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WELCOME BACK TO WAY TOO EARLY. JUST AFTER 5:30 ON THE EARLY. JUST AFTER 5:30 ON THE EAST COAST. 2:30 OUT WEST. I'M ALI VITALI.
THE SUPREME COURT HAS ALLOWED PRESIDENT DONALD TRUMP TO FIRE A DEMOCRATIC MEMBER OF THE FEDERAL TRADE COMMISSION, AT LEAST FOR NOW.
IN AN EMERGENCY ORDER, A DIVIDED COURT ALLOWED TRUMP'S FIRING OF FCC COMMISSIONER REBECCA KELLY SLAUGHTER BACK IN MARCH TO STAND, THUS SETTING UP A POTENTIAL TO OVERTURN A 90-YEAR-OLD PRECEDENT THAT PROTECTS INDEPENDENT AGENCY LEADERS FROM BEING REMOVED WITHOUT CAUSE. THE COURT'S THREE LIBERAL JUSTICES DISSENTED, WITH JUSTICE ELENA KAGAN WRITING HER CONSERVATIVE COLLEAGUES HAVE, IN HER WORDS, HANDED FULL CONTROL OF GOVERNMENT AGENCIES OVER TO THE PRESIDENT. THE JUSTICES WILL HEAR FULL ARGUMENTS IN THIS CASE IN DECEMBER.
MEANWHILE, TIKTOK USERS HERE IN THE US WILL MOST LIKELY NOT HAVE TO DOWNLOAD A NEW APP TO ACCESS THE POPULAR VIDEO PLATFORM. THIS IS UNDER A NEW DEAL LAID OUT YESTERDAY BY THE TRUMP ADMINISTRATION. THE WALL STREET JOURNAL REPORTS THAT AFTER MONTHS OF NEGOTIATIONS BETWEEN THE TRUMP ADMINISTRATION AND CHINA, THE TWO SIDES HAVE REACHED A PRELIMINARY DEAL.
UNDER THE AGREEMENT, EXISTING INVESTORS AND A GROUP OF NEW U.S. BACKERS THAT INCLUDES PRIVATE EQUITY FIRMS SILVER LAKE AND CLOUD COMPUTING FIRM ORACLE, WOULD TOGETHER OWN ABOUT 80% OF THE COMPANY. ADDITIONALLY, CHINA STILL NEEDS TO SIGN OFF ON THIS FRAMEWORK PROPOSAL, AND ANY FINAL DEAL WOULD STILL REQUIRE REGULATORY APPROVAL.
A LOT FOR US TO BREAK DOWN WITH BUSINESS REPORTER FOR AXIOS NATHAN BOMEY. SO LET'S START FIRST WITH THE FTC. WHAT'S THE IMPACT OF THIS RULING FROM THE SUPREME COURT, WHICH DOESN'T SAY OUTRIGHT, YOU CAN DEFINITELY FIRE THIS PERSON, BUT IT SAYS FOR NOW, WE'LL LET IT HAPPEN.
>> WELL.
>> IT SIGNALS.
>> THAT THE SUPREME.
>> COURT IS WARMING.
>> TO THE IDEA.
>> THAT THE PRESIDENT SHOULD HAVE CONTROL OVER THESE INDEPENDENT AGENCIES, WHICH MEANS THEY REALLY WON'T BE INDEPENDENT AGENCIES AT ALL. IF THIS ENDS UP GOING THROUGH.
>> SO THERE'S A LOT OF BUSINESS, THOUGH, THAT'S STILL IN FRONT OF THE FTC. WHAT'S THE IMPACT OF THINGS THAT THEY'RE DOING THAT GOT LAWSUITS, FOR EXAMPLE, AGAINST TICKETMASTER. WHAT'S THE ACTUAL OUTGROWTH OF THIS?
>> WELL, THE REGULATORY APPROACH OF THE FTC IS CERTAINLY SHIFTING IN SOME SENSE, BECAUSE WE KNOW THAT LINA KHAN, WHO WAS IN CONTROL OF THE FTC UNDER THE BIDEN ADMINISTRATION, WAS REALLY CRACKING DOWN ON BIG TECH. NOW WE'RE WAITING TO SEE IS THE TRUMP ADMINISTRATION GOING TO CONTINUE THAT, BECAUSE J.D. VANCE HAS BEEN A SUPPORTER OF LINA KHAN IN THE PAST. SO WE'RE NOT SURE HOW THAT'S GOING TO PLAY OUT. BUT CERTAINLY, THE FTC UNDER TRUMP IS EXPECTED TO BE MUCH MORE OPEN TO MERGERS AND ACQUISITIONS IN GENERAL, WHICH IS IN GENERAL, A PRO-BUSINESS ENVIRONMENT.
>> A PRO-BUSINESS ENVIRONMENT WILL BE WATCHING WHAT HAPPENS ON THAT FRONT. AND THEN, OF COURSE, THIS LOOMING TIKTOK DEAL HAS BEEN IN THE AIR SINCE TRUMP FIRST TOOK OFFICE AGAIN BACK IN JANUARY. IT COMES AFTER CONGRESS HAD BANNED THE APP OVER NATIONAL SECURITY CONCERNS. THOSE SEEM TO HAVE DISSIPATED WHEN FOLKS REALIZED THEY DIDN'T WANT THE POLITICAL BLAME OF BANNING A VERY POPULAR APP. BUT WHERE DOES THIS DEAL STAND RIGHT NOW? BECAUSE IN EVERY NEW REPORT I KEEP SEEING, IT'S THAT THERE'S MORE TRUMP ALLIES WHO ARE GOING TO BE INVOLVED WITH THIS POTENTIAL DEAL.
>> WELL.
>> THEY'RE INCHING CLOSER.
>> GETTING INCHES CLOSER.
>> BUT THEY'RE NOT THEY'RE NOT IN THE END ZONE YET.
>> I MEAN, THIS IS A DEAL THAT STILL REQUIRES CHINA TO ACTUALLY SIGN OFF. AND CHINA HASN'T DONE THAT YET. IT ALSO IS GOING TO REQUIRE, YOU KNOW, THIS ALGORITHM TO BE COPIED. UNDER THIS, THE FRAMEWORK OF THIS DEAL, WHICH MEANS THAT THEY'RE GOING TO ACTUALLY HAVE TO RECREATE SOMETHING. THIS IS NOT EXACTLY LIKE THE RECIPE FOR COCA-COLA. YOU CAN'T JUST COPY IT OVERNIGHT.
>> I MEAN, THIS IS GOING TO TAKE SOME ACTUAL WORK. SO WE'LL SEE HOW THIS PLAYS OUT.
>> THE RECIPE FOR COCA-COLA, ALSO SOMETHING THAT TRUMP WAS TRYING TO MAKE A DEAL ON AND PUT HIS IMPRIMATUR ON. BUT WHAT IS THE IMPACT FOR FOLKS WHO LOOK AT THIS DEAL, ASSUMING IT GOES THROUGH AND IS APPROVED, WHICH I THINK IS STILL VERY MUCH UP IN THE AIR. BUT WHEN THEY LOOK AT IT AND THEY SEE THAT PEOPLE LIKE THE MURDOCHS ARE GOING TO BE INVOLVED, THAT LARRY ELLISON IS GOING TO BE INVOLVED. AND THEN THEY LOOK AT THE LARGER LANDSCAPE AND THEY SAY, OKAY, WE'VE SEEN MARK ZUCKERBERG AND META SORT OF KOWTOW TO THE PRESIDENT. YOU KNOW, ELON IS STILL AN ALLY, HOWEVER FRAUGHT THAT RELATIONSHIP IS. AND HE OWNS X. WHAT DOES THIS SAY ABOUT THE LARGER ECOSYSTEM ON THE SOCIAL MEDIA APPS THAT EVERYONE IS INVOLVED WITH?
>> WELL, IT SHOWS US THAT CONSERVATIVES ARE GETTING MORE AND MORE CONTROL OVER THE MEDIA THAT THEY'VE LONG COVETED. AND, YOU KNOW, TIKTOK. I DON'T KNOW THAT WE'RE NECESSARILY GOING TO SEE TIKTOK LURCH TO THE RIGHT. BUT I DO BELIEVE WHAT IT MEANS IS THAT WE'RE GOING TO SEE, YOU KNOW, THE INFLUENCE OF CONSERVATIVES ON DECISIONS LIKE, YOU KNOW, MODERATION AND CENSORSHIP ON SOCIAL MEDIA. I THINK TIKTOK IS IN A POSITION WHERE PEOPLE DON'T WANT IT NECESSARILY TO INFLUENCE THE NATIONAL CONVERSATION ON CERTAIN TOPICS, BUT IT DOES. AND SO WE'LL SEE HOW THAT PLAYS OUT, BECAUSE CONSERVATIVES ARE GOING TO HAVE MORE OF A VOICE NOW.
>> ALL OF SOCIAL MEDIA INFLUENCES, IN SOME PART, THE CONVERSATION THAT YOU END UP HAVING IN REAL LIFE, ESPECIALLY WITH A WHITE HOUSE THAT USES SO MANY SOCIAL MEDIA PLATFORMS TO BYPASS THE TRADITIONAL WAYS OF GETTING OUT A MESSAGE. THE OTHER QUESTION WAS ABOUT TIKTOK'S ALGORITHM, RIGHT? I MEAN, THAT'S THE ENTIRE REASON THAT WE'RE HAVING THIS CONVERSATION IN THE FIRST PLACE. DO YOU ANTICIPATE THAT ANY CHANGES ARE GOING TO BE MADE? I MEAN, WHEN YOU TALK TO YOUR SOURCES, IT'S SORT OF A QUESTION THAT'S GONE WITHOUT AN ANSWER. FOX NEWS REPORTERS HAVE ASKED TRUMP ABOUT IT. IT'S NOT CLEAR THAT THERE'S GOING TO BE CHANGES TO THE ALGORITHM TO MAKE IT, FOR EXAMPLE, LESS ADDICTIVE, TAKING AWAY EVEN THE CONCERNS ABOUT WILL IT VEER MORE TOWARDS THE CONSERVATIVE.
>> WELL.
>> I MEAN, I THINK THE ALGORITHM IS BEEN CLOUDED FROM THE BEGINNING. THE VERY FACT THAT NOBODY REALLY UNDERSTANDS EXACTLY HOW IT WORKS, OTHER THAN BYTEDANCE, IS GOING TO MAKE IT VERY DIFFICULT FOR THEM TO JUST REDO THIS ALGORITHM. THEY'RE GOING TO TRY TO COPY IT. BUT HOW DO YOU COPY SOMETHING THAT NOBODY REALLY UNDERSTANDS? SO THIS IS GOING TO BE A PROPRIETARY THING. AND I THINK WHAT'S GOING TO BE CRITICAL IS TO SEE, DO THE USERS FEEL LIKE THE ALGORITHM IS PERFORMING THE WAY IT ALWAYS HAS. AND THAT COULD AFFECT, YOU KNOW, ULTIMATELY HOW MANY PEOPLE CONTINUE TO USE THIS APP AND HOW MUCH IT'S WORTH?
>> YEAH, HOW MUCH THEY USE IT IS I THINK IMMEDIATELY YOU'LL SEE THE KIND OF IMPACT ON THAT. SO AGAIN, AN ASTERISK THAT THIS DEAL HAS NOT YET GONE THROUGH, BUT IMPORTANT AS IT COMES TOGETHER TO WATCH THESE CONTOURS, BECAUSE IT IS ONE OF THE BIGGEST, IF NOT THE BIGGEST.