Sources say the ftc is widening its investigation of amazon to include its massive cloud business. And u. S. Senator Marsha Blackburn on the social media app tictoc. Tiktok. We will hear from her after they say they have made changes. But we begin with major changes happening in alphabet. Larry page and sergey brin announced they are stepping down from the tech giant. The google ceo will now be the ceo of both google and alphabet. They will remain active as cofounders and remain on the board. Tuesday. O guests on it was a pretty big surprise. Questions about how much longer sundar might want to be ceo of google. Those questions have been a little bit. Google is under a massive amount of scrutiny. He has a lot of things to juggle. There have been internal protests. This really was a surprise where basically he has had to deal with all these things and he will be back dealing with all of the other things happening under the alphabet umbrella which includes self driving cars and other things. Taylor with larry and sergey as visionaries and sundar is a good executioner, where they fit in as leaders . Larry was the main visionary when people think of google. Larry and sergey together, they obviously founded the Search Engine more than 15 years ago and built that into what it was today. Larry was the driving force behind the idea that they be maybe about seven or eight years ago, google is going to have to do Something Else. To keep growing them a keep growing, he really pushed them into things like self driving cars and other things. Sundar, his background came from a very core google background where he ran the chrome operating system. He worked his way up the company. He can be seen as more of an operations guide. Certainly, since alphabet happened in 2015, sundar has been the one to deal with everyday things. Taylor stay with us, because joining us on the phone is gene munster. What is your initial reaction to this . Gene i was not expecting this but in some ways i was not surprised, in part just because of the 10 year, how long both of them had been there. Separately, the concept that the company is moving into a different chapter. Google proper, the next chapter, will be a lot around policy, data privacy, and regulation. What the next couple of years would look like, going through some of the minutia. Im not surprised to ultimately see this. There is another part of me that is kind of sad because it had such a profound impact on our lives, just a reminder that the greats move on. Taylor how much can this be seen as a vote of confidence in Sundar Pichai . Gene undoubtedly a vote of confidence. I think it is more related to what sergey and larry ultimately want to do than it is a vote of confidence. But it is a vote of confidence nonetheless. If they did not have that, he would not have been the one tapped for the broader role. Taylor we talked a few weeks ago when you had apple ceo tim cook really work the politics. In this day and age, you are not just running a company. You have to be working the politics, working the regulatory issues. Its Sundar Pichai ready and able to do that . Alistair i think he is from a Technology Point of view. If someone asks Sundar Pichai a super complicated question about what data google uses, how is it protected, he will know all of that stuff. He was partly behind building all of that stuff. Technically, he is great. On the showing up for congressional hearings, that is not something he really loves to do. Hes quite a quiet and thoughtful person. I dont think he enjoys being asked things live one the whole when the whole world is watching in a sort of contentious situation. But, he certainly can do it. When you compare it to larry page, really does not want to do any of that stuff, that is really the comparison to make. Earlier this year, as scrutiny ramped up on google, larry page, everyone said, this decision today addresses that, larry does not have to be there anymore. Taylor as you take a look at the company, he is running both google and alphabet. What could be some of the challenges now with the other two being on the board and still controlling most of the shares . One challenges around policy. I think beyond that, it will be how much oxygen to give the other bets. When we think about what has changed in sort of late state investing over the last six months with we work, uber, and lyft, past profitability questions, even corporate sponsors of these are asking questions. That, to me, would be where i would love to be in the room and hear the conversation about how much funding to give some of these other bets. An easy one to talk about is waymo, a radical view to autonomy, basically launching an entire wrapped up and tidy product. Very different than teslas evolutionary approach. This is revolutionary and a huge amount of spending would have to be behind that. That, to me, would be one of the key issues. More broadly, how they want to continue to foster other bets in that 20 time that has been a foundation of working at google. Taylor do you think this can be seen as a good thing, bringing this under one person, bringing both companies together, having him run both divisions, trying to simplify under a big umbrella . Gene i can see that. Google is definitely the powerhouse of the portfolio companies. That makes a ton of sense. I would not be surprised if, in the next year or two, sundar stays at the top and there is new leadership brought in for google. Taylor that was bloomberg technologys Alistair Barr and gene munster. As for how the shakeup will affect alphabet as well as the sheer number of ceos who stepped insightgot inside from andrew challenger. He was joined by tom giles. We are going through the biggest companies, making that transformation. It has been happening for a long time. Steve jobs passed away a decade ago. It has been one big company after another. We have a couple left couple major ones, facebook and amazon. What i think is happening is as these companies mature, they no longer have the need for the same visionary founder, the engineer who came up with these whizbang products. You need someone who is a solid manager, someone who can manage the supply chain, someone like tim cook at apple, someone whos got management traps whos got chops whos got the , sensibilities kind of run a company. Larry and sergey not known for their management skills. You need someone who can run all the operations of the company. Taylor what do you make of the cultural shift that is under way as we transition from the first generation to the Second Generation of these leaders . We have seen a lot of changes in the ceo position in the tech sector. Throughout this year, we have tracked 180 departures, the most weve recorded since we started tracking this number into 1002. 2002. A lot of these departures are these founders, ceos. They created a company out of nothing, but the company has grown into a new, mature phase. We saw with uber, juul labs, wework. A lot of it has been caused by this 10year expanding cycle in the economy where companies have been able to grow to a new maturity. Hopefully we are seeing and i think we are at google a solid handoff to the next generation of Business Leader as opposed to really a shakeup. Taylor we have talked a lot about diversity as well. You have a lot of good number two females, but not yet a number one female. When you think we might see that . I think it is indicative of the larger malaise when it comes to diversity. To their credit, these companies have been more transparent about the numbers. The problem is what those numbers show is a real lack of progress over the last several years. Google was one of the first, talking about, here is how many women we have in senior management. Heres how many women we have across the board. All the Big Companies are doing it now great. Its terrible as they are showing so little progress, and these are Big Companies. Its hard to move the ship, and its really time for these companies to bring more women and people of color into their board, into their senior management. Its well overdue. Taylor that was andrew challenger of Challenger Gray and christmas and bloombergs tom giles. And it was not just google announcing departures. The expedia ceo and cfo announced their resignations this week, effective immediately. They clashed with the boards direction. Vice chairman will take over while the directors look for longterm leadership. And coming up, u. S. Antitrust officials broaden their scrutiny of amazon to include its massive Cloud Computing business. And if you like bloomberg news, check us out on the radio, on bloomberg. Com, and in the u. S. On sirius xm. This is bloomberg. Taylor amazon is dealing with a widening antitrust probe. Federal officials are looking beyond Retail Operations to include its massive Cloud Computing business. We explored the consequent is with our guests. I think this is a surprise. Complaints about the Retail Business are well known. Independent sellers have been talking about ways they think the company is not treating. Treating them fairly on this platform, but complaints about Amazon Web Services have been quieter, so the fact they have seized this as an area of concern is significant, especially because Amazon Web Services is such a large part of the overall business. Taylor as you take a look at the company, respond to what naomi was saying, the retail concerns had been highlighted here. What about that Cloud Computing business . Did it feel anticompetitive . Cloud computing is a multitrillion dollar business. I was at the reinvent conference that is still going on, and the ceo said that aws cloud penetration is still 3 . On premises is 97 , of the are huge. The market share he called out is something publicly released, that is infrastructure as a service market. But the overall market, it is still a several trillion dollar opportunity that aws is a small portion of. Analyst are saying the assistant attorney general at the department of justice for antitrust at the conference, he said that being big is not bad, but big acting badly is bad, so i will talk about it a little bit more, but that was a very fascinating statement. That makes sense why they are looking at practices at aws. Taylor when you look at the cloud space from what i can hear on earnings calls, it seems like a competitive business. You have microsoft azure, amazons cloud business, google trailing them a bit we hear it is a competitive business. Does that raise the bar . Absolutely. It is becoming increasingly competitive. We talk about the Third Quarter results where the growth rate decelerated, primarily because aws is seeing pressure from azure. Aws until now has had a head start of seven years, but now that is an increasingly competitive market. Taylor naomi, you talk about how early interviews have gone on with clients, customers, competitors. What are investigators hoping to glean from those interviews . Naomi we dont know exactly the area of focus, but they will be looking at whether there are specific market practices that amazon is taking that could be deemed anticompetitive. They want to look at whether amazon might be unfairly excluding its rivals, whether amazon is treating independent Software Service providers differently if they also use other cloud providers like microsoft or google. Those are the sort of market practices that the ftc will likely be looking into, and we will see if they find anything. Taylor any sense on how amazon has been responding to this . Naomi amazon has not publicly commented, but we do see them talking more publicly about their cloud business. They have shown no signs that they are worried about this at all. So it seems to be at least publicly business as usual for amazon. Taylor does any of this have a real impact on the fundamentals of the business . How are these headlines impacting earnings or the share price . I think that the antitrust risk at this point is priced into amazon shares, which have pulled back year to date compared to the overall market. Or the retail performance yeartodate, amazon has not done as well, and it is because of this overhang. One of the risks amazon has faced is the overhang from antitrust. In terms of the stock price, there is an overhang on the stock, but in terms of the overall operations of the company, i dont think it is material to the overall business. Retail business is very strong, aws is very strong. Taylor that was bloombergs naomi makes an rbc analyst. Google is facing an inquiry in the u. K. Over its billiondollar deal to acquire a data company. The competition and markets Authority Issued an order barring google and looker from integrating services while officials studied the acquisition. Google wants looker for its cloud unit. Coming up, we hear it over and over the future is 5g. We find out how qualcomm plans to integrate from qualcomms ceo. Tiktok of tictocs s harshest critics on the steps they are taking to address her biggest concerns. This is bloomberg. Taylor 5g is a fundamental Technology Change that will affect business, according to qualcomms ceo. He sat down with Caroline Hyde to discuss the importance of 5g and the role qualcomm plays in its transition. , yousee it in the same way should think of it like electricity or water. These fundamental Technology Changes that change the way people do business, for example. That is really how people in the industry are thinking about 5g. Clearly, it will impact the cellular industry. You will see a lot of benefits to the consumer and operators. You will also see when you have the ability to connect everything in the world, it is going to change the way people do business. It is going to change the way factories are structured, it will change the way we deliver health care, logistics. This whole digitization of business and the infrastructure of the world will be very significant. It is actually one of the reasons why you see so much international desire to be first in 5g. It is because everyone knows the fundamental technologies are so important to the rest of the economy, make sure you are not behind. Caroline at the moment, what is the Economic Impact . Do you have gauges of how this will be from the u. S. Perspective, global perspective . Steve we issued a study that tried to look at the impact of 5g in goods and services out to 2035. The number was 23. 2 trillion. A tremendous amount of money. If we did that same study three or four years ago, it was 12. 3. It is already scaling. People are seeing this happening. The things they thought were going to happen are happening. I think it is a very positive element. When we look at the Broad Customer base or partner, a lot of people talk to us about, hey, i know i have to be doing something in 5g. Help us figure out what that is. The number of people and the breadth of companies have increased. That is consistent with the proxy value i just gave. Caroline what are some of the more surprising industries that have walked in your door . Steve two of them. One is, i would say industrial, factories. What you want to see in factories is i want to be able to reconfigure it very quickly. And the data that comes off my machines, like a robot that is making a car for example. Tremendous amount of data comes off there. It is the actual fundamental ip of the car company. How do i make the car, and how can i reconfigure the factory . They can change how quickly how they react to the market in terms of having different model year, it can be reconfigured quickly. Tremendous desire to do that. The other one is logistics. If you think about a city like new york, moving things around. We have not really done dramatic changes in the technology to move things around other than to just create more streets. When you can connect everything and figure out how to optimize that, and you can do all the ai and big data on moving goods and services, people and things around a city, and as cities grow larger, that is a tremendous advantage to those cities. Theres a lot of desire for people to get things connected so they can start that in a big way. Caroline do you feel a sense of responsibility that you are a driving force behind this technology, that you are in a race to win it for the u. S. To a certain extent . Steve probably broader than the u. S. Our Business Model if you go way back to the highest level of abstraction, it it is about it is about creating a bigger pie. You are trying to make the market grow, and particularly in areas where a market is developing that did not develop before, we do well in creating value for our shareholders. What we think about is how do we create an industry that does not exist . What are the fundamental technologies we need to create . How do we scale them, share them with everyone . What we dont do, because we are not good at doing this, is figuring out what is the end product. What we try to figure out is what is the hardest technology and what can we deliver the biggest piece so that people can innovate on top of it . From that perspective, you look and say, wow, logistics is going to be big. Digital health care is going to be big. What do we need to do so that 10 years from now, some company that everyone will know will develop and use these technologies . If we can do that, we can deliver for our shareholders and really deliver for this goal to grow the pie, i guess. Taylor that was qualcomm ceo steve mollenkopf. Taken,head, tiktok has cash takennough steps to reduce taken steps to reduce scrutiny but is it enough . Follow our global breaking news network at quick take on twitter. This is bluebird. Taylor welcome back to the best of bloomberg technology. U. S. Lawmakers have been after the popular viral video at tiktok for a variety of reasons. Been a target of National Security and data concerns. One more thing to be concerned about, the fact that it allowed children starting at the age of 13 to make inapp purchases. That is something senator Marsha Blackburn highlighted in a letter to the parent company, sa