tv Bloomberg Technology Bloomberg June 6, 2019 11:00pm-12:00am EDT
♪ emily: i'm emily chang in san francisco, and this is "bloomberg technology." coming up in the next hour, washington has turned the antitrust lights on, but big tech is ready. legal teams are already in place. plus, the trump administration reveals new possible timetables for tariffs against china and mexico. what could slow down the global trade war? and if you are being inundated
with robocalls every day, help may be on the way thanks to a new initiative from the fcc. but could scammers and bogus callers still find a way to get with robocalls every day, help through? first, to our top story. big tech is mounting its defense against u.s. antitrust scrutiny. long before the department of justice and federal trade commission divided oversight of the biggest tech companies. the big four have been spending big on lobbying and continue to their in-house legal teams with numerous antitrust lawyers who served in the government. in the first quarter of this year alone, amazon, google, netflix, and facebook spent a combined $11 million on lobbying. six david, is there a sense that these companies foresaw what could happen here, possibly given what was happening in europe, and started to prepare years ago? david: you definitely get a sense talking to people in here to the companies down
in washington, outside lawyers in their policy shops, that something like this was almost inevitable. there was sort of a feeling that some of these companies were resigned to some action in one form or another. you had some of the companies that are pointing at one another about who is most at risk for investigation. a lot of this comes down to the fact that there is so much in the atmosphere in washington, so much criticism of the companies both on capitol hill among antitrust lawyers and at conferences. you can go to conferences almost once a week where this is a subject that is being talked about. emily: what are the companies themselves officially saying? we are getting dribbles from outside counsel, sometimes from sources within the company, but do we have an official party line? max: no, i think officially, these companies are very conscious of the ways in which they have let people down.
we have seen that messaging come out of facebook and google most clearly where, you know, you have a lot of talk about responsibility and a renewed focus on our role in society. just to build on what david was saying, a couple of years ago, when we saw mark zuckerberg going around the country on this weird photo tour where he was posing with iowa farmers, everyone was kind of scratching their heads and saying what is he doing? in retrospect, it was clear. he was preparing for this coming storm. when you look back and think about tim cook stepping down and -- stepping out and becoming more of a voice. a lot of tech leaders years ago started to realize that this was coming and started preparing. and started working in the public relations letters. levers.c relations emily: there was speculation of zuckerberg running for president
back then. that now seems a lifetime ago. talk about the people joining these legal teams. who are they? they are coming from the doj, former doj folk and elsewhere within the government? david: many of these companies have hired over the last year, well before this week's news, a number of antitrust lawyers who worked at the ftc and the justice department. and these are people who have experience in conducting investigations into conduct as well as mergers. they also have very large public relations and policy shops here where they conduct their lobbying on capitol hill. in addition to that, they all have very prominent law firms, armies of lawyers who would be ready to go to work if this thing, this scrutiny turns into real investigations. emily: in addition to industry
trade groups. max, the idea we seem to be getting from officials talking about the company's positions is that these companies will try to make the case that they are actually better for competition than not, that they support small businesses and competition between small businesses. do you think washington is going to buy that argument? max: it's hard to say. it depends on how you look at it. it's 100% true that online advertising has created opportunities for small er businesses. the other thing about this from an antitrust perspective, antitrust laws are mostly focused on consumer harm. all of these companies are our -- google and facebook are offering services for free. amazon is offering lower prices. the issue, the vulnerability for these companies is they all have these big, dominant networks, so
if you want to buy a search advertisement, there is only one company, google, that will sell you search ads, pretty much. there are smaller players, but their market share is tiny. if you want to be in social media, there is one company. the fact that they have these dominant platforms is going to be the focus of any antitrust criticism or inquiry. emily: on that note, david, is there any sense in washington of how google, facebook, apple, and amazon have handled the threat of antitrust regulations investigation differently? how are there strategies strategiestheir differing when it comes to getting the ears of lawmakers? david: on the chart you just showed, the lobbying has increased significantly. strategies differing when it comes tothat r amazon.
bloomberg reported earlier this year the numerous agencies where amazon has been going on talking -- going and talking to regulators. that is all over the city. that's a lot different than back 20 years ago when microsoft was under the microscope. microsoft essentially had no presence here in washington. that is a long story where bill gates didn't think too much about this town then. i think these companies have learned from that, and you see that in the spending and what they are doing in the policy shops here in washington. emily: kevin maclachlan for us in washington, mets chapman -- max chafkin. obviously, we are going to continue to follow all of these headlines. well, two companies that recently went public have seen earnings results on thursday. they have seen sales surge and beaten analyst estimates.
this is beyond meat. it said earnings would break even. analysts estimated they would post a louse. -- post a loss. meantime, zoom issued a yearly forecast that topped estimates. sales are forecast at $122 million. coming up, talking tariffs. president trump's tariffs are set to go it into effect monday, but the situation is fluid. we will talk about the latest in the global trade war on multiple fronts, next. this is bloomberg. ♪
losses. president trump making news on his next moves on tariffs while in france. here is what he told reporters will happen with respect to china. president trump: one way or the other i will make that decision after the g20. i will be meeting with president xi and we will see what happens. but probably sometime after g20. emily: meanwhile, a former top chinese official gave a much more pessimistic outlook on the talks while speaking to bloomberg earlier. >> if the u.s. doesn't want to go to the wto and they talk of china with their current attitude, things will drag on. that won't be a year or two. that could be even longer. in that case, we will see who can take it on the chin. china will have to endure that. the u.s. will have to endure that. the whole world will have to endure it, and the global economy will go backward. emily: the g20 takes place at
the end of the month in japan. meantime, when it comes to mexico, just a few moments ago vice president mike pence said the mexico tariffs will be imposed on monday. bloomberg reported earlier that officials are looking for a way to postpone those measures. new york, we have bloomberg businessweek's max chafkin and economic team leader sarah mcgregor. sarah, can you give us more details on what just happened? sarah: we don't know exactly what the officials talked about, but we just heard from mike pence that talks will continue. but the intention from the u.s. right now is to move forward with these tariffs on monday. our sources are telling us there is a chance that tariffs could be delayed. that is what mexico is seeking. it wants to buy more time to meet u.s. demands over immigration proposals. but one scenario would be that the u.s. does impose tariffs on
monday, but perhaps they are short-lived while mexico comes up with a plan and shows early signs that they are implementing those promises. emily: and if they u.s. imposes these tariffs, how big are they? is it in the 5% range that has been tossed around? sarah: that is what they will start at on monday, 5%, and then they will rise incrementally monthly until october, when they are supposed to hit 25%. that is what donald trump told us earlier in the week. 5%, i think a lot of companies are saying that's not great, but maybe they can live with it for a short time. of course, 25% is a different story. that is when you could start to see -- we see notes this week from economists that say it could within months or the course of a year push the u.s. economy and the mexican economy into recession. emily: with respect to china, the president is now saying he's going to wait until he talks to president xi at the g20. how much possibility is there they could come to terms and a -- in a face to face meeting? sarah: trump today said he will
hold off on imposing more on another $300 billion of chinese goods, which would be the rest. he would hold off on imposing tariffs on those until he meets with xi jinping at the g20 in japan later this month. that meeting hasn't been officially scheduled. so, you know, trump is hoping for it. perhaps there are some early planning stages of that going on, but it is not a sure thing. if that meeting happens in talks -- happens and talks break down or if it doesn't happen, it sounds like trump is intent on moving forward with those tariffs, which again, is a huge risk for the global economy. we saw the imf raise its forecast for the economy for 2019, while at the same time giving a warning that if there is an escalation of tariffs, it is going to be a whole different story. it will be a big hit to the global economy. emily: meantime, max, you have company struggling in the midst of this uncertainty, notably huawei. we are getting new details from inside huawei about how they are trying to prepare for
this, prepare for potentially a new world order. they've got thousands of developers working on new software and potentially a new operating system, which means they would not have to rely on u.s. software, they would not have to rely on android. what can you tell us about this? max: bloomberg has a report about round-the-clock shifts at huawei. i think it is maybe helpful for huawei to have a fallback plan. but the truth is, if this proposal from the trump administration to basically continue to prevent american companies from doing business with huawei, which is hugely -- which is a hugely important chinese telecom and tech company, that is going to be a disaster for huawei. they cannot reinvent the entirety of the global supply chain in 90 days, which is what they would kind of have to do to reduce their dependence. so, for instance, arm, which
makes most of the chip design, is a u.k. company. they have said they are not going to be able to do business with huawei because some of their technology includes u.s. technology. you have so many of the products that huawei offers that are dependent on this technology. the flipside is that china has promised they are going to retaliate by coming up with their own list of blacklisted companies. it is going to affect u.s. companies in a different way. for the u.s. companies, it's not so much a reliance on chinese technology, it's a reliance on china as an export market, as the main growth engine for a company like apple. so, if china retaliates, it's going to hurt big tech companies as well. emily: meantime, sarah, as the president travels through europe, he has been touting his wei message to theresa may to the irish prime minister . do we have any indication of
whether his message is being heard? sarah: well, it was interesting, because some of the leaders in europe, as you mentioned, they did indicate that they did see huawei as something they should consider under national security grounds and they agreed it was worth a closer look. i don't know if that message appeased trump a little bit, but he lightened his tone as well. he had threatened to cut off intelligence sharing and if they did not crack down on huawei as the u.s. is. he said we won't do that. he took a conciliatory tone that they work together to solve the issue together. that was a bit of a surprise. it was definitely a change in what we had been hearing. emily: meantime, we cannot forget about the huawei ceo, who is still under arrest in vancouver while she awaits an extradition fight, and we have now learned that fight is going to start in january of next year. so, dragging out this entire
saga for her, stuck in canada. what can you tell us about this? max: with this trade war or whatever we are calling it, there is the main narrative, which is the tariffs, and then there are all these ancillary things like the blacklist in and this extradition case in canada. now, the legal case has to do with huawei allegedly tricking banks into doing business with iran. it is a fraud case. it has nothing to do with the --de war is extensively ostensibly, although china has said this is all politics, and trump has at times indicated he might be able to work some deal assuming they drop charges against the huawei's ceo. who knows? you could imagine a situation where china and the u.s. reach some grand bargain and this is part of it, compromise, a plea
deal, or the u.s. drops charges as part of a larger agreement with china. emily: interesting. we will certainly continue to monitor that. next chapman -- max chafkin and the sarah mcgregor, thank you both. coming up, the race to 5g is heating up, but will the new generation of networks be even more vulnerable to cyber theft? -- cyber threats? we will discuss that next. this is bloomberg. ♪
emily: the obamas are getting into podcasting. spotify announced it has signed thursday an exclusive podcasting deal with higher ground, the production company backed by former president barack obama and michelle. first lady this after the company signed a deal with netflix for a slate of tv shows and movies. michelle obama said the podcast will amplify voices that are often ignored or silenced altogether. spotify will distribute the podcast to audiences worldwide as part of a multiyear agreement.
the next generation of 5g wireless technology is expected to transform the world at greater speed and better connectivity but it will also open the door for cyber attackers. the u.s. is sought to bar huawei citing national security risks. just how safe will a 5g world be? joining us to discuss is nicole egan, who helped develop artificial intelligence for cyber security. there are two sides to the story. there is the concern around surveillance and espionage issues related to huawei, and a greater concern about 5g in general. and the idea if the world is more connected, it is also more vulnerable? let's answer that question first. would you agree? nicole: i think what happens with 5g is that people are moving to it because there is a need for speed. people want to get the next generation of applications out there faster, things like connected vehicles. and there is also the need for
more improvements. all of these applications require video. there is a lot of advantages, and that's why we share a lot of buzz and discussion around 5g, but you are absolutely right. there are risks that are going to come with it. when you connect things up, there are more points for attacks. there are more points for attackers to get into the network. emily: does not mean a harder job for you to protect them because you are now fighting on many more -- does that mean a harder job for you to protect them because you are now fighting on more fronts? nicole: we have teams having trouble keeping up today. it with allo g2 these points of presence, and it does amplify it. we are able to use artificial intelligence to have all of the points in this new definition of a network self-defense. that is why artificial intelligence is really going to help customers get ahead of it. emily: does huawei in particular concern you? nicole: what we are seeing is that this is raising to the
forefront the whole issue of people analyzing who is in the ir supply chain? where is this technology coming from? it really has changed the discussion. and unfortunately, it all seems to be focused around one particular vendor, but it is shining light on a much broader issue. emily: does that mean you do not have specific concerns tied to huawei and its connections to the chinese government? nicole: i think they are one of many. it comes down to not only in communication networks but in everybody's supply chain, there is technology coming from all over the world. in fact, any given piece of technology might have dozens or hundreds of different providers of component pieces. and you don't know where all these pieces are coming from. i think it means we have to change the way we look at
security, and we need visibility and real-time monitoring to seek it all of a sudden something starts the coming -- starts beaconing to other parts of the world we did not expect it to. emily: is china concern more so than other countries or are you saying technology can be a concern anywhere in the world? nicole: i think attacks can come from anywhere. this bridges to a broader topic. there are some kinds of an impasse of nationstates on the styles of attacks rolling over into organized cyber criminal ring. that kind of correlation and connection between nationstate activity and cyber criminals is coming to the forefront. emily: how can we use ai to detect cyber crime to protect in a more connected world? nicole: i think the first part is using artificial intelligence to understand normal. we actually embrace the principles of the human body 's immune system.
our skin keeps us safe, but sometimes bacteria or a virus gets inside. but the important part is ai fighting back. this is going to become a full on war of algorithms against algorithms. we need ai that can fight back in real-time. emily: baltimore's government computer systems faced a ransom more attack. -- a ransomware attack. are you seeing these attacks become more sophisticated or are some of these folks using the same old tricks? nicole: we are talking about 5g, digital transformation and new information. -- innovation. i think what baltimore points out is you also have to get back to basics. you have to have good cyber hygiene, you have to keep your systems up to date. emily: nicole egan, thank you so much. it is a scary, scary world out there. trump plansresident
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emily: this is "bloomberg technology." i'm emily chang in san francisco. apple is front and center in two of our biggest stories today. the u.s. government's continued in the trust crackdown on big tech, and the trump's tariffs, which he has pushed back until after the decent -- d 2020 -- g20 summit. while many u.s. committees are impacted by this latest trade tension, the poster child for the battle continues to be apple. the latest tariffs could significantly increase the cost of iphones, supply chain disruption globally, and have a major negative impact on numbers
across the board. he joins us now. you also say in this note that it has been more noise than reality. what do you mean? dan: through this week, iphone demand in china is in line with expectations. i think despite worries that they are burning iphones in the street, thus far, expectations are in line with what we have seen for apple. that is the key. right now on the demand side, there are worries about what is on the horizon, but thus far, it has been minimal disruption. especially on the supply side. -- the supply chain side as well, which is key on foxconn. stocks are factoring in 20% earnings hit when you look out over the next year. right now, we think we are looking at something that is minimal relative to the fears. emily: what is the worst-case scenario for apple and the iphone in the trade dispute? dan: first, you put the $325
billion tariff on after the g20. a 15%ould be similar to to 20% negative. that is the implication if they don't pass that. that would be negative on supply side. from the demand side, what would that do, potentially, to demand? you have 60 million to 70 million iphones coming up for an upgrade in china in the next 18 months. impact have a 10% to 15% there on demand. that would be what i view as the worst-case scenario. right now, i think the stock is reflecting that, which is why, in our opinion, if it is anything other than coney and -- draconian, the stock rips from here. emily: you have a note that shares are plummeting, weak demand, weak outlook, the ceo. -- the ceo retiring there. what is happening there?
dan: it is a nightmare on elm street situation happening there. you go back, that was the merger. they were looking to consolidate, focus on the cloud market. it has been a disaster story thus far. when you look at the visionary ceo leaving, execution issues, and has been a one plus one equals 1.5 situation. right now, investors are really wondering, does the board decide to put this thing up for sale, look for a financial buyer? that would be the best case. other than that, this continues to be a five dollar to seven dollars stock in the near term. emily: what would you hope to see in a new ceo? dan: in a new ceo, you hope that they put a for sale sign on the house. right now, you need a financial buyer to put this thing together, cut the costs, and ultimately that would really be the goldilocks scenario. if a ceo comes in and tries to turn this around, there is a big -- it will be arduous.
i still think there is a big market opportunity there. --hink investi investors are a bit too negative. last night, that was the trifecta of bad news. you want to see people on the board make serious decisions if this is a strategic process on the horizon. emily: got to talk about uber shares, rallied yesterday, actually hitting their opening ipo price. there were some positive coverage notes out. do you still continue to believe in the long-term valuation story? and if so, how long does it take to get there? dan: you are starting to see the stock get some sea legs. you are seeing it with lyft as well as investors are better digesting the ridesharing valuation. when you look at uber, i can tell you some of the parts. most of my conversation with investors, that is how they are viewing it. it is going to take time, but it will take a $100 billion
valuation in the next 12 to months. 18 they will be on that path. right now, the big thing for uber is that pricing war with lyft starting to subside. that is the key on uber. remember, they are not really -- if you think about the u.s.-china battle and some of the headwinds, they can continue to be insulated there. this is a story that is starting to move in the right direction after what has been a massive white knuckle period for uber and lyft. emily: i always love your colorful metaphors here. vox is a digital media empire with millions of monthly views on its various sites, but on thursday, those properties went quiet. staffers staged a one-day walkout to pressure the online media company to sign a union contract. josh idols and joins us with more. give us the backstory. how did we get to this place? josh: it has been 14 months that
vox's new union has been negotiating with management to reach a collective are getting unit that -- collective bargaining unit. emily: why was the union formed in the first place? josh: people want to address issues like starting pay, especially for new writers who are women or people of color who are not getting the compensation they deserve compared to others. they say they want to address issues with severance, they have brought up issues around compensation if people's work gets converted into tv or movies. they were able to get recognition from vox media within a few months, but getting a contract has been slower going. emily: why is it happening at vox and not other digital media companies? josh: it is happening at other digital media companies. we have seen an industry with a lot of convulsion and brand sensitivity. that makes it more vulnerable to
public pressure campaigns. there has been a wave of everyone from gizmodo to huffington post to the guardian organizing and folks obtaining union recognition. emily: what is next? what are the unionizers asking for? josh: they say there are still outstanding issues in compensation and severance that they want to see results. -- they want to see resolved. in an email, the ceo said he is as serious as he could be about reaching a deal, but he said that it is not smart and realistic to pay people more than a market rate. those were comments that drew a new round of criticism on the social media. the sides are still a part in this area and escalation beyond this one-day walkout could take all kinds of forms. emily: you had layoffs at vice, layoffs at buzzfeed. do you sense there is a consolidation in the new media space coming? josh: that is a fear.
certainly people are concerned about a change to something like the facebook algorithm, how that can overnight change the business models for these companies. that sense of precariousness cuts both ways. it intensifies people's fears about organizing, but gives them a reason to organize. emily: we've seen 20,000 employees walk out google for -- walkout of google for a different reason, for how the company handled sexual harassment. and certainly, tech employees do not necessarily complain about being underpaid. but could this sentiment spread to other industries? josh: it could, and as you have said, we have seen a wave of activism among tech staff. we have seen a kickstarter that people have translated into trying to form a union. emily: josh eidelson, who covers workers issues here. thank you so much. coming up, google announces a multibillion-dollar deal to buy data analytics firm looker. this is bloomberg. -- is it the right time for m&a
emily: at time when big tech is r under a microscope with the u.s. government, google is set to buy a data analytics firm. looker gives google a new tool in its campaign to sell more and -- cloude storage and software in its competition with larger rivals amazon and microsoft. google has not made a big acquisition since 2014. why now, and why looker? gerrit: i'm not sure i would call this a big acquisition, in terms of google's size.
$2.6 billion is definitely a lot of money, but when you're talking about the cloud world, where we have seen acquisitions in the last seven to eight months, this is pretty small. there was a lot of pressure on google to do something to expand its size, at least from the analyst community and investor community. we can debate whether google cares what they have to say, but this acquisition was not as big as a lot of people were hoping for or expecting. as you mentioned, this is an incremental change. it is a product that a lot of google cloud customers are already using and they will be able to sell them together. emily: we were just looking at graphics showing past acquisitions, and one of their biggest acquisitions, motorola, didn't turn out so well. some would argue that the nest acquisition has not been a success. otherwise, double-click, youtube, waze for sure turned out to be phenomenal. i wonder if google is scared of its own track record.
gerrit: google generally believes that it can solve its own problems. this is an engineering focused company. this is a company full of essentially the smartest people in the world who think they have the right answers for things. a lot of the products they have developed that have been successful, chrome and search as, which is potentially one of the most successful tools ever developed in history if you look at pure profit. generally, the attitude within the company is to build rather than buy. not all solutions you can build on your own. emily: google's third to amazon web services and microsoft in the cloud. they've got a new ceo, who you spoke to today. he told you people asked us for months, are you rushing to do acquisitions? we have been very disciplined in building sales, market capability, and have chosen complementary technology that a lot of customers will find value
in very quickly. what did he have to say to you about buy versus build when it comes to gaining share in the cloud market? gerrit: obviously, he would not tell me what his acquisition strategy was going forward, but it is true. most of what he has been talking about, despite being asked about m&a to his own admission has been about building his own sales force, focusing and narrowing google cloud's focus on a few industries, and getting good at selling into that. as an engineering organization, they have not always had a strong sales culture. that is what he is trying to build. i think if we take them at their word, that will be their focus. maybe these more bold on, smaller, incremental acquisitions will be the norm rather than a large transformational one. emily: meantime, you could call it a more incremental acquisition, but washington is examining potentially google and alphabet for antitrust issues. is now the right time to be doing this?
gerrit: this deal was under works before this weekend when we saw the latest news about a department of justice investigation into google regarding antitrust. it is important to note that in the cloud, google is not dominant at all. they are far behind microsoft -- amazon and microsoft. they have had trouble closing that gap and they are far from meaningfully catching up to those two companies in the cloud space. truly looking at cloud is not going to be the approach that regulators will take. but of course in this political environment, facts don't matter much and i am sure that there will be some people who use this as another political point show -- political point to show that google is getting too big. emily: thank you so much for your reporting. checking with google, the tech giant is attempting to lead the way in the business of game streaming through the internet. google has pronounced -- announced pricing in a raft of
new titles for its stadia servers. access to the library of games will cost $9.99 per month. a free version will let players buy games outright and play them through the system. i spoke to the vice president earlier and asked why people would pay for this new service. >> i think what we are offering is an incredible value for gamers, because remember, they don't have to buy any hardware. there isn't a custom game console or high-end pc that normally costs hundreds of dollars. for $129, you get a controller, limited edition controller, you get a 4k streaming chrome cast, 2" get the full "destiny experience and three months of stadia. it is an incredible value. gamers can play the games they want to play without having to go through the hassles of downloading and installing and patching and updating and all the rubbish that sits around traditional consoles and pc's. emily: don't you think we are
facing a subscription overload with all of the entertainment streaming subscriptions? certainly there are many other gaming alternatives. what is going to convince gamers to choose google? >> what stadia represents is a phenomenal value. the games that gamers will get to play they can use on any screen. their tv, their pc, their laptop, tablet, and phone. no other service does that. so, the value is incredible. but we also recognize that not everyone wants to subscribe. in addition to the stadia pro, isch is $9.99 a month, there stadia base, which is free. they can buy the games and play them when they want to. emily: are you trying to get exclusives? gerrit: of course. yes. we have recently announced the formation of stadia games in entertainment, which is our game development organization led by a renowned industry veteran, jade raymond. she will be building out our exclusive content for stadia.
plus, we are working with a number of third-party companies to bring their games to stadia exclusively right now. emily: game streaming is on the rise. you have microsoft and sony doing something together. the have got apple arcade, . potentially your price could impact the price they decide on their service. what are you expecting from the competition and how are you positioning yourself relative to them? >> first of all, i think this is a general trend in the industry, as we move toward the streaming future. the technology is there now and obviously google has some extraordinary capabilities in this area. we have been investing in data centers for 20 years, so stadia is standing on the shoulders of giants of the technology that built and created youtube and other high-performing services that serve billions of users. the timing is ready now to deliver a very high-quality experience to gamers. stadia allows you to stream at up to 4k, 60 frames per second.
that is only possible because of the innovations we have made. emily: do you think game streaming will take over before there is a new generation of consoles? >> i think game streaming gives players an alternative, and it is a future direction for the industry, but it is not going to happen to everyone overnight. i think that the good news is that the innovation means better games, it means better content for players. so, what a great time to be a gamer. emily: does the innovation work with multiplayer games? there is skepticism that streaming will not work on a multiplayer experience, be any better than a console or a computer, and can you do it better than microsoft and sony? >> the great thing is when you have a streaming technology, the multiplayer experience is even better, because all of the players are on the same technical backend, the google back into. all of the players are connected via the same proprietary google technology using our own fiber networks, on which there are hundreds of thousands of
: letters worldwide connecting all of our data centers. actually, the experience of multiplayer will be far better than you can get on traditional , historical platforms. emily: how would you rate the experience now? this is a technological problem that you have been working on. how much of the kinks have you worked out? how seamless is this? >> we have been working on this for a number of years. we have been testing privately inside of google for a number of years. we tested publicly last year with project stream, partnering with ubisoft to bring assassin's creed odyssey, which is a demanding, graphically rich title. we learned a lot from that experience testing with hundreds of thousands of people, and now what we are able to do is to innovate even more in the way we compress the data and bring the high-quality experience into people's homes. emily: phil harrison, google vice president. still ahead, cracking down on -- the u.s. is cracking down on unwanted robocalls, but will it work? we will discuss next. this is bloomberg. ♪
>> a list of top robocallers includes capital one, comcast, and also -- wells fargo, all of whom use robo calls to chase debts, and sometimes they do not a lot, as this woman can testify. >> some days, lisa says wells fargo rang her more than 20 times a day. john: that is absolutely ridiculous, because what is the point of calling someone 20 times a day to collect a debt? this great timing, because when you 45 could not pay minutes ago, a small propeller plane full of unmonitored drug money just crashed into my deck. emily: that was an epic monologue. john oliver's point pretty universal. nobody likes robocalls. you 45 minutes ago, a small propeller the good news is, you may be getting less soon. the u.s. sec road -- voted unanimously to allow carriers to block robocalls by default. this is opposed to waiting for customers to sign up on their own, but experts warn that under the order scammers may
still be able to get through. joining us is touchy up. -- is todd shield. first of all, will this work? todd: it will work. it will grant some relief to consumers, because the companies can now move ahead and do the mass blocking without having to ask permission from every individual customer. they can put a big computer algorithm on there and go after phone numbers that suddenly emit when theyes of calls had not before, or a lot of calls of short duration, or calls that are never answered. they will have an easier time smiting those. but on the perhaps it will not work side of the ledger, they are not required to do this. we have to wait and see whether the companies pick this up. emily: sec chair ajit pai said if there is one thing in our country that unites republicans and democrats, liberals and conservatives, it is that they are sick and tired of being bombarded by unwanted robocalls. we hear you and we are on your side.
here is my question. i have an app on my phone that automatically blocks robocalls. why hasn't the phone companies done this before? why hasn't the sec already ruled on this? todd: there is a long history of fcc law that tried to prod phone companies to go ahead and complete all calls. there were controversies in recent years about calls to rural areas not being completed for various technical reasons. it is a little bit of a sea change to say that rather than prodding you, we will give you the ok to block some. this gives some people the willies. the debt companies, the credit unions issued a statement. they are worried that their calls will not go through. the people getting 20 calls a la the john oliver clip probably will not mind that, but if you are getting a reminder to pay your mortgage or your rent check, you may want that reminder. it is a two-edged sword.
emily: quickly, are the carriers happy about this? doesn't this mean less business? todd: interesting reaction from carriers. verizon said they will take advantage of it. at&t took note of the vote. the big trade groups said it is up to individual companies. we don't know. they may fear the liability for blocking calls that should go through. emily: i will be watching my phone to see. todd: good luck. emily: todd shields, thank you so much. that does it for this edition of "bloomberg tech." we are livestreaming on twitter, you can find us there at technology and be sure to follow our global breaking news network tictoc on twitter. this is bloomberg. ♪
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