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Don’t be Yahoo

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bloombergbusiness.com

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Thu, Oct 12, 2017 11:03 AM

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From    Hello, everyone. It's . I propose a mantra for Facebook Inc., Google and Twitter Inc.

[Bloomberg] [Fully Charged]( From [Bloomberg](   [FOLLOW US [Facebook Share]]([Twitter Share]( [SUBSCRIBE [Subscribe]](  Hello, everyone. It's [Shira](mailto:sovide@bloomberg.net). I propose a mantra for Facebook Inc., Google and Twitter Inc. as they gear up for [Congressional hearings]( on election-related digital mischief: Don't Be Yahoo. This is good advice in general. But I'm referring to the checkered history of technology executives giving public testimony to Congress, from Bill Gates's awkward [defense]( of Microsoft Corp.'s alleged monopoly in the 1990's to Yahoo's [grilling]( over its role in the imprisonment of a Chinese political dissident. Yes, when techies go to Washington, it doesn't always end well. These hearings are a no-win situation for almost anyone. Typically something terrible has happened, and legislators want to extract a pound of flesh from the people in the hot seat, whether they're technology executives, [bank CEOs]( or the [former chief of Equifax](. Still, I will remind Silicon Valley of the cardinal rules for its big day on Nov. 1 in front of the House and Senate intelligence committees: Don't argue (too much) with members of Congress, don't be arrogant jerks, and definitely don't say anything that might later prove untrue. Oh, and don't [blame journalists and lecture others]( that they don't understand how hard it is to fix your company's problems. The worst possible outcome is what happened to Yahoo a decade ago as Congress was looking into how U.S. technology companies helped countries restrict human rights. Yahoo had turned over to Chinese officials emails and other online records of a journalist, Shi Tao, who was sentenced to prison for 10 years in 2005 for subversive activities. Yahoo's top lawyer initially told Congress the company didn't know the nature of China's investigation of Shi when it turned over information about him. The company later acknowledged it had in fact learned officials were pursuing him for a common charge against political dissidents, but Yahoo didn't tell legislators once it discovered its prior disclosures were incorrect. Needless to say, this upset members of Congress. "While technologically and financially you are giants, morally you are pygmies," California Democrat Tom Lantos memorably told Yahoo co-founder Jerry Yang and another executive at [a 2007 hearing](. Yang publicly apologized to Shi's mother. That incident had hangover effects. Yahoo sold control of its China operations. And negative publicity about Yahoo's release of Shi's information helped fuel continuing controversies over technology companies' cooperation with restrictive governments in China and elsewhere. Trips to Capitol Hill don't always end badly. During Apple Inc. CEO Tim Cook's 2013 [appointment with Senators]( looking into U.S. companies' tax-avoidance strategies, he got some pats on the back and fielded tech support questions. “Why the hell do I have to keep updating my apps on my iPhone all the time?" Arizona Senator John McCain asked the boss of the world's most valuable public company. Missouri Senator Claire McCaskill declared her love for Apple. Twice. Washington's current probing of internet misinformation is also an important test of U.S. tech superpowers' abilities to navigate politically charged atmospheres in their home country and beyond. The companies are dealing with an unprecedented [array of questions]( about their power and influence -- from whether they exacerbate economic inequality to how they balance privacy versus safety, stifle business competition and become unwitting megaphones for hate. Whoever Facebook and Google parent company Alphabet Inc. send to the House and Senate next month, it's a good guess that no member of Congress will profess their love for the embattled tech giants. [--Shira Ovide](  And here’s what you need to know in global technology: The fix-it list for Uber's new CEO keeps getting longer. Federal criminal investigations into the company are [more expansive than previously reported](, including a look at the legality of Uber's fare transparency and the company's role in the alleged theft of material from Alphabet Inc.'s self-driving car unit.  Virtual reality still [isn't very popular](. But it is getting cheaper. As Bloomberg [previewed]( in July, Facebook on Wednesday said it plans to sell a [$199 virtual reality headset]( that doesn't need to be connected to a computer or smartphone.  There's a secretive new neighbor on Silicon Slopes. Los Angeles-based Snap Inc. is [building]( a new research-and-development office in a remote area of Utah. Let's hope the company's new neighbors like it more than their counterparts in Venice Beach, Calif., where Snap is [not universally loved.](  A journalist asked Facebook 12 questions about its role in sowing dissent and misinformation of the American electorate. The company's representatives, including the executive who complained about coverage of the issue recently, [answered five of them](.    You received this message because you are subscribed to the Bloomberg Technology newsletter Fully Charged. You can tell your friends to [sign up here](.  [Unsubscribe]( | [Bloomberg.com]( | [Contact Us]( Bloomberg L.P. 731 Lexington, New York, NY, 10022

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