Widening itsftc is investigation of amazon. We will have details. National Security Risk blackburn on the social media app tictoc. Chinasled it to best detective. We will talk to her after tictoc says it has made changes. We begin with major changes happening at alphabet. Larry page and Sergei Brennan brinnced sergey announced they are stepping down. Remain active and remain on the board. On tuesday it was a pretty big surprise actually. There had been some questions about how much longer send our dar would want to be ceo of google. Google is under a massive amount of scrutiny. There have been internal protests within the company. This really was a surprise. He has basically had to deal with all of these things and now he will be back dealing with all of those things that happen under the apple umbrella, sergey ared visionaries and sundar is an executioner. Where they fit in . Se together founded the Search Engine more than larry and sergey together founded the Search Engine more than 15 years ago. He pushed them into things like self driving cars. His background came from a more core google background where he ran the chrome web browser, chrome operating system. He worked his way up to the company. He can be seen as more of a operations guy and certainly 2015, sunappened in dar has been the one to deal with more of the daytoday things at google. Jean, what is your initial ne, what is your natural reaction to this initial reaction to this . Companyconcept that the is moving into a different chapter the google proper is the next chapter. It will be a lot around policy and data privacy and regulation. If you think about the founders and what they have accomplished, and what the next couple of years would look like, testifying for example and going ough some of the new im not surprised ultimately to see this. There is another part of me that is just kind of sad because they had such a profound impact on our lives. Just a reminder that even the greats move on. Taylor how much of this can be seen as a vote of confidence in hai . Ar p china pic it is more related to what sergey and larry want to do than it is a vote of confidence, but it is a vote of confidence nevertheless. If they do not have that, he would not be the one tapped for the role. When tim cookke works the politics. In this day and age, you are not just running a company. You have to work the politics. Ai able to doh that . He is from a technology standpoint. If someone asks him a complicated question, you will know all of that stuff. Technically, he is great. On the showing up for congressional hearing, that is not something that he really, really loves to do. A quiet and thoughtful person and i dont think he likes being asked things live when the whole country is watching in a contentious situation. He can certainly do it and when you compare it to larry page who really does not want to do any of that stuff, that is really the comparison to be made. Earlier this year, larry page said where is larry . This decision today partly addresses that. Taylor as you take a look at the company now he is running both google and alphabet, what could be some of the challenges now of running both of those while the other two are just on the board by controlling most of the shares . The obvious challenge it the one we have covered here around havey is the one we covered here around policy. The other is how much oxygen to give. When we think about what has changed in late stage investing over the last six months with we ft the path to prop path to profitability that would be to me the critical i would love to see he room and specifically, the easy one to k about is it is basically launching an entirely wrapped up, tidy product. Las evolutionary that to me would be kind of one of the key issues and more broadly how they want to continue to hedge their other timein the other 20 of that is been the 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, simplifying under a big umbrella . Google is definitely the powerhouse of the portfolio of companies, so that makes a ton of sense. I would not be surprised if in the year or two, sundar stays at the top and leadership is brought in for google. Taylor that was bloomberg technologys Alistair Barr and gene munster of loup ventures. The sheer number of founders and ceos that have now to now stepped down in the tech sector, i got insight from challenger. He was joined by bloomberg technologys tom giles. We are going through one by one the Biggest Companies are 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. The major one facebook and jeff bezos with amazon. What is happening is as these companies mature, they no longer have the same need for visionary founders, the engineer who came up with these whizbang products. You need someone who is a solid manager, someone who can manage atupply chain like tom cook apple. Someone who has management shops, the sensibilities to run a company. As we talked about larry and ser their not known for management skills. What do you make of this 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. Through this year, we have tracked 180 departures. That is the most we have recorded since we started tracking this number in 2000 two. A lot of those departures are these founders, ceos, they created a company out of nothing, but the company has grown into a more mature phase. Juul labs, under armour, a lot of it has been caused by this tenyear expanding cycle in the economy where companies have been able to grow to a new maturity and hopefully, we are seeing and i think we are at google a solid handoff to the next generation of Business Leaders as opposed to a really really a shakeup. Taylor we have talked a lot about diversity as well. Numbere a lot of good two females, but not yet a number one female. When do you think we might see that . Tom i think it is indicative of a larger malaise. To their credit, these companies have been more transparent about the numbers, the problem is what those numbers show is the a real lack of progress over the last seven years. The goal was one of the First Talking about here is how many women we have in senior management. All the Big Companies are doing it now great. What is terrible is that they are showing so little progress. These are Big Companies. It is hard to move the ship. It is really time for these companies to really bring more women and people of color into their board, into their senior management. It is well overdue. Taylor that was andrew challenger and Bloomberg Tom giles. It was not just google announcing departures this week expedia ceo and expedia cfo announced their resignations this week, effective immediately. The pair clashed with the board on the travel companys direction. Iac chairman and peter kern will take over while directors look for longterm leadership. Coming up, officials brought in their scrutiny of amazon to include its massive Cloud Computing business. We will have details. If you like bloomberg news, check us out on the radio. You can listen on the bloomberg app, bloomberg. Com, and in the s fm. On serious siriu this is bloomberg. Aylor amazon is dealing with widening antitrust probe. Federal officials are looking beyond its Retail Operations to include its massive Cloud Computing business. Issue andd the potential consequences with naomi. Akes and with surprise. This is a complaints about amazons Retail Business are wellknown. Independent sellers for years now have been talking about ways they think the company is not treating them fairly. Have been aervices lot quieter. The fact that the ftc sees this as an area of concern is it significant, especially since Amazon Web Services is such a strong part of amazons overall business. Taylor you take a look at the business respond to what naomi was saying. The retail concerns have been highlighted here. What about that Cloud Computing business . Did it feel anticompetitive . It is a multi trillion dollar business. I was at the conference which is still going on and the ceo of cloudlled out that penetration is still 3 . Premise is still 97 . Almost 50 market share that he called out is something that gardner has publicly released. That is of the ais infrastructure as a service market. If we look at the overall tech market, it is still a several trillion dollar opportunity that aws is a small portion of. We had the attorney assistant attorney general at the attack at the department of justice for antitrust. He said that being big is not bad, but big acting badly is bad. I will talk about it a little bit more, but that was a fascinating statement. It makes sense why they were looking at practices at awi. Hear, itrom what i can seems like a competitive business. You have amazons cloud business. We hear it is a competitive business. Does that may be raise the bar for this hurdle to cross . Shweta absolutely. It is becoming increasingly competitive. We talked about the thirdquarter results where aws decelerated. Is biz the primary result that aws is seeing increasing pressure from as your who grew azure,ster clip from which grew at a faster clip. Dueor naomi, let me full back in here. In your reporting, you talk about let me fold you back in their. Know for sure do is that they will be looking at whether there are specific market practices that amazon is doing that could be deemed to anticompetitive. Is amazon unfairly excluding some of its rivals . Is amazon treating they may look at whether amazon is treating independent Software Service providers differently if they also use cloud providers. Those market practices are what the ftc will likely be looking into. We will see if they find anything worthy of a case. 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. 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 the headlines impacting the share price . Shweta i think that the antitrust risk at this point is priced into amazon shares. They have a fault back a year today. When we compare them to the overall market, or the retail performance, amazon has not done as well, and it is because of this overhang. One of the risks that amazon faces is the overhang from antitrust. Overall of the operations of the company, i do to think that it is material the overall business. Retail is very strong. Aws is very strong. Nix and that was naomi shweta. Google is now facing an inquiry in the u. K. The competition and markets authority on thursday issued an enforcement order barring google from integrating their services while officials study the acquisition. Google once looker for its cloud units. Looker google wants for its cloud units. The future is 5g. We will learn how coming up next. Later, one of tictocs harshest istics, Marsha Blackburn, addressing her biggest concerns. This is bloomberg. Taylor 5g is a fundamental Technology Change that will change the way people do business. That is according to steve mollenkopf. He sat down with Caroline Hyde importance ofthe 5g. Way e it in the same you should think about it like electricity or water these fundamental Technology Changes that change the way people do business. That is how people in the industry are thinking about 5g. Clearly it is going to impact the cellular industry. You will see a lot of benefits to operators. When you have the ability to connect everything in the world, it is going to change the way people do business. It will change the way factories are structured. It will change the way we deliver health care. It will change the way we do logistics. This digitization of business and the infrastructure of the world will be very significant. It is one of the reasons why you see so much international desire be first in 5g. 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 any idea of what this will be like from a u. S. Inspected . From a global perspective . U. S. Perspective . We did a study three or four years ago and it was 12. 3 caroline it is already scaling. Steve the things people thought would happen is already happening. We look at the Broad Customer base, a lot of people hey, to us and talk about i know i have to be doing something in 5g, help us figure out what it is. Steve what are some of caroline what are some of the more surprising industries that have walked through your door . Factories. Ial what you want to see in factories is i want to be able to reconfigure it very quickly and the data that comes off of my machines like a robot to that is making a car for example, tremendous amount of data comes off of there. It is the fundamental ip of the car company how do i make the car . Quickly theyge how can react to the market in terms of having different model, year they can reconfigure very quickly. The other one is logistics. If you think about a city like new york, moving things around we really have not done dramatic changes in the technology of moving things around other than to create more streets. When you can connect everything and you figure out how to optimize it, and you can do all the big ai and data on moving goods and services, people and things around in a city. As cities grow larger, it is a tremendous advantage to a city. There is a tremendous desire for people to get connected. Is a do feel that this responsibility that you are a driving force behind this technology . Do you feel risk caroline do feel responsibility that you are a driving force behind this technology . Steve it is about creating a bigger pie. Youre trying to make the market grow. Particularly in areas where a market is developing that it didnt develop before. We do a great job at developing creating value for our shareholders. What are the fundamental technologies that we need to create . How do we scale them, meaning share them, with everyone . We are not good at doing this what is the end product . What is the hardest technology and what can we deliver the biggest pieced peace so that people can innovate on top of it . E so that people can innovate on top of it . What do we need to do so that 10 years from now a company can develop these technologies . If we can do that, we can deliver for our shareholders and for this goal to grow the pie. Taylor that was steve mollenkopf. Still ahead, tictoc has taken steps to reduce scrutiny from u. S. Lawmakers. We will hear from one of the critics, tennessee senator Marsha Blackburn. We are livestreaming on twitter check us out at technology and make sure to follow us at quick take on twitter. This is bloomberg. Taylor welcome back to the best of bloomberg technology. I am taylor riggs. U. S. Lawmakers have been after tictoc for a variety of reasons the Chinese Company has been a target of National Security and data Privacy Concerns as well as a review. One of the things they are concerned about is that tictoc allows children starting at the age of 13 to make inapt purchases. To make in app purchases. Senatorsomething blackburn said is paving the way for the Chinese Government to gain unsupervised access to our childrens lives. On tuesday, tictoc responded by updating upping that minimum age to 18. Senate we spoke to senator blackburn several days later to see if that was enough . Sen. Blackburn i am pleased that they have changed the age. That is an important first step. Having these children streaming these videos, buying these emojis that can be converted to cash by the recipients, this is just inappropriate. We wanted to protect children online. We want to make certain that apps are ageappropriate. You mentioned the other concerns that are there, we want we will continue to work with them. When you look at the facial recognition, the profiling that is done, the concerns on National Security the beijing, you cannot tell where their commercial sector and their military sector begin and end. They are all one and the same. China is determined to build a surveillance state that is not only on their people and certainly we have seen this used on the hong kong protesters and uighurs. The when you think about the profiles they are building of these children and how they would use that 10 or 15 years down the road, it is of can tremendous concern to west. Taylor now that tictoc has raised that minimum age, is that enough for you to recommend it . Or do you have more concerns about the beijing government using it . Sen. Blackburn we have other concerns. We will continue to meet with them and work with them. I look forward to sitting down with their Leadership Team in the coming days. Taylor do you agree that tictoc should be under cfius review . Sen. Blackburn it is appropriate to sit down with them to have this conversation and decide if these companies if this is something that should be under cfius review. It is the right question to be asking. Taylor having discussions with leadership is a great way to start how do you take it to the next level and prevent data in the u. S. And tictoc to be sent overseas to the beijing government . Sen. Blackburn one of the things we discussed today in Commerce Committee was having privacy legislation and Data Security legislation here in the u. S. We have gdpr, which went too far in the eu. There you have california looking at doing their own l