caroline: i'm caroline hyde. ed: i'm ed ludlow. caroline: the president joins uaw workers on strike to discuss what it means for the ev industry. ed: the latest on the antitrust battles and the google trial continues. caroline: apple's biggest start of the year. more on the product misfire. breaking news around one certain company with regulatory requirements and ftc crackdowns. this -- the nasdaq is down one point 27%. two-year yields pushing up by

two basis points. there is movement on the dollar. the vix is picking up with volatility issues. the ftc is looking into amazon. it is up from the lows of the day but down 3%. they are being affected by the interest rates and the selloff in big tech. ed: the ftc is saying that amazon takes punitive and causative actions of putting products of theirs about others are this is the fourth case against amazon specifically focused on the online portion of its business. this suit is what the ftc has filed in federal court. it has happened and now we go and ask, what risk does this pose to amazon. we know about the apple

testimony and then we will get into the google antitrust case. apple has product issues we will go over it with mark gurman. tesla is now flat. it had been significantly lower when bloomberg reported that an anti-subsidy pro will look at china's support of manufacturing. when you focus in the united states is what is happening in wayne county, michigan. president biden expected to join the picket line. the uaw is in talk with the oem's ford spared from the talks. caroline: let's get out to someone who knows about the auto industry. how will this affect the ev transition? we have not seen a president

joined the picket line. how important is this and would it means to ongoing negotiations? >> that remains unclear. he is casting his lot with labor. we have seen a lot of labor unrest and activity and it feels like labor is on the upswing and the president clearly feels dovetails with his message about better wages for workers. it remains to see if there are breakthrough in talks because the automakers and the union seem to be at loggerheads. ed: ford has been spared from the expansion of the strike. yesterday evening the union was upset with ford about idling plants. what is the latest tengion --

latest tension? chester: it is due to the expansion of the electronic -- the ev's and it was with a leading chinese battery maker. the reasoning is unclear but it comes at a delicate time with the uaw talks. it is something the uaw has objected to. they see it as a preemptive strike by ford to prevent the unionization of those workers among other things. it shows you how volatile this old -- this whole mix is. it looks like there will be no shovels on the ground. caroline: this is a precarious balancing act, trying to push companies to invest in transition and has had share decent profits with workers.

what has the investor reaction been like? does it mean that maybe they need to realign were some of the money goes in the short term? chester: certainly public opinion seems aligned with the workers. where investors stand is a little unclear. the stocks of gm and ford have been under a microscope dating back to the start of the negotiations at mid summer. there is a big question about how much they can afford and still make all the investments they need. there does need to be some recognition they will have to compromise. maybe they give in on numerous share buybacks. the dividend is another matter. ed: he needs our industrials and

cars out of detroit. at the core of this is the electrification of an entire industry. we are talking about where the money should go. joining us is arcady sosinov . the union argument is lots of public money is going into the structure and the labor is not going with it. your argument is that those jobs on the assembly line can be reallocated to your industry for example. arcady: to produce an electric vehicle is 30% less. three years ago we had to battery manufacturing plants in the u.s. and today we have 30 plant two live. by the end of the decade will have 20 times the battery

manufacturing capacity than we did at the start of the decade. the redistribution of jobs will happen. it won't impact everyone the same. it will go to paying more for jobs. uaw strike against the oem's is fundamentally about the uaw because they will not be there to support battery manufacturing as well as chip and semiconductor. ed: you're active in europe as well. are you in a position where you are like the money is coming from the inflation reduction act. and the union that is worried about the workers future. arcady: we won't be able to take all of the demands -- the oem's

have to give up. similar to what happened in the transition from fuel to solar, a lot of jobs went to high-paying dispersed jobs that are seeing great results. kailey: solar -- caroline: solar is another industry highly dependent on china and are you seeing that same issue with barry making in the united states? we were just hearing from chester dawson about ford being blasted for putting on the battery -- putting the battery plant on hold. how much are jobs dependent in the u.s. on that relationship? arcady: there is a concern that some of the battery production and chips infrastructure will come from the chinese market. the biden administration has taken a look at that had of this

industry and put tariffs on place for battery sales coming in from china and we have incentivized u.s. manufacturing of chips and so we expect this market to play out differently than it did in the solar industry because of the incentives in place. we transitioned all production out of china. we have one single supplier left. the best geordie of other suppliers are coming from the u.s. and european markets -- the majority of the other suppliers are coming from the u.s. and european markets. caroline: so talking about making sure you're getting the right workers at the right time. arcady: in the u.s., we use the

incentives but in europe they use the stick and by 2030 you will be able -- unable to driverless you have an electric vehicle. the business model their works. 7% of all u.s. sales for ev's last year. as adoption happens, the business models turn and it works. i am encouraged to see what we do need incentives to get to the next two to three years while adoption is low, we won't need them by the end of the decade. ed: what a shirt assessment of the lasting impact of this? you are hopeful more people by electric vehicles and use your chargers but do you see a temporary halt in talks between the uaw and oem's will affect production over the last 18 months? arcady: a lot of the demand will

switch to tesla. they are so the largest producer of electric vehicles. while we will see fewer makes and models of vehicles from the traditional big three oem'a there -- oem's there is still capacity to be picked up. caroline: we will combine those stories with tesla's affect on eu subsidies as well. of strikes, voice actors, performers who work in videogames here to authorize strike. the concern for videogame makers involves how artificial intelligence is used to re-create actors of voices and images. we will bring you updates as to whether the on that authorization. ed: we are going to go from what is happening on the ground with

strikes to amazon versus the ftc on capitol hill. also the big tech antitrust at large. this is bloomberg technology. ♪

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ed: the ftc is suing amazon. investigators have been working on the complaint for months which accuses the e-commerce giant of monopolizing online workplace services by degrading quality for shoppers and overcharging sellers. let's get more. this is the fourth suit the ftc

has put in front of amazon. give us the specifics this time around on what they are claiming. anna: this is the big antitrust case. this case focuses on two different aspects of amazon's business, at the e-commerce cells to customers and the way they sell and use their website. caroline: we got a response from the company criticizing the lawsuit saying it is wrong on fact and law and they make -- look forward to making the case in court. this isn't a real alignment of how they see them but not all caps the consumer the cheapest price but the way in which they go about doing it.

anna: that is why this case is so important. a most famous lot review paper was written about amazon's business practices and why current antitrust laws are inadequate to address the anticompetitive measure. this case will be a test of those theories, whether or not you can fit a different business like amazon that didn't exist back when the current antitrust laws from a century ago and whether you can fit it into current antitrust law. this will be important to test lena con's legal theory and amazon's defense. ed: amazon had a quick response that merchants on the site have had this complaint against amazon for a long time and that is a one-sided relationship. ftc sue is in conjunction with 17 other states. how does it play out from here?

will it be long and drawn out or do we expect some quick decision to be made in the courts? anna: the seller aspect is interesting. amazon is a competitor for the third parties and also a competitor. that is one reason why the a complaint that amazon is too much power over their relationship with their customers. we will see how it plays out in federal court. this will be an important test of the legal theory and we expect this to be a long process. amazon had asked for lena con to recuse herself from this because of her past history of writing and investigating the committee -- the company. they are prepared to make their case. caroline: a programming note, the ft chief air leader lena con

joins us live at three got p.m. eastern time on the case against amazon. you can catch it all on bloomberg tv. ed: we are going to talk about the state of crypto regulation ahead of gensler's appearance. this is bloomberg technology. ♪

ed: sec chair gary gensler appearing before the house financial services committee tomorrow to testify against regulation to the crypto area.

sonali: the reality of the situation is the sec has a lot on its agenda and crypto being a part of it. lawmakers facing a potential government shutdown. a lot going on. how do you win the attention over for the needs in the crypto industry when there are so many directions? >> thank you for having me. it is a pivotal toll -- pivotal moment. we are bringing the faces and voices and americans who own and care about crypto coming to washington for the first ever stand the crypto day tomorrow. we have 50 companies representing thousands and thousands of jobs across the united states and they are coming to meet with their members of congress to talk about why they care about crypto policy and that is historic and it just so happens it is on the same day chairman gensler is testifying.

sonali: what does this mean for the constituents down in washington. are they will sleep preparing lawmakers or are they trying to in -- when back lawmakers not on their side? kara: they are trying to educate and help people understand why crypto matters to the 52 million americans who own it today in united states. that is something there are so many lawmakers that understand why crypto is important that there are a few outliers and some saying that this industry is rife with corruption and fraud and these folks are coming today to say this is my job and my family and my economic situation and your statements to consider how this industry as a whole is influencing the country and the future of the country and innovation. ed: i appreciate the education

argument what is the end goal of ? is it oversight from eight legislatures -- from a legislative perspective? kara: this has an opportunity to pass legislation that will create a company has a framework for crypto. it is what americans are asking for. it is about consumer protection and enabling additive this as a whole. what we are here to talk about and we have had discussions across the country, they want to see legislation, whether financial innovation after the 21st century or the coin built that has been worked on over the course of the last year to 18 months. there is legislation on the table that congress needs to consider and vote to pass. a vote is vote for consumer

protection and for americans who want to own and use crypto. a vote against it is a vote against the future innovation and jobs and economics and that is what will carry a lot of members through 2024. ed: a few weeks ago, the ripple co-founder joined us and he said above gary gensler at the administration level, the biden administration has chosen to dread the blockchain industries offshore. is that a position coinbase shares? kara: it is certainly having an impact. there have been studies done where 2% of developers are going overseas. that means a million jobs by 2030. if you think about technology working for 20 years, you see startups, four to six jobs personal startup and that means 4.6 million jobs going overseas by 2030. it is having a real impact where unelected bureaucrats are making

decisions that americans ally on elected officials to do. i think the administration and others need to think carefully about how they proceed in the next 16 to 18 months. sonali: what are you most looking for congress to tackle first? you have a stake in the circle and that put stablecoins on the table more dramatically and there is this taking issue. would you prioritize? kara: all of it. i think the comprehensive nature of the legislation is important because digital assets is not a one-size-fits-all ecosystem. we have commodities, stablecoins, and what is a fledgling industry with digital asset securities because there is no pathway to registration the sec. we need a confidence approach. we are pushing for pieces of

legislation and all three of those areas. ed: thank you. caroline: we will be talking more about regulation, antitrust, and google in particular. the lawsuit against amazon as well. lee heppner will be joining us from american economic liberties project. and macro strategy picking up another $150 million with of bitcoin. this is bloomberg technology. ♪

>> bloomberg technology. ed ludlow in san francisco. caroline: caroline hyde in new york. ed: president biden has touched down at the detroit national airport and he will later be meeting with uaw representatives, joining the picket lines at the invitation of the uaw and meeting with local representatives and the talks ongoing, gm and stellantis

are the sticking point and ford was expanded -- spared from the expanded strike. president biden on the ground. caroline: let's get a quick check on the markets as we will discuss what is happening with autos but more broadly as we see what is happening in the technology field. the nasdaq 100 is underwater. what the borrowing costs are happening, the two year yield, two basis points on the high side and about the 5% point level and bitcoin is on the downside, the story of dollar strength even as we see some slightly weaker economic data but the dollar strength has been a narrative we have seen over the last few trading days. t-mobile is one of the key outperformer's, up 8/10 of 1%. seems to be a delay of the $3.5 billion airway purchase that dish will do from t-mobile.

amazon is on the downside as the ftc is making clear its intentions and deciding to lay focus on competition when it comes to amazon. we see the same with alphabet and we understand one person will give evidence over the global trial -- google trial. let's go to capitol hill -- to defend what is of who -- google -- a lucrative deal to make google's search engine the default on the iphone. let's bring in someone for more and we have someone talking up the trial. the argument being, he says it is a better product and that is why they have taken payment and made it the best default search -- the default search. >> he is saying that if we at apple would have made a better product, we would have done so.

apple is saying, we are happy to use google as the default because it is a better product. caroline: can you outline how many billions google is playing. -- paying. is it here, have a billion dollars or so or is it take a percentage of our advertising revenue and that is something that is happening with competitors? molly: these are confidential numbers but what we know from early court proceedings, 2020, google is paying four dollars to $7 billion for these agreements and overall they get $10 billion annually to be the default on the web and phone browsers so it is a significant chunk for them. companies like apple, they get the revenue that is generated in the search results. ed: if you come to the story cold, you would be confused. this is about google, its decision by apple to use people

search but there is a broader google antitrust story, what are the other battles that alphabet, the parent company, basis? -- faces? molly: the main battle is about search and we are talking about search and apple because of the apple iphone but search and google search is available on web browsers and on android phones and other products as well. it is not illegal for them to be dominated or to have a monopoly but the problem is and with the doj is looking at is whether, what kinds of agreements did they strike to maintain be happily and did they harm their competitors like microsoft's bing and -- --duckduckgo.

let's bring in -- ed: let's bring in our next guest for more. we have headlines from amazon and the ftc and i want to start, the ftc has done what we have expected, filed it to in federal court against amazon, your reaction and your thoughts on the likelihood if the ftc wins in the case? >> i am glad we are starting with ftc versus amazon and this is a case a lot of people have been waiting for and it has been part of why one person has risen to prominence and become such a leader of the federal trade commission. this is a case where the ftc is alleging that amazon has violated the law, not by being big but by preventing other rivals from getting big enough to challenge it. it uses its vast market power to implement several strategies simultaneously designed to keep rivals from getting the number of sellers and buyers they need to compete to actively compete

with amazon. one of those pieces i think we heard earlier in your program is the fee they charge to small businesses who sell on amazon. that fee has risen dramatically over the years and it is estimated at some 50% of every item he purchased on amazon goes to amazon itself. the small businesses are prevented from raising their prices on other platforms, meaning they are losing that money. these are small businesses crunched by amazon. caroline: these are beneficial for consumers in some way if they are keeping prices low. that is what amazon's lawyer has said. this amine higher prices -- this could mean higher prices. and the ftc has moved from the consumer focused mission.

lee: amazon has been able to raise its price for amazon prime multiple times over the past several years. usually when the price goes up, consumers take their business elsewhere. if amazon is not losing market share even though they are raising prices, that is indicative of monopoly power. customers are being hurt in other ways and we are dealing with a new type of a novelist -- monopolist where price is in the only thing that matters. you lose innovation and you lose the economy of small businesses trying to create better products. there are costs to workers were being injured in amazon warehouses. -- who are being injured in amazon warehouses and when we think more broadly of what the external costs of what amazon's businesses and, it is not just about price but it out of the business model. caroline: the argument goes,

google has a pretty -- is a pretty dominant force but a good dominant force in terms of user interaction with search for stifling novation but -- because it hasn't allowed competitors to access the data needed to become a better product. how much has search lost out because of that? lee: it is a relevant comparison. google is a free product and people intuitively like google search. the problem is compared to what? there is no real credible alternative to google search and they commanded 90% of the market and we are learning today -- your last speaker spoke about what he would be testifying to, the way that google is able to degrade privacy protections and scrape and novation of users of google search.

anyone who thinks -- they are gathering information from you and selling it to advertisers who they are abusing on the others of the market. we are learning about those details in this trial. ed: when we had the microsoft and activism deal, there were questions posed that had the ftc one, nina con will go to other companies. activision and mark suffer able to proceed in this jurisdiction and there was a feeling that len a khan was picking better she could not win but they are proceeding with this case against amazon. how strong is this ftc as a regulator? how much like the will they be successful and if he actions it is using to take -- in the actions it is using to take?

lee: the ftc is appealing the decision in the microsoft-activision case. microsoft activision has prevailed in many jurisdictions and these are cases that are difficult to bring, these are antitrust laws crafted over a century ago to treat a different type of monopolist. they have been eroded dramatically over the past 50 years to focus something solely about consumer price, while completely ignoring other issues around the benefits of competition and innovation in markets and the value of small businesses and the dignity of workers. i don't think this is as much about the ftc as it is about the law itself and the way it has been eroded by the courts. these cases are not easy to bring. the ftc will have an uphill i -- battle with amazon as it did with microsoft and activision but i don't think that is a reason to not bring cases.

caroline: we actually have got competition in the role of search. that is chatgpt and we have seen innovation. at a gargantuan scale. is that not some sort of argument about the fact that it hasn't stifle innovation, this sort of product that everyone likes? lee: i love this example and we talk about this a lot, that ai is going to shake up google search, is going to shake up all these different parts of the economy. when you look at the analyses conducted now, you see that is not the case. microsoft had a lead with ai on a search engine and was not able to disrupt google's market share at all and what you will see with ai is that this new technology that is supposed to spring a new innovation is being drafted to the market structures of today. the monopolists will control the developing of the technology and that's what the doj's case

against google search right now is about how ai will develop over the next quarter century. will google have a stranglehold on the development? ed: of the many actions the ftc has taken, which you think it legally has the best chance of suggest -- of success against which company? lee: i am excited about the amazon case and they have laid the foundation for this sometime and they have been researching this. many cases has -- have been brought in state courts that they are building on and i don't think the ftc would bring this landmark case if it did not think they had a good opportunity to win. you can look at the others as texas the ftc -- other sexes -- other successes the ftc has had. the ftc is doing a darn good job and i am excited to see this amazon case proceed. caroline: we thank you for your

time and coming up, apple's attempt to market its fine woven cases, -- more on why consumers are not find with the fine woven -- are not fine with the fine woven technology -- cases. this is bloomberg technology. ♪

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ed: time for talking tech. the logistics unit alibaba -- initial report says the firm was hoping to raise at least $1 billion.

roku and samsung are getting hit with a lawsuit targeting tech companies on how their -- they advertise. the two investors behind the suit say the methods used to collect the data, filing six other patents -- of their patterns. --patents. x was cited as the biggest outlet for peddlers of this information pertaining to russia and pro-kremlin narratives and european commission price -- vice president says platform should act swiftly over elections. caroline: the new material from apple's siegel friendly iphone cases draw -- drew criticism. what is it that people don't like? >> i am using a clear case so no

impact to me. i had a feeling that the fine woven case wasn't going to be so hot so i decided to get up at -- a plastic case and in the past i use the leather cases. fine woven is leaving stains when you go to a table. if he saw the fine woven cases on display, a lot are scratched up and i think people are taking their nails and scratching on and pretending it is an old-school vinyl record. it makes a similar sound although it feels a little bit like suede and a record. people are unhappy with the dirt and the oil and anything from your fingers that it may pick up, they don't like the feel of the material. it doesn't feel premium compared to leather and it is coming in at about the same price and it is understand her -- understandable why they made the move. they wanted to trick -- transition away from leather and they came up with a new material to do that and i don't think they landed on the right

material with fine woven and perhaps there are other materials they can use like some of the materials, like fake leathers carmakers are using. ed: the problem is that during the event, they really emphasized the accessories moving away from leather, the sustainability of the new materials of the strategy has not gone down well with the consumer. it is part of bigger picture sustainability's in carbon reduction goals, right? mark: it is a long-term thing. if this fine woven ends up being the failure i think it is and they end up having to move away from fine woven, their alternatives -- there are alternatives. they can make a fake letter that feels like real leather and they can improve the material. what about the people that bought this case? people said that the base -- the best -- ship it back to the

online store and get a different type of case and apple does still sell the silicone cases. i have used those and i think they're pretty good and the problem is if you are wearing tight jeans, the case can really get stuck in your pocket and it picks up went --lint easily but they are perp -- protective and there is a marketplace of cases was the there are plenty third party cases -- cases. there are plenty third party cases. ed: thank you very much and coming up on bloomberg technology, social media at fis c -- social media app visco as a new medial -- media platform. this is bloomberg technology. ♪ whatever you see, at pgim we can help you rise to the challenges of today,

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you don't have to worry about things like changing tax rates or filing returns. avalarahhh ahhh caroline: a french billionaire is investing about $212 million tolerance -- into ai. he is one of the people -- behind a big incubator. while the rest are --

ed: one start at we have been talking about is vsco, the photo and video tool that has -- that went viral years ago. there was a new ceo eric wittman who was the president of the company until that point and i can't up with him last week about the content creator battleground, and how he intends of going vsco in the market. eric: it is a fairly dynamic landscape and things are changing often. if you take a step back and think about creators first, which is very much already those --our ethos, what you will find his creators want tools to make things more quickly and efficiently and they want to really -- a really healthy community that isn't being manipulated by algorithms or advertisements. they want to be discovered by prospective clients or being able to officially manage their

businesses and have great relationships with their clients to look platform that does all three of those things well, that will be the platform that wins and that is our mission and what we are trying to do here at vsco. ed: in october 2021, the new york times reports that pinterest is considering buying vsco. i think about similar properties, instagram, and where it sits within meta's portfolio. would you be open to a sale to a bigger platform to help vsco grow and help its technology be more used? eric: at the end of the day, if it benefits our creators and if it helps us pursue this bigger and more ambitious strategy and vision we have, that is something we would have a conversation with our board about and make sure it is the right decision for us. ed: how does vsco culturally grow? vsco growth --girl was what people said and the peak of

vsco's use and how do you wrote poetry and give the traction that tiktok has had in the u.s. for the long time? eric: for us, it is about focusing on creators and their needs and because we are a subscription business, we are not trying to drive a different type of engagement that is really promoting more at driven business models and that gives us a lot of freedom to make sure we are paying attention to what their needs are and their needs continue to change. we are hearing more from creators today that they don't feel that a company really has their back, that is really supporting them first, and that will continue to be our focus. caroline: the vsco ceo there eric wittman and that does it for this edition of bloomberg technology. ed: we have on our podcasts -- recap on our podcast. a big theme on our show has the

regulation and oversight and what is happening on capitol hill and the ftc and they take names and the world of crypto in the crosshairs. that is the focus on the bloomberg technology podcast. from over at san francisco, this is bloomberg technology. ♪

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>> welcome to bloomberg crypto. coming up the sec chair faces the house as the industry descends on d.c. to push for regulatory clarity. >>