Facebook CEO Mark Zuckerberg Lambasted Before Congress Over Libra, Data Privacy And Fake Political Ads

Facebook cofounder and CEO Mark Zuckerberg was hauled before Congress on Wednesday—this time to be excoriated over his new Libra cryptocurrency project. 

Libra is planned to be a global digital currency, used both on and off of Facebook properties. The stablecoin could be used to purchase goods and services and transmit the digital currency easily and inexpensively to others. It would become a direct competitor to existing currencies, such as the U.S. dollar. This has Congress, the public and regulators highly concerned. There is a real fear of money laundering, harming existing global financial infrastructures and Facebook accumulating even greater power and control.  

Sporting a new hairstyle, sitting awkwardly—and at times, robotically—before the House Financial Services Committee, Zuckerberg was bombarded with angry questions, comments and complaints. Democratic congresswoman and committee chair, Maxine Waters, immediately laid into Zuckerberg right from the start.

Waters made it abundantly clear that the hearing, in addition to the core focus on Libra, would also include an array of charges previously levied against the social network. This includes allegations of violations of user privacy, running a monopoly, permitting discrimination within the company, allowing advertisements that engage in housing discrimination, violations of election security, permitting misleading political ads, offering a haven for hate groups and raising the issue of breaking up Facebook.  

"I have come to the conclusion that it would be beneficial for all if Facebook concentrates on addressing its many existing deficiencies and failures before proceeding any further on the Libra project," said Water. She added that several lawmakers have called for a moratorium on the Libra project until Congress can evaluate it.

Zuckerberg’s go-to defense of Libra centered on two major themes. The CEO contends that he deeply cares about the poor and “unbanked” who don’t have access to traditional banking and financial services and desperately need his help. Tapping into the current anti-China zeitgeist, Zuckerberg claims—without any real evidence—that if he doesn’t launch Libra, the Chinese will. His underlying threat is that if he's not allowed to move forward, the Chinese will become the dominant leaders in a global digital currency and it will leave the U.S. far behind. 

"Facebook's internal motto was for a long time 'move fast and break things.' Mr. Zuckerberg, we do not want to break the international monetary system," Congresswoman Nydia Velázquez (D-NY) said in response to his claims. Other members of Congress were suspect of Zuckerberg’s assertions and pointed out that Facebook has a lousy track record on helping the poor and minority groups

Members of Congress were uncomfortable with the reason why Libra was founded in Switzerland, as opposed to the U.S. 

At times, Zuckerberg showed some self-awareness. "I believe this is something that needs to get built," Zuckerberg wrote in his testimony, "but I understand we're not the ideal messenger right now. We've faced a lot of issues over the past few years, and I'm sure people wish it was anyone but Facebook putting this idea forward."

There was tension in the room when Alexandria Ocasio-Cortez (D-NY) asked, "Do you see a potential problem here with a complete lack of fact-checking on political advertisements?" Zuckerberg uncomfortably answered, "I think lying is bad, and I think if you were to run an ad that had a lie, that would be bad." 

Ocasio-Cortez continued to grill him over the lack of fact-checking political ad campaigns. She inquired, "Could I run ads targeting Republicans in primaries, saying they voted for the Green New Deal?"

Zuckerberg replied, "Congresswoman, I don't know the answer to that off the top of my head."

Some Republicans differed in their approach and gave sympathetic comments, commending Zuckerberg for building a successful business and working toward innovation in the financial world.

As usual with these show trials, nothing was accomplished at the end of the six-hour testimony—except for the members of congress who got the chance to preen before the cameras, display their moral superiority and relish the opportunity to make a multibillionaire squirm.