cory: chaos in the skies, 139 seconds after takeoff, spacex reels from an expensive incident. ♪ cory: 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. especially, it points out the difficulties. we started with the orbital loss last fall and had to progress several months ago and now the spacex loss. it is difficult to fly. 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. i know it is 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 flights in a row, people were hopeful they had found the secret sauce. things do go wrong. they will find it and hopefully fix it. cory: we are also joined by chris hatfield, a canadian astronaut. 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 recognize how hard it is. 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 spectacularly come apart. not a lonely existence at all. they have a whole suite of experiments. they are patient and comforted that people on earth will work the problem properly. cory: i also want to introduce an 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 you are building something complicated, 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 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

the space shuttle 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 spacex to make sure that is so. cory: they probably would have learned this a few hours 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 manned. we have a very tight allocation process. we do not want to put lives at risk. nasa is not an organization of thrill seekers. but at the same time, they want to fail 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

set of 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. and for spacex and 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. here's what we know -- 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 up different functions. we also know the new phones will come in the same sizes and shapes at the current iphone 6 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. another story we are watching -- 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. who's accusing the search giant for what. 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 sun microsoft systems. the dispute hinges on apis.

this particular case, silicon valley is taking sides. and backing oracle are those that write the software. and backing google are those that rely on it 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 legal scholar, ftc advisor tim wu, wrote a report about how google favors its own services when performing local searches. 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 google wants 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 ab test using google's own algorithm and did an a-b test with google's results. cory: it was a study you paid for. vince: we travelled 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? 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. he is strong that the conduct is bad. 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 app 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? 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 mobile 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: why do you think they looked at the charges, as the eu did, why did the ftc decides not to 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. the study shows any time a consumer is looking up a local service and they are not in the

-- getting the best results from the whole web, but getting google content forced down our throats, then they are being harmed. >> can't i just go to yelp or bing? vince: sure, but consumers think that they are getting the best results for them when they use google. what this shows is they are getting the best results for google. cory: thank you for the clarity. we did reach out 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.

french police are holding uber's 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 byte -- one number that tells us a whole lot. 120 million, 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 facebook lite, a version of the social network

that would 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. tell me, you have the $30 million, 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 studio. cory: what are the squiggly lines 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 appear and as i backup, different people are there now. matt: if you turn to the right you can get a view of the whole space. cory: and i zoom in you get the idea. is real estate is your killer app? matt: real estate is one. 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: anything related to travel. imagine planning your vacation by being able to pop in and visit the sites where you plan to visit. home improvement, 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 news story or something related to visiting the set of an upcoming movie. you will be able to do that. traditionally, the creation of 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

photography, 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. it's not real-time yet. 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 clothing store over there by the transamerica building. i wonder what the retail retail applications of this. they have their own online store

and it is its own experience than is typical from online e-commerce. matt: it is combining the best. if you are considering a store 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 and -- and right around $500. but we are working on something that could be built into cell phones. cory: i want to thank you. that does it for this edition of "bloomberg west." steve jorgenson joins us tomorrow to talk about robotics. thanks for joining us.

♪

. .

we live in a pick and choose world. choose choose choose. but at bedtime? ...why settle for this? enter sleep number... don't miss the lowest prices of the season, going on now. sleepiq technology tells you how well you slept and what adjustments you can make. you like the bed soft. he's more hardcore. so your sleep goes from good to great to wow! only at a sleep number store. right now, find the lowest prices of the season with the c4 queen mattress set only $1499.98. know better sleep with sleep number.

>> from our studios in new york city, this is "charlie rose." charlie: welcome to the program. this was an important day in america. in washington, the supreme court said same-sex marriage was a constitutional right. in charleston, south carolina, president obama spoke to the issue of racism and how much work we have to do. we begin with the president in charleston. president obama: we are here today to remember a man of god who lived by faith. a man who believed in things not seen.