobs is figuring out a compromise because we don't want any side to have any more power than the other. Yeah. Whether we're Democrats or Republicans. Well, Republicans want total control.

    2019-09-30 · Decoder with Nilay Patel · Recode Decode: FTC Commissioner Rebecca Kelly Slaughter · IDENTIFIED FROM THE TRANSCRIPT

  9. And I think there is some, there are some people who are too price focused. I don't think the law is price focused. We also look at harms to quality, harms to innovation, and harms on the other side of the equation, anopsony harms to suppliers and to workers, which is really important too. So I think there's room for that in the law. That said, sometimes there are bad legal decisions that make these cases harder to bring. And we have to think about that. And what do we do? But I'd rather us bring the case and be trying to fight for the right outcome and then deal with the case law as it devolves. All right.

    2019-09-30 · Decoder with Nilay Patel · Recode Decode: FTC Commissioner Rebecca Kelly Slaughter · IDENTIFIED FROM THE TRANSCRIPT

  10. Yeah, I was about to say, we can't make innovation, but we can make room for innovation. That's what the law, in fact, requires us to do. And curbing innovation is an antitrust harm. There's some controversy right now about whether antitrust is too price focused. And I think some antitrust, whether it's consumer harm or harm.

    2019-09-30 · Decoder with Nilay Patel · Recode Decode: FTC Commissioner Rebecca Kelly Slaughter · IDENTIFIED FROM THE TRANSCRIPT

  11. Yeah, I mean, what's really hard to do is to imagine the but four universe of innovation. Because the companies will say, well, look, we have this new product and this new service and whatever, but that doesn't tell you what we would have absent large market share by individual companies. And so I would like to see more innovation. I would like to see more opportunities for companies to be able to compete and break through and build up their brand based on quality.

    2019-09-30 · Decoder with Nilay Patel · Recode Decode: FTC Commissioner Rebecca Kelly Slaughter · IDENTIFIED FROM THE TRANSCRIPT

  12. No, it's impossible to be a universe or that leads to antitrust issues, which is why they're being looked at, because there's no, you know, everyone's sort of debating this, but I'm like, there's not been a new social network. There's not been a new search service. There's not been a new video service. There's not been a new ad thing in the world of Facebook and Google. Leaving aside Apple and its App Store, which I think is regulatory fixing, like that's sort of just they have to, some action has to be done in terms of all these platforms and their power over people over companies and users both. But there's no competition happening. There's no innovation happening.

    2019-09-30 · Decoder with Nilay Patel · Recode Decode: FTC Commissioner Rebecca Kelly Slaughter · IDENTIFIED FROM THE TRANSCRIPT

  13. And more importantly, if somebody else wanted to come out and be the safe place to be for kids, it's very difficult to compete in the universe. And that gets leads.

    2019-09-30 · Decoder with Nilay Patel · Recode Decode: FTC Commissioner Rebecca Kelly Slaughter · IDENTIFIED FROM THE TRANSCRIPT

  14. That his child directed in the first instance. I think they should have a whole nother YouTube. Will they? That's the issue around competition. If it was not attached to Google, maybe they would try to think hard about new businesses. Why don't we be the safe place to be? And more importantly, if somebody

    2019-09-30 · Decoder with Nilay Patel · Recode Decode: FTC Commissioner Rebecca Kelly Slaughter · IDENTIFIED FROM THE TRANSCRIPT

  15. Content off of it. I've spent some time on YouTube because I have small children. I'm not particularly impressed with the quality of the content that is child directed in the first instance. So the premise of that argument, I think

    2019-09-30 · Decoder with Nilay Patel · Recode Decode: FTC Commissioner Rebecca Kelly Slaughter · IDENTIFIED FROM THE TRANSCRIPT

  16. I don't know. I mean, a cynic would say that, again, if you want to put on your very cynical glasses, it's better for them not to have that requirement. Right, of course. Right. They make more money on the behavioral advertising. Right.

    2019-09-30 · Decoder with Nilay Patel · Recode Decode: FTC Commissioner Rebecca Kelly Slaughter · IDENTIFIED FROM THE TRANSCRIPT

  17. I in fact think they said when they put out a release With the settlement that they were going to be doing policing and creating an algorithm

    2019-09-30 · Decoder with Nilay Patel · Recode Decode: FTC Commissioner Rebecca Kelly Slaughter · IDENTIFIED FROM THE TRANSCRIPT

  18. Well, I actually think the argument, I don't have, you know what? I don't have a good argument. I think you'd have to ask the majority why it wasn't in the order.

    2019-09-30 · Decoder with Nilay Patel · Recode Decode: FTC Commissioner Rebecca Kelly Slaughter · IDENTIFIED FROM THE TRANSCRIPT

  19. And I was really concerned. So I wanted to see some sort of requirement that YouTube police the designations and make sure that they're correct.

    2019-09-30 · Decoder with Nilay Patel · Recode Decode: FTC Commissioner Rebecca Kelly Slaughter · IDENTIFIED FROM THE TRANSCRIPT

  20. Correct. And in fact, I think there's an incentive to turn a blind eye to it because YouTube gets a cut of the advertising revenue and it makes more if it's behavioral ads. So if I am a channel owner who has a My Little Pony, And I tell YouTube, this isn't children's content, it's just for bronies. I know because I'm the channel owner. YouTube can say, Listen, the channel owner says it's not children's content, so it's not children's content

    2019-09-30 · Decoder with Nilay Patel · Recode Decode: FTC Commissioner Rebecca Kelly Slaughter · IDENTIFIED FROM THE TRANSCRIPT

  21. And then it negotiated in order where YouTube is now required to have all of its content creators designate themselves, whether the content is child directed or not. And if it's child directed, it cannot be served with behavioral ads. It can still have advertising. It can still have contextual advertising, but not behavioral advertising. That's okay as far as it goes. That's good as far as it goes. But my concern was there's no requirement on YouTube to make sure that those designations are correct.

    2019-09-30 · Decoder with Nilay Patel · Recode Decode: FTC Commissioner Rebecca Kelly Slaughter · IDENTIFIED FROM THE TRANSCRIPT

  22. But again, it's the same thing that we discussed in Facebook. I don't care what the previous, I don't care what the previous fine is. I care what the fine is for this particular company and what it means for them.

    2019-09-30 · Decoder with Nilay Patel · Recode Decode: FTC Commissioner Rebecca Kelly Slaughter · IDENTIFIED FROM THE TRANSCRIPT

  23. To track associated with children's content. And we all add to that as a violation of KAP The agency negotiated a settlement with YouTube

    2019-09-30 · Decoder with Nilay Patel · Recode Decode: FTC Commissioner Rebecca Kelly Slaughter · IDENTIFIED FROM THE TRANSCRIPT

  24. And when you're thinking about children, that manipulation is really meaningful. So, anyway, long way of explaining the FTC investigated YouTube for marketing its platform to creators as a place for children, the new Saturday morning cartoons. And collecting persistent device identifiers.

    2019-09-30 · Decoder with Nilay Patel · Recode Decode: FTC Commissioner Rebecca Kelly Slaughter · IDENTIFIED FROM THE TRANSCRIPT

  25. Listen, I like those washable flats. I do. Okay. But there is a question about whether that benefit is worth the cost of targeting ads and targeting content to particular people, particularly because that targeting can be very manipulative.

    2019-09-30 · Decoder with Nilay Patel · Recode Decode: FTC Commissioner Rebecca Kelly Slaughter · IDENTIFIED FROM THE TRANSCRIPT

  26. Then, yes, I think you have that. If some people voluntarily choose contextual ads, they may be at a competitive disadvantage because of the revenue from behavioral ads. Behavioral ads track your behavior across the internet, across devices, across websites to target information specifically to you. So it's why I get ads for colorblock swimsuits and machine washable flats all the time. And I don't think my husband does.

    2019-09-30 · Decoder with Nilay Patel · Recode Decode: FTC Commissioner Rebecca Kelly Slaughter · IDENTIFIED FROM THE TRANSCRIPT

  27. So I will tell you that I have had, I hear a lot, while behavioral ads help support higher quality content. I have seen no evidence for that. I had a great interview with Dr.

    2019-09-30 · Decoder with Nilay Patel · Recode Decode: FTC Commissioner Rebecca Kelly Slaughter · IDENTIFIED FROM THE TRANSCRIPT

  28. And it was really groundbreaking because it actually imposed affirmative requirements on companies with respect to how children's data is handled. Right. The FDC investigated YouTube. For all of the children's content that is on there and that is served with behavioral ads. And behavioral ads are served by using a persistent device identifier.

    2019-09-30 · Decoder with Nilay Patel · Recode Decode: FTC Commissioner Rebecca Kelly Slaughter · IDENTIFIED FROM THE TRANSCRIPT

  29. What's that? Yeah, so the short version of that is there is one law, there is one, when you were saying there are no laws and regulations about tech, there is one. There's CAPA, the Children's Online Privacy Protection Act, which was passed 20 years ago. I wrote about it in Washington.

    2019-09-30 · Decoder with Nilay Patel · Recode Decode: FTC Commissioner Rebecca Kelly Slaughter · IDENTIFIED FROM THE TRANSCRIPT

  30. That you're looking at tech and big tech, essentially. So besides then, there's obviously Apple and its App Store. There's Google and YouTube. There's Google itself with search. Google owns YouTube. People don't know. Also Facebook owns Instagram and WhatsApp. WhatsApp and Apple just says Apple. It doesn't own that much stuff. Getting off of Facebook, let's talk a little bit about YouTube and your discussion about explain the situation there.

    2019-09-30 · Decoder with Nilay Patel · Recode Decode: FTC Commissioner Rebecca Kelly Slaughter · IDENTIFIED FROM THE TRANSCRIPT

  31. And I think the agency is committed to devoting resources to make sure those investigations get done well. Right. That doesn't give me any guarantee about the outcome of it. The fact that you're looking at

    2019-09-30 · Decoder with Nilay Patel · Recode Decode: FTC Commissioner Rebecca Kelly Slaughter · IDENTIFIED FROM THE TRANSCRIPT

  32. Yeah, yeah. I mean, strategically, it is the smart thing to do. So one can anticipate that these things do not wrap up overnight. I mean, I will say that I think that the FTC is it really staffed up its tech task force with real lawyers. It took them off of other enforcement work to put them on technology work. And that's important.

    2019-09-30 · Decoder with Nilay Patel · Recode Decode: FTC Commissioner Rebecca Kelly Slaughter · IDENTIFIED FROM THE TRANSCRIPT

  33. Could lead to finding a violation. There's nothing good for the company on the other end of that. So dragging it out is in the company's interest. So they may not be willing to provide information voluntarily. I'm just speaking generally. Yeah, so you have to go to court. You have to use compulsory process. Then you have to fight about what they're actually going to turn over. Maybe you have to go to court to enforce your subpoenas.

    2019-09-30 · Decoder with Nilay Patel · Recode Decode: FTC Commissioner Rebecca Kelly Slaughter · IDENTIFIED FROM THE TRANSCRIPT

  34. Yeah, so yes, we're too far behind. I mean, it takes too long to start investigations. Takes too long to do investigations. And in antitrust, companies have a real incentive to comply with merger investigations because they want to close their merger. They want to give you the information. They can move on and have their deal. Conduct investigations, there isn't the same incentive to comply, right? Because the more information you give an agency,

    2019-09-30 · Decoder with Nilay Patel · Recode Decode: FTC Commissioner Rebecca Kelly Slaughter · IDENTIFIED FROM THE TRANSCRIPT

  35. And how companies. And one could argue Microsoft's a better company for it today. I mean, they're now lovely. I was with Brad Smith and I was like, you're lovely now. I can't even believe I hang out with you people. But still, I hope for some day to be at Mark's house for the holidays and everything else. We'll see. So you're looking into this and doing this. How long do these things take? Are you too all behind on where tech is going? Because they're moved on to Libra, they've moved on to other things. And I want to get to YouTube after that.

    2019-09-30 · Decoder with Nilay Patel · Recode Decode: FTC Commissioner Rebecca Kelly Slaughter · IDENTIFIED FROM THE TRANSCRIPT

  36. Yeah, that's exactly what the depositions have a decades-long legacy in terms of what they mean for executive responsibility and how companies

    2019-09-30 · Decoder with Nilay Patel · Recode Decode: FTC Commissioner Rebecca Kelly Slaughter · IDENTIFIED FROM THE TRANSCRIPT

  37. They have public transparency pretty competitive. The Microsoft trial, by the way, is an example that hangs out in my head of the value of a public trial and the transparency that comes with litigation.

    2019-09-30 · Decoder with Nilay Patel · Recode Decode: FTC Commissioner Rebecca Kelly Slaughter · IDENTIFIED FROM THE TRANSCRIPT

  38. If you don't have anyone complaining about the behavior of a company, even a dominant company, it's going to be challenging to make a case about the behavior of the dominant company. So in any case, the agency would not be doing its job if it were not actively seeking out. Information from witnesses to help figure out what is actually going on on the ground and where are there any potential law violations.

    2019-09-30 · Decoder with Nilay Patel · Recode Decode: FTC Commissioner Rebecca Kelly Slaughter · IDENTIFIED FROM THE TRANSCRIPT

  39. Anytime you want to build an anti-dress investigation, tech, not tech, you need facts and information. You know, at the end of the day, you have to assume you're going to have to prove your case in a court of law. You're going to need witnesses. You're going to need documents. That's going to come from the company itself. It's also going to come from competitors. It's going to come from customers.

    2019-09-30 · Decoder with Nilay Patel · Recode Decode: FTC Commissioner Rebecca Kelly Slaughter · IDENTIFIED FROM THE TRANSCRIPT

  40. Right. They all have their agencies Economy wide, but it's been reported that you're all looking, you're doing the FTC, and then the natural thing is to go to competitors and then see where it goes. The investigations go.

    2019-09-30 · Decoder with Nilay Patel · Recode Decode: FTC Commissioner Rebecca Kelly Slaughter · IDENTIFIED FROM THE TRANSCRIPT

  41. Yeah, exactly. We don't do insurance companies. They all have their agencies. Yeah, so we have a little bit of a divided thing. But for the most part, economy-wide.

    2019-09-30 · Decoder with Nilay Patel · Recode Decode: FTC Commissioner Rebecca Kelly Slaughter · IDENTIFIED FROM THE TRANSCRIPT

  42. We have some statutory restrictions. We can't do common carriers like telecoms. Right. That's the FCC. Yeah. Or DOJ does that. Andy dress stuff. We don't do banks. That's right.

    2019-09-30 · Decoder with Nilay Patel · Recode Decode: FTC Commissioner Rebecca Kelly Slaughter · IDENTIFIED FROM THE TRANSCRIPT

  43. So that one I can't particularly comment on as a general matter the agencies try to divide investigation so that we are not duplicating.

    2019-09-30 · Decoder with Nilay Patel · Recode Decode: FTC Commissioner Rebecca Kelly Slaughter · IDENTIFIED FROM THE TRANSCRIPT

  44. And as has been reported today, for example, you're all going, you would go to the north. People were like, can you believe they went to Snapchat? I'm like, that's the first stop on my parade, if I was looking into FDC and antitrust. Snapchat had been creating a file as Yelps did around Google about what they considered violations and they called it the Voldemort file, essentially, calling Facebook Voldemort in terms of what they considered violations things that were antitrust behavior and the ability of Facebook, which I think people can see right in plain sight copying all their things having enormous market power, et cetera, et cetera. And so this leads to, do you also have the Justice Department looking into not Facebook, but Google? And is that correct? You all split things up?

    2019-09-30 · Decoder with Nilay Patel · Recode Decode: FTC Commissioner Rebecca Kelly Slaughter · IDENTIFIED FROM THE TRANSCRIPT

  45. Yeah, and to be fair, consistent with the terms of the Consumer Protection Order, there is going to be continuous monitoring and reporting to the agency of what the company is doing with privacy and data security. So that ongoing monitoring in a way is like a continuous investigation.

    2019-09-30 · Decoder with Nilay Patel · Recode Decode: FTC Commissioner Rebecca Kelly Slaughter · IDENTIFIED FROM THE TRANSCRIPT

  46. Even if I couldn't say everything about the negotiation, I do think it's valuable for the public to know when the government is investigating things. Europe does it. The sky doesn't fall. So I think that that would be good. But I can say, because Facebook has said publicly that there is an antitrust investigation into Facebook now, that's different from the privacy and order violation. Right.

    2019-09-30 · Decoder with Nilay Patel · Recode Decode: FTC Commissioner Rebecca Kelly Slaughter · IDENTIFIED FROM THE TRANSCRIPT

  47. What they're doing now. And this one, there's a limited amount I can talk about publicly. I wish there was more. I would like us to be more transparent about what we're doing. I know you can do about that.

    2019-09-30 · Decoder with Nilay Patel · Recode Decode: FTC Commissioner Rebecca Kelly Slaughter · IDENTIFIED FROM THE TRANSCRIPT

  48. Right. No, no, not at all. So I don't think people understood how powerful these companies would get. I think government is super slow moving. I mean, to be fair, it's really to not understand their power has taken them until now to figure out. So you have this situation. So fast forward to, I'm going to get off Facebook in a minute, but right now you're all investigating them still. So it doesn't end what they're doing now.

    2019-09-30 · Decoder with Nilay Patel · Recode Decode: FTC Commissioner Rebecca Kelly Slaughter · IDENTIFIED FROM THE TRANSCRIPT

  49. She has a marker. She has some really creative ideas about it. And that's important. I mean, these things are not mutually exclusive. We can both push to do more and better with the resources and authority we have now and to try as hard as we can and say, Our resources and authority are not great. You need to have a hundred percent.

    2019-09-30 · Decoder with Nilay Patel · Recode Decode: FTC Commissioner Rebecca Kelly Slaughter · IDENTIFIED FROM THE TRANSCRIPT

  50. And our hands are tied by the law right now. Right. Now do something about it, which is, I think, a lot of people are pushing off the responsibility onto agencies that have none of the resources necessary. That's something Amy Klobichar and I talked about, ideas of how to fund the FTC better and get more money by, I think hers was taxing some political ads or something. She has some really crazy crazy.

    2019-09-30 · Decoder with Nilay Patel · Recode Decode: FTC Commissioner Rebecca Kelly Slaughter · IDENTIFIED FROM THE TRANSCRIPT