>> very disappointed about the situation. you're taking it seriously. we are reviewing the various relationships. we view the risk manage process as well. >> from the heart from where innovation, money and power collide. in silicon valley and beyond, this is bloomberg technology with emily chang. emily: i am emily chang in san francisco and this is bloomberg technology. epic's ceo takes the stand.

the play-by-play. power-play. cj kroeber crew sits on the coalition for fairness says that apple's dominance means that it is no longer free market. his perspective on the ethics case and the industry just ahead. and a triple threat. stitch fix is bringing in 2 billion revenue. will soon have a new ceo and is ready to embrace the return to work crowd. i will talk to the outgoing and incoming ceo. all those stories in a moment but first you asked stocks trimming tests as apple and tesla weighed on the nasdaq. let's get to our guests are it all started today in the green. and then we turn things around. manufacturing data. that boom is slowing down. it is all about the chips. weighing on the s&p 500, not

enough to drag it into the red. it was enough to drag the nasdaq into the red. it fell 1.2% on the day. i want to show you what it did. to semi conductors and autos. that is going to be the clearest research. when you start to have that show up in the stock price. it looks like it will translate for autos as well because that is the industry it is most hit by. you can see the two indices tracking each other quite well. and then we want to hit crypto because that is a major story. all theory him outperforming bitcoin. earlier in the session bitcoin was up 2%. a theory him up 11%. what are you watching >> downward pressure on social media stocks. facebook down by .8%. the independent contact over cycle. will decide whether president trump -- trump will remain banned from the platforms. that put up an alert on wednesday. also we have a cut from hold to

buy. the stocks run higher. saying it is time to pull back. the opposite story is true with twitter. twitter has had a horrid few days in the way of earnings. and we see the stock down. but here the change in the story . has bought $200 million additional shares and increased his stake in the company. this is earnings on friday. whew. but when we got that news on elliott management we saw a tick higher. investors getting more confidence after that move. the biggest points movers on the nasdaq 100 on monday, this is the stock year today. twitter was outperforming 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 their factory until january. we were hoping for action by the end of this year but factory supply issues are hammering tesla's activity. down 3.5 percent finally, apple on the day where tech is down and apple and is in a major trial against epic games. up by .8%. investors are sanguine about this. we are about to find out why. >> we are going to talk about this epic trial throughout the show. our top story is the huge face-off happening in court. the two companies embroiled in a high-stakes antichrist -- antitrust case over practices related to the app store. testimony taking off today with the epic ceo tim sweeney taking the stand. joining us with the latest is mark gurman who covers apple and epic. walk us through the highlights and tim sweeney's testimony. >> so far we have gotten tim sweeney's testimony, his perspective as we speak.

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

>> let's talk about the argument that apple made in its opening testimony. an exit from that connection between consumers and developers have lost his nieces that would not otherwise existed. creative millions of jobs worldwide. an unleased more than a decade of economic growth. this is a fundamental assault on apples ecosystem which is what has made all of that growth possible. what you make of apple argument here. >> epic is basically trying to shoot down and spent a good chunk in the morning trying to shoot down the privacy and security element to it. what epic did a few times was potent to the operating system that runs on the mac. versuss ios on the iphone. apple could use the same security it uses on mac and on the iphone. mac security is good enough. what i should tell you are the fundamental differences. on the mac you can get an apple

app store that uses the same permission rates as the iphone. but what you can also do is you can set up third party app stores and install applications from the web or anywhere. developers can have any payment method they want. and the thing that epic is claiming that the iphone cannot do any of that. the question is why. their statement is they should. if apple thinks the private -- privacy security on the mac is good enough to handle that security. >> quickly. lay out the road ahead. we are expecting apple executives from phil shiller to tim cook to testify. the road of had this week -- road ahead this week. there will be a lot of testimony from people from epic games. sweeney will stand for cross-examination. up next will be a senior engineering executive from epic. next week is when you're going to see those testimonies likely

from tim cook and phil shiller and other apple executives. >> and we will be covering all the fireworks. thanks so much for laying that out for us. we will talk more about apple's dominance with the ceo of the location tracking company tile. coming up in a bit. also coming up, volatility is not unique to the crypto world. bitcoin is less volatile than apple and tesla stocks. more on that and other insights from the ceo of -- 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't know the use case. they are just jumping in because 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 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. ♪

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 spend four hours a day on their 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. ♪

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emily: >> it is a duopoly. there are two companies together. they control 100% of the smartphone market. something like 99.9%. if you look at a lot of territories, apple has the majority of revenue. many of these countries. other countries -- it's impossible to look at a territory and say in this place apple or google is not a monopoly. they have business practices that only a monopoly can get away with. emily: welcome back to

"bloomberg technology." i'm emily chang in san francisco. that is epic games ceo tim sweeney. today in trial apple saying that "epic speculates about a world where apple is a different company and asked this court to place a big bet the world is better than we one- -the one we live in. but it isn't. the result will be less security, less privacy, less reliability, lower quality, less choice." let's get more on this colorful day in court from ed ludlow. tim sweeney testifying in court today. give us some more context here. some any complicated issues at play. ed: epic and tim sweeney are arguing that apple operates a walled garden within ios. the app store is the only way you can download for the apps. what they want to see us more options. if you have an iphone you do not

have to go to the app store. you can go to another store and download the app. apple says, hold on a minute. through ios, you get access to one billion devices around the world, 80% of the apps in the app store are free anyway which is good for developers and we are only charging commissions of 15% for those smaller businesses. they talk about what is at stake with apple. if you are an investor, why do you care? this is why. last year and fiscal 2020 apple earned $64 billion of revenue from services. the vast majority from the app store. tim sweeney argued in court on monday that apple is making more profit from the app store than the developers are themselves. that $54 billion is almost as much is it made on mac and ipads combine. that is what it is trying to protect. on a day were technology stocks were under pressure, the biggest points gainer on the nasdaq 100 -- apple. up .8%.

what investors reading into this and why are they so calm? it will take weeks for us to find out. emily: of course the growth of the services business is a big bet that tim cook made as he took over as ceo. thanks so much, ed, for the specifics. moving on to another story now. and that is stitch fix. in 2011 katrina lake found a stitch fix to revolutionize shopping and styling experience care the company has expanded to kids, plus size, maternity and mens. lake became one of the youngest women to take a company public. now after a decade, lake is leaving the ceo role and will stay on as executive chair and as an employee focused on social impacts. her successor as president elizabeth spaulding who came to stitch fix after two decades at a consulting firm. lake and spalding join us to talk about why now and what is next. >> this is a long time in the

making. for a long time, i had known and totally been open to the possibility there would be somebody that could help us see more possibility at stitch fix and open up -- i felt such a deep conviction of what this could mean in this basin at the same time -- from the moment i met elizabeth a couple years ago, i had this spark. this could be that person that really can open up possibilities for us, that really had that ambition, ambition and excitement understanding of what we can do. so, really from the moment not that i met her couple years ago we have been orchestrating this, this transition. to be where we are today. and so, so we are really excited to share that news, to be -- it is a relief honestly. we have worked on a for so long. to share with the world. does 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 as of course the last year has been super challenging, it has been a really great way for us to build a really strong foundation of a relationship together and set the stage for the future. >> i would love to hear how you asked her to do this. the courtship. how you popped the question. if you will. it is a big question. >> from the very early days, we talked about a role that was going to be succession planning. so, i think, we talked about a role that was going to be meaningful. from the beginning. but had in mind this idea that elizabeth would be taking the reins eventually. i do not know of popping the question was as much as the dramatic part as much is really we have got a lot of -- we spent a lot of quality time together. we got an executive coach to work together from love, from our very first day working together. and so this really has been kind of the marriage analogies are the right ones because it really has been a labor of love. emily: elizabeth you started

working at stitch fix over a year ago. what was this process like from your perspective? >> yeah, well, first of all, i feel so grateful to have katrina, she was looking for someone to play this exciting role. in my prior role i said at the intersection of consumer and technology and stitch fix was -- this company that somehow really got the consumer. had the supply chain and merchandising worked with a lot of traditional players. i knew it was not in her dna to transform for this new world we are living in. and a lot of these tech platforms -- in commerce, but it is not their core business. it became clear we had chemistry but also katrina has so little ego. she's up for anyone and that will make things better. that was so surprising to be honest. and one of the conversations are

remember is her 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 are you are not going anywhere. you are going to focus on social impacts. but, is there any emotion in letting go a little, and what does that feel like? >> i do feel a little bit of trepidation, is the right word but i am starting a new job. i am starting a role as executive chairman. i am really excited to be able to look at the world, for social impact and sustainability and how i can really have an impact on our company but also the industry and that way. and that is all going to be new and different. so i have a little bit of light, new job jitters, like you are really excited but also a little bit like, what is this going to be like? that is where i feel emotionally now. emily: stitch fix has 8000 employees and stylist and bane is known for going into

companies and changing them. do you think there is change needed at stitch fix? >> i think that was part of the idea. change in the most positive sense. the engine that stitch fix has built around this notion of human touch personalization, powered by data science is so unique. but it is only been the beginning. i think from the change aspect, change can mean so many different things but i think the transformative change, and that is a lot of the language katrina and i have been using -- this morning and a lot of that was focused on change in the most positive signs, like, i mean, for any company it is change or die. we need to innovate. we need to do new things. we are in a fortunate situation that the past year has just demonstrated for us that now is our time. consumers are shifting online at record rates. in apparel. we think it went from 25% to 40% over the time period of covid. what is so exciting to us is the

purchase occasions that are moving online are the ones that are so unique because -- the ones that are about browser discovery and personalization. and so, how do we make our model available to everybody? how do we make it as accessible as possible? how do we bring person like shopping to every consumer in a 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: maybe there was not the drama of a popping the question moment but i would love to have the story about how you guys first met. and when you sorta first realized that this could be a thing. from both of you. >> i'm friends with one of our board members, our original investor steve anderson. as i was kind of exploring the next chapter in my career, he was like i really just think you need to meet katrina. that is how it all began. katrina and i met, and there

just was this chemistry. we have known each other while. we went through various phases of getting to know each other. this openness off me potentially succeeding her. it was not like one big pot. it was this evolving dialogue that occurred over time. and i feel like we just, we so deeply invested and really understand each other's human beings before i joined the company, that it felt like we had this, truly deep relationship you it i like to joke. as she was describing the role she could envision it reminded me of me and my husband. i kind of felt that way about katrina. can i really trust this? and eventually, obviously, it is all working up. emily: does that mean there was a lot of coffees, texts, emojis or whatever? >> there are a lot of courting analogies because it was a lot of text messages and a lot of

phone calls and a lot of walks. pre-covid. we did a lot of walks in the presidio, the golden gate bridge. actually i was thinking when we shared the news we shared the newsweek could have shared a shelti from back -- a selfie from back then. but it was, it was a great way to be able to get to know each other and to be able to start the relationship right. emily: coming up, part two of that conversation. fewer blazers and more ath le isure. stitch fix's out coming -- outgoing and incoming ceo katrina lake and elizabeth spaulding talk to us about shopping trends as we head back to work. this is bloomberg. ♪

emily: when the covid-19 pandemic hit the u.s. lockdowns began at a time no one was buying much of anything causing stitch fix to struggle and layoff more than 1000 employees. then it rebounded. stockade a -- stock hit a high in january. what happens to stitch fix if and when people go back to retail stores? i spoke to outgoing and incoming ceo's katrina lake and elizabeth spaulding. >> we were able to -- bring our categories into ath leisure. the notion of trying things on in the comfort of your own home

has never been more consoling than the last year. our motto was much more attractive than retail maters. e-commerce was accelerated. acceptance of our model was accelerated. i think there was a larger understanding that personalization is super important in the space. suddenly people are starting to realize. they realize there are a few things i really really love. so, just buying the one pair in jeans that people love is what we are best at doing. there were a lot of underlying trends that really accelerated the opportunity for a business. emily: stitch fix shares had a big high in january but have come down to how concerned are you that once people can go back to stores they will go back to stores in droves, and tha the new demand you've seent? >> are we going to go back to the way we do things before? what we have seen is consumer

behavior has really shifted. people have a liened and adapted it one thing we have seen over this time, there have been moments of the world opening back up. we have seen an acceleration when that happens because people are spending again. they want to go upward we have actually seen in the some of the geographies, the south, the pacific northwest, places where there was retail foot traffic and openings we were outperforming our overall growth rate, which is assigned the people are voting with their feet and moving into this new model of shopping. so, 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 closing room? would you like to have that time back? one of the things i looked at before joining is what are the elements of value? what are the things people love about stitch fix? and part of it is the tremendous convenience. and that is never going to go away. we make people feel more

attractive because of the notion of personalization. those are enduring values that i think will be even more beneficial. and what we're doing with our shopping feed and that experiences we feel like we are moving from our ddd era into the streaming area where at any moment you can see what there is there -- what is there for you. that opens up the entire market for us. in a way that is going to be accessible to all consumers. >> i do think we are seeing a broader -- trend. where people are not anticipating, everybody inthe office five days a week wearing a suit five days a week, that trend will not be as strong as it was before. that contingent of people is not going to be as large as before. to be clear, this was happening before. we would get requests that were like, i can wear jeans at work now. and so, the casual is asian of the workforce is one thing that we are certainly seeing -- the casualization of the workforce is something we are seeing.

>> we've seen our ath leisure grow 300%> as a beginning to request things. i might be in office more. they're asking for comfortable work clothing we are calling it work leisure. a lot of people are saying, i want to work in a hybrid mode in the future. we're starting to see date night requests again. one trend we saw was 130% increase in our head band category which i like to think would be -- was the amanda gorman effect from the inauguration. signals of what people are looking for. those micro trends to more broadly wanting to start to go out again. and that is great for us because it means people are shopping again. emily: if there is one headline take away it is more headband? what else do i need? what else do i need to, need in my closet? >> all of the zoon accessories hav been doing really well pinned. the necklace sets have been doing really well. there has been a lot of dressing

for resume. we all understand where people are definitely -- dressing for zoom. in a world where you can selectively do the headband, the scrunchies. anything, way to show your personality on zoom is definitely we have seen a lot of good sales in. emily: what is the next 10 years look like? >> the big idea is that we have been so successful with this idea of getting some information from you, telling us what you are looking for, and then taking the benefit of our algorithms to pick uot a handful of items -- -- pick out a handful of items and you pic what you love and send back what you don't. this has been a very successful model. most consumers want something at the tip of their finger. our foray into the personal i shopping experience is i think will be a big part of our next 10 years. and so, the idea that you, emily, can open up your own personal store. you can see that new pair of

white jeans you need for summer and everything fits you perfectly and represents you. imagine our stylist making suggestions based on what they have seen in the past or live chatting with someone as you are thinking about the weekend for the ability for us to bring all of those elements of our offering together at the tip of the finger i think is what is so powerful. and 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 are suited to be able to do. the nation -- the nature of transaction to relationship base. we are all about building relationships. i think the future of stitch fix is like all of the selection in the world, curated just for you. what are those items that are meant for you, and having the ability to engage with human touch at the moment that you wanted. and that really removes the need for a lot of the inconvenient elements of how shopping worked

in the past. emily: stitch fix incoming ceo elizabeth spaulding there and founder katrina lake. meantime, bill and melinda gates have announced they are ending their marriage after 27 years. this week today on bill gates feed, joint statements said the couple have raised three wonderful children and build the foundation that works all over the world to enable all people to lead healthy and productive lives. it goes on to say that pair will look together at their foundation, but they are asking for space and privacy in navigating a new life. the statement is signed by both bill and melinda gates. all right. coming up, we returned to the show down silicon valley with apple and fortnite locking horn s over app store fees. this is bloomberg. ♪

emily: wrapping up our top story of the day. epic games -- and apple's app store has left users and developers trapped. while the iphone creator is accusing the fortnite maker of a fundamental assault on their business model. joining us as the bloomberg legal reporter. thank you so much for joining us. a lot of complicated issues at play here. in the simplest terms, what does epic have to prove? >> at the end of the day has to prove that apple's app store is a monopoly. try to explain why apple is violating the antitrust law by not allowing mobile users to have other marketplaces like google play and other app marketplaces on ios mobile

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

with their opening arguments. they talked about broad strokes. tim sweeney, the first executive who was -- by apple's attorneys on what is the 30%, standard or not and were there others like xbox and others also that charge 30%. what we will keep an eye out for is for any sort of moment where some of these epic executives when they are drilled by apple attorneys, when they are off script, any tense moments. any moments where epic talks about how maybe potentially they started the fight because it needed to protect its own revenue and make sure that apple -- emily: ok. >> apple store was not getting the way of news fortnite -- in the way of his fortnite sales. emily: lots to continue to follow. thank you for joining us. appreciate your perspective

there. that does it for this edition of "bloomberg technology." tomorrow i will host next door ceo's sarah frier. her business has seen plenty of momentum as neighborhoods are proving to be central hopes of information. as more of us work remotely. she will join us tomorrow. this is bloomberg. ♪

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♪ >> this is "bloomberg daybreak: middle east." our top stories this morning. yousef: u.s. factory growth cools amid supply chain issues and rising materials cost. jerome powell says the economic outlook has brightened but warns that the recovery is uneven. manus: the u.s. and u.k. pushback against what they call