Featured Article

Highlights and audio from Zuckerberg’s emotional Q&A on scandals

The CEO admits failure and lays plans for a more mature Facebook

Comment

Image Credits: (Photo by C Flanigan/WireImage)

“This is going to be a never-ending battle,” said Mark Zuckerberg. He just gave the most candid look yet into his thoughts about Cambridge Analytica, data privacy and Facebook’s sweeping developer platform changes during a conference call with reporters today. Sounding alternately vulnerable about his past negligence and confident about Facebook’s strategy going forward, Zuckerberg took nearly an hour of tough questions.

You can read a transcript here and listen to a recording of the call below:



The CEO started the call by giving his condolences to those affected by the shooting at YouTube yesterday. He then delivered this mea culpa on privacy:

We’re an idealistic and optimistic company … but it’s clear now that we didn’t do enough. We didn’t focus enough on preventing abuse and thinking through how people could use these tools to do harm as well … We didn’t take a broad enough view of what our responsibility is and that was a huge mistake. That was my mistake.

It’s not enough to just connect people. We have to make sure those connections are positive and that they’re bringing people together.  It’s not enough just to give people a voice, we have to make sure that people are not using that voice to hurt people or spread misinformation. And it’s not enough to give people tools to sign into apps, we have to make sure that all those developers protect people’s information too.

It’s not enough to have rules requiring that they protect the information. It’s not enough to believe them when they’re telling us they’re protecting information. We actually have to ensure that everyone in our ecosystem protects people’s information.

This is Zuckerberg’s strongest statement yet about his and Facebook’s failure to anticipate worst-case scenarios, which has led to a string of scandals that are now decimating the company’s morale. Spelling out how policy means nothing without enforcement, and pairing that with a massive reduction in how much data app developers can request from users makes it seem like Facebook is ready to turn over a new leaf.

Here are the highlights from the rest of the call:

On Zuckerberg calling fake news’ influence “crazy”: “I clearly made a mistake by just dismissing fake news as crazy — as having an impact … it was too flippant. I never should have referred to it as crazy.

Facebook and the endless string of worst-case scenarios

On deleting Russian trolls: Not only did Facebook delete 135 Facebook and Instagram accounts belonging to Russian government-connected election interference troll farm the Internet Research Agency, as Facebook announced yesterday, Zuckerberg said Facebook removed “a Russian news organization that we determined was controlled and operated by the IRA.”

On the 87 million number: Regarding today’s disclosure that up to 87 million people had their data improperly accessed by Cambridge Analytica, “it very well could be less but we wanted to put out the maximum that we felt it could be as soon as we had that analysis.” Zuckerberg also referred to The New York Times’ report, noting that “We never put out the 50 million number, that was other parties.”

Facebook admits Cambridge Analytica hijacked data on up to 87M users

On users having their public info scraped: Facebook announced this morning that “we believe most people on Facebook could have had their public profile scraped” via its search by phone number or email address feature and account recovery system. Scammers abused these to punch in one piece of info and then pair it to someone’s name and photo. Zuckerberg said search features are useful in languages where it’s hard to type or a lot of people have the same names. But “the methods of react limiting this weren’t able to prevent malicious actors who cycled through hundreds of thousands of IP addresses and did a relatively small number of queries for each one, so given that and what we know to day it just makes sense to shut that down.”

On when Facebook learned about the scraping and why it didn’t inform the public sooner:  “We looked into this and understood it more over the last few days as part of the audit of our overall system,” Zuckerberg said, declining to specify when Facebook first identified the issue. [Update: Facebook later specified that the sophisticated scraping had been picked up in the past few weeks during the audit, recently confirmed, and that the company disclosed the situation as soon as it had details ready.]

On implementing GDPR worldwide: Zuckerberg refuted a Reuters story from yesterday saying that Facebook wouldn’t bring GDPR privacy protections to the U.S. and elsewhere. Instead he says, “we’re going to make all the same controls and settings available everywhere, not just in Europe.”

Zuckerberg says Facebook will offer GDPR privacy controls everywhere

On if board has discussed him stepping down as chairman: “Not that I’m aware of,” Zuckerberg said happily.

On if he still thinks he’s the best person to run Facebook: “Yes. Life is about learning from the mistakes and figuring out what you need to do to move forward … I think what people should evaluate us on is learning from our mistakes … and if we’re building things people like and that make their lives better … there are billions of people who love the products we’re building.”

On the Boz memo and prioritizing business over safety: “The things that makes our product challenging to manage and operate are not the trade-offs between people and the business. I actually think those are quite easy because over the long-term, the business will be better if you serve people. I think it would be near-sighted to focus on short-term revenue over people, and I don’t think we’re that short-sighted. All the hard decisions we have to make are trade-offs between people. Different people who use Facebook have different needs. Some people want to share political speech that they think is valid, and other people feel like it’s hate speech … we don’t always get them right.”

The real threat to Facebook is the Kool-Aid turning sour

On whether Facebook can audit all app developers: “We’re not going to be able to go out and necessarily find every bad use of data,” Zuckerberg said, but confidently said, “I actually do think we’re going to be able to cover a large amount of that activity.”

On whether Facebook will sue Cambridge Analytica: “We have stood down temporarily to let the [U.K. government] do their investigation and their audit. Once that’s done we’ll resume ours … and ultimately to make sure none of the data persists or is being used improperly. And at that point if it makes sense we will take legal action if we need to do that to get people’s information.”

Cambridge Analytica denies accessing data on 87M Facebook users…claims 30M

On how Facebook will measure its impact on fixing privacy: Zuckerberg wants to be able to measure “the prevalence of different categories of bad content like fake news, hate speech, bullying, terrorism … That’s going to end up being the way we should be held accountable and measured by the public … My hope is that over time the playbook and scorecard we put out will also be followed by other internet platforms so that way there can be a standard measure across the industry.”

On whether Facebook should try to earn less money by using less data for targeting: “People tell us if they’re going to see ads they want the ads to be good … that the ads are actually relevant to what they care about … On the one hand people want relevant experiences, and on the other hand I do think there’s some discomfort with how data is used in systems like ads. But I think the feedback is overwhelmingly on the side of wanting a better experience. Maybe it’s 95-5.”

Facebook rewrites Terms of Service, clarifying device data collection

On whether #DeleteFacebook has had an impact on usage or ad revenue: “I don’t think there’s been any meaningful impact that we’ve observed… but it’s not good.”

On the timeline for fixing data privacy: “This is going to be a never-ending battle. You never fully solve security. It’s an arms race,” Zuckerberg said early in the call. Then to close Q&A, he said, “I think this is a multi-year effort. My hope is that by the end of this year we’ll have turned the corner on a lot of these issues and that people will see that things are getting a lot better.”

Overall, this was the moment of humility, candor and contrition Facebook desperately needed. Users, developers, regulators and the company’s own employees have felt in the dark this last month, but Zuckerberg did his best to lay out a clear path forward for Facebook. His willingness to endure these questions was admirable, even if he deserved the grilling.

The company’s problems won’t disappear, and its past transgressions can’t be apologized away. But Facebook and its leader have finally matured past the incredulous dismissals and paralysis that characterized its response to past scandals. It’s ready to get to work.

More TechCrunch

China has closed a third state-backed investment fund to bolster its semiconductor industry and reduce reliance on other nations, both for using and for manufacturing wafers — prioritizing what is…

China’s $47B semiconductor fund puts chip sovereignty front and center

Apple’s annual list of what it considers the best and most innovative software available on its platform is turning its attention to the little guy.

Apple’s Design Awards nominees highlight indies and startups, largely ignore AI (except for Arc)

The spyware maker’s founder, Bryan Fleming, said pcTattletale is “out of business and completely done,” following a data breach.

Spyware maker pcTattletale shutters after data breach

AI models are always surprising us, not just in what they can do, but what they can’t, and why. An interesting new behavior is both superficial and revealing about these…

AI models have favorite numbers, because they think they’re people

On Friday, Pal Kovacs was listening to the long-awaited new album from rock and metal giants Bring Me The Horizon when he noticed a strange sound at the end of…

Rock band’s hidden hacking-themed website gets hacked

Jan Leike, a leading AI researcher who earlier this month resigned from OpenAI before publicly criticizing the company’s approach to AI safety, has joined OpenAI rival Anthropic to lead a…

Anthropic hires former OpenAI safety lead to head up new team

Welcome to TechCrunch Fintech! This week, we’re looking at the long-term implications of Synapse’s bankruptcy on the fintech sector, Majority’s impressive ARR milestone, and more!  To get a roundup of…

The demise of BaaS fintech Synapse could derail the funding prospects for other startups in the space

YouTube’s free Playables don’t directly challenge the app store model or break Apple’s rules. However, they do compete with the App Store’s free games.

YouTube’s free games catalog ‘Playables’ rolls out to all users

Featured Article

A comprehensive list of 2024 tech layoffs

The tech layoff wave is still going strong in 2024. Following significant workforce reductions in 2022 and 2023, this year has already seen 60,000 job cuts across 254 companies, according to independent layoffs tracker Layoffs.fyi. Companies like Tesla, Amazon, Google, TikTok, Snap and Microsoft have conducted sizable layoffs in the first months of 2024. Smaller-sized…

9 hours ago
A comprehensive list of 2024 tech layoffs

OpenAI has formed a new committee to oversee “critical” safety and security decisions related to the company’s projects and operations. But, in a move that’s sure to raise the ire…

OpenAI’s new safety committee is made up of all insiders

Time is running out for tech enthusiasts and entrepreneurs to secure their early-bird tickets for TechCrunch Disrupt 2024! With only four days left until the May 31 deadline, now is…

Early bird gets the savings — 4 days left for Disrupt sale

AI may not be up to the task of replacing Google Search just yet, but it can be useful in more specific contexts — including handling the drudgery that comes…

Skej’s AI meeting scheduling assistant works like adding an EA to your email

Faircado has built a browser extension that suggests pre-owned alternatives for ecommerce listings.

Faircado raises $3M to nudge people to buy pre-owned goods

Tumblr, the blogging site acquired twice, is launching its “Communities” feature in open beta, the Tumblr Labs division has announced. The feature offers a dedicated space for users to connect…

Tumblr launches its semi-private Communities in open beta

Remittances from workers in the U.S. to their families and friends in Latin America amounted to $155 billion in 2023. With such a huge opportunity, banks, money transfer companies, retailers,…

Félix Pago raises $15.5 million to help Latino workers send money home via WhatsApp

Google said today it’s adding new AI-powered features such as a writing assistant and a wallpaper creator and providing easy access to Gemini chatbot to its Chromebook Plus line of…

Google adds AI-powered features to Chromebook

The dynamic duo behind the Grammy Award–winning music group the Chainsmokers, Alex Pall and Drew Taggart, are set to bring their entrepreneurial expertise to TechCrunch Disrupt 2024. Known for their…

The Chainsmokers light up Disrupt 2024

The deal will give LumApps a big nest egg to make acquisitions and scale its business.

LumApps, the French ‘intranet super app,’ sells majority stake to Bridgepoint in a $650M deal

Featured Article

More neobanks are becoming mobile networks — and Nubank wants a piece of the action

Nubank is taking its first tentative steps into the mobile network realm, as the NYSE-traded Brazilian neobank rolls out an eSIM (embedded SIM) service for travelers. The service will give customers access to 10GB of free roaming internet in more than 40 countries without having to switch out their own existing physical SIM card or…

16 hours ago
More neobanks are becoming mobile networks — and Nubank wants a piece of the action

Infra.Market, an Indian startup that helps construction and real estate firms procure materials, has raised $50M from MARS Unicorn Fund.

MARS doubles down on India’s Infra.Market with new $50M investment

Small operations can lose customers by not offering financing, something the Berlin-based startup wants to change.

Cloover wants to speed solar adoption by helping installers finance new sales

India’s Adani Group is in discussions to venture into digital payments and e-commerce, according to a report.

Adani looks to battle Reliance, Walmart in India’s e-commerce, payments race, report says

Ledger, a French startup mostly known for its secure crypto hardware wallets, has started shipping new wallets nearly 18 months after announcing the latest Ledger Stax devices. The updated wallet…

Ledger starts shipping its high-end hardware crypto wallet

A data protection taskforce that’s spent over a year considering how the European Union’s data protection rulebook applies to OpenAI’s viral chatbot, ChatGPT, reported preliminary conclusions Friday. The top-line takeaway…

EU’s ChatGPT taskforce offers first look at detangling the AI chatbot’s privacy compliance

Here’s a shoutout to LatAm early-stage startup founders! We want YOU to apply for the Startup Battlefield 200 at TechCrunch Disrupt 2024. But you’d better hurry — time is running…

LatAm startups: Apply to Startup Battlefield 200

The countdown to early-bird savings for TechCrunch Disrupt, taking place October 28–30 in San Francisco, continues. You have just five days left to save up to $800 on the price…

5 days left to get your early-bird Disrupt passes

Venture investment into Spanish startups also held up quite well, with €2.2 billion raised across some 850 funding rounds.

Spanish startups reached €100 billion in aggregate value last year

Featured Article

Onyx Motorbikes was in trouble — and then its 37-year-old owner died

James Khatiblou, the owner and CEO of Onyx Motorbikes, was watching his e-bike startup fall apart.  Onyx was being evicted from its warehouse in El Segundo, near Los Angeles. The company’s unpaid bills were stacking up. Its chief operating officer had abruptly resigned. A shipment of around 100 CTY2 dirt bikes from Chinese supplier Suzhou…

1 day ago
Onyx Motorbikes was in trouble — and then its 37-year-old owner died

Featured Article

Iyo thinks its GenAI earbuds can succeed where Humane and Rabbit stumbled

Iyo represents a third form factor in the push to deliver standalone generative AI devices: Bluetooth earbuds.

1 day ago
Iyo thinks its GenAI earbuds can succeed where Humane and Rabbit stumbled

Arati Prabhakar, profiled as part of TechCrunch’s Women in AI series, is director of the White House Office of Science and Technology Policy.

Women in AI: Arati Prabhakar thinks it’s crucial to get AI ‘right’