apple says, hold on a minute. 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 anothe

the case is so serious apple c.e.o. tim cook will also testify in court brings absolutely the crown jewel. and this is something they're knocking can wipe clean up was really come back aggressively on this and that's why we should be in terms of those court cases well as all the testimony that comes out and it's no shock at all that coke will be testifying it's hard to tell which ways the case could go one thing is clear the verdict should be made at the end of may in any case ethics hoping to take a bite out of apple's hard won reputation. for. joining us now is michael kors and i know the deputy dean at mit sloan school of management welcome to the program we've just heard both arguments laid out there who do you think has the strongest case. well i tend to think apple has a strong his case the app store is a critical part of what apple offers and it's taken many years to put that app store in the place that it is and it's fundamental to the value of the i phone i'm very sympathetic to after developers and companies l

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they are asking apple about icloud in china.hey have done a lot of portraying apple as the big, bad wolf. full of inconsistent testimony. a lot of that does not go to the core of the issue. epic not do a good job proving why there should be third party app stores. apple did a good job proving why they should be. epic didn't do a good job proving why apple should not be the only offer in town. apple did not a good job proving why they should be. emily: apple and tim cook doubled down on the idea it is about users, privacy, security. apple says it puts the user at the center of everything. it is not about the money. i believe that was word for word. how much do you think the regulatory risk, in this case or beyond, is an overhang here? how concerned are you apple could be facing more scrutiny down the road regardless of what happens here? >> it speaks to why every regulator is watching this so carefully. everything he said will ultimately reverberate. we are seeing across the board, apple, amazon. apple recognizes the app store, t

this is not the apple charity. didn't sothink so he's making his case and what he should do. >> kara, a dress rehearsal for another courtroom battle with spotify. many think that's a stronger case how do you think apple will come out of this from a p.r. standpoint to that one >> a bad couple weeks. in the report on china and the compromises the company has to make in china weren't great. this trial sort of shows it's -- apple sort of have the white hat of all the tech companies. it's not quite as white as it was before i think the spotify case is a significant one, because they're in businesses that compete with each other that really going to be something to talk about, and how does apple get into businesses because apps are -- what business koss it get into where it doesn't compete with its developers that's a really good argument. i would think spotify -- this is about payments right? about who gets to decide who has payments in control? a bigger question. in this case apple can give a little i suspect. and spot

today epic faces off with apple in the courtroom how this case could change apple and the way that wese our smartphones forever. >>> then, buffett talks bitcoin, r robinhood and the game of investing. old versus new we explain in a moment, and cathie woods, twitter over twitter. breakdown of arts defense of the stock this hour. julia? >> well, stocks are higher as the dow flirts with a 300-point gain nasdaq lagger to the three actually turning negative moments ago with names like skyworks, tesla, dragging down the tech sector. carl >> top of our feed today, maybe all this month, will be this epic showdown in the courtroom as "fortnight" creator epic games square the off with apple whether the app store is an abuse of monopoly power. right now apple takes about a 30% cut of all in app purchases on the app store big story on wall street, the service revenue, of course app countered this removing its immensely "fortnight" from the store. tim koch wilcook will testify as mr. sweean sweeney. >> epic ceo tim speen sweeney t the stand to explain why his video gamemaker is suing after apple k

and they will say the fact that apple can charge that 30 percent premium shows that apple has monopoly power. and we're saying, where is the 2nd part about what does that competitive? and i'll just say one thing here, which is the u. s. trust doesn't make it to easy for ethic. because the under us that the trust law, a lot of slack is given to a firm that makes the system to use it the way it wants to. and basically says it doesn't have a duty to do to deal with it inspires the suppliers or to be kind of the buyers and suppliers. so this can look very unfair. it is very unfair. and whether the line is coating competitive act, it's another thing that just epics prepared to prove it, but it's not just really easy. yeah. okay. we got about 20 seconds here before we go. i just wanted to ask you, do you think that we will continue to see cases like this being brought against apple when it comes to these anti trust accusations? i think we will and we're seeing them all over the world and all over the rest of the world. it's kind of easier to prove claims. and so apple might just have to pull

apple took down the epic platform from the app store. epic sued. apple countersued. it is billions of dollars of profitable revenue if epic can successfully demonstrate that apple has monopoly powers. apple argues that this is a successful ecosystem where consumers are protected because the payment system protects fraud and because developers get access to apple devices. this is going to go on for some time. sit tight for a few weeks. but bloomberg intelligence reckons apple has the upper hand with robust defenses, and the burden of roof is really on epic to bring the evidence that apple does indeed have monopoly powers. sounds epic. alix: -- alix: sounds epic. ed ludlow, thanks a lot. you had like four puns and that intro. guy: my children play the game every once in a while. i have some insight here. alix: i have not, so i will rely on for the insight here. we will take a look at the market implications for all of these stories. dana d'auria, envestnet well solutions team co. cio will be joining us -- wealth solutions team co-cio will be joining us. this is bloombe

to stop this happening apple will send c.e.o. tim cook to testify during the trial he's expected to argue that apple's fees are not unusual there are similar fees on playstation x. box and google play stores. it's hard to tell which way the case could go the verdict is expected by the end of may. well let's check in with chelsea delaney our frankfurt correspondent chelsea what do you reckon who has the better argument epic or apple. well we're just on the 2nd day of the case so it's going to take a while before we really see the full range of arguments and even after the case is decided we're likely to see years of appeals from both sides no matter which way it goes but in any any way this this this case is decided it's going to really break new ground in terms of antitrust law really the question that's at stake is what is a monopoly in the digital age this is a question that we haven't really seen decided by by court so far so apple is saying that it's not a monopoly because you know you could also get a fortnight from that big

here apple says, oh, no, 30%, 30%.ean it's criminal well, it's not criminal. >> let me ask you this though -- >> it will be criminal. >> that was some sound from barry diller earlier on "squawk box" that hasgone viral. he was talking about apple and those app store fees and the legal battle royale between the two companies, epic and apple is nearing an end apple ceo tim cook is on the stand today for the very first time josh lipton has the latest what's going on? >> so, julia, tim cook was escorted through an underground garage this morning, so we don't have any good visuals of his arrival to show you, unfortunately, at that courthouse in california where apple is battling fortnite maker epic games apple wrapping up its legal argument in that fight here's what we expect from cook today, roughly three hours of testimony, about 90 minutes of direct examination by apple lawyers, one to two hours of cross-examination by epic lawyers, then about ten final minutes of redirect examination by apple attorneys cook expected to t

apple shares down about 1% right now. apple bringing out the top gun ceo tim cook today in federal court in oakland, california. no cameras allowed, that's why we're showing you court photos here, court drawings. he is still testifying right now in the trial versus fortnite maker epic games. now, end ping is battle -- epic is battling against apple's app store policy demanding its app meet the guidelines, specifically a 30% commission saying it should be allowed to have its own payment technology within the app store. cook vigorously defending the app store saying it now has 1.8 million apps and created among 2 million jobs, calling it an economic miracle adding, quote: it's likely been one of the most important jobs segments out there in a growth point of view over the last decade. okay, but what does that have to do with the trial? well, let's get to susan li in the fox newsroom, she's been following the trial. susan, yeah, i mean, absolutely it's created jobs. it's created a whole ecosystem, certainly, but does that ev

the man who first got under the skin of apple's c suite, and wait til you see what apple execs calledin his first interview since the e-mails came to light. closing bell, we're about 13 minutes away with, or is that 23? yeah, let's make it 23, we need more time here. dow up 127 points. we are coming right back, and the social media audio chat app clubhouse has been at the top of apple's app store for months. it's till drewing in the likes of -- drawing in the likes of elon musk, drake and oprah, i sat down with the found or about his string of successful start-ups and what head him to jump in and become one of club house's first angel investors. how did he get that, you know, it's not so much the midas touch, it's the midas vision. you've got to listen to my everyone talks to his podcast available anywhere you get your podcasts. we are coming right back, don't go away. dow is gaining, up 135. ♪ ♪ what a ride! i invested in invesco qqq a fund that invests in the innovators of the nasdaq-100 like you become an agent of innovation with invesco qqq that building you're trying to buy, - yo

and that apple really does have monopoly power and they will say the fact that apple can charge the 30 percent premium shows that apple has monopoly power and we're saying we're under the 2nd part about what is that competitive and i'll just say one thing here which is the us and tech trust law doesn't make it too easy for epic because under us that they trust a lot a lot of slack is given to a firm that makes a system to use it the way it wants to and they simply says it doesn't have a duty to do to deal with it buyers of suppliers are to be kind of the buyer of the suppliers so this can look very unfair it is very unfair and whether it crossed the line and it's called an anti-competitive act it's another thing that just epix prepared to prove it but it's not just really easy yeah ok we've got about 20 seconds here before we go i just want to ask you do you think that we will continue to see cases like this being brought against alcoa when it comes to these antitrust accusations. i think we will and we're seeing them all over the world and all over the rest of the world and easier

if it goes against apple, what possible consequences? judge rules against apple, it would be monumental. it could change the way we access apps, it could change what app makers are able to do in either of the app stores. because the same judge is also ruling on apple's lawsuit against google later this year. and it could have a big impact on many antitrust cases that have been brought against apple and its app store around the world. and if apple wins, it sort ofjust reinforces the power that they already have, and maybe emboldens them on the rules and the fees that they are able to charge within the app store. bookin book in your, coronavirus restriction are going to be eased. �* , ,, , , eased. businesses will be allowed to _ eased. businesses will be allowed to welcome - eased. businesses will be allowed to welcome as i eased. businesses will be i allowed to welcome as many people as they want, provided social distancing is maintained. conservationists in kenya have rescued nine endangered giraffes from an island threatened by rising

but it's not possible to rate apple music. is not clear that apple music.art to say, probably, there is an abuse of market power going on. so making the process much more transparent, and making sure that there is no favouring of apple services over services that go via the app over services that go via the app store is one way of making a difference.— a difference. professor, looking _ a difference. professor, looking at _ a difference. professor, looking at this - a difference. professor, i looking at this historically, are companies like apple and other companies we know dominate the online world, either in a historical context, too big, too powerful, endanger, orat too big, too powerful, endanger, or at risk of being broken up? i endanger, or at risk of being broken on?— endanger, or at risk of being broken up? i don't personally thinkthat _ think that breakup is right approach. the logical way of dealing with vcs using existing antitrust and competition law to say you can have market power, but you can't abuse market power. and so, with the getting so

if it goes against apple, what possible consequences?inst apple, it would be monumental. it could change the way we access apps, it could change what app makers are able to do in either of the app stores. because the same judge is also ruling on apple's lawsuit against google later this year. and it could have a big impact on many antitrust cases that have been brought against apple and its app store around the world. and if apple wins, it sort ofjust reinforces the power that they already have, and maybe emboldens them on the rules and the fees that they are able to charge within the app store. that's it from me. i am lewis vaughanjones and this is bbc news. bye—bye. hello. when it comes to bank holiday weather, our expectations are normally low, but even they were undercut by what just happened. up to two inches of rain in the wettest parts of scotland, but very few avoided a spell of lashing rain. a wind gust over 90mph off the south coast of england. even where the rain held off until late in the day, the temperature only reached 14

if it goes against apple, what possible consequences? the judge rules against apple, it would be monumental. it could change the way we access apps, it could change what app makers are able to do in either of the app stores. because the same judge is also ruling on apple's lawsuit against google later this year. and it could have a big impact on many antitrust cases that have been brought against apple and its app store around the world. and if apple wins, it sort ofjust reinforces the power that they already have, and maybe emboldens them on the rules and the fees that they are able to charge within the app store. and, before we go: take a look at this amazing video involving the royal marines. this soldier is strapped into a jetpack, developed by the company gravity industries. it was originally tried out for paramedics getting into difficult places and it is now being tested for military applications. quite impressive. that is it from me, you can find me on twitter. hello. when it comes to bank holiday weather, our expectations are no

fight apple in other ways.stimated $20 billion in fiscal 2020 off commissions from the app store. that is a lot of money for the iphone maker. ♪ shery: checking on markets right now, we are seeing kiwi stocks under a little bit of pressure right now. do watch out for the jobless rates out of new zealand on wednesday. sydney futures under pressure. we do have april housing prices out today. u.s. futures gaining ground but watch out for the kospi because we have that short spelling ban being lifted. more news just ahead. this is bloomberg. ♪ bloomberg. ♪ >> let's get you caught up on the first word headlines. data accorded covid deaths in india hit 3689 on sunday while the number of daily cases slightly -- dipped slightly. the crisis may have cost the prime minister a key election. his party conceding. he was criticized for holding mass rallies and the opposition-controlled state as infections of sword. the u.k. foreign secretary said the

and the - pressure is on apple. just like pressure is on apple. also got a case against apple for unfair competition. also last week we had the news about it changing the way it works in the app store in terms of enabling more privacy for users. is apple going to make more changes voluntarily because of the pressure from regulators, do you think? it pressure from regulators, do you think?— you think? it is certainly possible- _ you think? it is certainly possible. you _ you think? it is certainly| possible. you mentioned you think? it is certainly - possible. you mentioned the european commission case. they gave them a charge sheet last week talking about how their model currently challenges competition law. apple could offer a settlement. it is possible that apple could offer a settlement to the european commission. but in the eu, they are also considering some legislation in the form of an additional markets act that would impose some regulation on apple and other what they called kate piff —— gatekeeper platforms. google, microsoft, that other

1984 advert for the apple mac.as reportedly made hundreds of millions of dollars from the fortnite game alone, just in charges, and migratory�*s argument is if they don't want to pay then where else can they go? �*s app store and google�*s google play other dominant global app stores outside of china. if you want to make games for smartphones, pretty much have to play by apple and google�*s rules. epic calls that a duopoly and if there was more competition, those fees might be lower. their argument is a pretty simple anti—trust one, that no—one company should have so much market dominance in one centre. and they are not the only ones who think this, a string of high—profile politicians from the democrats and republicans in the us have criticised apple for minimalistic behaviour. the eu recently announced anti—trust charges against apple for his behaviour on the app store. apple's argument is pretty simple. it invented the app store so it should get to charge what it likes. it also says a majority of apps don't pay

and that apple really does have monopoly power and they will say the fact that apple can charge the30 percent premium shows that apple have monopoly power and we're saying we're under the 2nd part about what is that competitive and i'll just say one thing here which is the us and tech trust of doesn't make it too easy for epic because under us that they trust a lot a lot of slack is given to a firm that makes the system to use it the way it wants to and they simply says it doesn't have a duty to do to deal with. buyers of suppliers or to be kind of the buyer of the suppliers so this can look very unfair it is very unfair and whether crossed the line and it's called an anti-competitive act it's another thing that just ethics prepared to prove it but it's not just really is yeah ok we've got about 20 seconds here before we go i just wanted to ask you do you think that we will continue to see cases like this being brought against al gore when it comes to these antitrust accusations. i think we will and we're seeing them all over the world and all over the rest of the world it's kind of

and that apple really does have monopoly power and they will say the fact that apple can charge the 30 percent premium shows that apple has monopoly power and we're saying we're under the 2nd part about what is that competitive and i'll just say one thing here which is the us and tech trust law doesn't make it too easy for epic because under us that they trust a lot a lot of slack is given to a firm that makes a system to use it the way it wants to and they simply says it doesn't have a duty to do to deal with it buyers of suppliers are to be kind of the buyer of the suppliers so this can look very unfair it is very unfair and whether it crossed the line and it's called an anti-competitive act it's another thing that just ethics prepared to prove it but it's not just really is yeah ok we've got about 20 seconds here before we go i just want to ask you do you think that we will continue to see cases like this being brought against alcoa when it comes it is antitrust accusations. i think we will and we're seeing them all over the world and all over the rest of the world the easier to

compared to the likes of apple and microsoft.ar and away biggest influences on the tech sector and of course overall market up between 11% and 15% during that same six-month span one. reasons why tech has underperformed in the overall market is that when it comes to tech, prevailing theme over the last several years, mega caps, but the smaller tech stocks these days that are making more of those waves, deirdre that's the big deal. watch the smaller s&p 500 tech stocks not necessarily apple and microsoft, they're the ones getting the most attention now. >> right a little bit of a value plan tech here, dom, we talked some of the legacy named haven't run up as much over the last few years. you can still make a case mega cap tech names a good postpandemic's trends capitalized, cloud, ecommerce, advertising they're not going away right? year over year those comps could get tough. looking for long term, still look like pretty good bets it's all about where investors are looking and for those legacy names, yes, could be opportunity this

what you have got is for the apple store, essentially, you can only get apps and content out to applee as well. so, if you're in one ecosystem, you can't move to the other one, and there are only two, and both have very similar approaches. what kind of changes might apple be compelled to introduce? well, one of the approaches is to say, well, treat your own services in the same way as you treat services that are on the app store. so, for example, it's possible to rate spotify — what do you think of their app. but it's not possible to rate apple music. it's not clear that apple music is treated differently to spotify. these are things that start to say, probably, there is an abuse of market power going on. so, making the process much more transparent, and making sure that there is no favouring of apple services over services that go via the app store is one way of making a difference. professor, looking at this historically, are companies like apple and other companies which we all know dominate the online world, are they in a historical context, too big, too powerful, and in danger or

quickly, guys, apple is another story.are downgrade to sell over at new street they go to a $90 target our friend pierre ferragu says the munster demand on the iphone cannot be secular and you have to brace for a downcycle the iphone 12s likely to suffer limited innovation that call is about $30 from where we are right now catch the analyst behind the call later on "the exchange" at 1:00 p.m. eastern time we talked about this with david and cramer in the 9:00 a.m., it has some echos of what bernstein has said, tony sagknocki talked about 129 having similarities to the 6 cycle where you had a very big uptrend and then had to take a breather more or less. yeah the argument rests around whether demand is sustainable for the 12, but i remember last quarter, jon, remember we talked, we all had different opinions on what the greatest strength was the apple story has become so much more than the iphone. it's become services, the m-1 chip, ipads, and the return to work is it going to be a hybrid model so does demand for other devi

1984 advert for the apple mac.s, if they don�*t want to pay than where else can they go? apple�*s app store and google�*s google play are the dominant global app stores outside of china. if you want to make games for smartphones, you pretty much have to play by apple and google�*s rules. epic calls that a duopoly and that if there was more competition those fees might be lower. their argument is a pretty simple anti—trust one, that no one company should have so much market dominance in one sector. they are not the only ones that think this. a string of high—profile politicians from democrats and republicans in the us have criticised apple for monopolistic behaviour. the eu recently announced anti—trust charges against apple for its behaviour on the app store. apple�*s argument is pretty simple, it invented the app store so it should get to charge what it likes. it also says that a majority of apps don�*t pay anything at all to apple. its reasoning for charging 30% on some developers, it says it needs to vet and che

karen, where do you stand, particularly someone who oholds apple. >> as a apple shareholder i stand a lot closer to the snap side of it i don't think the credit card transaction analogy is exactly the same i think credit cards are a completely commodity business and apple represents something very different i love barry dillard how candid he is and how he will say anything, match our little company pay $5 million to apple, not sure it's such a little company if they can afford that so i'm not crying for them, he's done an extraordinary job. all that said though, i don't know when we'll get clarity on this we heard from josh mid-august for a decision, but we've seen apple and whoever is suing apple at the time settle many times before. that could happen. and maybe it's somewhere in the middle it won the be shocking to me we seen it with qualcomm we've seen it before so i don't know what's priced into this stock though. >> right, right. >> i don't know if any discount is priced in so that would be bad >> i mean, let's say worst-case scenario i'm sure there are worse but let's say 15% be

apple did make their — detailed response? apple did make their opening _ detailed response?a few different arguments, but they essentially said there is no precedent for apple to be considered a monopolist, there is a thriving ecosystem of apps. if apple had not created the app store, this hundred billion dollar company might not even exist, and it is very competitive, there are many platforms for companies to publish their apps. they are trying to frame this is a gaming issue, pointing notjust a google play but also for xbox, playstation, all of the different places you can access games. epic is trying to frame it as an app specific being which goes beyond the gaming industry but the effects of app makers, they are trying to broaden it.— makers, they are trying to broaden it. , , , ., broaden it. very briefly, i am afraid we _ broaden it. very briefly, i am afraid we are _ broaden it. very briefly, i am afraid we are running - broaden it. very briefly, i am afraid we are running out - broaden it. very briefly, i am afraid we are running out of i afraid we are running out of

people to use the apple pavement -- payment method, which gives apple a 30% cut. apple does say that, but epic says that is about the money, not the privacy. and they could make changes to the ipad and the iphone to allow for an alternative secure method. apple is on the stand right now, and their lawyers are arguing that epic does not want to pay for their innovation that apple has developed. they say that the app store has very strict review guidelines, which make the platform safer than if they did not have a system there. but overall this is the case that comes down to dollars and cents. apple wants to keep making the 30% cut, which generates billions and billions a year, and epic does not want to play -- to pay the cost of hundreds of billions of year -- a year to be in the app store. matt: also a 30% court -- a 30% cut from their store that they built on their ios. how big of a market share do market -- market share does apple have? is it enough to create an applicant term? mark: at the very least it is for sure a duopoly. it only -- there really is apple an

apple wants to frame things differently., they feel that you can get android phones from samsung, brands and china, apple is a global company, so phones that people might buy, and more to the point, apple is saying this case is about videogames and wheryou can pay to play fortnite, and they are trying to make the argument that in this particular case, they place plenty of competition because game can go play fortnite on their xbox, or pc, so that is what this legal case is about, but what i think is important is that is separate from the larger discussion about antitrust issues and technology platforms. legal experts have said that epic has an uphill battle in the case, but what it is doing is generating a lot of record and the court documents and the testimony that tim cook has today that lawmakers are going to look at and decide, maybe they are doing within the bounds of current antitrust law, but what if we want to enact reform. that is the bigger battle here. >> what do you think that tim cook wanted to do on the stand?

the case is so serious apple c.e.o. tim cook will also testify in court brings absolutely the crown jewel about and this is something they're not thinking whitely an apple is really a mac aggressively illness and that's why we should be in terms of those who are kids as well as all the testimony that comes out but it's no shock at all that coke will be testifying it's hard to tell which ways the case could go one thing is clear the verdict should be made at the end of may in any case ethics hoping to take a bite out of apple's hard won reputation. for. joining us now is michael kors amano the deputy dean at mit sloan school of management welcome to the program we've just heard both arguments laid out there who do you think has the strongest case. well i tend to think apple has a strong his case the app store is a critical part of what apple offers and it's taken many years to put that app store in the place that it is and it's fundamental to the value of the i phone i'm very sympathetic to after developers and companies

. >> they say that apple has taken too much control of the iphone.and that it needs to allow other app stores and other payments processing to actually be allowed onto the device. apple made about 20 billion from outside developers, through 2017. they say they used the money to make the iphone bulletproof to hackers. cook testified that there could be malicious things that occur, things that vacuum up people's data. so apple examines every one of the 1.8 million apps on their store, and takes a chunk from there developers for doing it. apple made a choice, cook said, there are clearly other ways to monetize and we chose this one because we think this is the best way. judge rogers said, well, it is also quite lucrative. it seemed to see that the judge wasn't completely buying his argument. >> she actually started asking him about competition not just on the app store but also on payment processing. >> reporter: it is not a jury trial but has huge applications and the judge won't have a decision before august. >> but the judge very clearly has a sense

they also charged 30% which apple says is the industry standard, which interesting layup apples, oneic games did to fight valve, for example, is they created a secondary store where you could not only get fortnight but other games as well and only charge 12% okay, here's where it gets really kind of crazy. microsoft came in and slashed all of their app. developer fees, toe only 12% as well and then also wrote a letter of support to the court. against apple in favor of epic games, so this is really bringing in alameda different tech agencies and companies together all the kind of fight out who's going to get the biggest share of this pike. if epic does win, come out on top in this lawsuit. what you know what? what are the what are the implications? what is the legal victory mean for them, as as as you know, as a company, and what does it mean for other app developers moving forward? yeah, so a lot of people are called. going out epic and saying, this is crazy. what are you doing? this is going to estimate cost them about $593 million by the end of 2021. but here's the thing if you put

it also taunted apple with this parody remake of an iconic 1984 advert for the apple mac.ou want to make games for smartphones, you pretty much have to play by apple and google's rules. epic calls that a duopoly and that if there was more competition, those fees might be lower. their argument is a pretty simple anti—trust one, that no one company should have so much market dominance in one sector. apple's argument is pretty simple — it invented the app store so it should get to charge what it likes. it also says that a majority of apps don't pay anything at all to apple. its reasoning for charging 30% to some developers, well it says it needs to vet and check apps that come onto the app store to protect the apple ecosystem. we know apple is taking this case seriously. its chief executive tim cook will give evidence at some point. it'll be the first time he's testified at a trial. here's more from michelle fleury in new york. it has captured the attention of many in silicon valley because, if apple loses, that is a game—changer for app developers. for apple, of course, we k

when of the key arguments that apple made today was getting sweeney to admit that the 30% cut that apple gets from the app store is similar to other consuls. that raises the question as to why epic is going after only apple, and only apple who has a 30% cut when every other platform that he provides his software on does take the same cut. the difference i want to tell you is that while many of these councils do take the same cut, if you look at a comparison between apple and google, google takes a 30% cut. but there a key difference, and that is that they have two separate app stores. you can have the app store that google provides, you can also add a second or third or fourth app store from another provider, which may take a slimmer cut. emily: in your view, because tim sweeney and epic been persuasive in making that case? that apple is different when as you mentioned, all of these players take a 30% cut? mark: i think thus far, i have not seen anything from the epic side to indicate they are making a persuasive argument to the judge and court, including in their evidence and testimonie

that raises the question as to why epic is going after only apple, and suing only apple over this 30%ut, when every other platform that he provides his software on does take the same cut. the difference i do want to tell you, is that while many of these consuls to take the same cut, if you look at a comparison between apple and google, google take the same 30% cut, but there is a key different -- difference. they have two different app stores. one that google provides post in google play, or another from another provider which may take a slimmer cut. emily: in your view, has tim sweeney and epic been persuasive in making that case? that apple really is different, and as you mentioned, all of these players take a 30% cut. guest: i think thus far, i have not seen anything from the epic side to say they are making a persuasive argument to the judge", including in their evidence, cross-examination that apple is doing anything not par for the course. one interesting tidbit i heard this morning was apple's lawyers basically questioning sweeney about the typical home and how many devices the

here apple says, oh, no, 30% 30%.evan spiegel praised apple and its business model. >> snapchat wouldn't exist without the iphone and the amazing platform that apple has created. so in that sense i'm not sure we have a choice about paying the 30% fee. we're happy to do it in exchange for all of the amazing technology they provide to us, in terms of the software but also in terms of their hardware advancements. >> snap's rival, facebook, criticizing apple's new system that minimizes ads >> julia, thanks so much such a great debate and we await of the results of the court case in the meantime, shannon, what do you make of apple's recent pullback is it attractive and do you think there is a serious risk regulatory or otherwise coming from this sort of court case? >> i think the challenge here is what is the fair number. and to the point that all of these app developers are looking at a platform that we talk about apple in terms of their services this installed base is just seismic in size. and so if i think about it in t

meanwhile, on the tech side, look at amazon look at google look at apple. they all had these technology distribution methods, app stores, you know, prime, et cetera, that they continue to marry with content so i wonder, is this strategy on the media side going to play out better than it is on the tech side >> yeah. that's true. i mean, we had guests this morning on "squawk box" say, de, the era of vertical integration in media is literally coming to an end, but same time we're talking about other areas of technology, and apple is a prime example. getting vertical is actually what's happening right now >> yeah. amazon as well jon mentioned this amazon spent what? $11 billion last year up from less than $8 billion in 2019 and their cfo said they'll spend even more this year. perhaps the jury is still out here, jon and carl, maybe the prime ecosystem can show distribution and content will work blackburn back to amazon heading up media operations there. can he compete now with zaslav v jo joking calling him most important. if not, one of the most important peop

it's pricey, but also the best compliment to the apple ecosystem with access to apple fitness.rcade in slick iphone integration, a keyboard that pops up for typing. apple tv isn't the cheapest way to stream. but it'stone of the best ways for iphone users. this really is the best part of the upgrade and they're even selling it on its own for $60. it is compatible with some previous apple tv models. >> out of all learn more about that. go to my website. it is rich on tech dot tv. i'm rich demuro and you are tech smart and rich was chilling. that wraps up kron 4 news at 5. thanks for being with us. but keep it here. we have a lot more news ahead on kron 4 news at 6. ken wayne and catherine heenan. they're here with the. >> look at what we're working on tonight. guys, thank you, vicki. thank you. grant a part of what we're working on tonight. dangerous fuel for firefighters. >> this is a growing concern in the east bay. >> dying trees regional parks that is a huge problem. we'll talk about what's being done to try to fix plus, late details on the shooting in oakland's chinatown. we

apple defends his platform.e will bring you the details on canadian national's $30 billion crib -- purchase of kansas city southern. the first railroad could operate from at -- canada down through the u.s. and onto mexico. amber: back on track, i see what you did there. let's get our viewers on track with the market action right now. we could see the dow is the outperformer right now. that is being led by shares of boeing. we are seeing a modest pullback in tech. tech has had a banner week here in canada. it has been a rough ride for bitcoin investors. it started last week with elon musk, only a week ago -- week ago saying he's concerned about the environmental impact of bitcoin mining. they will no longer accept payments. he followed up by saying they still have diamond hands when it comes to holding bitcoin. china's regulators are making -- today talking about cracking down on mining efforts. all this coming together from big volatility. bitcoin prices are off by about 30% since that tweet last week. let's tal

to stop this happening apple will send c.e.o. tim cook to testify during the trial he's expected to argue that apple's fees are not unusual there are similar fees on playstation x. box and google play stores. it's hard to tell which way the case could go the verdict is expected by the end of may. well let's check in with chelsea delaney al franco correspondent josie what do you reckon who has the better argument epic or apple. well we're just on the 2nd day of the case so it's going to take a while before we really see the full range of arguments and even after the case is decided we're likely to see years of appeals from both sides no matter which way it goes but in any any way this this this case is decided it's going to really break new ground in terms of antitrust law really the question that's at stake is what is a monopoly in the digital age this is a question that we haven't really seen decided by by court so far so apple is saying that it's not a monopoly because you know you could also get a fortnight from that big games

apple charges the same 30 percent to spotify while its own apple music does not have to pay 30 percent to someone else so that means that spotify is at a cost disadvantage to its major competitor or it has to charge 30 percent more than apple does and either way it's not a good situation from the perspective of choice and competition be this particular case is important obviously because of the companies involved but it's also a massive global debate and sometimes there's different sensitivities certainly on on the sides of the plant take out where do you stand on whether huge tech companies should be regulated and if so i guess the question is how much. yeah i mean i do think that tech companies should be regulated that doesn't mean that any regulation that's on proposes a something they automatically agree with there's good ideas for regular and bad ideas for regular lieschen and when it comes to app stores i mean i certainly appreciate the security and privacy that apple prides itself on on the i phone it's just that a lot of that doesn't really come from the app store and deciding

apple called them himself. >> they wanted to make the case that all the rules and restrictions apples on developers are all in the service of the privacy, security and safety of apple's customer base. tim cook said on the stand many times today this is not all about the money, this is about the user nd experience. they want a phone that just works. they don't want bugs in software, malware and other bad software that crashes their phone, they want something that's reliable and that feel like they can hand to their children and all the software on there is going to be safe and secure and appropriate for those children. and that's important for a couple of reasons. number one, that's definitely apple's defense in the broader public sphere, and number two, it's also actually important for a legal reason in this case because, under current antitrust law, even if you take -- even if you have a monopoly, even if you charge high prices, if you can show that some of the restrictions you put on one side of a two-side id marketplace like developers trying to get to the iphone customer, if you

who is right about the future of apple?e that. >>> and now the latest from tradingnation.cnbc.com and a word from our sponsor. >>> generally speaking, a strong dollar is good for the economy, but that doesn't mean that all companies are going to benefit equally. in fact, companies that do a lot of business abroad and those that are in manufacturing tend to be more vulnerable to a strong dollar. so if you believe that the dollar is going higher, you might want to check your exposure to these types of companies. confidence is at the heart of everything we do at carrier. our systems fill buildings and homes with healthy, clean air. we detect and put out fires, and help people stay safe and secure inside. our innovations keep foods and lifesaving medicines cold and fresh until they reach those who need them. at carrier, we create solutions to help you build a brighter future... ♪ i wish that i knew what i know now ♪ ♪ when i was younger ♪ you need a financial plan that fits the way you want to live in retirement. a plan that ca

volatility in apple.when i see that, scott, it is telling me people are not nearly as worried about apple, but they are not necessarily worried but they're more likely to be using protective strategies in those other stocks, the retailers and banks that i spoke of just a moment ago that's not a bad thing, but it does portend exactly what you are laying out, and that is perhaps -- or krinsky as well, that some of those techs are going to be sideways like this not necessarily a lot of downside is it as good as it gets if it is, knowing that the spending that the government is sending our way is going to continue for years, not for months but for years, that is more or less sort of like that hand of the fed underneath the market to me, scott. that's what i'm looking at, and that's why i think people have a comfort level with some of those mature tech stocks like apple and probably are looking for a little more protection in those emerged or emerging tech stocks like the cathie wood's arkk portfolio >> doc, t

as far as apple is concerned, apple's buyback is back on.chine goes on you take notice if relative strength comes back t was sold on earnings. looking this week. i got in small to see if composure changes. if apple could hold say, 130, 131, i think it's a better buy than a sell. i did start today. liz: was it a mistake for buffett to sell? he sold some shares. looking at a stake 5.4%, equaling 125 billion, 907,000 shares. he has a lot left. i think that may have been a mistake. >> listen, just like smart proprietary traders f you have a big position, you know what you? sell some shares into strength and hold some. you probably have to diversify. you have can't be perfect in any market but as long as you follow your process, that is. liz: you and he should sit down for a lunch together. >> i would love it. warren buffett is one of the most successful investors out there. liz, you know what? he created wealth for some because he is always glass half-full. and everyone talks about the risks of not being in the stock market long term. all he is

the 70/30 split. 70% goes to apple.he issues about sort of epic reliying on expert analysis about what apple's profit margin is the argument is if it's north of 80% or something like that, it's supposed imply they have monopoly control >> it hinges on a lot of very entertaining esoteric debates about what is game, what is a pl marketplace, what is a metta verse. i think epic knows that the united states government is taking a hard look at these big tell me companies. there's e-mails point to someone that is imagining a more competitive marketplace. what we're really seeing a ton of evidence from inside of apple in their e-mails about how much control they exhibit over the core functionality of applications on their operating system whether epic wins or losing, that amount of control will come under a lot of scrutiny. >> that's what you have to wonder if regulators will finish the trial this court trial doesn't finish you also have to wonder what it will be like to hear from tim cook himself i think he's expected to test