October 24, 2019 Facebook CEO Mark Zuckerberg endured a grueling six-hour hearing before the House Financial Services Committee yesterday. It was a tough visit on a number of fronts.
He was there to talk about Project Libra, Facebook's crypto initiative. But it did not go well, even when the questions stayed on topic, reports Fortune's Jeff John Roberts:
"More troubling for Facebook is that those committee members who had taken time to understand the mechanics of Project Libra, including Rep. Bill Foster (D-IL) and Juan Vargas (D-CA), expressed concerns about the initiative.
Those concerns fell into two broad buckets: That a new global cryptocurrency could threaten the U.S. dollar, and that Project Libra—billed as an independent consortium of companies and non-profits—is basically an alter-ego for Facebook. As the members noted, several high-profile would-be partners, including Visa and PayPal, have pulled out of Project Libra in recent weeks."
That Financial Services Committee members would burn valuable time quizzing the Facebook CEO on other issues—like dangerous content on the platform and the company's lack of diversity—was a pretty clear indication that Libra's regulatory future was unlikely.
It appears, as the song goes, to be a matter of trust.
In a must–watch exchange, Zuckerberg faced tough questions about the platform's unwillingness to pull false or misleading political ads from Rep. Alexandria Ocasio-Cortez.
But do not, under any circumstance, miss this exchange from Rep. Joyce Beatty, the chair of the Financial Services Diversity and Inclusion Subcommittee. Her questions bode poorly for the company who is facing the results of a lengthy civil rights audit this December.
Beatty, who expertly reclaimed her time (hat tip, Rep. Maxine Waters) when necessary, asked about the company's dismal diversity stats, an update on their contracting of underrepresented- or women-owned firms, and still unresolved allegations that the platform's ad system allows housing , employment, and other discrimination.
He didn't have much to say.
And she specifically asked about their civil rights audit, which seemed to take Zuckerberg by surprise. "Do you know who the firm that you employ for civil rights is?" Beatty asked.
He did not.
Referring to the company's ongoing "Black people problem," which includes the reportedly poor treatment of Black Facebook users, she asked, "Do you know what the percentage of African Americans are on Facebook in comparison to majority folks? Do you know what the percentages are?"
He did not.
Beatty, who not only had all the answers to the questions she was asking but had sent the research that supported her points to Zuckerberg and his team in advance, was visibly exasperated.
"I have a lot of questions I'm going to send to you that I'm not going to be able to get through, and I would like an answer because this is appalling and disgusting to me," Beatty told Zuckerberg.
Ellen McGirt
Ellen.McGirt@fortune.com
@ellmcgirt
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