Google, FTC, Microsoft discussed on Pivot with Kara Swisher and Scott Galloway

Automatic TRANSCRIPT

I just finished a confident airtime saying that's exactly what I call it a parking ticket. Thanks, guys. This is big how much they. Why? Well, I saw. Okay. So think about what's happened here. Well, let's step back a fine. What's the point of government action of fines, the ideas, you know? It's a little bit of retribution. It's a little bit of a fundraising event. But mostly it's meant to serve as a deterrent in the algebra around. Deterrence is pretty simple. And that is the likelihood of the probability of getting caught times the likely fine is greater than the upside of continuing to engage in that illegal activity. Yeah. Right. So the chances of me getting caught doing something times going to jail scares the shit out of me. And I don't do a lot of bad things that I might engage in otherwise. And what has happened here is that Facebook has unwittingly co opted the FTC into what is probably the most value creative day in the history of Facebook. And that is their stock is up thirty billion dollars this morning. The value of Viacom plus throw in FIA Chrysler why because they came out ahead of the fine and said, hey, guess what in exchange we can? Continue to engage in this legal behavior. And it's going to cost us two weeks of income or seven weeks of cash flow and on hearing that the marketplace says fantastic, we're gonna take your market cap up. Ten x the amount of the fine. So not only is this fine, not a deterrent. It is in neighboring this type of behavior and Tim Wu. Professor Tim Wu Columbia. I mean, this guy's a gangster. He's written. I think really important book called the curse of bigness. Yes. A key point. And that is a key step to tyranny is that the government is no longer turns from countervailing forint force against private power to ah co-conspirator. And that's exactly what has happened here is that our government agencies are no longer countervailing forces there co conspirators and the FTC in the DOJ needs to do what happens when you see those signs. It says construction men and women working if you speed here. The fines are doubled they need to say, okay. When we're talking about media. And privacy in an instance, where might be spun into violence as as you have articularly said, then we need ten x fine. So my big theme today to the FTC is ten x zero to that fine and restore the algebra of deterrence. Yeah. Right. Yeah. I'll try sounded. So indignant and arrogant, right? He can that for the call. Algebra of deterrence. I'm gonna mention you love it. I'm writing it down with my dean. There's AO seniors AO d. Hey, we'll see what is air on the end of that. I guess I'm guessing I agree. It's just a ridiculously low fine. And you know, I it's there's all kinds of ideas to find these companies are things, but it's it must. They must have been like oh few five billion. That's all that kind of thing. And it's for what they've done over the past couple of years. I mean, they're getting off further behavior. It's like get out of jail free card less than Google walkout. Organizers say they're facing retaliation and Google saying they're not. And and it's, you know, it's an interesting problem when when people become essentially not wis there was there not whistleblowers. They're there they they want things to change the company are being public about it. They get impacted Scott. What do you think I've always thought, and you've reinforced those is that Google is actually a lot more tolerant of dissent than most companies usually. Yeah. But not in the back in the back part of it. Right. There like shirt, and then these the doesn't help you when you've done this. If you don't go along to get along. So there are tolerant, but should it. I mean realistically, should it help you because you're being difficult. Yes. Yes. He should be able to say we want company like Google, Google, always talks about they have these meetings. They talk about how everybody counts if they're going to do that. They should just say, no, we're just Microsoft. So just hush up and sit in the back. That's that's what I said..

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