the row between apple and epic games, makers of the online video game, fortnite, rages on. legal action, seeing to block retaliation from the tech giant. apple and google removed the hit game from their app stores, after epic games bypassed their payment systems, to avoid giving them a cut of sales, with both platforms taking 30% of purchases. for more i'm joined by danny konsta ntinovic, the associate editor at thinknum media in new york. thank you for your time. how big a deal is it? it is a big deal on a couple of different levels. i think it reflects failure of government regulation that we have to rely ona regulation that we have to rely on a company like epic games to try and bring down this 30% fee that apple charges which apple got in trouble for during the anti—trust hearings in washington a few weeks ago. in a morejust well washington a few weeks ago. in a more just well perhaps this would not be happening between two companies. it is also a big deal because the sort of cultural implications of it. epic games fortnite is one of the most popular games in the world

but here's what epic games has now just responded to. epic games says it's ready to sue.has just taken legal action. not a lot of clarity on exactly what that legal action is. but legal action against apple for removing the epic games app from the app store. apple still up about 1.6%. of course, tencent is the company that owns a big chunk of epic games. tencent has been down pretty much for the past couple of days as the trump administration takes aim at another business under tencent's umbrella. that would be wechat. that brings us to corporate america's response to wechat and the threat to ban it by the president. the "wall street journal" has just reported that disney, apple, ford, walmart, intel and nearly a dozen other u.s. business giants have banded together on a call with the white house this week to pressure the administration to narrow the executive order banning the chinese chatting app. the titans of the industry worry that the ban could threaten their competitiveness in china if extended to overseas operations. folks, if you don't know, a lot of businesses a

firmgames, if apple stands and epic games does not submit a new update and keeps attacking apple, theyve the developer account. eventually that epic relents, apple makes changes to the app store and appeases everyone else. i knew you have a prediction of sorts. bloomberg's mark gurman, thank you for joining us. that does it for this edition of "bloomberg technology." daybreak:, "bloomberg australia" is next. stay tuned. i'm emily chang. ♪ >> welcome to "daybreak: australia." i'm haidi stroud-watts in sydney. we are counting down to ages major market open. >> good evening from new york, i'm shery ahn. >> u.s. stocks complete their fastest ever return to your record, topping february highs for the first time since the coronavirus upended the market. the s&p 500 capping a rally from march low.

to buy directly some in app in game purchases to buy directly from fortnite and the game maker epic gamesusing the apple system to buy upgrades and currency inside this game. now, this is a way that companies make a lot of money. this is multibillion—dollar business and epic games are said to customers we will give you buy directly from us. that way they could bypass apple ‘s systems and apple charges a 30% surcharge on purchases through the apple app on iphones. apple responded to this saying you can't bypass our system and so they shut down the fortnite app and you can no longer download fortnite on iphones. you can still get it on computers but not on iphones anymore. and then epic games, which makes fortnite, responded by launching a big lawsuit, 65 pages sent straight to court, and they launched a really big campaign to get people behind us. campaign to get people behind us. let's go over very quickly what each company said, just a snippet, epic games says apple has become what it once railed against, the he —— he missed. apple responded by saying this. apple responded by saying this

the makers of this videogame are called epic games, they make fortnite and fortnite is hyper— popularrld, and specifically they offered this new discount so when you want to make a purchase inside the game, exchanging real money for the game currency, they said they will give you 20% off but you have to buy from them directly. that goes against the rules on iphones where you have to buy through the app store, so to buy through the app store, so you put your finger on your phone and make that purchase, verify it with your fingerprint. apple says you can't go around our system and buy directly from epic games, from fortnite, you have to buy through us. epic games says that's not fair, you charge a huge markup on that, 30% to make these purchases, we should get more of that money and consumers should get a bigger discount. apple responded by banning the game, so you can no longer download fortnite on your iphone stop you can still get it on pcs, computers, but not on iphones anymore. this seems quite a significant move, just because it is such a huge game, huge sums of money i am sure in

apple has terminated the developer account of epic games, the maker of the hugely popular game fortnitepurchases. the suspension means epic can no longer make apps for the iphone or ipad. earlier i spoke with danny konsta ntinovic, the associate editor at thinknum media in new york, who explained what this suspension means for gamers. it means that they essentially won't be able to play the game on the devices anymore. the game will work on consoles like playstation, xbox, computers, but as far as i0s devices go, and even the google play store has removed the game, those users will not be able to access the game. they were previously not able to access it because an update was required and apple wasn't allowing that to go through, since they removed the game after epic games breached the terms of service of the app store. so it's not an insignificant loss for epic games, orfor people who play this game. a large portion of the player base accessed the game through i0s devices, through ipads, iphones, and now they are left without a way to play it. consoles and a computer that could poten

back to our top story on the battle royale between apple and epic games. hone maker saying it has terminated epic's developer account in the midst of a lawsuit. i want to bring in mark gurman who covers apple for us. tell us about this latest twist. isk: yeah, the latest twist apple following up on the threat it made two weeks ago to remove the developer account for epic games. it means in addition to fortnite no longer being on the app store, epic won't be able to do updates or new app submissions. it means a few other games and applications on the app stores will also no longer be available as of today. lastly, it means users who already have fortnite will not be able to make in app purchases through apple's system. we knew this was coming but now it is interesting to see apple went ahead and did it amidst the lawsuit. emily: so, what does this mean for epic? is this a blow? mark: this is definitely a blow for epic. i think it's another showing from apple that they are not just being all talk. they are actually following through on this. what apple is say

i think apple did respond yesterday to epic games.not see a response from them to the facebook announcement today. thing where,d of when this is a core part of your business, you can't just let other people control that narrative and continue to paint you in the way that your bad for business. you are bad for business. i would imagine this is only the beginning of what will probably between applealry and facebook. we have already seen some of that play out over the last couple of years. caroline: you spoke to a facebook executive with your story today. it seems as though the person in charge of the facebook app in large part says we are not going to do and epic games. we are not going to serve -- circumvent the rules. >> correct. this was part of the pr strategy. happens when what you go against the rules. the kick you out of the app store. that was her argument. we would love to be able to offer -- offer this to people that we can't because apple will punish us. she said we are going to play by their rules but at a price. caroline: g

the row between epic games, the maker of online video game, fortnite, and apple is continuing, with thes after apple and google removed the hit game from their app stores, after epic games bypassed their payment systems, to avoid giving them a cut of sales — with both platforms taking 30% of purchases. danny konsta ntinovic, the associate editor at thinknum media in new york joined me a short time ago. it is a big deal on a couple of different levels. i think it reflects a failure of government regulation that we have to rely on a company like epic to try and bring down this 30% fee that apple charges, which apple got in trouble for during the anti—trust hearings in washington a few weeks ago. in a more just world perhaps this would not be happening between two companies. it is also a big deal because of the sort of cultural implications of it. epic games, creator of fortnite, which is one of the most if not the most popular games in the world, controls a lot of cultural capital and, in the lawsuit that it filed against apple, claims to has 350 million players, many of whom are very you

but epic games, in their lawsuit after apple removed the game from the app store, laid out a very impassioned the company from when it founded and that the 30% fee is a very anti—competitive practice. it is certainly a very high fee and one could certainly argue that it is a monopolistic, anti—competitive thing to do. it's worth noting that the google play store also charged a 30% fee for similar transactions, the playstation store has a 30% fee as well for, i believe, game purchases or similar transactions made through the playstation game store. so while it's not unheard of for games, it is certainly unique for apple, who has a market that they are the gatekeepers to of about a billion or more users of ios devices, so even though these other competitors have the same fee, it doesn't restrict access to nearly as large a market as it did with apple. now, a trip to the movies is a summer rite of passage for many people in america. and this season, it feels more important than ever. amid the national unrest over police violence, a team of film makers in newjersey opened up a drive—in theatre, s

ultimately regulators didn't show any in reducing that fee or breaking up any of the big companies, but epic games, calling apple a techno monopolist, saying they've gone back on the ideals of the company from when it founded and that the 30% fee is a very anti—competitive practice. it is certainly a very high fee and one could certainly argue that it is a monopolistic anti—competitive thing to do. it's worth noting that the google play store also charged a similarfee, the playstation store has a 30% fee as well for i believe game purchases or similar transactions made through the playstation game store. so while it's not unheard of for games, it is certainly unique for apple who has a market that they are the gatekeepers to for a billion or more users of i0s devices so even though these other competitors have the same fee, it doesn't affect nearly as large a market as it did with apple. 0k, as large a market as it did with apple. ok, the shape of things to come, maybe. thank you for your time. one of the most powerful storms ever to hit the us, hurricane laura, has killed at least six people in l

the row between apple and epic games, makers of the online video game, fortnite, rages on.iant. it is a big deal on a couple of different levels. i think it reflects a failure of government regulation that we have to rely on a company like epic to try and bring down this 30% fee that apple charges, which apple got in trouble for during the antitrust hearings in washington a few weeks ago. in a more just world perhaps this would not be happening between two companies. it's also a big deal because of the sort of cultural implications of it. epic games, creator of fortnite, which is one of the most, if not the most popular games in the world, controls a lot of cultural capital and, in the lawsuit that it filed against apple, claims to has 350 million players, many of whom are very young. and the tactic that epic is using to put pressure on apple is to more or less weaponise that group of players to pressure a business rival, and they're doing so by encouraging sort of this formation of identity around the use of epic games‘ product in fortnite, which is sort of an ethically qu

it could be riot spotify came out with a statement in support of epic games.s there a risk that major apps ban together and say enough of this it is like that ad that parodie that 1980s commercial that apple put together you've got all these different players in this eventually throwing that hammer at the screen >> yeah. i think there's an argument, though i think this is where dan was also referencing where are they going to play these games? ultimately that's one of the big issues so the dominance of the hand set of the install base, the dominance of the ios system is something that need to be addressed. again, i do agree and i think when you talk about riot games and activism blizzard, all things that ten cent has a major stake in in addition to fortnite they are certainly in terms of the gaming community, they could be one of the strongest players. very interesting also what mr. scully referenced is this whole dynamic of mega cap tech companies like apple better off, worse off or indifferent as to who the next president of the united states is i think you

something like fortnite and epic games is built around the ideas of in app purchases, meaning within rtnite app. a lot of other developers, whether for gaming or productivity, similar sort of things they are working into their model. why have we not seen a little bit more willingness by apple to work with what seems to be a changing environment for how app developers make money? >> apple will argue they are not a monopoly and the 30% thing is fair because everybody else does charge that. microsoft,ndo and further gaming consoles business, charges 30%. but everyone will say smartphone business is a different level. billions, over one billion devices on iphones and ipads. it is a dominant market. 10 years ago, it was a different ballgame. now it is apple and google. romaine: appreciate you being on. we will be back in a moment. ♪ despite the best efforts of black lives matter movements and others devoted to drawing attention to a sense of the winner take all urban income system, experts say the virus and economic slump will likely increase inequality in cities across the country. what n

in the future but you know i think it really just speaks volumes that this huge company that is epic gamesis having to use all these resources to to do this and you know many people are saying that they are bullied out of actually joining this play on the side of the big games and have been forced to kind of fall in line. is there an outside chance this could all backfire against fortnight and it's make his. of course you know this is something that they believe they can win or else they wouldn't have done it because again taking on apple i mean taking on apple no matter who you are almost is a very much near david and goliath site you know apple's a huge company which is established itself for so many years and innovated in a way that has made it basically untouchable at this point. you know whether that's through you know the greatness of their products and services or through monopolistic bullying you know that's up to each person's it aside but there's a very big chance that apple with its silicon valley influence and what's its you know undercutting could reestablish itself as the sol

that whether or not this kind of avalanche may have been started by one company in the form of epic gaming standing up and saying enough is enough you're taking too much from us now used if those of us who follow the gaming industry know epic is not exactly and if that player here because they have such will try to do the same thing with their own storefront as fortnight became an incredibly popular game so they try to do this on the. right now obviously there's not a monopoly there the same way because what you're looking at is you have steam you have apic you have soft you have many other microsoft has their own game store so is there a little bit of hypocrisy here coming from epic. that's a good question so i believe the reason i think these are the realities of every day platform economics that we're now living in the games industry product based business used to be very much about value chain optimization in a way that nintendo and sony do that so well no it isn't but from economics it's all about attracting 3rd party content creators which apple has the goods epic has done of course

apple firing back at epic games, the creator of the popular game "fortnite" in the app over app stores. apple claiming epic ceo tim sweeney got a special side deal for "fortnite" and accuses the company of breaching its contract. is our us to discuss guest, a veteran in this industry. what is your take on this back-and-forth? do you take a side, epic or apple? >> well, put me right on the spot. first of all, apple, google, epic, these are all incredible companies that have done tremendous things for the gaming ecosystem, the e-sports ecosystem. one thing i will say about epic is they have always championed the independent game developer and gamer, the little guy. it is actually in their dna and part of their core values, and so i do understand them following through with that fight. i would say they are great companies. they will figure it out. i think we all now realized the gaming revenue pie is massive and there is plenty of revenue to be shared. a big part so i am sure they will find a way. emily: there is plenty of revenue to be shared, but there is the question of what is fair a

announced last week that he was on the hey app they appeared to patch that up and now you have epic games. this is even bigger in my view they have a cross platform game, and they have their own eco system and economy inside the game that rivals the power of app apple's app store at it's height >> tim sweeney is doing this very, very deliberately. if you follow tim on twitter or in general you know he has been on this campaign for quite some time, since before they started their own ecosystem, where they let developers opt into their fee system he feels that fortnite is large enough and scaled enough and that apple needs fortnite more than google needs apple. he wanted to be kicked out of the store so they could make this very public and so they could have a lawsuit so where does this end up? i think given the are scrutiny that apple is facing, and that apple is considered the good guy, and google is considered opportunistic, i think there is a very good chance that they will come back and reduce the fees and opt into something firm i guess i'm an internal optimist in hoping for that, but

users of its app to pay epic games directly rather than via apple or google. apple collects a 30% fee when payments are made to its app store. epic said it is taking legal action to and apples anti- competitive restrictions on mobile device marketplaces. >>> still ahead. kaiser permanente is participating in phase 3 testing of a potential coronavirus vaccine. we will hear from bay area volunteers about why they want to take part in the trials. >>> we are tracking major heat. we had the warm up today and dangerous heat will stick around for tomorrow and into the weekend. we will have the forecast update , coming up. >>> kaiser permanente is looking for volunteers to participate in a study. >> reporter: it is a late stage trial for a promising covid-19 vaccine. when kaiser permanente put out a call for those to receive it, she answered. >> i am a big believer in vaccines and the science behind vaccines. i am a team player and i want to do my part to get going and get back to normal life as soon as possible. >> reporter: right now kaiser santa clara is one of four

with, apple and its battle epic games.he iphone maker does not have to immediately reinstate them on the platform. this is bloomberg. ♪ won an earlyhas court victory in a fight with epic games. a judge spared apple of having to immediately reinstate. but they also blocked apple from provide the ability to graphics from other apps. on one hand, a win, on the other, a loss. what is your take? the thingjudge did that most people online or twitter are saying was the fair move. she is saying that apple does not have to be forced to put fortnite back on the app store in a form that it violates agreements. but she definitely criticized things and said that the ability to block unreal graphics, they cannot do. but they are not forcing apple to put fortnite back on the app store. emily: so if you want to play fortnite right now on your iphone, what do you do? mark: if you already have the game on the phone, you can keep using what is known as the current season, different levels and progress and such. there is people i have seen se

. >>> welcome back, the conversation with apple and epic games continues today.ara swisher, welcome back, good to see you >> good to see you >> apple is a good one to start with it is one thing when congressional hill regulators question the company, but it is another when they go up against a game as popular as epic's, what is your tame? >> i think it is a big deal. it is important if has an ownership stake by ten cent. but i think it is really important when you talk about the others that have complained about it this is a takeoff on the apple ad they're using if is super effecti effective. i think people think about the games and not about apple. they have to handle it very carefully and do something about it very quickly. once you start fortnite others will join and be outspoken under the protection of something like fortnite >> do you think it stops at gaming >> no, i don't think people want this it is a duopoly here there are only two choices should they be treated like a utility? on the plus side they create a very safe environment. those are things that w

of course this has set up a confrontation between the two sides as epic games is trying to circumvent the 30% revenue cut they have to pay to the companies from the paid apps, they say it is excessively high. coming at a time when we are seeing more scrutiny from u.s. officials on these companies on antitrust complaints. again, google pulling fortnite from their store following apple. an extraordinary fight being set up. i want to get you an update with the virus. we are getting daily virus numbers from victoria. the health department saying there has been 372 new virus cases over the past 24 hours, as well as 14 new virus deaths, according to the victorian health department. we continue to see a moderation of these numbers, cautiously saying that, because we have seen some pretty bad spikes, as melbourne remains under a strict lockdown. we are also seeing pretty moderate level, double digit numbers when it comes to cases in new south wales as well. this of course coming as the inquiry report into the cruise ship is due to be handed down to the government today. of course that was the

epic games is seeking a preliminary injunction against the tech giant for the removal of "fortnight"the app store. they are trying to cut did out entirely from its account, so they would no longer be able to make apps from the app store they are also trying to form a coalition, seema, of apple critics. if they are successful here, it's really more about is apple going to end up being charged with antitrust, anticompetitive practices, and this is perfect fodder for congress, i would think. >> yeah, and to your point, their critics have been only getting louder over the past couple weeks because it hasn't just been epic games there's been spotify and facebook that have made the same argument i wonder if your ceo tim cook is on record for a $2 trillion average. do you think, hmm, maybe i should revisit my policies around the app store, because the last thing they need right now is a high-profile dispute with a company that has such a large and young user base. >> i don't know, jon, if you know the proportion offhand or if the company estimates it, but when we talk about apple's price su

pressure on apple, i think it depends on if anyone joins epic games in all of this but i will say iis quite the ad. charles: it was a great ad but that was a pun on your part, give me a winner, epic news that they were going to be booted, they knew these guys were called down to congress recently, there's a pushback against big tech, they took a shot, you know right now in your heart of hearts, someone wanted some law today. >> i'm going to go with fortnite because they have such a big falling when it comes to the games, they clearly have a great ad in marketing campaign so i think people will follow fortnite and here's my help, here's what i'm going to say there's a lot of discussion, that the 1984 book, the classic, i'm hoping young people pick up the book and realize something they should pay attention to. charles: google is getting sued by epic in the winter because of something completely different, the wall street journal reported that they got very creative with artificial intelligence and it's helping these shifts in or because we exist, the technology allows it to detect wh

reports a 40% plunge saying 7,000 jobs will go in the next few months sending shares higher >>> epic games calls on apple calling on a judge to stop them from removing the game from the app store amid dispute overpayments >> let's get a check on european markets. we have seen price action over the last half an hour. we started out the day with the majority of shares trending lower. we have seen positive change and the main benchmark has crossed in with most major regions trading higher out about a third of a percent we have a couple trading in negative territory the bulk of shares are moving higher travel and leisure the standout after a pull back from yesterday. a little catch up trade there taking place in travel and leisure stocks let's look at fx markets we've got the euro and sterling trading up nearly around 119 mark sterling trading around 131.50 u.s. futures, let's take a look at what wall street will look like the nasdaq outperforming rising about 1% and hitting a fresh record high. this morning, we are looking at modestly positive start to trade and muted moves, geoff >> bhp has

and now major news publishers along with some of the most popular games online well they're pushing back in fact for one publisher epic has sued apple for acting as a monopoly after it removes a popular game epic later filed an injunction to stop apple from pulling its developer tools in what epic called a retaliatory measure so we've got a lot to discuss here so joining us now to discuss his boom bust cozen investigative journalist bents want and entrepreneur and video game analyst use of enjoyment who is also the author of one up creativity competition and the global business of video games thank you both for being here but i want to start with you this battle between fortnight and apple is over the app store feeds correct. yeah it absolutely has by the way i was going to say the u.s. has the maybe the greatest book title so that's a pretty pretty tough thing to fall there but yeah it's pretty incredible when you look at what's happening with epic gaming right now and really it's not just epic but it's news publishers as you said it's a whole host of app developers and constant creators who are using essentially 2 s

epic games, which owns fortnite, has accused apple of holding an unfair monopoly on processing paymentsegal action after being banned. hundreds of homes have been evacuated near los angeles, as fire fighters battled with a fast—moving brush fire. they were alerted to the blaze late on wednesday — and said that within little more than three hours, the flames had spread across some 10,000 acres. in belarus, workers from state—run factories joined thousands of people on the streets for a fifth day of protests over disputed election results. there's been unrest since the long serving leader, alexander lu kashenko, was declared the winner of sunday's presidential election, in a vote condemned by many countries as not being free or fair. police have made around 7,000 arrests, since mr lukashenka secured another term in office. some of those detained were released today, and tearful relatives gathered outside a jail north of the capital, minsk, hoping to be reunited with their loved ones. from there, our correspondent abdu—jalil abdura—sulov, sent this report. applause. factory workers down to

>> there's still so much we don't know we do know that tencent has a stake in epic games and other video game players we don't know if those ties would have to be undone. there could be some restrictions but we don't know how far the eo will go. >> in terms of starbucks and mcdonald's marketing in wechat, the issue is the use of wechat in the united states because it's the user data an executive order would potentially ban mcdonald's use of wechat in china >> right so the wechat app does a lot more in china than it does here. in the united states it's primarily a messaging app. that would effect a lot of the american chinese that use the app to communicate with family you're right, starbucks, mcdonald's don't just use the app for marketing. that's where transactions take place. that's how people actually order food and drinks. if there were restrictions placed and, say, mcdonald's or starbucks could no longer associate or work within the wechat app, it could certain affect their business. chinese consumers spend their digital lives within this one app. really there's no equivalent here i

epic games is suing apple after it removed a wildly popular fortnite game from the app store in a case to test anticompetition laws. apple takes 30% cut of any revenue in its inapt payments, similar to google, and claims epic rokita wills -- broke the rules. epic recently criticized the tech giant of running a duopoly. huawei and zte are said to be frozen out of india's 5g rollout as new delhi-beijing relations sink towards a four decade low. the government will apply new from nationsles that share borders with india. the decision follows similar moves by the u.s., the u.k., and australia. they say chinese tech companies are a threat. shery: new claim tron employment benefits fell below one million in the u.s. for the first time since coronavirus lockdowns hit the economy in march had whether they meet for congress's stimulus stalemate, kathleen hays is here with the numbers. what do the numbers tell us about the urgency of getting more virus relief money? kathleen: jobless claims fell. they were better than expected but if you look at the numbers, not even that closely, it's pretty cl

it is an early victory in its battle for epic games, but it was not a total loss for epic. udge has agreed to a temporary request for blocking apple for technology being used for other apps. unreal video game engine. virgin atlantic is set to find out if it has enough support from creditors for a one point rescue. it already has got the backing of three other creditor classes and now has to see if they vote against the plan. the airline can take it to a judge to overrule, and that is your bloomberg business flash. anna? the: matt, coming up on program, in with the new. tech and the shakeup of the dow. we will go through who is out and who is in. this is bloomberg. ♪ welcome back to "bloomberg markets." open.s the european futures pointing to a positive open this tuesday. rth withrebecca cheswo us. i want to get right back to her. exxon, raytheon, honeywell. what does this tell you about, you know -- i thing anna said earlier, or maybe it was annmarie who said it was the sign of the times. we are seeing old economy stocks out and tech stocks in. rebecca: yes, tech dominates e

that hit game "fortnight" are claiming unfair policies around their app stores, but epic is just the latest in a long line of companies calling out apple for questionable business practices recently cnbc.com editor steven kovak joins us with the latest details. steve, this is like david and goliath, but they're both kind of like goliath, correct >> epic is not a private company. they're valued around $17 million. they make a ton of money not on apple's app store but on nintendo switch and basically anything with a screen that can run this fortnight game. apple is the dominant platform if you want to make money on mobile, and they theoretically want to be there but they're sick of paying this 30% cut to apple for every transaction. >> so this is interesting here and perhaps we'll turn to you, mike this notion that apple has been the market darling for such a long time. we talk about this $2 trillion mark it may be coming up onto pretty soon. how important or how unimportant is an epic games lawsuit against their app store to their overall business prospects down the line >> in isolati

the game developer, epic games, has filed a lawsuit against apple. of the ios version of its battle royale game "fortnite" from the app store. that happened earlier today. the legal complaint seeks to establish apple's app store as a monopoly. the civil suit is seeking injunctive relief to allah fair competition in mobile app trib shun. we have a response from apple moments ago. epic games took unfortunate step of violating the app store guide lines applied equally to every developer and designed to keep the store safe for our users. as a result their "fortnite" app has been removed from the story. there you go. cheryl. cheryl: decisive, connell. >>> a major diplomatic breakthrough to tell you about. president trump announcing the you united arab emirates and israel agreed to a full normalization of relations. rich edson is in washington with a lot more on the big move, rich. reporter: good afternoon, cheryl. the united arab emirates is the first gulf arab nation to recognize israel and only the second arab nation in the region to do so, joining jord

we spoke to the ceo of epic games a couple weeks ago about this very issue. he has a problem with not just apple, but google and the way that they run their app store. take a listen to what he had to say. it is a duopoly. they are two companies and they control 100% of the smartphone market, with something like 99.9%, and if you look in a lot of territories, apple has the majority of revenue. in other countries come google has the majority of revenue. it is impossible to look at the territory and say that apple or google is not a monopoly. they have a monopoly and business practices that only a monopoly could get away with. response,, in its mark, apple is saying that all app developers get treated equally and that epic wants a special deal. is that the case? is that the case? welcome you could say that -- well, you could say they are trying to get a special deal. they say in the losses that they are not suing for monetary damages and they don't want apple to grant them an exception. it said that apple have to changes policies for all developers. would epic t

of its app to pay epic games directly, rather than via apple or google. apple collects a 30% fee when payments are made to its app store. epic says they are taking legal action to quote, end apples anticoetiv >>> pedestrians in santa clara county won't have to worry about spreading germs by pushing buttons to use some of the cross anymore. touch free pedestrian signals are being installed at busy intersections across the county. people will simply have to weigh the hand in front of a device instead of touching a crosswalk button. >> you just wave your hand in front of this fine 1 to 3 inches away and then the signal will tell you to wait until it safe to cross. then you will get an indication it's safe to cross and you will see these popping up all over the county. >> 25 of the new touchless devices are being installed at intersections with heavy pedestrian traffic. >>> alcatraz reopens to visitors on monday after a five-month lock down. >>> and or meteorologist has more in the bay area heatwave. (upbeat music) - [narrator] food delivery just got more rew

and i do think we have to pay very close attention to what's going on with epic games and the fight over the app store because essentially apple has, i would think, the least anti-trust risk of the major tech platforms but it does have a real risk and the way it is handling it so far i think is at least politically speaking very fraught. and all those things make me very nervous i think apple can execute the business incredibly well here without investors getting paid because essentially we've been getting paid for so long that we shouldn't be surprised if the stock takes a pause here >> well, yeah. the register is ringing at 2 trillion right now, so some folks certainly have been getting paid roger, gene, thank you for being with us. >> thank you, jon. >> this hour. >>> there's more going on than just apple stock movements there's a lot still ahead on "squawk alley. ♪ ♪ hey you, yeah you. i opened a sofi money account and it was the first time that i realized i could be earning interest back on my money. i just discovered sofi, and i'm an investor with a diversified portfolio. who am i?

lauren: yeah, liz unbelievable apple shares keep climbing to new highs despite locking horns with epic games as well as news publishers over the terms in its app store but investors slugging off all that drama as they look to get in on the tech giants 4 for 1 stock split before mondays owner ship deadline and apple set to close out its second day in a row as the only $2 trillion value company in the market. deere also in the green, the farm equipment raising its full year outlook after beating quarterly estimates for both earnings and revenue, foot locker laced up and ready to go, same-store sales jumping 18.6% in the quarter, the footwear retailer also reinstating its dividend after beating on the top and bottom lines in the second quarter and up next a can't miss interview liz going on one on with milwaukee bucks co-owner, mark lazdry, the "claman countdown" coming right back. businesses are starting to bounce back. but what if you could do better than that? like adapt. discover. deliver. in new ways. to new customers. what if you could come back stronger? faster. better. at comcast busine

greet have you with us julia has the news >> it appears that epic games fortnight is gone from the apple will app store the ceo of epic complained and taken issue with the feed th th apple charges having game revenue. a 30% of game revenue. we reached out to epic for comment. we have not heard back yet we'll be following up on that. that is notable that popular game is no longer in the app store. >> absolutely. julia, thank you >> ep sick not alone, tony we heard complaints before from spot fi. we know the european regulators are looking into this issue >> i think at the end of the day it's not a substantial risk. let me elaborate first, the app store just context is about 10% of the profits of apple so it is really significant. you say, look, if this is under scrutiny, isn't it a significant risk i think if we play this forward and we think what might regulators do if they ultimately concluded that apple is acting in an anti-competitive way, i he don't think they would set a price. they won't say you can collect 30%, you must collect 10%. this is not a regulated issue. you have to allow

lauren: well, epic games, they are really coming in strong here. their game fortnite, so popular, got the boot when apple and google found out that epic was offering in-app purchases at a 20% discount if customers bought them directly from epic. epic was protesting what it calls anti-competitive behavior that allows these tech juggernauts to, they say, monopolize the industry. so this is not seeking compensation. it just wants apple and google to change their policies, and the appeal they are making is very public. you just showed some of that 1984 ad. well, guess what? when users boot up fortnite today, they will see that ad, mocking the apple video from 1984, touting how apple fights conformity. now it is epic's turn to do that. by the way, i don't know if you knew this, but epic games is 40% owned by china's tencent so foxbusiness.com asked them, is china influencing your decision in any way and this is the statement that we got from epic. the ceo tim sweeney is the ultimate decision maker for epic and the company does not take action unless tim

innovation in the latest update fortnight developers allowed in game purchases to be made directly from epic games at a lower cost this violated the terms of service of both apple and google who were receiving 30 percent from each transaction the update led both tech giants to ban the game from their platforms the fact that their business interests now lead them to push for a special arrangement does not change the fact that these guidelines create a level playing field for all developers and make the store safe for all users for game developers who choose to use the play store we have consistent policies that affair to developers and keep the still safe for users or for not remains available on android we can no longer waits available on play because it violates our policies political analyst dakota lilly says the case highlights the monopoly enjoyed by tech giants. because apple and google to a lesser extent have such a pervasive and monopolistic hold on the market even something as huge as foreign aid is having to wage this battle one can only imagine how hard it is for smaller developers to in

apple, i should say, and alphabet's google are being sued big, crazy story, by epic games. loper of the popular video game fortnite. this after they removed that fortnite was a removed app from both of their stores both claim epic violated guidelines to try to avoid the fees apple and google charges when you do that we're going to have a lot more on the story in a bit. it is a wild one and has huge implications it has huge antitrust and regulatory implications. applied materials, those shares rising following third quarter result the top forecast, company also offering a third quarter outlook above analyst expectations ba baidu. their video streaming service iq is subject to an sec investigation. this is dating to the beginning of 2018 as well as documents relating to acquisitions and investments. you're looking at that stock off close to 6% right now. joe? >> andrew, thanks. >>> tesla on the move this morning, upgraded. i need some details on this, melissa. i don't know whether you know. upgraded by morgan stan ley to equal weight analyst adam jonas under on growing and ele

microsoft is backing fortnite maker epic games in its battle with apple. games and will challenge apple in federal court. apple offers a range of graphics technology that game makers rely on. the uk's travel industry has reached a critical point and is calling forfurther support to stem job losses. measures to curb the pandemic have already led to the loss of around 39,000 jobs, according to travel industry trade body bta. the body warned that more job losses were set to come as the government's furlough scheme is phased out. in recent years, parents around the world have struggled to balance their careers with childcare. then the coronavirus came along, and millions of people had to figure out how to do theirjobs from home, while managing the household and caring for children. as employees begin returning to workplaces, experts say there's an opportunity to completely rethink caregiving in order to benefit families and the economy. from singapore, suranjana tewari reports. a typical day starts early for cassandra and her family. a typical day starts early

the creator of the popular online game fortnight is suing apple and google are forgetting this crap from their mobile store's epic accuses the tech giants of seeking to control markets and of anti-competitive practices and to make this point the video game maker also released this orwellian video. we. apple has blocked fortnight from the app store removing everyone's ability to install and update the game on i os devices keeping prices high so they can collect 30 percent of your payments and this blocking fortnights in order to prevent epic from passing on the savings apple has become what it once railed against a behemoth seeking to control markets block competition and stifle innovation in the latest game update fortnight developers allowed in game purchases to be made directly from epic games at a lower cost this they violated the terms of service of both apple and google who were receiving 30 percent from each transaction the update led both tech giants to ban the gain from their respective stores. the fact that their business interests now lead them to push for a special arrangement does not change the fact

epic games saying fortnite's chapter 2 season 4 which debuts tomorrow will be m.i.a. on ios4 or mac os users due to ongoing battles with apple over its app store fees. apple is moving higher, .3% higher, but tencent which owns a major stake in epic games is unchanged at the moment but still close to 52-week highs of $71.17. >>> to the white house, where at any moment, president trump is set to meet with medical professionals who are advising the administration on the coronavirus. to blake burman, who is live right outside. blake, let's start with the question, do we know who might be present here? reporter: -- the white house not saying but the president is expected to be meeting with these medical experts during this hour, i am told they are medical professionals who have been helping advise the coronavirus task force over the last many weeks, many months over here at the white house and today, they are going to get some face time with president trump. now, as this meeting takes place, it also comes as the cdc has lowered the bar, you could say, for its guidelines as

the more game developers that with build a sustainable business selling games is good for epic 30% is opposed to the 12% which they take from their own game store >> as you know, peter, it's not just epic but has gone after apple. they're leaning the complaint to the eu who antitrust regulators are looking into this very issue. during that tech hearing where tim cook is on capitol hill, we talked to the cfo of spotify about this issue here's what he said about apple. >> as a platform, they're a gatekeeper for us, it's really about not having programs in place with disadvantaged competition or things that put restrictions on competitors. and so the 30% fee for -- in the app is restrictive we're rooking for a level playing field that our streaming st service is competitive with what they offer we've done well in spite of the restriction that's apple put in front of us. how much better would we have done if we didn't have the reflictio reflictir restrictions placed against us >> it's a pile on against apple. you're an investor in early startups what is your point of view do you think the