♪ emily: welcome to "bloomberg technology." stocks fall. cases of covid-19 continuing to research around -- resurge around the world. arizona and california struggling to maintain outbreaks. florida reporting a record number of deaths. we are standing by for president trump, will be holding another news briefing this hour.

tomorrow, a big day on capitol hill and a big day for silicon valley. the ceos of facebook, google, willbet, apple, and amazon all be testifying before the house antitrust subcommittee. we will speak to a member of that committee, representative hank johnson, in just a moment. first, we want to look at how markets are moving ahead of those reports. i want to bring in bloomberg's kailey leinz, who has been following the market move today. kailey: we really saw the downward move heading right into the close. antitrust course that committee hearing tomorrow as well as a fed decision. there is a lot going on overall leading to a risk off tone, especially for the nasdaq, which ended the day lower. it really was tech among the biggest laggards today.

of the barrel.m 1.5%ties were actually up to 2%. bond proxy stocks getting a boost. we are now sitting at 58 basis points on the 10 year yield, within four basis points of the all-time record low we saw back in arch. does --lly emily: we are continuing to see dramatic moves when it comes to the dollar and gold. what kind of signal is that sending? kailey: we continue to see that weaker dollar story. cold futures crossed the 2000 level, closing at a record high. buts the desire for safety

it also has to do with the weaker dollar and real yields moving further into negative territory. with the record about of stimulus for monetary and fiscal authorities, that could mean inflation down the road. to hedgeed to be a way that. goldman sachs saying the dollar could lose its status as the world reserve currency for that reason. they don't think it will happen in the near term. emily: bloomberg's kailey leinz with the update on the day. take you very much for rounding that out. apple,w, the ceos of alphabet, facebook, and amazon. all of the ceos will be remote. one of the people questioning

that will be representative hank johnson, who joins us now to discuss. what exactly are you going to be asking the ceos tomorrow? representative johnson: i think it is important that the american people get a chance to understand the effect that giant market dominant players have on the overall economy and how the position that these dominant platforms and their owners have affect the economy. of them the standpoint american dream of a small business owner being able to manufacture a good or sell a product or service, and the kinds of barriers they have to overcome in order to get their product or service to market, having to go through these dominant platforms and players

who own the platforms, just how how ourys a part in economy functions. process forcational the american people and also an opportunity to send some , theges to the regulators problems that regulators are having when they have to deal with these companies. google, facebook, and apple, all dominant players, and they pretty much dominate the platforms on which they operate. they do it to the detriment of consumers, ultimately, with basically large businesses and small businesses alike have to theyby the rules or else

can't play at all. this hurts our economy and hurts the ability of people to achieve the american dream. emily: when you look at these companies, does any one or to stand out as more egregious on antitrust than the rest? johnson: they pretty much all operate from a common playbook. on ability to impose rules companies that want to deal with bem, and how the rules can arbitrarily changed so as to benefit the the dominant player as opposed to the smaller entity that is trying to do business on the platform, and the fact that the platform, the economy is dependent on the platform. there is nowhere else for the is this worthy consumer to go other than through the platform to get

a particular good and service. also competelayers directly against those small companies, those small and large companies that are seeking to do business over those platforms. they have to compete with the platform owner. it is not fair and it is anti-consumer. anti-small business. there is a common playbook, they amass large amounts of data, they use that data to give them a leg up on any competition that would come their way. and then also in terms of buying off any competition before it gets large enough to affect the dominant player. place in thecommon

playbook that these companies use. so not just one or two of them, use theseur of them same practices. emily: facebook, google, youtube, and twitter all pulled a video today promoting hydroxychloroquine as a cure for covid-19. twitter even temporarily suspended donald trump, jr. for tweeting out this video. what part of that is a problem for you? the video had already gone viral. representative johnson: some good things take place but a lot of bad things take place also. when you talk about the ability of false messaging to proliferate. and the only guardian is the platform itself to cut down on deceit thats and

are distributive to cause a reaction, to cause people to do something. that is very dangerous to our society. to have the platform owner be the decision-maker over what goes over the platform. you put that in a situation where there is a total lack of regulation or a lack of conduct, govern the and then there is no competition on the other hand, so the company pretty much gets to do whatever it wants to do. and if it decides to pull something, that may be a good thing the problem is that there is so much that is not being

pulled. there is so much information that is being amassed and used against people. and then there is so much information that is being disseminated, being used to hurt people as well. not a lot of problems and regulation over these companies. it is a big problem. meantime, politico is reporting on mark zuckerberg's prepared testimony for tomorrow, where the ceo of facebook's prepared to say that the fight against disinformation and misinformation needs work. earlier today, you conducted a searing interrogation of attorney general william barr. you told him that his opening statement read like it had been written by alex jones or roger stone. were you satisfied with his answer today? is ajohnson: attorney barr

smart man. he knows exactly what he is doing. he knows what he does not need to say. so he is very careful in his responses to direct, simple questions. he is very careful. he is intent on avoiding answering difficult questions. that is what he did today, kind of skipped around. that clear in his actions what he has done is put his thumb on the scale of justice to benefit president trump by letting president trump's co-conspirators off the hook on their criminal cases so they will not spill the beans on the president. and that is obstruction of justice by attorney barr himself. of course, he is not going to

admit to doing that. he is going to couch it in, i am doing what i think is the right thing to do. but when he has never done it before on behalf of anyone other than his friend, the president, i think people can see through it. emily: we will be listening to your questioning of the text ceos tomorrow. thank you so much for joining us and sharing your thoughts today. coming up, we will be talking to tim sweeney, the ceo of epic games. sweeney calls apple and google absolute monopolies. he will tell us why, next. this is bloomberg. ♪

♪ as we have been covering,

four of the biggest text ceos are set to testify on capitol hill tomorrow. sweeney isceo tim calling on google and apple for being absolute monopolies. i spoke to tim sweeney earlier today. the market is google and apple. those are your two choices for mobile platforms. apple says, if you don't like our platform, use google. google says the converse. these companies are using control of the operating systems to exercise monopoly over all comers conducted between consumers and businesses. apple says, if you build an app for our platform, first for, you can only distribute it through

their store. imagine a town that only allowed target, disallowed any other stores from owning anything. that is totally un-american and uncompetitive. that is exactly what apple does. a semi-openreated platform with android. the software is open platform but then they layer on all of these business terms with the google play store and google search, which force all of the carriers making devices to lock it down and limit it. apple and google are taking 30% of all revenues for comers. they are deciding which kind of apps you are allowed to build and which kinds you are not. they are preventing entire categories of innovation. microsoft is creating this incredible cloud service where you can stream any game over internet servers, any device.

apple says no, you cannot have that idea. ist we really need competition, so developers and consumers can choose each component of the software set they want to use and not be forced to use only apple. emily: apple also says 84% of the apps on the app store are free. i have spoken to developers who are grateful. don't you think you should pay some sort of rent, if you will, to access the services? tim: competition is the way that priests are set in a fair market. apple provides bandwidth to all these free apps and paid apps so you can download them to your device. you know who else provides bandwidth? amazon is a competitor in the

space, others. there are market rates associated with paying for bandwidth. there are market rates with payment processing. mastercard and visa charge 2.5% to 3.5% for payment processing. percentage with the that apple and google charge is that it is completely disconnected from their business. at epic, we know this. epic has processed more than a billion dollars worth of direct transactions between our players and companies on windows, mac, and android. we know the cost of operating the store. 5% 7% of revenue. apple and google have way higher economies of scale. you can break down the cost by component. it has nothing to do with these rents apple and google are charging. to pay always happy

providers for a fair service they provide. we like to choose between providers. paypal, mastercard, visa, make them compete to offer the best rates or quality of service. apple and google are completely denying that. emily: so you use the word monopoly? tim: well, it is a duopoly. there are two companies. together, they own 100% of the smartphone market. or something like 99.9%. apple has the majority of revenue in many countries. in other countries, google has the majority of revenue. it is impossible to look at a territory and say, in this place, apple and google are not a monopoly. they have business practices only a monopoly can get away with. emily: he launched the epic games store for windows and mac, and you charge a 12% fee.

why do you think 12% is fair? tim: we looked at the cost of operating the service. they are transparent. games in processing, 2.5, 3%. as much as 6% in developing economies. bandwidth is 1%, 1.5%. customer service, 1%, 1.5%. we are able to charge percent profite a 5% to 7% margin. we love having the opportunity gamesn a 5% profit from made by other people by offering them our store. emily: all right, it looks like president trump is stepping up to the podium. pres. trump: today, my administration has taken a moment to step toward achieving american pharmaceutical independence. very big, big step.

a focus of our campaign to bring america's critical supply chains and medical manufacturing back to the usa. we have been working on this for a long time. this is a core of our strategy to protect our people from the horrible china virus. should have never happened should have never been here, they should have stopped it. in the decades before i took office, foreign nations were allowed to plunder our factories, loot our industries. millions of jobs were vacuumed out, just taken out so easily. our politicians let that happen our communities were stripped and chipped in many cases to china and countries all over the world. nearly four years ago, we launched a bold effort to enact fair trade deals and bring industries back home where they

belong. when the china virus landed on our shores, it became clearer than ever before that restoring american manufacturing is a core matter of national security. we must never be reliant on a 'sreign nation for america medical and many other needs. pfizer just announced a little while ago that they are combining phase two and phase three trials. the vaccine looks like it is really heading in a rapid direction, a really positive direction. first time that has happened, and they are many months ahead of any other trial. so it is the fastest ever end, to me, it is very exciting. today, i am proud to announce one of the most important deals in the history of u.s. pharmaceutical industries. my administration has reached a historic agreement with a great

american company. this company is called, from the good old camera age, the old begin producing pharmaceutical ingredients. and it ised kodak, going to be right here in america. i want to congratulate the people of kodak, they have been working very hard. in rochester, they are trying to finalize this groundbreaking deal and they will be announcing this deal. i want to thank governor andrew cuomo and his representatives. it is a big deal. it is a great deal for new york and kodak. 90% of all prescriptions written in the united states are for generic drugs. we have approved more generic drugs than any other administration by far. generic drugs can be just as good as the brand names, but

cost much less. yet, in less than 10% of the active ingredients needed to make these drugs they are currently manufactured in america. more than 50% are made in india and china. lots of things happening. it is happening at a more rapid pace. with this new agreement, my administration is using the defense production act to provide a $765 million loan to support the launch of kodak pharmaceuticals. it is a great name, when you think of it. it was one of the great rands in the world, then people went digital and kodak did not follow. now, under extraordinary leadership, they are following and doing something that is a different field and it is a field that they have really hired some of the best people in the world to be taking care of that company, watching that

company. it is a breakthrough in bringing pharmaceutical manufacturing back into the united states. under this contract, our 33rd use of the defense production act. rememberr when you -- when you were saying i did not use it enough? we used it as a little bit of a threat, frankly, with certain companies who were not doing what we ask them to do. the is our 33rd use of defense production act. kodak will now produce generic active pharmaceutical ingredients. using advanced manufacturing tech's, kodak will also make the key starting materials that are the blocks for many drugs. we will be competitive with almost all countries and soon with all countries. once this new division is fully

theational, in addition to other plans we have opened with other come days -- other companies throughout the united states, it will produce as much as 25% of all ingredients needed to make generic drugs. 25%. this agreement will directly kodak's60 new jobs at factory in rochester, just in the initial phase. and in minneapolis. a place i have got to know very well and is a great place. the national guard, i want to thank the national guard, both state and beyond, for the incredible job. they went in and did some beautiful job. they cleaned it up. created thousands more jobs all across our pharmaceutical supply chains. we have now been building a very big pharmaceutical supply chain.

not only coming out of china, coming out of other countries also. navarro, thank peter and admiral boler to make this work possible. today's action is our latest step to build the greatest medical arsenal in history. we will be able to do that through the defense production act and other authorities. we have invested more than $3 billion in nation's industrial base. we have contracted with companies such as ford, general motors, phillips, others to produce more than 200,000 ventilators by the end of this year. more than seven times more than we would do in a typical year. we have contracted with honeywell, 3m, to increase u.s. production of n95 masks. we have brought it from less

than 40 million a month to 100 million a month by august. we will have 160 million and a very short while. many times what we used to do. if you go back two years ago, many, many times. we are increasing domestic production of gloves by 1000%. we will be manufacturing 450 million gloves annually by next year. we are finalizing contracts with our textile industry to make gowns in america with american fabric. we have 13 million reusable gowns in the stock oil and we will continue to grow that number to 72 million this fall, which is a rapid escalation indeed. in new major investments

rapid point-of-care tests. there is nothing like the rapid point where you get your answer 15 minutes,tes, to to maybe 20 minutes at the max. we are already at a 15% level and bring it up substantially from there. we are ramping up domestic production to 8 million test kits per month. there is nothing like this that has ever taken place anywhere in the world, or close. through our partnership with manufacturing in the state of maine, we have increased production of test swabs from 30 million per month in june to 6 million per month now. i went to the plant where they do this. it was incredible. we will produce over 100 million swabs per month by january. we have dramatically ramped up production of materials needed for a vaccine and we are on

track to rapidly produce 100 alien doses as soon as a vaccine is approved. 500 million doses shortly thereafter. so we will have 500 and doses. logistically, we are using our great logistically, we are using our military -- our great military -- their whole life is built around logistics -- bringing things to locations, and they will be able to take care of this locationally and bringing it where it has to go. they are all mobilized. it has been fully set up. a very talented general is in charge and when we have that vaccine, it will be discharged and taken care of. it will be a very rapid process all over the country, and perhaps we will be supplying a lot of the vaccine to other parts of the world like we do with ventilators and other things that we all of a sudden have become very good at making.

when the china virus struck our nation, we mobilized the government and private sector to acquire, source, and deliver life-saving supplies. hhs, ima, and the private sector combined to coordinate the delivery of more than 196 million n95 respirators -- hhs, fema, and the private sector combined. week, fema completed a second shipment of personal protective equipment to over 15,000 nursing homes. our big focus has been on nursing homes and senior .itizens as you know, we have to take care of the most vulnerable, especially if they have a medical difficulty, medical problem, in particular heart or diabetes, which provided a total , 66 millionn masks

pairs of gloves, and 13 million gallons. we have replenished -- 13 million gallons -- 13 million gowns. we have replenished the long neglected national stockpile. today the stockpile is over 15 million -- today, the stockpile has over 50 million n95 masks, and we will be doubling that in a short period of time, and then doubling that number. we have shipped more than 14,000 ventilators to areas of need across the country and have more than 40,000 available to deploy. not a single american who hasn't needed a ventilator has been denied a ventilator. if you remember early on when we were first hit with the virus, ventilators were very hard to come by, and now we are the largest maker anywhere in the world by far. not only are we fully supplied and stocks, but we are helping

other nations because ventilators are hard to build and hard to get. this is just the beginning. in the coming months, we will continue the largest on shoring campaign in american history. we will bring back our jobs and make america the world's premier medical manufacturer and supplier. that is what is happening now already. it has been happening for quite some time. we are seeing improvements across major metro areas and most hotspots. you can look at large portions of our country. it is corona-free, but we are watching very carefully california, arizona, texas, and most of florida is starting to head down in the right direction. i think you will see it rapidly had down very soon, but if you part, most ofmost florida starting to head down. in the wake of the recent mass gatherings americans have witnessed in the streets of portland and seattle, we are also tracking a significant rise

in cases in both metropolitan areas because of what has been going on, and we, as you know, have done an excellent job of watching over portland and watching our courthouse where they wanted to burn it down -- they are anarchists, nothing short of anarchists, agitators, and we have protected it very powerfully, and if we did not go there, i will tell you, you would not have a courthouse. you would have a million-dollar burned out tilting. we are also working aggressively alaskaat the virus in and native american communities. we have worked very hard with tribal communities. they are very vulnerable to this horrible plague. inis the largest investment indian country in u.s. history. there has never been an investment that big in indian country. we need every american to help

protect our citizens and prevent the spread of disease. it's critical younger americans were member that even though they are at lower risk and, in fact, some age groups are at extraordinarily low risk themselves, they can unknowingly spread the virus to others who are at higher risk. americans, regardless of background or age, to practice social distancing, which people have gotten very used to, but we have to keep doing it. remain vigilant about hygiene. avoid indoor gatherings and large gatherings, but especially indoor, especially where you and that youbars wear a mask wherever appropriate. through the genius of our scientists, the devotion of our doctors, the devotion of our workers and dedication of our people, we will achieve victory over the virus and emerge stronger than ever before. we are looking at a bit -- very powerful year next year

economically. job numbers are looking outstanding, to put it mildly. set records. numbers on retail sales came in two weeks ago at the highest number in the history of our country, so we look like we are heading to some very, very good economic times. that means jobs, that means stock market -- stock market is already doing very well. it's getting to a point very close to where it was when we had this -- when we were hit with the plague. i just want to thank everybody for being here. steve, please go ahead. are you physically going to be in charlotte, or will you give a speech here or somewhere else? >> we will be doing a speech on thursday, the primary speech. charlotte, they will be doing nominating on monday. that's a different period, a different thing happening, but they will be doing nominations monday. i speak on thursday, ok?

>> from where? >> we will be announcing it soon. we will be announcing it very soon. >> negotiations are ongoing right now for the next relief measures. republicans have put forth their plan. do you support what senate republicans have put forward, and are there certain aspects they have put forward which don't support? >> there are, actually, and we will be talking about it. there are also things i very much support. we will be negotiating. it is semi-irrelevant because democrats come with their needs and asks, and republicans come with theirs. we will be discussing with mitch and all the other people involved. kevin has been very active, as you know. all the people involved. steve mnuchin has done a great job, keeps everybody together, both democrat and republican, and we'll see.

we want to do what is best for the people. i want to do what is best for the people. i want to do what is best for the economy because that means jobs and lots of things. >> can you clarify your position on the efficacy of hydroxychloroquine after you retreated a video making claims -- claims.n't making the recommendations of many of the people, including doctors -- many doctors think it is extremely successful, the hydroxychloroquine, coupled with the czink -- coupled with the zinc. many doctors think it is extremely good, and some people do not. has become very political. i took it. as you know, i took it for a 14-day period, and i'm here. i'm here. i happen to think it works in

the early stages. i think frontline medical people believe that, too, many, so we will take a look at it, but one thing we know, it has been out for a long time, that particular formula, and that is essentially what it is. it has been for malaria, lupus, and other things. it is safe. it doesn't cause problems. i had no problems. i had absolutely no problems. felt no different. do not feel good, bad, or indifferent. and i tested, as you know -- it didn't get me, and it's not going to, hopefully, hurt anybody. on what to think based i've read -- i've read a lot about hydroxy. i happen to think it has an impact, especially at the early -- there were some very good tests for it, and the doctor from yale came up with a very strong testament to it. there was a group of doctors yesterday, a large group, that

were put on the internet, and for some reason, the internet wanted to take them down and took them off -- i guess twitter took them off, and i guess facebook took them off -- i don't know why. i think they're very respected doctors. there was the woman who was spectacular in her statements about it, that she has had tremendous success with it, and they took her voice off -- i don't know why they took her off. maybe they had a good reason, maybe they did not. i don't know. i can only say that from my standpoint and based on a lot of reading and a lot of knowledge about it, i think it could have a very positive impact in the early stages, and i don't think you lose anything by doing it, other than politically it doesn't seem to be too popular. you know why? because i recommend it. when i recommend something, they like to say don't use it. last night, you said that dr. fauci misled the

country about hydroxychloroquine. how so? >> no, not at all. i don't even know his stance on it. he was at the task force meeting a little while ago. i have a very good relationship with dr. fauci. sort of interesting, i have not always agreed with him, which is i think pretty standard. he did not want us to ban -- put up the band to china when china was heavily infected, very badly, wuhan. then he told me i was right and he told me i saved tens of thousands of lives, which was fact,us, but i think it's and i did the ban on europe. but i agree with him, and i agree with what he said. you know, it's interesting. he's got a very good approval rating, and i like that. thisber, he's working for administration. he's working with us. we could have gotten other people. we could have gotten somebody

else. it did not have to be dr. fauci. he is working with our administration and for the most part, we have done pretty much what he and dr. birx and others, who are terrific, recommended, and he's got this high approval rating, so why don't i have a high approval rating with respect -- and the administration with respect to the virus? we should have a very high -- because what we've done -- we are just reading off about the masks and gowns and ventilators and numbers that nobody has seen and the testing at 55 million tests -- we tested more than anyone in the world. i have a graph i would like to show you. we are up here and the rest of the world is down at a level, at just a tiny fraction of what we have done in terms of testing. it is curious, a man who works for us, works with us very closely, dr. fauci and dr. birx also, highly thought of, and yet, they are highly thought of, but nobody likes me. it can only be my personality.

that's all. go ahead. >> dhs announced it is going to undertake a thorough review of to decide onram continuing it or not. you mentioned after the supreme court ruling that you were thinking about a path to citizenship for daca recipients. >> we are going to work with a lot of people on daca and we are also working on an immigration bill, a merit-based system, which is what i have wanted for a long time. that decision was an interesting decision because it gave the president, as a president, more power than many people thought the president had, so the president is now -- which happens to be me -- in a position where i can do an immigration bill and a health-care bill and some other bills, and you have seen some of them come along. we are going to tremendous -- we just signed it three days ago -- we are going to do tremendous prescription drug price reductions. tremendous. it could be over 50%.

if it's favored nations clauses or anything else. it's tremendous numbers we are talking about. you go to some countries and they will sell, like, a pill for $.10, and in the united states, it costs two dollars. it's the same basic factory, the same everything. the united states bears the cost of all these low prices you see all over the world. people go to canada to buy a prescription drug from the united states. not going to happen with me. it's not going to happen with me. one of the exciting things -- got very little coverage, and that's ok, but the people understand it -- i think we will be reducing prescription drug prices by massive amounts. numbers that have never been done before. in 51 years, drug prices came down, first time in 51 years that they came down. week, it i signed last think that drug prices could

come down by numbers like 50% and even greater in certain instances. >> come back to where i originally started -- are you still considering a path to citizenship for current daca recipients? >> we are going to make daca happy and the daca people and recipients and also end up with a fantastic merit-based immigration system. >> on drug pricing, you had said that pharmaceutical representatives would be here today for a meeting to talk about bringing drug prices down or to negotiate. that meeting was canceled. why? >> i didn't know a meeting was i said therel, would be a meeting sometime this week. they want to meet. i didn't know that it was canceled. they want to meet. i thought the meeting was actually scheduled for tomorrow. i thought the meeting was scheduled tomorrow. sorry about the days. i can see how upset you are by it. go ahead, please. bloomberg. mr. bloomberg.

you look like mr. bloomberg. go ahead. >> [inaudible] fundamental employment aid if the deal they are hashing out in congress is not completed by this week? >> we are going to take care of the people, yeah. good question. >> in a video you retweeted last night said that masks don't work and there is a cure for covid-19, both of which health experts say is not true. also said doctors make vaccines using dna from aliens -- >> i can tell you this -- she was on air along with many other doctors, and they were big fans of hydroxychloroquine, and i thought she was very impressive in the sense that from where she came -- i don't know which country she comes from, but she said she has had tremendous success with hundreds of different patients, and i thought her voice was an important voice, but i know

nothing about her. thank you very much, everybody. thank you. >> president trump finishing a news briefing, taking questions from reporters. certainly the headline seems to be the president still touting hydroxychloroquine as a treatment, possible care, for covid-19. the president reiterating that he used that, believes it still has a positive effect, at least in the early stages of the virus . he is here, after all, and that says something, of course. there was controversy earlier today because a video made by bright art touting hydroxychloroquine as a cure ended up on social media, facebook, twitter, youtube took it down. twitter even temporarily suspending the account of donald trump, jr., of course, the president's son, after he tweeted out this video. i want to bring in our emily wilkins who has been listening

in to the conversation. what do you make of the president doubling down on this hydroxychloroquine strategy, theme? : this is something we have seen trump continue to push and continue to say positive things about, even as we are seeing numerous doctors come out and say that it's not something that they advise people to take because there are risks associated with it. always- he is just trump promotes his own message, does his own thing. he is not, i think, known for listening to his advisors all the time. there is also interesting news today about the administration giving a multimillion dollar loan to kodak to help produce in the uniteds states. that is something he says he hopes leads to less reliance on other countries and also

potentially brings drug costs down. : he did congratulate kodak on that. emily wilkins, our congressional reporter, thank you for weighing in. i do want to move on to the big tech antitrust hearing happening tomorrow. ceo's of facebook, google, apple, and amazon will all be testifying. we spoke to the chair of the ,ouse antitrust subcommittee who will be running the proceedings tomorrow, for his take on big tech and how the companies have been behaving. let's take a listen. >> this is the first major antitrust investigation that congress of the united states has engaged in in about 50 years. evil antitrust is designed to address is coercion, and to the extent that these

large technology platforms are behaving like novelists -- >> the antitrust issues facing facebook are different than those facing apple and amazon. i think -- is the only actual monopoly. when you have monopoly power, you have to have regulation. i think in the next couple of years, we will probably get closer to it that we have ever been. >> sometimes i have negative opinions about apple being a little too much control over you, but i've thought about this withoing on right now antitrust, and i actually take apple's side on this one. they are basically forced to pay a ransom of 30% were denied access to that marketplace. this is 30%. this is highway robbery. >> 30% and giving you

verification protection and security. when you look at what happened in the android world, i don't object at all. >> i cannot think of another industry as large as this .ndustry i think google benefits from the fact that it is not an easy business to understand, so again, i would expect that they will largely stay away from the train wreck that is going to be nd bezos show. received prepared remarks that mark zuckerberg will be making tomorrow. he touts being an american company. law and the.

ability to innovate under that law. he also highlights china, and of course, facebook has made the argument in the past that breaking up or regulating u.s. tech companies in the wrong way could give china an advantage over the united states. what do you make of what zuckerberg is planning to tell lawmakers tomorrow? >> he says in the statements that some kind of regulation is necessary. he is a little bit standing apart from the other leaders in saying that is firmly and repeatedly as he has. unfortunately, his own behavior keeps making it obvious how much that regulation is needed. on a number of regulations including electoral interference has not speech, he really gotten to where he needs to be. alsoys in his testimony apparently, we have more work to do, which is something facebook always says, and it is constantly true but is not particularly helpful.

why don't they do the work? they have vast resources, and norma's amount of cash, and even in this economy, they are bragging, so let's see some action. they have done an lot. they just have not done enough. emily: in that interview with scott galloway, professor at nyu, he made a comment where he said the only person that would lose here is the ceo, who would ceo of one round and not all of westborough's -- not all of westeros. david: there is something fundamentally true about some of the things representative johnson was saying to you earlier. these companies, the scale of

influence they have over our lives is fundamentally wrong. however, the problem is that they do a lot of things for us that we like. i also thought it was interesting the way he talked about these hearings as something of an education for the american people. ultimately, that is what is needed. many of the services of all four of these companies are deeply appreciated and even beloved by a large number of americans. that is not going to change. on the other hand, they do cause genuine harm, and that needs to be examined more cynically, more methodically, and i applaud the committee over the last year for having really delved into a number of the areas where problems still exist. breakup is not going to be the solution, by the way. there is no simple solution. emily: ceo's will be testifying virtually. they are also all four testifying together. will there be safety in numbers

and less of a chance of fireworks or some sort of public reckoning? has a little bit of a feeling of a show trial, but there is a definite safety in numbers because in reality, each company represents completely different issues. there are overlapping issues, as representative johnson did mention. sometimes, some friendly competition in more and more cases, but there are so many weferent issues that maybe will simply not have time to delve into. cook agreed very belatedly to join this and i think one of the reasons was because he realized he could not get that much pressure because there simply will not be the ability to focus on any given company's issues. emily: do you believe apple stands out in some ways from the rest? the case has been made that perhaps apple is the lowest on the list in terms of egregious nest on anti-competitiveness.

david: absolutely. they are harder to define as a monopolist, that's for sure. amazon is not really a monopolist by most conventional definitions, either, although the chief counsel for the majority on the committee has come up with some interesting arguments why they should be considered subject to antitrust investment. asle does not really cause much problems to experts like myself. tim cook is a brilliant politician, as has been noted in some of the articles leading up to these hearings. he has been able to maintain a good relationship with the chinese government and donald trump. that is a masterstroke of politicking. they: that said, you have ceo of epic games, we spoke to earlier on the show, who disagrees with you. spotify also. thank you so much for joining us

and thank you so much for watching this addition of "bloomberg technology." do not miss our continuing coverage of that hearing tomorrow and our special coverage right here. australia"daybreak is next. this is bloomberg. ♪ you say the customer's make their own rules.

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