FACEBOOK: TRANSPARENCY AND USE OF CONSUMER DATA HEARING BEFORE THE COMMITTEE ON ENERGY AND COMMERCE HOUSE OF REPRESENTATIVES ONE HUNDRED FIFTEENTH CONGRESS SECOND SESSION APRIL 11, 2018 Serial No. 115–114 ( Printed for the use of the Committee on Energy and Commerce energycommerce.house.gov U.S. GOVERNMENT PUBLISHING OFFICE 30–956 PDF WASHINGTON : 2018 VerDate Mar 15 2010 16:10 Aug 23, 2018 Jkt 037690 PO 00000 Frm 00001 Fmt 5011 Sfmt 5011 I:\115THCONGRESS\115X114FACEBOOK\115X114FACEBOOKWORKING WAYNE COMMITTEE ON ENERGY AND COMMERCE GREG WALDEN, Oregon Chairman JOE BARTON, Texas FRANK PALLONE, JR., New Jersey Vice Chairman Ranking Member FRED UPTON, Michigan BOBBY L. RUSH, Illinois JOHN SHIMKUS, Illinois ANNA G. ESHOO, California MICHAEL C. BURGESS, Texas ELIOT L. ENGEL, New York MARSHA BLACKBURN, Tennessee GENE GREEN, Texas STEVE SCALISE, Louisiana DIANA DEGETTE, Colorado ROBERT E. LATTA, Ohio MICHAEL F. DOYLE, Pennsylvania CATHY MCMORRIS RODGERS, Washington JANICE D. SCHAKOWSKY, Illinois GREGG HARPER, Mississippi G.K. BUTTERFIELD, North Carolina LEONARD LANCE, New Jersey DORIS O. MATSUI, California BRETT GUTHRIE, Kentucky KATHY CASTOR, Florida PETE OLSON, Texas JOHN P. SARBANES, Maryland DAVID B. MCKINLEY, West Virginia JERRY MCNERNEY, California ADAM KINZINGER, Illinois PETER WELCH, Vermont H. MORGAN GRIFFITH, Virginia BEN RAY LUJA´ N, New Mexico GUS M. BILIRAKIS, Florida PAUL TONKO, New York BILL JOHNSON, Ohio YVETTE D. CLARKE, New York BILLY LONG, Missouri DAVID LOEBSACK, Iowa LARRY BUCSHON, Indiana KURT SCHRADER, Oregon BILL FLORES, Texas JOSEPH P. KENNEDY, III, Massachusetts SUSAN W. BROOKS, Indiana TONY CA´ RDENAS, California MARKWAYNE MULLIN, Oklahoma RAUL RUIZ, California RICHARD HUDSON, North Carolina SCOTT H. PETERS, California CHRIS COLLINS, New York DEBBIE DINGELL, Michigan KEVIN CRAMER, North Dakota TIM WALBERG, Michigan MIMI WALTERS, California RYAN A. COSTELLO, Pennsylvania EARL L. ‘‘BUDDY’’ CARTER, Georgia JEFF DUNCAN, South Carolina (II) VerDate Mar 15 2010 16:10 Aug 23, 2018 Jkt 037690 PO 00000 Frm 00002 Fmt 0486 Sfmt 0486 I:\115THCONGRESS\115X114FACEBOOK\115X114FACEBOOKWORKING WAYNE CONTENTS Page Hon. Greg Walden, a Representative in Congress from the State of Oregon, opening statement ................................................................................................ 2 Prepared statement .......................................................................................... 4 Hon. Frank Pallone, Jr., a Representative in Congress from the State of New Jersey, opening statement .......................................................................... 5 Prepared statement .......................................................................................... 6 WITNESS Mark Zuckerberg, Cofounder, Chairman, and Chief Executive Officer, Facebook, Inc. ....................................................................................................... 8 Prepared statement .......................................................................................... 10 Answers to submitted questions 1 ................................................................... 212 SUBMITTED MATERIAL Subcommittee memorandum .................................................................................. 106 Article of November 20, 2012, ‘‘Friended: How the Obama Campaign Con- nected with Young Voters,’’ by Michael Scherer, Time, submitted by Mr. Burgess ................................................................................................................. 112 Article of April 9, 2018, ‘‘We Already Know How to Protect Ourselves From Facebook,’’ by Zeynep Tufekci, New York Times, submitted by Mr. Burgess . 114 Article of March 21, 2018, ‘‘It’s Time to Break Up Facebook,’’ by Eric Wilson, Politico, submitted by Mr. Burgess ..................................................................... 118 Letter of April 9, 2018, from Faiz Shakir, National Political Director, and Neema Singh Guliani, Legislative Counsel, American Civil Liberties Union, to Representatives in Congress, submitted by Mr. Walden ............................. 120 Statement of NetChoice by Carl Szabo, Vice President and General Counsel, April 9, 2018, submitted by Mr. Walden ............................................................ 125 Letter of April 5, 2018, from John Rowan, National President and Chief Executive Officer, Vietnam Veterans of America, to Mr. Walden and Mr. Pallone, submitted by Mr. Walden ..................................................................... 131 Letter of April 11, 2018, from Allison S. Bohm, Policy Counsel, Public Knowl- edge, to Mr. Walden and Mr. Pallone, submitted by Mr. Walden ................... 142 Letter of April 10, 2018, from Marc Rotenberg, President, Electronic Privacy Information Center, et al., to House Energy and Commerce Committee members, submitted by Mr. Walden .................................................................. 147 Federal Trade Commission Complaint of December 17, 2009, by Marc Rotenberg, President, Electronic Privacy Information Center, et al., sub- mitted by Mr. Walden .......................................................................................... 163 Letter of April 10, 2018, from Charles H. Rivkin, Chairman and Chief Execu- tive Officer, Motion Picture Association of America, to Mr. Walden and Mr. Pallone, submitted by Mr. Walden .............................................................. 192 Letter of April 10, 2018, from Morgan Reed, President, ACT, the App Associa- tion, to Mr. Walden and Mr. Pallone, submitted by Mr. Walden .................... 193 Letter of April 10, 2018, from Curt Levey, President, and Ashley Baker, Director of Public Policy, the Committee for Justice, to Mr. Walden and Mr. Pallone, submitted by Mr. Walden .............................................................. 201 1 Questions for the record and responses from Facebook, Inc., have been retained in committee files and also are available at https:// docs.house.gov/Committee/Calendar/ByEvent.aspx?EventID=108090. (III) VerDate Mar 15 2010 16:10 Aug 23, 2018 Jkt 037690 PO 00000 Frm 00003 Fmt 5904 Sfmt 5904 I:\115THCONGRESS\115X114FACEBOOK\115X114FACEBOOKWORKING WAYNE IV Page Letter of April 9, 2018, from Jeffrey Chester, U.S. Co-Chair, and Finn Lu¨ tzow-Holm Myrstad, EU Co-Chair, Digital Policy Committee, Trans At- lantic Consumer Dialogue, to Mark Zuckerberg, Chief Executive Officer, Facebook, submitted by Mr. Walden .................................................................. 205 Letter of October 30, 2017, from Arab American Institute, et al., to Mark Zuckerberg, Chief Executive Officer, and Sheryl Sandberg, Chief Operating Officer, Facebook, submitted by Mr. Walden ..................................................... 206 Statement of National Council of Negro Women by Janice L. Mathis, Execu- tive Director, April 10, 2018, submitted by Mr. Walden .................................. 211 VerDate Mar 15 2010 16:10 Aug 23, 2018 Jkt 037690 PO 00000 Frm 00004 Fmt 5904 Sfmt 5904 I:\115THCONGRESS\115X114FACEBOOK\115X114FACEBOOKWORKING WAYNE FACEBOOK: TRANSPARENCY AND USE OF CONSUMER DATA WEDNESDAY, APRIL 11, 2018 HOUSE OF REPRESENTATIVES, COMMITTEE ON ENERGY AND COMMERCE, WASHINGTON, DC. The committee met, pursuant to call, at 9:59 a.m., in room 2123, Rayburn House Office Building, Hon. Greg Walden (chairman of the committee) presiding. Members present: Representatives Walden, Barton, Upton, Shim- kus, Burgess, Blackburn, Scalise, Latta, McMorris Rodgers, Har- per, Lance, Guthrie, Olson, McKinley, Kinzinger, Griffith, Bilirakis, Johnson, Long, Bucshon, Flores, Brooks, Mullin, Hudson, Collins, Cramer, Walberg, Walters, Costello, Carter, Duncan, Pallone, Rush, Eshoo, Engel, Green, DeGette, Doyle, Schakowsky, Butterfield, Matsui, Castor, Sarbanes, McNerney, Welch, Luja´n, Tonko, Clarke, Loebsack, Schrader, Kennedy, Ca´rdenas, Ruiz, Peters, and Dingell. Staff present: Jon Adame, Policy Coordinator, Communications and Technology; Mike Bloomquist, Staff Director; Daniel Butler, Staff Assistant; Karen Christian, General Counsel; Kelly Collins, Legislative Clerk, Energy/Environment; Zack Dareshori, Legisla- tive Clerk, Health; Jordan Davis, Director of Policy and External Affairs; Melissa Froelich, Chief Counsel, Digital Commerce and Consumer Protection; Adam Fromm, Director of Outreach and Coa- litions; Ali Fulling, Legislative Clerk, Oversight and Investigations, Digital Commerce and Consumer Protection; Theresa Gambo, Human Resources and Office Administrator; Brighton Haslett, Counsel, Oversight and Investigations; Elena Hernandez, Press Secretary; Zach Hunter, Communications Director; Paul Jackson, Professional Staff Member, Digital Commerce and Consumer Pro- tection; Peter Kielty, Deputy General Counsel; Bijan Koohmaraie, Counsel, Digital Commerce and Consumer Protection; Ryan Long, Deputy Staff Director; Milly Lothian, Press Assistant and Digital Coordinator; Mark Ratner, Policy Coordinator; Austin Stonebraker, Press Assistant; Evan Viau, Legislative Clerk, Communications and Technology; Hamlin Wade, Special Advisor for External Af- fairs; Everett Winnick, Director of Information Technology; Greg Zerzan, Counsel, Digital Commerce and Consumer Protection; Michelle Ash, Minority Chief Counsel, Digital Commerce and Con- sumer Protection; Julie Babayan, Minority Counsel; Jeff Carroll, Minority Staff Director; Jennifer Epperson, Minority FCC Detailee; David Goldman, Minority Chief Counsel, Communications and Technology; Lisa Goldman, Minority Counsel; Tiffany Guarascio,