Former Obama Adviser: Big Tech and the Government Aren't Doing Enough
*By Madison Alworth*
Irish regulators have officially launched an investigation into Facebook's latest data breach ー one which could affect 50 million user accounts and is thought to be the single biggest hack of the company's network yet.
The country's Data Protection Commission will now decide whether to fine the social media giant, a penalty that could amount to as much as $1.63 billion.
For Dipayan Ghosh, a former adviser to President Obama and an ex-privacy policy exec at Facebook ($FB) itself, it's a move that should be emulated by U.S. authorities too.
"We do need the U.S. to be bringing forth these regulations for the digital age, because if we leave it to our international competitors, to jurisdictions outside of the United States, it's likely that they will set rules for Silicon Valley, which is an American industry, in a ways that is actually in their interest," Ghosh said in an interview with Cheddar this week.
Ghosh, currently a Pozen Fellow at Shorenstein Center on Media, Politics, and Public Policy at the Harvard Kennedy School, recently published a report titled, ["Digital Deceit: A Policy Agenda to Fight Disinformation on the Internet"](https://www.newamerica.org/public-interest-technology/reports/digital-deceit-ii/executive-summary/?mod=article_inline), in which he argued that tech companies are not only unequipped to properly regulate their content and users’ data, but they’re largely unwilling to do so.
"I think it's long and gone for the industry to take voluntary measures to move by itself and do something for the little guy, for the individual, for the consumer, for the voter," he said. "We have seen the industry have lots of opportunities to do that in the past, and it simply has not taken the right steps to protect the public interest."
Ghosh noted that big tech has been operating much like the Wild West, but U.S. lawmakers are getting wise, and the race to set regulation is on.
But the data breach is only one problem facing the company. News of the hack came only days after the departure of Instagram co-founders [Kevin Systrom and Mike Krieger](https://cheddar.com/videos/instagram-co-founders-call-it-quits) from Facebook. Their exit signals a larger issue at the social media giant — and the timing is significant.
"For its founders to leave after a few years is incredible news. We imagine Facebook as a fantastic, huge technological force and innovative organization," Ghosh said. "And for these two key individuals to be leaving the company at this stage is pretty incredible. It suggests that they want to strike out new and find new opportunities for innovation."
Facebook has been struggling with one bad headline after another for months ー from the Cambridge Analytica scandal, to questionable ad targeting, to misuse of its platform around election. The stock had been able to withstand most of that until this summer. Since its last earnings report in July, shares have lost a full quarter of their value.
For full interview [click here](https://cheddar.com/videos/big-tech-has-big-problems).
A mental health crisis among young people is looming, and a large part of it is online. Cheddar News speaks with digital policy expert Karen Kornbluh on the issue.
Adam Mosseri, head of Instagram, faced withering questions on Capitol Hill about the reports the social media app was aware of the severe mental health impacts it was having on teenage girls. Karen Kornbluh, the director of digital innovation and democracy for the German Marshall Fund, joined Cheddar to discuss the rare show of bipartisan outrage on display at the Senate hearing. "The senators came really loaded for bear on both sides of the aisle," she said. Kornbluh explained how senators like Richard Blumenthal (D-Conn.) set up fake Instagram accounts with teen girl profiles in order to research the effects firsthand.
Roshan Jhunja, head of retail at Square, joined Cheddar to talk about the financial services company's second annual Future of Retail report. Square expects the massive shift to e-commerce to continue into 2022 as more consumers get used to the online shopping experience. For Square, soon-to-be renamed Block, which began predominantly as a digital payment platform, Jhunja said the company is also helping sellers with automation amid ongoing labor shortages.
Facebook is undergoing more than a name change. The company, now known as Meta, has also seen an exodus of executives this year. While the timing of some of these resignations came before whistleblower allegations, it's undeniable the tech giant is undergoing big changes. Doug Astrop, Managing Partner at Exponential Investment Partners, joins Cheddar News' Closing Bell to discuss Facebook's current state, possible regulatory scrutiny, the impact of Instagram chief Adam Mosseri's Congressional testimony, and more.
Fast AF, a premiere quick commerce retailer for products and brands just announced the close of its Series A investment round. That round puts the value of the company at $200 million. The company gets items to customers ranging from masks to sneakers and is now launching its own in-house delivery service. Lee Hnetinka, founder and CEO of FastAF joins Cheddar News to discuss the announcement.
Carolina Navas, Snap's head of AR product strategy and product marketing, joins Cheddar News to discuss how Snapchat's augmented reality is changing the shopping game this holiday season.
Instagram Chief Executive Adam Mosseri is set to testify before Congress for the first time. Mosseri’s appearance follows reports that showed Facebook and Instagram are aware of the harms their apps and services cause, including to teen mental health. Nicole Gill, co-founder and executive director of Accountable Tech joins Cheddar News to preview the hearing.
Steve Case, Revolution Ventures CEO, joined Cheddar to discuss progress venture capitalists have made over 2021 and where investors are looking beyond Silicon Valley. Other locations VC firms are exploring include Los Angeles, Philadelphia, and Chicago among others. "Historically there's been a brain drain in a lot of these cities, people leaving for opportunity elsewhere. Now, people are staying," he said of the emerging tech hubs. "There tends to be a collaborative effort in the community to really support startups to recognize the future of the community."
