pier three in san francisco, this is "bloomberg west." a big step ahead. and, knowing full throttle in its challenge to apple and samsung. the chinese company does -- is already a major player in smartphones and is now introducing its first tablet and has plans to go global. first, a check on bloomberg top headlines. eric schmidt says europe's top court got it wrong when it ruled

the search giant should be forced to erase certainly experience ounce must be shocked between the right to be forgotten and the right to know. david drummond says google is still studying the decision. going fullr force is throttle to get spacex certified to launch military and by satellites. it is sending about $16 million and using 100 million 100 million people to get it certified. last month, they said it had illegally shut spacex out of the bidding for a launch contract. ebay is launching new websites targeted to latin american shoppers as it looks to cash in on a growing region. they will be in spanish and portuguese. it has been pushing latin american markets in russia.

to our lead story of the day, in disruptedous meeting by protests, the fcc has voted to advance their chairman's new net neutrality that would create internet fast lanes and leave -- open the door. vote opens the proposal to a 100 day public comment time. protesters are demanding the internet the regulated. two republican commissioners allnd to no regulation at very take a all very take a listen. >> the potential to be some kind of a fast lane available to only a few has many people concerned. i will work to see that does not happen.

>> cory johnson is with me here in the studio and our bloomberg chief washington correspondent peter cook is on the phone just outside the meeting. bring us up to speed. fcc is still at this hour. it has to do with allocations for various wireless competitors. on a central issue, the biggest issue to come here in years, we had a standing room only crowd here. four protesters had to be physically moved from the meeting room. we have the vote. at the end of the day, commissioner chairman tom wheeler got three votes he needed to move forward with his plan to set rules for the internet, rules that are very controversial. some consider abandoning that it shall be for certain positions. -- provisions. specifically, the rules he puts would prevent

internet service providers from blocking legal content and allow for a fast newal deal of prioritization in certain content. there would be commercially reasonable and leaders putting out to the question to the here is some of what we have heard from tom wheeler today. >> the prospect of a key keeper onosing winners and losers the internet is on acceptable. >> effectively telling a lot of his critics, i'm with you with open internet rules but i am trying to do something for everyone that would pass legal muster. there was not much sympathy,

both of them opposing a plan, they're going too far. >> it will stifle innovation and investment by the private sector and thrusts the commission into be.place it should not >> he got the votes he needs. now, it goes out for public finalt before we see rule. >> the protesters, who are they? individuals representing consumer groups in some cases. there were activists as we have seen in washington and a host of other issues. they were making the case, urging the fcc to move right to reclassification, to treat internet services immediately at

telephone services where they want this treated as a utility. it is the only way to protect net neutrality. that was the message we delivered consistently today. bring you in on this. tom wheeler is emphasizing this is just a preliminary vote. it is not a rule, but a completely different direction. >> is interesting to see a guy who spends his entire career struggling to figure out how to deal with this. he is positioning a future in the fast lane. he is fundamentally saying in this proposal that there will be winners -- winners and losers. you can say you don't want it, but he is proposing an idea of a fast lane and slow lane and suggestion it could be government oversight but not government control. critics say even critics who believe this do not think the fcc should be involved at all. of ading the suggestion regulatory environment that is stifling to all. they wanted service that arrived to consumers at the same speed

but that would be less profitable. >> how long until we see a final rule? >> we will have four month of public comment for lisa e a final rule. up byes to see it wrapped the end of the year. given the kind of criticism we already, the kind of interest in the issue, we have artie had members of congress saying they want to challenge what he is but out there. others are criticizing the other side of the fence. >> how do you see this playing out? the tide seems to have turned. >> this is a fundamental issue about what the role of business in society is. do the companies have a responsibility to provide a service the way telecommunications have had to, to provide a service for less profit for the benefit of this is an consumers in the united states, or should they maximize profits?

is lobbying game going on people are spending vast fortunes, more than anyone else in the world, lobbying washington right now, to get .heir way washington way works. seems to washington works. seems to carry the day. >> all right. peter cook is standing by at that meeting with the fcc in washington, which we are continuing to monitor. up, could the proposal today change the internet as they know it? we will tell you who wins and loses very that is next. ♪

>> what is at stake and what will the cost be to tech companies big and small, and the cost to you, the consumer. george washington center for business and public housing

project director and co-author of the bank structure here with us in the studio, as well as common cause program director todd o'boyle joining us from washington dc and joining us in i will start with you. who is this good for and who is it that? west it is not good or bad for anybody yet. all we have got is a proposal very we have not seen the pacific. >> who would be good and that for if this ends up? business --really >> it is really business as usual anybody. it is just a rewrite of the last set of rules and encoder -- a few months ago very best wire people protesting so much? him -- >> i do not know. there is a lot of lyrical agenda going on here and a lot of his

understanding. don't understand the details of it very is where people protesting? >> millions of people have taken action to raise their voice is this doesey recognize endanger the openness of the internet and threatens the vibrancy that has made the trans-formative last form for free expression and or position online. the truth is this takes us down a bad road and the should trouble anyone who cares of the openness of the internet. >> lie do you hate the openness of the internet? >> i hated it for 15 years where they the time have known but there has been trillions of dollars of investment and all the apps we have got.

>> companies like netflix take up 34% of internet traffic at the time. questec you had true open internet wills, you would think your next -- netflix speed is that now, watch what happened in a public utility like session. we'll go even worse. -- >> it will go even worse. >> i wonder if that is part of the debate. people want a faster internet connection. it could happen. why is it such a bad and? lets you raise an important question. the resttes does lag of the world, our global competitors in the developed in terms of the level of connect the video and the price wea or this is all because have allowed companies, major industry players, to write their .wn rules of the game

it is worth noting that for a time, we have strong protections and at that time, we had better consumer protections and open internet tensions. investments in jobs in the spirit as soon as we do that away, a consumer suffered, the innovation has offered. protectionsstrong that innovation has worth and the internet has become a platform for self expression. it is worth so much of our democratic discourse takes place startand if we foreclosing the open internet, that is all jeopardized. >> in a bigger picture. at&t is potentially buying direct tv there and all of the net neutrality stuff is happening at the same time. it is all related? class what is happening is, as technology gets better

and cheaper at the same time, the content industry, like many others, is going to a chaotic form of creative distraction. we are seeing all kinds start os models emerge. we see a lot of companies try to andthe regulatory products give themselves a leg up. the truth is the technology is driving the change. five live should publicly traded cost ofs bear the providing highs the access from every business in the world? >> that is not what this is about. it is about allowing companies like comcast and time warner cable to the innovative about new ways to pad their bottom line. if you give a pervert provider a fast lane online home allowing them to run around congestion and traffic online, you have created a perverse incentive to

itow congestion to build up. is anticompetitive and builds an opportunity for content providers and carriers to favor their own content over editors so a company like comcast might be tempted to favor its own visit -- video-on-demand service versus competing. that is collusive behavior area it does not help anyone. -- behavior. it does not help anyone. no proposal that allows fast lanes is open internet. were net neutrality. >> tom says there will not be slow lanes. just fast lanes. is that possible? how can they ensure -- fast lanes are getting faster than the not fast lanes. >> we keep upping the ante. we are at 2400 modems. everybody had a slow lane in my lifetime.

these continue to improve because technology gets better and cheaper so the possibility of having the public internet be fast and have the ability to offer content delivery networks, we have had in the last 10 years, that has worked. i do not see anything that would take that away, but it could. -- go ahead.out >> i agree we would all suffer if we had fast lanes online. s lane for some is a slow lane for everyone else. if you allow certain voices to pay priority, we know who that would be. i am not the worried about whether the biggest of these in america will be able to work fast lanes online area i were there whether dissenting voices will be able to afford priority access. this is also doesn't happen on a commercially reasonable basis and what does that mean? the definition might

change from one chairman to the spirit does not give innovators for entrepreneurs regulatory circuit -- regulatory certainty they need very >> all right. asnk you for joining us. well as larry downes, off or of thebanks distraction very debate is far from over and we will and you in the next 100 days. still ahead, new technology from paypal allows you to shop from retail stores without taking out your wallet. you can watch us streaming on your tablet, phone thomas apple tv, and amazon i re tv. ♪

>> welcome back. we turn now to our wiring the world eateries, where we focus on how technology is changing the retail business. paypal is introducing a small device that can make a big difference to brick-and-mortar detailed -- retailers. hands-freetakes payments to the next level. and is with us now. businesses arew actually putting this to work. how? >> we know ebay, the company that controls paypal among both businesses are actually putting this tocompanih mobile. mobile commerce. it is easier said than done to go to stores and pay without pulling out your wallet there that is why they have in pushing began. here is more on how it works.

the process for making macaroons has not changed much since the 18th century. in this sort, there is a high act revolution area >> we are a traditional business. technology .as us eating very competitive >> entered paypal. the company is ready to a group of small businesses to help test its new hands-free payments system. >> we are trying to make payments disappear for people who want them to very >> beacon offers a slew of features for retailers. it can send messages for customers who use the paypal app, but the special offer or sale. you walk in with the hands-free mode and you do not have to take out your wallet. class you walk in the store and focus on what you buy and when you're ready to pay, your name disappears and they just charge your paypal account. has been working with

paypal for eight months. >> when a customer -- you do not have to exchange credit cards. that will save us a lot of time and focus more on consumer -- testing in currently the u.s. and australia. ofobviously, we know a lot layers are interested in this area. square would be another. it comes down to ease of use. does it not take a lot of power out of your phone when you try to make it altogether? >> there are a lot of players trying to get into mobile. jon erlichman, thank you. chinese smartphone maker shall me is breaking into the tablet market. majoroes that mean for players like apple and samsung? tablet,watch on your phone, bloomberg.com, apple tv,

and amazon fire tv. >> it is 26 minutes past the hour. let's look at where stocks are trading now. majores across maybury -- averages. we are seeing a lot of continued selling in momentum stocks, where we have seen so much volatility as of late. a couple of big movers. bucking the trend. estimates topped analysts estimates. we're now looking at the machine to handle mobile data. general motors. watch that. they are recalling another 2.7 million vehicles very it pushes the total cars recalled 11.1

million this year. models with faulty brake lights. several hundred complaints, 13 crashes, and two industries, but no fatalities. we will have more later. ♪

>> to cover innovation, technology, and the future of his. we now turn to a big story out of beijing. the chinese smartphone maker is releasing a tablet in china where the company escalate competition with apple and samsung. inchew fat will have a 7.9 screen like apple's ipad mini and will use google android software. the china correspondent stephen engle joins us now from beijing. i know the ceo always gets a rockstar welcome, like steve jobs got at apple conferences.

what was the reaction in the room when he came on days and unveiled this? the morning. you can imagine the kind of reception he got. it is funny to call this a classic event for a company that is only watch oh years old. -- the faithful were there in full force as usual. packing the convention center hall the on capacity, heering every product launch made, a new hdtv, a new router, and the big five is a new meet had. the tablet takes on apple pricely at about half the there you mentioned steve jobs. he hates to be compared to steve jobs, but he is clearly taking a page from apple in leveraging its growing phone user base to sell tablet it sells more phones

than apple. it has risen to number three and apple's number or. i caught up with the man who is in charge of the international taking the meet had overseas. withis my conversation hugo. >> we will launch it in china first. the usual thing we do is test it to make sure it is ok and we will start in southeast asia and then take it to other markets we are flooring. >> i think? will you kind of see how it does in the china market? class the timeframe is determined i manufacturing capacity. we have to determine how easily we can ramp. classe why this year area in the event today, it was dead tablet market is dominated by one third two layers. samsung and apple. fax ite your ambitions? is a high bar in the market and

we know that certain. working upree years to the point where we thought we had the right hardware design and also software capability to build a world last tablet. -- world-class tablet. we will change the market without a doubt. >> how important is it for your product or folio to go to a tablet? the new television, the new router, the whole portfolio of different products and not just phones. >> we have taken a different path than people would have expected. we did a phone, tv, and then it tablet. we got a lot of things -- a lot of amazing plans. hardware and forward together. let's what you have to do to get to that point, where you can be competitive in the u.s. market? >> it is non-arab lands for this year. is an insanely competitive

market. getting there by is working hard and being ready. we will work up to that area >>t is really the goal area now, about 90% of these phones are old in china. three percent are overseas. job? hugo's there is google, head of android. >> a big mover shall me to get him to move to china and run the international expansion. i want to know, from the chinese consumer perspective, how do you think the meathead will compete with the ipad and other tablet options in china? is the something consumers they're really want? >> of course, when you go to events like this, you get the faithful and they say they will

match apple. if you look at the numbers for the phones, they expect 100 million users toter -- total unit sales the end of the year. that is a good launching point. executives i spoke to would not white when i asked them for sales projections. i did talk with one of the initials -- investors. he tells me he would be happy if they sold 4-5,000,000 meatheads in the first year. he expects the number to exceed that because of the 100 million smart phone user base. loyal customers who want to to theirigrate meathead as well. >> the prices are obviously a -- a lot better.

gigabytes, but16 ipadthe price of the many apple. they will have 128 to go by version. samebly going to be on the price frame. apple does not offer 128 or did you not know how cheap it will be. class all right. for covering that from beijing. i want to bring in ben, a principal at china market researchers. larry johnson is with us as well. by theressed are you tablet? forhis is a good evolution the company. they have done well with rolling

out smartphones. they showed they could work out their business model and get people to buy and be interested in the brand air this tablet is a good future step. great specs and he competes very well with apple. you look at the tablet market and consumers are not fairly married to the idea of a m sung tablet. market. really a wide >> the notion of a market where pc never exist for a lot of consumers, change the role? >> absolutely. if you look at the demographic, you look at the 15 to 34-year-old, they barely use e-mail. is that most of their time on the smartphone and possibly at a laptop. it is really tablet.

i think they are well positioned to cater to the group. >> most of us here in the night is days and have a china has never used this product. how good is the actual product? how does it compare to an iphone or ipad or samsung gallas he? >> when they first started getting exposure in the media, people were looking at how cheap the products were there the assumption was, the quality cannot be that good. the hardware is a nice, sturdy and well-made very base and time on industrial design. the interface is really good as well there they spent a lot of time getting feedback from customers. is something companies like samsung do not really emphasized as much. overall user experience is very positive and does not feel like a cheap product.

>> what are the challenges for -- what are the chances for breaking into the market? >> they have to grow global. growthll not get the they want to get just out of china. the logical next step is the one they are taking. they will do quite well. they have a clever business model where they know what the young tech savvy consumer wants. the u.s. market is a long-term goal and it will not be easy. the reality is they will have to establish other markets first and develop the cash they need to develop the cash for a market like that. class i am dubious of the fan boy experience. does it transfer when it gets out of -- outside the chinese borders?

>> there is a huge amount of buzz around the. when you talk to consumers, you ask who the heroes are. they're not interested's fourth celebrity's or actors. they are interested in entrepreneurs. they are interested in buying the products because they like the products are: interesting. it will not be as easy for them to sell in other markets and replicate because they do not have its own church and they have low-price competitors doing a similar thing here at the interest they have is very good at developing new product. good people are working or the company. they will be able to bring in companies in russia, brazil, and indonesia will really like. that's all right. that's what china market research group. thank you for sharing your thoughts with us today area in two years, 11 million customers

have been gained without selling any products very we will look at how the this is model to change the shopper relationship with the dollars next. you can watch us streaming on your phone am a tablet, and amazon fire tv. ♪

>> looking back here and we are looking at how technology is shaping the intro retails. a company with 11 million customers, but no products their the social shopping night allows users to save and share merchandise worldwide. offers more than 12 million rodda from about 300,000 of these. how are major retailers taking advantage of this social network

in for shopping? we're joined now in the studio. thank you for joining us very first, sell me how you started the company and what your business is. that's absolutely arid i was a frustrated shopper. the style did not fit into any particular category. i like it and choose and mix and match and make a -- make my own style. i found the traditional mall is very limiting and i want to know what sores my friends shocked unique fontsd more in stores. i started to make -- to really discover. if that were unique to ask if your goal is for this to be another social network like a sloth and twitter, >> it is a socialist. . it is only products and is there that is the main difference is we have is the minded focus very

close any idea what traffic is like? >> we have millions of users and our 80 i is a mobile, was his great era in mobile commerce is expanding and growing tremendously. as you mentioned, we are building a huge amount of retailers. , urbaner 50 retailers outfitters, some really big brands we know and love. >> the average mall had a stores and you had over the thousand. is more better there you are seeing other e-commerce companies taking a more irritated with. >> more is better when it comes to connecting you to the pacific and unique that will express exactly who you -- where you are very lax you wrote about twitter commerce, they will not happen. wesley believed the platform has to be 100% of this on shopping

area twitter, faves, these are a very general purpose arid there has been a lot of talk about facebook commerce. happen and neither will twitter commerce. when you go on pinterest, you see some product and landscapes and that cannot create a good shopping. selling stores, and problems. >> i know some of your users are radically passionate very give .s an example >> sure. we have multiple users who come in a few times a day and spend over 50 minute in the mobile app for day. it is a highly engaging. . as you have the retailers involved as well. but mason will for users to

really save products. say you find a product you really like and are not ready to buy very quick the same one and put in your profile. it acts as a universal wish list. let's give me some more. who else? >> if you go to our website, that will show you how nordstrom is managing their. in their store pages, they can act in fury or collection. it is essentially a digital way of merchandising their stores request is the goal to get more degrees ellis on board and for every retailer to have one of these runs is mark what is your goal? likes our goal is to unite all of our shopping. we are paying a lot of attention to this dollar guys. users. we are our building a single dominant

commerce.work for excellency you make of the shifts happening in the industry? is having a lot of level. a lot of this mall or companies are not white or coming out. oncehairman of the group sold me he thinks a lot of small companies will visit your and a few bigger companies will rise to the top. lex i think there will be a big old digital mall that connects you to the product. as a single digital mall there is interesting. all right. founder and ceo, thank you for joining us here. have laidare moonies their initial public offerings. shares are up. it is next. ♪

>> welcome back. i'm emily chang. cloud-based trading today amid investor a schism among software ipo. shares are still climbing their they open $11.03 a piece. joining me now from the new york is for a johnson, our editor at large in the studio. shares are up 43%. how are you feeling. class i feel great. it is a fantastic way. in celebration of a milestone of our company. he here today, opening the exchange and senior of the go public, the company you have been working on for so long,

building it out and then seeing it on wall street and it is an amazing it is. >> you had a lot of money in the ipo.before you had the you're losing money. why do the i the own now? -- why do the ipo now? >> that is what we expect from ourselves and that is what our customers back from us. we have a real opportunity to be a next generation business software company. we want to bes -- a public company. we are excited to be that today. >> some technology companies have not had such rosy debuts. others have delayed their ipos. how much did you think about whether sticking with now was the right thing to do? >> we focus very narrowly on our on whats. keeping focus

is important for us, our business, for our customers and what we want to do here is the market goes up, the market goes down. it does not matter to us. it is the expectation to us in our market and our customers. qwest let's talk about your business the civic the area i think of you guys as offering software and service for customer support, just like moderates from sales port. how do you differentiate from competitors like sales port? dancehave told an amazing where it is extremely easy to discover the product, try the product, rollout the product, and start using the product. almost removing the technology from the interaction between your company and customers. it is a phenomenal experience. we have over 40,000 businesses all around the world in more than 100 or the countries -- 140 countries using our software to provide fantastic customer service for more than 100

million of the hundreds of millions out there. we believe we are defining a new generation of cloud-based where results out of the gate and zero configurations are keywords. explain how sticky your business is and how that might change in the near future. >> we are very proud about our ability to retain our customers. ourose very little of business every year. on the other side, our customers are giving us an immense expansion rate every single year . on a net expansion rate, we grow more than 120% every year. >> thanks so much for joining us and thank you all for watching this edition of bloomberg west.

headlinest the latest at the top of the hour on bloomberg radio and on our website. ♪

quakes from bloomberg world headquarters in new york, i am mark crumpton. this is bottom line. helps president obama dedicate the 9-11 memorial museum. then, a new harvard study examines what is killing all the bees. and carly fear reena discusses women and their contribution to the economy and the workplace. iorina discusses women and their contribution to the economy in the workplace. we have full coverage of the stocks and the stories making headli t