cory: chaos in the skies, 136 -- 139 seconds after takeoff, spacex reels from an expensive incident. ♪ i'm cory johnson in for emily chang. this is "bloomberg west." coming up, iphones that feel like the apple watch. plus, google adding fuel to the fire in a heated antitrust case. and meet the company betting you will use virtual reality to plan your next vacation.

an investigation underway after a spacex rocket loaded in midair sunday morning. it was meant to restock depleted international space station with vital resources, but it is the latest in a series of high-profile failures. here is a nasa official. >> this is a tough day. it is not where i wanted to be on a sunday afternoon, but might is -- spaceflight is not easy. we started with the orbital loss last fall and had to progress several months ago and now the -- the spacex loss. it is difficult to fly. corey: -- cory: joining us to discuss the accident, lori garver, former deputy administrator for nasa. when you look at this accident,

we know that space travel is difficult, but we have seen now three consecutive different explosions. pino in three different companies. should we connect the dots? lori: the connection is that it is rocket science and heat and pressure and different things can go wrong very quickly. this vehicle itself having 18 successful flight in a row people were hopeful they had found the secret sauce. cory: we are also joined by chris hatfield, a canadian astronomical. he joins us by phone. thank you, lori. chris, you have been up there waiting for supplies to come. with the third consecutive ship to explode trying to get there

how do you think they feel up there? chris: they probably feel better than you think. they have been up there before all three of them. they know the reality of it, which is they have a pantry of food and enough water for many months. they feel really bad for the people at spacex because so much work and to have the vehicle so sixpack accurately -- so spectacularly par come apart. they are patient and comforted that people on earth will work the problem properly. cory: i also want to introduce and investing partner with revolution joining us for the full half-hour. feel free to ask a question. >> just wondering what this means for the future of spacex generally.

chris: that is a good question, because a few years from now people will be launching on spacex rockets. i used to be a test pilot. if something fails, you want it to do so early and safely so you know what can go wrong. this is either a design and problem -- design or operations problem with the spacex rocket design. to have found it now is a good thing. it is not something you want to happen, but if it is going to happen, it's a good time for it to a curve. -- 48 to occur. cory: lori as nasa looks at spacex and the future of contracts for launching satellites and so on, do they completely ignore what happened here? or does this add to the decisions that go forward? lori: nasa is so aware of the

difficulties and challenges that we have experienced. we continue to fly people on facial after two accident. we have a vehicle that we lost to us -- that we lost two of in a row. it is a good time, as chris said, to have this learning and they will be a lot safer in the future and nasa will work with big sects -- with spacex to make sure that is so. cory: they probably would have liked to have learned this ahead of time will stop chris, -- ahead of time. chris, i wonder when you look at this if this is the kind of thing that is particular to this mission. there were not people aboard and maybe there were different considerations involved. chris: i think just by nature, whenever there are people on board we take extra care. we also have different sets of

standards for vehicles, unmanned versus demand. we have a very tight allocation -- versus manned. we have a very tight allocation process. nasa is not an organization of thrill seekers. but at the same time, they want to understand even when just carrying cargo. they have launched that vehicle many times in the past successfully. initially in looking at what went wrong, they don't see what caused the problem right off. it is probably a combination of problems and they will learn from it and move on. but you know, airliners were the same. every airliner you have ever flown on, some early version of it crashed. same thing. cory: that makes me feel so much better. chris: [laughter] cory: lori, last question to you. what is it that nasa does differently when you are launching astronauts and people

rather than stuff? lori: as chris said, it is a criteria with different classes of payloads. people are the top class. there is only so much investment you will risk. typically, it has to do with how many times you have flown. for spacex on this vehicle, they will have to fly a number of times again and go through more test programs as they would have anyway before people fly. they will make sure it is safe. cory: lori garver, former deputy administrator for nasa, and astronaut and author, chris hatfield. we are focused on the next apple iphone. according to people familiar with the matter, apple supplies and production already of new phones with force touch. it senses how hard users press down on the screen.

different degrees of pressure pull of different functions. we also know the new phones will come in the same sizes and shapes at the current iphone 6 and i -- and iphone plus. today's shares were down about 1.8% for apple, but the market was down big, 2%. apple was helping to prop up the market. microsoft is said to be shutting down its display ad business and handing it over to aol and nexis. this means microsoft will cut 1200 jobs. financial terms of the deal are not yet known. coming up next, the new study against google is out today. everyone is occurring -- find out what the search giant is being accused up after the break. plus, virtual reality could mean a lot for the real estate industry. ♪

cory: the supreme court is siding with oracle on a copyright case that could lead to a billion-dollar windfall for the software and hardware company. this is all about microsoft systems. -- systems. the dispute hinges on apis.

this particular case, silicon valley is taking sides. their backing oracle -- and backing oracle are those that write the software. and backing google are those like yahoo! and red hat and hp. google will have a chance to argue it had fair use of the technology. more trouble could be ahead for google. a team of yelp researchers along with a former scholar, ftc advisor tim wu, wrote a report about how google favors its own services with searches. this -- i will take a different side of this just because i can. how could you possibly have a

problem with what google does when people put in a search and they get what they want? guest: they are not getting what they want, but what they -- but what google want them to want. you will see that they will be led to google plus content rather than the content that google's own algorithm is saying is best. cory: do we really know what they're up over them is saying? vince: they did an eight-b test using google's own algorithm and did an a-b test with google's results. we travel to oxford to present the paper. >> should we be worried about that given the biased issues you have had internally with reviews

and rankings at yelp? since: should we be worried -- vince: should we be worried that the research was sponsored? cory: academically, it raises some issues. i'm sure he is a fine academic but when you do research sponsored by company that comes out and favors that company, there are questions raised. vince: the professor would not put his name on an article that they believe in. finding of this consumer harm will have a big impact in the antitrust case going on in the eu. cory: when you look at this, in and involving -- an evolving world in an world, the --an

app world, do you think that google is more desperate in that world and that is why they are doing these things question mark vince: i think there? -- these things vince: they admitted the the reason they began to preference their own products in local search is is because they feared they would lose out in these categories. cory: and yet the ftc decided not to bring charges. you guys were lobbying hard to get them to do so. are you upset? why didn't the ftc do anything? vince: the ftc was a mixed mind. they conceded that google was harming competitors, but they were not sure about consumer harm. that is the piece that we have today, consumer harm. >> and i think it becomes more critical as people switch to google and more such is done on mobile. vince: half of all searches on

mobile is done with local intent. it is a huge portion of search which is why google is focused on it. cory: whitey think they looked at the charges, as the eu did, and they looked at -- why do you think they looked at the charges, as the eu did, why did the ftc decides not to when you're dead? vince: -- when the eu did? vince: there has to be established harm here. in the eu the requirements are not as stringent. the ftc decided there was that the only competitor harm, but could not find consumer harm. that is all we have here today. cory: do you think that consumers are harmed? vince: we see it here. any time a consumer is looking

up a local service and they are not in the results from the whole red -- the whole web, but getting google content forced down our throats, then they are being harmed. >> can't i just go to yelp or being --bing? vince: sure but consumers think that they are getting the best results for them when they use google. what this that he shows is they are getting the best results for google. cory: thank you for the clarity. we did reject to google and their argument is that they are still providing the best things for the customers. we will continue to cover it. thank you very much. i want to alert you to a story we are watching.

top two executives are being questioned by the online fraud unit after violent protests in paris last week. passengers get picked up by unlicensed drivers. coming up facebook is planning to conquer unlimited access and high data costs. and you are looking at a 3-d model of the bloomberg west set. that is the part i see. there is the part you see. we will talk about the technology that made this possible next. ♪

cory: time for the daily bike --byte one number that means a lot. 120 million, the number of faith users in africa -- the number of facebook users in africa. facebook is hoping to capture more of an african audience by opening an office in johannesburg. the team will be led by the current chair of the south africa office. facebook is already looking to win over users with internet.org which gives free access. they will have a version of the social network that we use limited data. from boutiques to a buddhist temple in myanmar, go inside any

building anywhere. many companies are already using the technology to offer property buyers 3-d home tours. matt bell joins me right now. and our guest host is still with us. i have a demo of this, matt. will the technology change a lot from where you are now? matt: we have plans for expansion. what we've already created is the equivalent of photography for 3-d spaces. anyone using our camera can quickly make a dimensionally accurate full-color model. cory: let's look at one now. matt: we are inside the video. cory: what are the squiggly lines all over the place question mark -- all over the place? matt: those are the ceiling.

pop down below there. this is what i'm seeing right now. cory: i've got to remove the password for the login there. there we go. there is the conference room. i noticed some strangeness here. people are there and as i backup, different people are there now. matt: if you turn to the right, you can get a view of the holes eight. cory: -- you get a view of the whole space. cory: and i zoom in you get the idea. matt: we had tremendous success in the last year and the funding that we have raised will allow us to continue to expand in real estate. however we have much broader plans. we see these spaces as the next great medium. this allows you to be anywhere

at any time and because it is so easy for customers to capture spaces with this camera, we will essentially be able to deep -- to build a physical copy of the world and give you a sense of being anywhere. clara: outside of this, what is this compelling for? matt: imagine planning your vacation by being able to pop in and visit the sites where you plan to visit. you can visualize changes to your house before you make an extensive remodel or furniture purchase. and it is a powerful medium for storytelling. a new story or something related to visiting the set of an upcoming movie. you will be able to do that. traditionally, the 3-d content has been very difficult, taking days and days of a 3-d artist time. this is similar to taking

photography that is painful and slow but making it fast. cory: but it does take time to assemble this. matt: it is not real-time yet but that sort of thing is coming. but for now, you can capture a typical house in about half an hour. cory: what does it take to shoot this stuff? matt: it is very straightforward. you bring the camera in and put it in a few different locations in the room and the system automatically stitches together the items on the 3-d model. that goes into the cloud where it can be distributed and bedded -- and embedded. cory: there is my favorite spot over there by the transamerica building. i wonder what the retail obligations -- retail applications of bizarre. they have their own online store and it is his own experience

than is typical from online e-commerce. net: if you are fit -- matt: if you are considering a sword to visit, you can check out the merchandise ahead of time. and the animation features will let you clicked on items and buy them online. that way you have the visceral sense of being there as you are shopping, but also the smoothness of the online experience. clara: what is the price point? matt: it is in line with special photography equipment, a right around $500. but we are working on something that could -- right around $4500. but we are working on something a could be built into cell phones. cory: i want to thank you. that does it for this edition of "bloomberg west." steve jorgenson joined us tomorrow to talk about robotics.

thanks for joining us. ♪

out: i'm al hunt. john: and i'm john heilemann. and with all the risk act -- respect to donald trump, this time you are -- eh, too easy. ♪ happy national will file -- waffle iron day sports fans. who is the most interesting man in the world today? it could be john biden and it could be john -- donald trump. first up is chris christie announcing tomorrow and