The chips are of the table. Symantec and broadcom have halted deal talks. Where does that leave them now . First, to our top story. The big story on capitol hill. Tuesday and wednesday, they will facebook on libra. Steven mnuchin taking aim at the social network. The Treasury Department has experienced expressed serious concerns that libra could be misused by money launderers and terrorist financiers. Lyft also tuesday, representatives will defend their companies in front of the house judiciary in a hearing on antitrust. Their goal is to convince lawmakers they do not stifle competition. We have charlotte from a nonprofit focused on shaping public policy. Before that, she worked at the federal trade commission. And we have ben brody. So many areas to keep track of. Libra, antitrust hearings, and a googlespecific hearing. Give us a preview of what we can expect. We are working hard to bring it all to you. One of the things i have been looking at with google is the rising chorus there is anticonservative bias by the major social media companies. You saw that in the white house summit last week. It is the focus of this hearing that will be held by senator ted cruz. You just had a request coming from senator cruz that the ftc look into how these companies are doing content moderation amid concerns of bias. You have that. And then we will have the antitrust hearing. I expect a lot of talk about the nature of competition. I expect a lot of talk about startups, venture capital. Do you start a company just so you can be acquired or because you think it is a great idea that needs to be in the world . All of those kinds of questions are what i expect to be dueling in different parts of the house tomorrow. Emily meantime, charlotte, you have the fine from the ftc that came down on friday. As far as we know, planning to find facebook 5 billion in a record privacy settlement. You have lawmakers saying this is a slap on the wrist. He called it a christmas presents a few months early. Does the fine matter . It matters but not as much as the behavioral restrictions the ftc places on facebook as part of the settlement. We have so far not received information about what those restrictions will be. That is what i think could affect facebook going forward. Clearly, the fine is not having a big impact on them. Emily the treasury secretary really taking aim at facebook and libra and the broader crypto industry in general. Take a listen to another portion of his remarks today. This is indeed a National Security issue. The United States has been at the forefront of regulating entities that provide cryptocurrency. We will not allow Digital AssetsService Providers to operate in the shadows and will not tolerate the use of the cryptocurrencies in support of illicit activities. Meantime, the cocreator of facebooks cryptocurrency project submitted written testimony he plans to read tomorrow at the hearing. He says i believe if america does not lead innovation in Digital Currency and payment, others will. If we fail to act, we could see Digital Currency controlled by others whose values are dramatically different. There is a bit of fearmongering here. Do you think this argument will work with lawmakers that if we do not do it, somebody else will . I think on this issue, lawmakers are not going to be swayed. Allusions to if we dont do it, china or russia will fill in the space. Occasionally, that will work on the hill. I think there is a feeling in washington that facebook in particular has not been responsive to concerns. It has not sought what they need to know. Even if they had the meetings, they did not get the kind of regulation and approval they needed and went out with this splashy announcement and did not do the work beforehand. I think there is a lot of concern about the company we are seeing in all of these hearings. When you have that level of concern, you cannot waive it off and say trust us generally in washington. Emily we heard the ceo of facebook give the same argument broadly. To work atwho used the ftc, how are the agencies going to feel about that argument given the ftc has been assigned oversight of a potential antitrust investigation into facebook should such an investigation happen . I think the antitrust enforcers recognize competition is the best way for these companies to be effective and strong competitors against companies in other countries. We do not do the National Champion thing in the United States. We have competitive markets. The antitrust agencies are tasked with making that happen. Emily what are we expecting in terms of a result from these hearings this week . Lets talk about the house antitrust hearing in particular. How will this move the ball in one direction or another . Great question. This hearing is one in a series. Impactst one look at the of the big platforms on news. I could see others coming down with Small Companies that have complained about some of the Big Companies and how they affect their work and startup culture. Lawmakers andto the chairman of the committee and say, what do you think will come out . He says i do not know. It is difficult to know until we know what the problem is what the solution will be. He has leaned in the direction of saying there is bipartisan concern and maybe we could move some laws forward. Some folks say they may be interested in doing that. You can tweak how mergers are looked at. Those sorts of things can change the Competitive Landscape even though they are little. That might be something the committee is looking to do. Emily in what direction is the ball going to go . Some of these are shorter term sentiment issues. The antitrust investigation by the ftc could take five or 10 years. What do you see happening over the shorter term versus the longerterm . I think the role of the congressional investigation is important. Antitrust can take a long time. These markets move quickly. What i am looking for from the congressional investigation is building a record for legislation that could happen more quickly than the antitrust investigations and certainly more quickly than future antitrust investigations. Emily after this week, what is next . Then Congress Goes into the 2020 Campaign Starts up. That is important to realize because a lot of the congressional work goes on hold after this recess. I think that is why youre seeing a flurry of activity right now, because people want to get things into the record. That is not to say they cannot pick them up in the fall and try to advance them, the right now is kind of the moment you have to seize the publics imagination and make your case. If you can get that out, maybe you can advance things in september, october, and november. If you cant, things might die. When you ask about antitrust, all these things tech is facing in congress, the question is, which one of them can rise above in the next few weeks . That is what im watching. Emily the president ial campaign will not go on hold. Some candidates have made tech a central part of their platform. Thank you both so much for weighing in. We have full coverage of tuesday and wednesdays congressional tech hearings right here on bloomberg technology. France and the u. K. Are also looking at their relationship with big tech. The french have passed a digital tax despite pushback from the United States. Alex webb reports from london. On july 11, french lawmakers passed a new Digital Sales tax 3 ich will see a levy of imposed on companies with revenue over 750 Million Euros in france. The huge change is it will be affecting revenue and not profit. The interaction with the customer has been a huge debate, whether the tax should be imposed on Tech Companies where they base, california, or where they have the interaction with users. There is ongoing debate about how the u. K. Has already put in place a similar process to impose this sort of sales tax. It has caused discontent in the u. S. And germany where they sell capital goods in the country but might sell Additional Services on top of it which would be subject to such attacks a tax imposed if imposed globally. The companies are concerned there is a lack of clarity in the french tax on what they need to be paying taxes on. Either way, there will be a big tax bill going frances way in the near future. Alex webb in london. Emily thanks. This year, amazon is celebrating prime day with help from hollywood. They are using star power to generate buzz amid increasing competition from rivals. We will head to seattle for that story next. Can check this out you can check this out on the radio and on sirius xm. This is bloomberg. Emily amazons fifth annual prime day is underway with more than a million deals on offer to prime members. Shoppers will spend over 5. 8 lean dollars over the 48hour sale, up 11 from last years event which was about half a day shorter. But the shopping extravaganza is battling increasing competition from rivals. Includingetailers target, walmart, and ebay staging their own sales to compete advertising they do not require a paid membership like amazon. Highs andhat are the lows of the day so far . Front, theelebrity big thing running into prime is what is new. They used prime day to sell gadgets in the past and to promote their acquisition of whole foods. The big thing this year is the celebrity emphasis. A very traditional marketing tactic but new to amazon where they have people like Mark Wahlberg selling protein power and kobe bryant selling deodorant. That is helping maintain buzz around the big event in its fifth year. Emily amazon opened a celebrity store a year ago. Now they have all of these deals today tied to celebrities. They are starting to offer special products. Lady gaga will offer an exclusive beauty product line only on amazon. How big of a deal is that . There are two things amazon has been trying to push into. Fashion has always been an achilles heel for amazon. They have tried to go into basics by getting into and nonfashion categories. They picked up bigger business than macys doing that. Some of this is to get into the Fashion Accessories business. They are starting to realize the millennial crowd, theyre going to start looking at different ways to attract that crowd back to amazon. Channely has been a that has been added for a while now. Emily what are the trends youre falling one following on this particular prime day . Over 48 hours. Slightly more than last year. What is your take . Prime day has typically been the biggest day of the year for amazon. This year, they expect that to be the same. One thing which has been counterintuitive we are seeing from amazon is a big push in packaged goods. This year leading into prime day, we saw a 300 increase in traffic and unit sales into consumer Package Goods categories which got into the whole Foods Acquisition like baby food and cereal boxes and things like that. I would imagine people buying more diapers and baby food on prime day is not something you would think of. You would think of them buying tvs and things like that. It has been a big push. We think there is a big push to capture that 800 billion market of groceries. Emily there was a big Technical Glitch during prime day last year. So far today, i have seen some shoppers complain they could not add stuff to their carts. Have there been hiccups . It looks like a small number here and there. Nothing on the scale of last year. We were monitoring earlier. It seems to have faded. It does seem like whatever problems they had last year they have been able to avoid this year. That is a big deal when you consider competitors like ebay staged a crash sale, basically running rubbing amazons face in last years failure and telling customers when amazon crashes, check out our deals and you wont have problems with our site. Emily what is your take on some offeringsetitors over these two days . I think it is not giving amazon a run for the money. They are serving amazon by legitimizing prime day. It is not called a holiday, it is called prime day. Emily they do say you dont need a membership to access it. What is the incrementality they are able to get . Maybe those who are not bigger spenders on ecommerce and things like that. Folks amazon is trying to attract they have already done a great job turning into prime subscribers. Every prime day, there is an agenda for amazon to recruit more prime subscribers. They are very successful doing that year over year. Thank you so much. We will give you the update tomorrow. Netflix is due to report secondquarter results this week. It has just released a new season of Stranger Things but it is losing the office. We will discuss next. We are Live Streaming on twitter. Be sure to tune into tictoc on twitter. This is bloomberg. Emily netflix is due to report secondquarter results wednesday. Investors are eager to see how competition is weighing on the company. Apple and disney plan to launch Subscription Services later this year. Warner and nbc are planning for later this year. Us from stamford, is anticut, to discuss Audience Data measurement expert. How the new take on season of Stranger Things and losing the office nets out . I think netflix is going to be fine. I am sometimes negative on netflix and people call me on it. I just think the future will be tough for them. They have made some wise decisions in terms of the money they have invested the past few years in terms of original content. Obviously, Stranger Things is an example of that. Their previous titles that have done well for them as well. The problem is not just friends. It is original movies from disney. It is the new original content from apple. I think they have never had so much competition in terms of known content that they have previously licensed as well as original content that will be pulled off their platform and go to competing platforms. Emily how does netflix fill the void . Is it all about original content . Can they fill it with original content . One thing netflix has benefited from even with the amount of money theyre spending on original content is the first mover advantage they have had in terms of generating market share. The issue is there are more connected tv homes in the United States than homes with the cable box. The economies of scale have changed in that they are no longer differentiated or other services. I dont see them out spending apple or amazon. I dont think original content can do it alone. I think they should invest in buying an existing content provider that has a library and fan base with a following. I think that is much more likely. The other thing people talk about less but will have a Significant Impact in terms of time spent on netflix is the growth of ad supported streaming like pluto tv recently acquired by five calm and others viacom and others. Im a big believer in 2020 that netflix has to launch some sort of ad supported tear that they can feature the original content library on. Emily interesting. What will you be watching for on wednesday when the Company Reports . A couple of things. I will be looking more at the international number. I think that is an area where they have more wiggle room in terms of the first mover advantage. In those markets, they dont have Global International companies they are competing against. They are competing against incumbents in local markets. I think that number has to be very good to give them the headwinds that will help fend off competitors coming into the year end of the year and into 2020. I dont think the domestic matter number matters much because the real competition is two quarters away domestically. Emily thank you so much for weighing in. Coming up, will they or wont they . For now, broadcom and symantec wont. Why they called off their deal talks. Billionaire peter thiel says googles agreement to work closely with china is seemingly treasonous. How this led to calls for the u. S. To probe the tech giant, later in the show. This is bloomberg. Xfinity mobile is a Wireless Network designed to save you money. Whether you use your phone to get fit or to find the perfect gift, youll use less data with a network that automatically connects to millions of wifi hotspots and the best lte everywhere else. So you save hundreds of dollars a year on your wireless bill. Xfinity mobile has the best network. Best devices. Best value. Simple. Easy. Awesome. Click, call or visit a store today. This is bloomberg technology. Im emily chang. It is the deal that is no more for now. Symantec and broadcom have halted talks on the proposed merger. Discussion sit in impasse after broadcom sought to reduce its offer by more than 1. 50 a share. Shares of symantec plunged broadcomgits, but still finished the day up. Perhaps in part thanks to a Financial Times report saying they were still keen to do a deal with symantec. To discuss, we have mike and bloomberg techs niko. Mike, what went wrong . Mike the main thing is the price. Something came up in Due Diligence during the process in talks. They were close to a deal. They were expecting as early as tomorrow and something came up. Broadcom says we want to pay less for it. Symantec did not like that and said no deal. Talks break down and not clear exactly where it goes from here. Emily the broadcom ceo has been notorious for making big bets, but this is the second or third big deal that has fallen apart for broadcom. Is there something wrong with their strategy . Niko he has been thinking about how can i run broadcom similar to an equity play . He first went after the 500 billion chip market. Bought other companies, cut expenses and created some industry power there. Now he is thinking about how can we expand this beyond chips . Software has been his bet, particularly after the deal with qualcomm failed. That