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A user must be 13 or older.

Despite this, according to a

recent consumers' report study,

An estimated 7 1/2 million users

were younger than 13.

First of all, we don't allow

people to have accounts

under the age of 13.

And my reaction to that

is that's just absolutely

indefensible.

I mean, it's unbelievable

that you would say that.

Well, senator, I just want to

say we-- we really emphatically

agree with your points.

They say that facebook sent

an army of lawyers

So that the final privacy

legislation that emerged

In 2011 was watered down

significantly

In a way that wouldn't affect

facebook's business model.

My name is alan davidson,

and I am the director

of public policy

For google in north

and south america.

My message today is simple.

As we've heard, mobile services

create enormous social and

economic benefits.

I reject the notion

that privacy protection

Is the enemy of innovation.

It absolutely doesn't

have to be, and isn't.

[narrator]

it was an expensive

year of lobbying for

these big companies.

Google spent five times

as much as the year before,

And facebook spent

four times as much.

Senate bill 242 will protect

users of social networking

internet sites.

It will protect these users

from identity theft

And from unwanted contact

by keeping their private

information private,

Of course unless

they agree to share it.

I know that many members

including myself

Do not want to negatively impact

A very important industry

for the state of california.

Individuals involved

in this industry

Don't want to see

any regulation whatsoever,

So I think that's

really the key.

And one of the most

interesting things I've found

in these conversations

Is that many members

of the legislature

Don't even have

social network sites

Because they're concerned

about their privacy.

And at the time the bill was

being heard,

Although lobbyists were in the

committee room

For the entire hearing, they

did not come forward to speak.

So it was sort of an

interesting process,

Sort of a stealth killing

of the bill,

Without the opportunity

for the public to really see

Who was in opposition,

So people like google

and facebook

Were in strong opposition.

Facebook in particular.

What did facebook have to lose?

You know, I really do not

understand their logic,

And you'd have to

ask them about that,

But when I analyze

an issue like this--

I'd love to ask them about that.

They won't talk to me.

[laughs] I'm not surprised.

I don't think-- I don't think

the rules of law and regulation

Necessarily apply when it comes

to interacting with a company

That wants to sell you

something.

Yeah. We should be worried.

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