>> from the heart of where innovation, money, and power collide, in silicon valley and beyond, this is "bloomberg technology." with emily chang. emily: i'm emily chang in san francisco. this is "bloomberg technology." coming up over the next hour, it is the main event as epic games takes on apple in a major antitrust trial. teams sweeney takes a stand.

we will have the play-by-play the first day in court. power-play, cj probert who sits on the coalition for the fairness as apple's dominance means it is no longer a free market. his perspective on the case and the industry just ahead. a triple threat. stitch fix is bringing into billion dollars in revenue. it will student -- it will soon have a new ceo and it is ready to embrace the crowd. i will talk to the incoming ceo and elizabeth spalding. all of the stories in a moment. . u.s. stocks trimming their advances. tesla and -- let's get to bloomberg's kriti gupta and ed ludlow. kriti: it started today in the green p then we turned things around. this had to do with the ism data, the massive boom slowing down. it is all about the chips. he saw that unilaterally, it hit big tech. weighing on the s&p 500.

it was enough to drag the nasdaq and the red. you see that in the massive underperformance. 1.2% on the day. flip up forward, i want to show you what i did to semiconductors and autos. that is going to be the clearest readthrough here when you start to have that show up in the stock price for semis. it looks like it will train -- it will translate to the stock price. you can see the two industries tracking each other quite well. lastly, i want to hit crypto. that is the major story of today. ethereum, outperforming bitcoin. you have seen this pull back a little bit. earlier in the session, bitcoin was up 2%. if area, up 11%. that will be a divergence you want to watch. ed: downward pressure on social media stocks. facebook, down by .8%. the independent content oversight board is going to decide on wednesday whether president trump will remain banned from the platform. that put us on alert on wednesday. we got a cut by cfr rate from

hold to buy. facebook has had a -- has had a lot of love. the fra saying it is time to pull back. the opposite story is true for twitter. twitter has had a horrid few days in the wake of earnings. we see the stock down. but here is the change in the story. activist investor elliott management, according to sources, has bought more than $200 million additional shares, and increased its stake in the company. this is earnings on friday. precipitous drop. when we got the news on earth -- on elliott management, we saw a tick higher. investors getting confident in the stock after that move. flip up the board, the biggest point movers on the nasdaq 100 on monday, this is the stock year-to-date. twitter was outperforming facebook, until earnings. let's get to tesla and apple. tesla, the biggest points decliner on the nasdaq 100. reports out of germany over the weekend that we will not see

production out of the factory until january. we were hoping for action by the end of this year. that battery supply issues are hampering tesla's activities, weighing heavy on the stock. apple, on a day where tech is down and apple is in a major trial against epic games come a by .8%. investors are pretty sanguine. we are about to find out why. emily: we are going to talk about this apple-epic trial throughout the show. our top story, this huge face-off happening in court. the two companies embroiled in a high-stakes antitrust case over practices related to the iphone maker's app store. testimony kicking up today with epic ceo tim sweeney taking the stand. joining us with the latest are mark gurman who covers apple and another. mark -- walk us through the highlights of the day and tim sweeney's testimony. mark: so far, we have gotten tim sweeney's testimony, his perspective. he's being cross-examined right now by lawyers for apple.

his perspective is really simple. he believes apple is operating the app store like a monopoly. it is not giving user tries a developer choice to use different app stores out of apple's own built-in app store. therefore, creating this issue. apple also have their opening statement today, and their point was that epic does not want to pay for the innovation, the services, and apple's other offerings related to the app store. these are the same arguments we have heard over and over again. the impression i'm getting so far is that the judge is not necessarily buying into epic's arguments. this is something that could have been expected, no matter what epic says about apple and no matter how many times they call them the big bad wolf. no matter what issues are at stake concerns you have with apple's allegedly monopolistic tendencies, there still is a contract at play. from a legal perspective, that does leave -- leave the day at the end.

emily: let's talk about the argument that apple made in its opening testimony. an excerpt from that connection between consumers and develops -- developers have launched businesses that would have not existed, creating the winds of jobs and unleashed more than a decade of economic growth. this case is a fundamental assault on apple's secured integrated ecosystem which has what made that growth possible what do you make of apple's primary line of argument? mark: epic is trying to shoot down and they spent a good chunk of the morning trying to shoot down the element security to it. what epic did was point to mac os. mac os is the operating system that runs on the mac, versus ios which runs on the iphone. but at the saying is that apple could use the same security protection it uses on a mac and on the iphone because apple markets through mac security. what i should tell you are the fundamental differences between the iphone and the mac ecosystems. on the mac, you can get an apple

issued app store that takes the same commission rates as the iphone. you can also set up third-party app stores. you can install applications from the web or anywhere. the thing that epic is claiming that the iphone cannot do, the question is wide. their statement is they should, if apple really thinks the privacy and security on the mac is good enough to handle that functionality on their mac platforms. emily: ok. quickly, lay of the road ahead. we are expecting apple executives from phil shiller to tim took -- tim cook to testify. mark: there is going to be a lot of testimony and cross-examination of people from epic names, obviously sweeney, the cross-examination of next will be a senior engineering executive. you are likely to see other marketing and engineering folks from epic throughout this week. next week is when you are going to see this testimony is likely from tim cook, phil shiller, and

perhaps other apple executives. emily: we will be covering all of the fireworks. mark gurman, thank you for laying that out for us. we will talk about apple's dominance later in the show with cj kroeber, the ceo of the location tracking company. coming up, volatility is not unique to the crypto world. bitcoin is less volatile than apple and tesla stocks. on that and other insights from the ceo of finance next. this is bloomberg. ♪

emily: cryptocurrencies starting the week with gusto. the biggest mover monday was a theory in classic, app over 770%. as for bitcoin, it is still volatile. might be less volatile than other assets like apple or tesla. that is according to by nancy -- to the ceo. >> if you learn about cryptocurrency, you have to go through bitcoin. you learn about they going first. after that, they venture and say there is a blockchain. blockchain is not just bitcoin. there is a lot more you can do, in addition to transferring value. you can do smart contracts, you can do many other things. you can do and fts. all of this is moving right now. people need the other coins to do this new transaction. that is probably why it is going up. >> you have been tweeting about

this, and a lot of people rip on bitcoin and they don't even know what a public key is for you have people investing in your bnd but they don'tre just jumpie the price is rising. if you have too many people like that, that is irrational exuberance. it does not provide a solid base for prices. that is why we get even more volatility. how do you look at volatility and people that are serious investors in crypto? changpeng: i think it is the same proportions for people who are in traditional stock markets, or any market that is actively traded. there are only -- there are always people who understand the underlying assets. some people understand b&b more than i do. and there are people who follow other people, who are following the herd. and there is always a large number of people having the herd mentality than guys who do serious research.

that is just how our civilization is right now. which is everywhere. it is not unique to crypto. it is in crypto like that. the herd floors are less committed. whenever there are some negative news, they run away. whenever there is positive news, they try to rush in. they cause more volatility as opposed to diehard fans who love the projects. but it is the same thing with stock markets. there is nothing new in crypto. volatility is everywhere. bitcoin is probably less volatile than a similar sized assets like apple stocks or tesla stocks. >> i wonder about finance. i talked to anthony trench as about this, they don't have any plans to go public right now. you have said you don't have any plans to go public. why not access the public markets, especially right now when your popularity, the momentum is there? changpeng: sure.

i think we have a very good example of a private company that has done well. it is blue -- and this is bloomberg. bloomberg never went public. going public is a good option for many companies. it is a good way to raise money. it is a good way for early investors and sometimes even founders to exit partially or completely, or at least have the option to do so later on. and also have a public pricing on the trading market. for many organizations, they are sufficiently well-funded. they have sufficiently solid businesses that are profit generating. . same as bloomberg. so they don't -- they have no need to raise the money. and the investors may be long-term driven, they are not really looking for a public exit anytime soon. there are other ways to exit the business if you want to. basically, only a very tiny percentage of businesses, even

the profitable long-term businesses actually do go public. public is an option for many but it is not something for every business. emily: that was finance ceo zhao changpeng. coming up, location tracking apps go tete-a-tete. we will talk to cj -- pj probert -- cj probert. later in the show, e-commerce has seen a boom amidst the covid-19 pandemic. stitch fix is indeed riding the wave. we will hear from founder katrina lake and president elizabeth spalding about what is trending and what is next as it spalding prepares to take over the reins. this is bloomberg. ♪ is is bloomberg. ♪

emily: breaking news, new york

times is reporting pfizer, the fda's pfizer vaccine for 12 to 15-year-olds, the fda will approve the vaccine next week. this is according to the new york times. we know pfizer has been testing the covid vaccine on younger children, pre-teenagers, aged 12 to 15. the new york times reporting the fda will approve the vaccine next week. we know moderna is in the testing phase of a vaccine for younger children as well. we will continue to follow developments there. pfizer shares slightly operate now after hours. meantime, back to the big case of the day. apple's court battle with fortnite maker epic, not the only clash in the headlines. the iphone maker is also under fire from tile, a device tracking company that makes small locator begins that clip onto your keys or in your purse to track their whereabouts. they say that apple's new tracking error tags so

seamlessly pair with the iphone that it puts companies like tile at a disadvantage. here to discuss, cj prober from menlo park, california. let's start with your big concerns about apple, especially on the back of this air tag announcement which happened a couple of weeks ago. i'm sure you saw it coming. but what is your main complaint? cj: we have been competing for eight years, with small companies, fortune 50 companies. we welcome competition from apple. but we think it needs to be fair. if you look at the history between tile and apple, we had a very symbiotic relationship. they sold tile and our stores, we were highlighted in 2019 at their developers conference. they launched it in 20 and right when they launched their find my app which is a competitor of tile, they made a number of changes to their os that made it

very difficult for our customers to enable tile. once they got it enabled, they started showing notifications that basically made it seem like tile was broken. if you fast-forward to the air tag launch of a couple weeks ago, basically, the main points of differentiation of air tag, vis-a-vis tile, are enabled via platform capabilities that we don't have access to. you mentioned the seamless activation. another one is ultra wideband peer that is a technology that has been in the iphone since 2019. it enables a differentiated type of finding experience. we have been speak -- seeking to access that since it made its introduction into the iphone. and it had been denied. apple has access to that capability. those are just a couple of examples of how we are disadvantaged. emily: i know it has only been a few weeks since the air tag unveiling, but has this dented

tile sales at all or has it been a's's publicist he boost for tile products? how do you see this playing out? cj: the air tag launch became available on the 30th. super early. too early to tell. the good news is tile is very well puppet -- very well-positioned. we have a super differentiated product. we have many foreign factors, you don't need an accessory to attach it to your things, we are louder, we have better range. we have a lot going for us, from a product perspective. we feel good about our competitive position. we don't feel like we should be competing in the way we are with apple. what is really important to know is this is not about -- this is much broader than tile. this is about long-term consumer choice, innovation driving, and lower prices. that is why we are being so vocal about this. of course, it is impacting us.

but when you think about the coalition we have formed with epic and match and spotify, this is an issue that impacts all industries, consumers across the globe. and we want competition to thrive, innovation to thrive and we think consumers should have more choices. emily: as you mentioned, there are other companies that have a problem with how apple operates, not the week -- not the least of which is epic. you have spotify, match, tile. what about the counterargument? if you want to talk about innovation, why shouldn't apple be able to create a product that potentially works better or integrates better with apple products than tile? cj: it is a great question. the two are not mutually exclusive. so, apple does not need to take advantage of its monopoly position, the app store, and the iphone, and enable advantages that only they can partake in.

they can make those advantages available to all companies, so we can compete on a level playing field. if you think about it, and if you take the conclusion, apple has the potential to go from a $2 trillion company, to a five -- $5 trillion company, because they can basically identify categories, and all categories go through by a percent of u.s. people have a smart phone, they smartphone. . they can identify a category, create advantages for themselves in that category. just to manage the competition like they have done to us. and basically grabbed a massive market share in that category. if you look at apple's results from the first quarter, $90 billion in revenue, 54% growth, eps, 200%. if that is not a runaway monopoly train, i don't know what is. emily: it is interesting you

point out that apple is a $2 trillion company. and in his opening statements today, apple points out that epic is a $28 billion company and "does not want to pay for apple's innovations anymore so epic is demanding the court to force it into the app store untested, untested apps." apple's unwavering commitment to safety, security and reliability don't require it. what is your response to apple's counterargument to what epic is claiming? cj: the epic litigation is a small milestone in a much broader effort. whether epic wins or loses this litigation, legislative action is required in order to enable a level playing field for all developers. in order for innovation to

continue to thrive. in order for there to be competition. in order for there to be consumer choice. while epic is an ally with us and spotify and match in the 50, 60 other developers that have joined that coalition, despite the threat of retaliation from apple, this is a global issue that cuts across industries. this litigation is going to expose some of the realities of apple's business. it is really a small milestone. what matters much more is the legislative action that we are starting to see out of the eu, where they found that apple's policies were anticompetitive. if you think -- if you look at the bipartisan app store hearing that happened a couple weeks ago, there was a very clear alignment that apple has got an issue here. the epic litigation is one small step in a much broader effort to

bring a level playing field and consumer choice to the market. emily: what do you want? do you think the app store should be separated from apple? what is the remedy that you believe would be fair? cj: yeah. i would encourage the more nuanced answer and more detailed answer, i would encourage listeners to go to the app store semi hearing and read our testimony, read the testimony from spotify and match. at the highest level, what we are looking for is a level playing field. so when we are competing with apple in a category, we should be competing fairly. and no excessive taxes. on developers. because those costs get passed on to consumers and eliminate consumer choice. highest level, that is what we are looking for. emily: ok. cj prober, thank you for laying it out for us. the ceo of tile.

appreciate hearing your perspective today. a decade after founding stitch fix, the ceo is passing the reins to a new leader. we will talk to lake and her successor about why now, and the next chapter in personalized apparel coming up. this is bloomberg. ♪ so you're a small business,

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>> well, it's a due only -- duopoly. they control the smartphone market where 99.9%. and if you look at the a lot of the territories, apple has majority of the revenue. many of -- in many of these countries. other countries, google has majority. it's hard to look at a territory and say in this place apple or google is not a mow poply. they have business practices that only a monopoly can get

away with. emily: i'm emably chang in san francisco. that's tim sweeney. today in trial apple saying that, quote, epic speculates about a world where apple is a different company and asks the court to place a big bet that the world is different than we live in but it isn't. the result for consumers and developers is less security, less privacy, lower quality, less choice. let's get more on this colorful day in court from bloomberg's lud low. give us so many competitions. ed: they say that apple creates a garden in our airwaves because it's the only way you can pay for the apps you want. what they want to see is more options. if you have an i.o.s. device like an iphone, you can go to

another store and download the app you want. apple says, hold on a minute. you get access to one billion devices around the world. 84% of the apps on the app store are free anyway which is good for developers and we're only charging commissions of 15% for those smaller businesses. let's talk about what it says about apple. if you're an investor, why do you care? this is why. last year in fiscal 2020, apple owned $54 billion of revenue from services. the vast majority from the app store. tim 2017y argued -- tim sweeney argued in court monday that apple was making more profit from the app store than the app developers themselves. that $54 billion may be the most as mac and ipad combined and that's what it's trying to protect. on a day where technology stocks were under pressure, biggest points gainer on the nasdaq 100, apple.

up .8%. what are investors reading into this and why are they so calm? it's going to take weeks for us to find out, emily. emily: right. of course. it's a big bet as tim cook took over as c.e.o. thanks for the specifics there. moving on to another story there and that's stitch fix. in 2011, katrina lake founded stitch fix with a vision to evolutionize the apparel shopping. it's been extended -- expanded from women to children and men. lake was the youngest woman to take it public with a $4.6 billion market cap. she will stay on as executive chair and an employee to focus on social impact. coming in is elizabeth spaulding. lake and spaulding talk about

what now? katrina: it's been a long time in the making. i've known and know there is an opportunity there would be somebody that could help us see for possibility at stitch fix and open up kind of how -- i felt such a deep conviction and what personalization can mean in this space. at the same time we still have so much work ahead of us. from the moment i met elizabeth a couple years ago i had this spark. this really could be this person that really can open that possibility for us, that really has that, like, ambition and excitement and understanding what we can do. and so really from the moment i met her a couple years ago we've been kind of orchestrating this and to be where we are today. so we're really excited to be able to share that news. give me relief. us being able to work hand in hand over the last 12-plus months, especially during a time of crisis like covid is really

actually been as much, of course, the last year has been super challenging, it's been a great really for us to build a foundation and relationship together to set the stage for the future. emily: i'd love to hear the story how you asked her to do this, the courtship, how you popped the question [laughter] if you will. it's a big question. katrina: from the very early days we talked about a role that would be with succession planning in mind. i think we talked about a role that would be meaningful in scope from the beginning but had this in mind that elizabeth would be taking the reins eventually. i don't know if it was popping the question was the dramatic part. we spent a lot of quality time together talking about really deep things. we got an executive coach to work together from the very -- from our very first day working together. so this really has been, you know, kind of these marriage analogies are a right one because it really has been a labor of love. emily: you started working for

stitch fix a little over a year ago after working for zans. what was this process like in your perspective? elizabeth: i feel so good. in my vantagepoint in my prior role i was at this intersection of consumer and technology and stitch fix was this needle in a haystack. this company got the consumer, had the merchandising, supply chain. i just knew it was not in their d.n.a. to transform the world we're living in. many of these tech platforms, they dabble in commerce but it's not really their core business. then meeting katrina, it became clear we both had chemistry but she -- katrina has so little ego. she's kind of up for anybody that's going to make things better. that was so unique to me and so surprising, to be honest. and one of the conversations i remember is her kind of bringing

up this idea of like me being there for the second founding of the company. emily: i wonder, there has to be some emotion there in -- and you're not going anywhere. you're becoming executive chair. you are staying on as an employee. you'll focus on social impact. but is there any emotion in sort of letting go a little and what does that feel like? katrina: i do feel a little bit of -- i don't know if trepidation is a right word. i started my role as executive chairman. i'm really excited to be able to look at the world of social impact and sustainability and how i can really have an impact on our company but also the industry in that way. and that's all going to be new and different and so i have a little bit of like -- like new job jitters of -- you're really excited for it but also a little bit -- what is this really going to be like? that's where i feel emotionally now. emily: elizabeth, stitch fix has 8,000 employees and stylists.

and your prior company was known going in and changing them. do you think there is change that's needed? what will that be? mr. allen: that was the idea -- elizabeth: the stitch fix building human touch personalization powered by data science is only the beginning. i think from the change aspect, change can mean so many different things. that's a lot of the language katrina and i have been using. a lot of that was focused on change. in the most positive sense. i think for any company, change or die. we need to innovate and do new things. we're in this fortunate situation that past year i think has just demonstrated for us now is our time. consumers are shifting online at record rates in apparel. we think it went from 25% to 40% just over the time period of covid. and that is really the moment that's meant for stitch fix. what's so exciting to us is the purchase occasions that are now

moving jonls are the -- online are the ones uniquely suited to us. it's one about browse and discovery and personalization. how do we make our model available to everybody? how do we make it as accessible as possible? how do we bring personalized shopping to every consumer in this very unique way with the power of our personalization capabilities, our styling community? yeah, i do think i'm here for change but change for the good and with big ambition of what we can do. emily: so maybe there wasn't the drama of popping the question moment. i'd love to hear the moment how you guys first met. and when you sort of first realized this could be a thing from both of you. elizabeth: i'm friends with one of our board members. actually our original investor, steve anderson, of baseline. as i was kind of exploring the next chapter in my career, he's like, i really think you need to meet katrina. that's how it really call began. katrina and i met and there was

just this chemistry. to her point, we've known each other for a while. we went through various phases of getting to know each other. what role would i play in the business? the openness of me succeeding her. it wasn't like one big pop. it was this evolving dialogue that occurred over time. i felt like we so deeply invested in really understanding as human beings before i joined the company that it felt like we had this like truly deep relationship from early on. i actually kind of like to joke. as she was describing the role she envisioned me wanting to play, it reminded me of honestly meeting my husband. is this guy too good to be true? i felt like that about katrina. can i really trust this? obviously it's all working out. emily: does that mean there were lots of coffees, emails, texts, emojis? katrina: it was funny. there was courting analogies.

there was text messages and phone calls and a lot of walks. we did a lot. pre-covid, and we still did a lot of walks in the presidio, near the golden gate bridge. we should have got a selfie from back then. beautiful scenery and selfies along the way. it was a great way to be able to get to know each other and be able to start this relationship right. emily: coming up, part 2 of that conversation. fewer blazers and more leisure, it's in, headbands, necklaces and scrunchies also in. katrina lake and elizabeth spaulding talked about styling and shopping trends as the workforce heads back to work in hybrid mode. this is bloomberg. ♪

emily: when the covid-19 pandemic hit the u.s. and lackdowns began and for -- lockdowns began and for a time no one was buying new clothes causing stitch fix to struggle and laying off employees. they rebounded as a consumer favorite. dock as a high since january and came down a bit leaving some with a question -- what happens to stitch fix if and when people don't go back to retail stores? i spoke with katrina lake and elizabeth spaulding as part of our work shifting segment. katrina: we were able to get away from work and blazers and into categories like leisure that people are looking for. the notion of trying things on in the comfort of your own home can be not more compelling than

last year. while people were buying less clothes, our model is much more attractive than existing models. e-commerce accelerated. acceptance of our model accelerated. i think there is just a larger understanding that personalization is super important. suddenly people are starting to realize they live with all their things, they realize there are a few things i really, really love. just buying the one pair of jeans that somebody really, really loves is exactly what we are best in the world at doing. and so there actually were a lot of underlying trends this past year that really accelerated the opportunity for our business. emily: elizabeth, stitch fix had a high in january but came down since then. how concerned are you when people can go back to stores, they'll go back to stores in droves and that could dent some of this new demand that you've seen? elizabeth: you know, emily, it's such a good question because one might think, are we going to go back to the way we did before?

consumer behavior has really shifted. people have leaned and adopted. one thing we've seen over this time period, there have been moments where the world is opening back up. we see an acceleration when that happens because people are spending again. they want to go out. we've actually seen in some of the geographies, you know, the south, the pacific northwest. places where there was retail foot traffic in opening we were outperforming our overall growth rate which to us is a sign that people are going with their feet and moving into this new model of shopping. i think we feel more confident than ever that this is serving a way that people -- wouldn't you rather go out to dinner with friends, have lunch with your mom than go shopping and try on things in a department store clothing room? wouldn't you rather have that time back? i think one of the things i looked before joining, what are the elements of value? what are the things people love about stitch fix? part of it is the tremendous convenience. that's never going to go away. part of it is we make people feel more attractive because of

this notion of personalization. those are enduring values that i think are going to be even more beneficial. and what we're doing with our shopping feed and that shop experience is we feel like we're moving from our d.v.d. era into the streaming era. at any moment you can see what's there for you and that opens up the entire market for us and in a way that's going to be accessible to all consumers. katrina: i do think we're seeing a broader casualization trend where people are not participating -- everybody who is in the office five days a week certainly wearing a suit five days a week, that trend won't be as strong as it was before. that contingent of people won't be as large as it was before. so we are seeing -- and to be clear, this was happening before. i can wear jeans at work now. now this casual vision of the workforce is one thing we're certainly seeing. elizabeth: during this business we've seen our leisure grow

250%. we think that extraordinary growth will taper but we see people opting into that. as they begin to request things, hey, i might be in the office a little bit more, they want to be in comfortable clothes. work-leisure. i want to work in a hybrid mode in the future. we're seeing those date night requests again. one fun nugget we saw is 130% increase in our headband category which i think was the amanda gorman effect from the inauguration. it is a signal what people are looking for. sort of those microtrends to just more broadly wanting to start to go out again. that's great for us because it means that people are shopping again. emily: if there's one headline takeaway, more headbands. what else do i need to know? what else do i need in my closet? katrina: all of the zoom accessories i think have been doing really well. i think the earring-necklace sets have been doing well.

people dressing for zoom. we all understand where people are definitely, you know, in a world where you don't get to have the whole outfit showing off. you can selectively view the headband. the scrunchies. we sold a lot of hair accessories lately. anything that's a way to show your personality on zoom is something we've definitely see a lot of good sales in. emily: what do the next 10 years look like? elizabeth: the big idea is we have been so successful with this idea of getting some information from you. telling us what you're looking for, and then taking the benefit of our algorithms and stylists to pick out a few things. you pick what you love and send back what you don't and that has been a successful model we keep getting better and better. most consumers might want something at the tip of their finger. what can i get right now? really this foray into this personalized shopping experience is i think going to be a big part of our next 10 years. so the idea that you, emily, can open up your own personal store. you can see, you know, that new

pair of white jeans you need for summer. and everything in that store fits you perfectly and represents you, that's just a fundamentally different way to shop. imagine our stylists seeing inside that experience and making suggestions based on what they've seen from you in the past or live chatting with somebody immediately as you're thinking about the weekend. the ability for us to bring all those elements of our offering together at the tip of a finger i think is what's so powerful. really what i think will characterize this next phase of e-commerce is this movement from search and scroll to browse and discovery which we're so uniquely suited to be able to do. the nation -- nature of transactionals, relationship-based. we are all about building these deep human relationships. the future of stitch fix is all the selection in the world cure ated just for you. what are those items really meant for you and have the ability to engage with human touch at the moment that you want it. and that really removes the need for a lot of the inconvenient elements of how shopping worked

in the past. emily: stitch fix incoming c.e.o. elizabeth spaulding and founder, katrina lake. meantime, bill and melinda gates announced they're ending their marriage after 27 years. this week on bill gates' feed, a joint statement said the couple raised three wonderful children and built a foundation that works all over the world to enable all people to lead healthy and productive lives. it goes on to say the pair will still work together at their foundation but they're asking for space and privacy in navigating that new life. the statement is signed by both bill and melinda gates. all right. coming up -- we'll return to the showdown in silicon valley with apple and for the -- fortnite over app store fees. that's next. this is bloomberg. this is bloomberg.

emily: wrapping up our top story of the game. epic games alleging apple app store left people trapped in an anti-competitive marketplace. while they're creating the -- while they say the owner of fortnite is an assault. thank you so much for joining us. so a lot of complicated issues at play here. in the most simplest form, what does epic have to prove? >> epic at the end of the day has to prove that apple's app store is a monopoly and try to expand why -- explain why apple is violating antitrust law by not allowing i.o.s. mobile users to have other app marketplaces like google play and other app

marketplaces on i.o.s. mobile devices. in addition to having the app store. so at the end of the day that's what epic has to prove here. emily: so then on the other side, what does apple need to prove or disprove in this case? malathi: apple has to show that the 30% they charge developers, the standard cut they call it is something that is across industry and it's an industry standard. and they also have to show that any sort of control that they have over the app store now is necessary because it benefits consumers because apple is making sure that there aren't any privacy and security breaches, there isn't malwear and -- malware and other stuff that gets on our phone because the iphone isn't as secure so that's what apple has to prove. emily: so what are you going to be looking for next? malathi: both sides get started

with the opening argument they talked about the issues. tim sweeney was the first executive, apple's attorney, on whether the 30% cut was standard or not. and other gaming consoles like xbox and others charge 30%. what we'll keep an eye out for is a moment where some of these epic executives when they're grilled by apple attorneys, when they're sort of not offscript, if there are any tense moments or any moments where appic talks about -- where epic talks about maybe potentially started this fight because it needed to protect its own revenue and make sure that apple wasn't getting in the way of its fortnite sales. emily: all right. lots to continue to follow, malathi, thank you for joining

us. malathi nayak, i appreciate your perspective there. that does it for this edition of "bloomberg technology." -- neighborhoods are proving to be central hubs of information as more of us work remotely.

>> good morning and welcome to "daybreak: australia." we are counting down to asia's major market open. shery: good morning from new york. haidi: india's prime minister continues to resist pressure to lockdown the country. australia facing a backlash for barring citizens from returning home from the soh