Too much regulation will leave China's technological leadership

Too much regulation of US companies such as Facebook and Google will allow Chinese companies to assert themselves on the world stage, said Friday the former Facebook board member to Donald Graham. , CNOS.

"These companies have competitors," said Graham Holdings Company president, a former Washington Post publisher, in "Squawk Box." "These competitors are Chinese, and if Facebook and Google are blocked by regulations in force, the global leadership in being handed over to Chinese companies, and I do not think that will be very good for your privacy."

The United States already has strained relations with some Chinese technology companies such as smartphone maker Huawei with respect to privacy issues. In January, the United States filed criminal charges against the company in two cases, alleging the theft of trade secrets and wire fraud.

Earlier this week, Facebook had stated that it expected a fine of up to $ 5 billion from the Federal Trade Commission for investigating its privacy practices and knowing if the company had breached an agreement in 2011. In its report on last month's results, Facebook announced a charge of $ 3 billion in anticipation of a possible fine on the part of the company. regulatory authority. While Facebook said "the question remains unresolved," he said the latest charge could reach $ 5 billion.

An agreement of this magnitude would far exceed the $ 22.5 million fine imposed by the FTC on Google in 2012 for allegedly violating an agreement to improve privacy practices.

"I think even regulating them to the extent that everyone is talking about, I think it would be very bad for the country," Graham told CNBC. "I think it will most likely happen, I think the best thing for Google and Facebook is that they do not do much in Washington."

Facebook and the FTC seem on the verge of concluding an agreement. The Washington Post announced on Friday that Facebook was ready to request more oversight of its data collection, which could include checks by an agency-approved third-party monitoring agency. .

Facebook and the FTC refused to comment.

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