Scandal. We will have an exclusive interview with the ceo. And ebays ceo steps down from his role after turmoil at the Global Market site. Who next will help invigorate the flattering company . First, to our top story. Continued regulation in the u. S. And across the globe was the hot topic at the Global Business forum in york, where the question being asked was, will regulations stifle innovation . Erik schatzker sat down with the ceo of google and alphabet. There are areas where we are already leaning into regulation. Googles privacy has been sacrosanct. It is your data. Early on, we invested in things like privacy control so that it is easy for you to find your data. 20 Million People go to our privacy controls every day, and we keep trying to improve them. 20 Million People go every day. Of relationship you want to have . If you were trying to figure out the fastest way to get here and you google, how do i get to the helpfulick the, it is to have that anchor in your location. For if you are coming to new york for this event, you will be hit with what events are going on, is your flight going to be on time . The ability tove have the choice. If users want to leave, they leave with their data. We have done a lot of work on privacy and data. How does that relate to your question . There is still a yearning for more. We are working with congress. We are clear that we support National Privacy legislation. The devil is in the details. Therefore, i think it is incumbent on each of us to provide insight into the areas where there would be unintended consequences from regulation. Privacy is one example. The question is often asked of tech, are you paying your fair share in tax . We have paid the average for the last decade, but that narrative still exists, and one of the key issues is that the International Tax structure is outdated. Given a proposal which is gathering more support for fundamental redo of the International Tax system. E clearly support that the devil is in the details, but we feel like it is progressing. If you want to be a constructive part of the solution, you have an obligation to bring whatever insight or expertise you have so we end up with smart regulations. I do think that one of the dangers of the Regulatory Regime and the direction we are going in right now, i very much agree with this direction regulation and innovation are not friends. Listen, we are big companies, and we will have a dialogue and abide by the regulation on a global basis, and when the rules are clear, we will follow those rules. Absolutely. But i do think the startups of the world, the businesses that are building the exciting new ideas, et cetera, whatever regulation there is, we would want there to be room for innovation at a certain level, at a much lower scale so you can have startups who have some sandbox to innovate in, to take some risks in, at a size where they will not have a fundamental change on society, and once they get to a certain size, theyve got to regulate just like everyone else. The dialogue, i think, is a positive dialogue. We are going to do the right thing, but to create a sandbox for innovation that 10 years ago created uber and 20 years ago , thatsgoogle incredible. Do either of you think the sandbox is getting too small . Kit is think some of problematic for startups. About fiveo think Different Things versus just creating a great product that consumers love, et cetera. Anything you would point to specifically, when you look at europe and some of the regulations there anything you would point to specifically . Dara when you look at europe and some of the regulations, there is a startup scene there, and they have one to worry about. One more thing to worry about. As we look forward, i that we should look to create a sandbox for smaller players. Do you see places where regulation is stifling innovation rates . I think there is a risk of it. One of the most staggering applications is ai learning. It is already in so many elements of our life that we take for granted, like voice search and image search and translate. It can be helpful in so many areas, like disease detection. It is an extraordinary asset for us as a country and a society, someone of the key questions is, how do we ensure, in particular that we are managing it properly . Our approach is very similar to what has been done without his what has been done throughout history, to try to put out a set of symbols and ask for others to build on it. That was done with ivf and pcb. This notion of industry standards and build we think is a constructive and nimble way to continue to make advancements. One of the questions is, where does this go . Do risk for the u. S. Is, how we make sure we continue to support innovation and not slow down what we are able to do relative to others . That was dara cosmo sharkey and googles chief Financial Officer. To discuss this further, we are joined by gary in new york. Give me your reaction. I guess we should not be surprised at ubers ceo wants more regulation, but is there concern that all this antitrust scrutiny and extra regulation is stifling innovation russian mark stifling innovation . Yes, i think what dara said is what you hear here and there. That is very much ubers line. What he said is that the younger companies, startups, are having trouble dealing with those things. When he was talking about europe, he was speaking about , making sureations all Companies Get consent for collecting user data. This idea that we have these Big Tech Companies that are now able to sort of deal with regulation because they have armies of lawyers, they can hire people to sort of deal with the problems that regulation might or the costs that regulation might give them. Smaller companies cant always do that. This is an argument you also hear from smaller companies, because sometimes the Bigger Companies want regulation to entrench their position and make it harder for smaller competitors to come up against them. It is a conversation that has been going on and uber has a opined on it. At the time the bloomberg ceo was talking, bank of america came out with sentiments being at a low point. Do you get that sense as well . In california, i think ab 5, the law that says if an employee is part of a companys core purpose, they need to be classified as an employee and not an independent contractor. Not thinks drivers should necessarily be classified as employees for them, and they are going to fight this in court, but he did say they were kind of coming to this. I am not sure that they were fighting about this very strongly for a long time. We will see how it goes. Me. Hank you for joining ther bump in the rpo bump in the road for wework. It will likely postpone its ipo for next year. Steppingows the ceo down, taking a role as a nonexecutive chairman. Wework ahead of initially sought to go public next month. Coming up, sticking with ceo resignations, we discussed news of ebay. Ebay is stepping down amid the companys ongoing operating review. David wenig has been under pressure from activist paul singer, pressuring the company to spin off some of its business including stubhub. Ebays chief Financial Officer has been appointed as the interim ceo. Joining me to discuss, spencer soper, who covers the company. Spencer, how much of this is stepping down is due to the financials of the company . Partly performance and also holding the company together, not selling pieces that activist investors want sold. This is bringing ebay a step closer to the scrapheap. Like ebay feels breakup part two. There was a similar situation ebay faced when carl icahn was pressuring Steve Donahoe to break up ebay and paypal. Now we have further pressure, but this time we dont have a promising up and coming company that they want to spin off like they did with paypal. It was just to break up what leftover. Taylor what are the activists pushing for in terms of breaking up the company . How did they think they can unlock value . Spencer there has been pressure to sell stubhub and the classifieds business, like a local marketplace similar to craigslist. They want to further break up the pieces. Winick has been resisted to that. Stubhub is thinking, well, we sell Sports Memorabilia and band memorabilia. If somebody is selling a ticket on ebay, maybe they will spill over and by the tshirt. But those synergies never materialized. It has been the same story for ebay since the paypal split. There has not been much growth. Amazon is leaving it further and further in the test in the dust. Taylor what can the interim ceo do that the previous ceo was not able to do . Spencer it is hard to find a better champion for ebay than david wenig. He was enthusiastic and took efforts to try to really rebrand it and kind of shed its image of being this online garage sale and reestablish it as a place to go to buy new things. It seems like a inertia has kind of set in. Placeholder until they find someone else. When they pick a new ceo for a company, does it look like they are picking a new financial architect to further break it up, or are they looking for someone to reenergize ebay, which was we make wenigs plan that never went anywhere . Taylor how do they compete with amazon . Spencer not that greatly. Wenig would even choke at their conferences, we are not the place to go if you want a roll of paper towels in an hour. Ebay is more of a place for enthusiasts, like if you are a car above, you will go to ebay to find a hardtofind car parts, or if you are into video games and accessories, you might go there to find difficulttofind items. I tried to differentiate themselves that way. Days or a weekke to get things delivered sometimes, and those are difficult hurdles for shoppers to get over. If you are used to getting something in two days or less, and you get on ebay at have to get it in a week, thats a long time. Taylor that is bloombergs spencer soper. Thank you for joining me. Theange at juul labs as ecigarette Company Faces growing backlash against vaping. Chief executive officer kevin burns will be stepping down. A former all tria executive will be taking over. They also said today that they were ending merger talks with Phillip Morris. To discuss, i am joined by bloombergs leanna baker. I have to talk about the ceo stepping down. Is this all about the investigations into the safety of taping . Vaping . This seems to be the week of ceos stepping down. But juul had a lot of regulatory hurdles that some investors in ria,company, like alt thought the previous ceo did not handle properly. This is quite a fall from grace. The company has been valued at almost 40 billion when altria invested. Where is the value now when states are cracking down and whole countries, like india, are banning these products . Taylor and you have a former altria ceo taking over. What can he do with juul . He is viewed as a safe hand to oversee juuls transformation. For manyen at altria years and helped oversee some of for thelatory approvals product Phillip Morris is rolling out in the u. S. Through altria, considered a safer product. He has the strength in washington to deal with these regulatory issues, but it remains to be seen with changes he could make quickly, because things are getting worse. Uplor i am glad you brought Phillip Morris, because they announced they were ending the relationship with altria. Am i correct in saying the merger is off and the ceo is stepping down, that i am tying those together . It is no coincidence, and the sources i spoke to today would agree that while these are companies that are maybe destined to be together, now is not the time because of all these negative headlines and regulatory headwinds around bang bang around jewel around juul. When altria invested, they did not think it would it so bad. A is not a time to announce 200 billion merger with so much uncertainty. Taylor Philip Morrison announced today they will work on getting there product in the u. S. Is there any sense of extra competition that creates for juul . It has been around for a while in development and was supposed to be the hot new thing until vaping came around with juul. These companies seem excited to roll it out. Atlanta, they are testing at their. It there. But i have not spoken with anyone who has used it, and i am curious what people will be smoking exactly, because it is. Eating the tobacco we will see how audiences and customers react to it. Taylor thank you for joining me. Online dating service matched using romance scammers as a way to fatten its bottom line . After match group fell they were accused of tricking consumers into paying for subscriptions. According to the f. T. C. , match. Com exploited messages from fraudulent accounting to induce nonsubscribers to sign up for subscriptions. To discuss, i am joined by bloombergs david mclaughlin. What is the f. T. C. Arguing here . So this case comes down to how match treated subscribers to its dating site, match. Com and nonsubscribers. What the f. T. C. Says is that for nonsubscribers who got messages or likes from people on the site, it was very often the case that those messages were coming from scammers and basically fake accounts on the site. And when these messages were sent, match would advertise to the users, you should sign up for a paid subscription to see this message and see this person. But those were fake accounts, and so the f. T. C. Says this was a way to get subscribers up. On the other hand, though, those messages that went to subscribers, those subscribers never saw those messages. So the ftc is saying this is deceptive to the consumers who were not paying for paid subscriptions. The ftc, is quantifying for us how much match was able to pad the bottom line because of this . The f. T. C. Didnt cite a damages figure. They did cite about half a million users signed up for paid subscriptions in basically a twoyear period based on messages that were linked to fraudulent accounts. In the lawsuit, one of the things that the f. T. C. Is asking for from the court is obviously an order to prevent match from continuing these practices, but also redress for consumers who lost money. What is match saying for their part . They came out with a pretty lengthy statement saying that this is a baseless lawsuit, and they intend to fight it in court. They say that the agency is misrepresenting emails that they got from the company. Match also sort of touts its ability to shut down fake accounts that are on its site. They cite Something Like 96 of fake sites are shut down right away. And they also say that this conduct is based only on match. Com and not tinder. Taylor david, it is very interesting. Analysts came out and said this was previously disclosed in the companys 2018 financial report. J. P. Morgan coming out and saying this f. T. C. Suit is not new news. Any sense that the f. T. C. Is behind on this, and this may not actually be new . Well, no, i think you saw the Market Reaction today. The stock dropped pretty significantly. It did recover afterwards. Even though it was disclosed, companies will typically disclose investigations a lot. But this was today, the filing of the lawsuit. This is actually the f. T. C. Taking actions, going a step further than just simply investigating. Now of course it is up to a judge to decide sort of what happens next, and it is very possible that the case could be thrown out. But this is a significant action when an Enforcement Agency sues a Public Company. Taylor talking about all things dating sites, that was david mclaughlin. Thank you for joining me. Coming up, dropbox is dropping details on its revamped services. We will hear from the c. E. O. Next. This is bloomberg. Taylor dropbox is going way beyond filesharing. The san franciscobased Company Announced new services wednesday, including a new desktop app that functions as a digital hub to let workers collaborate on projects with their colleagues. Dropboxs ceo joins us now. Talk to me about dropbox spaces. What does this do . Drew it has been a great day. We announced dropbox spaces, which is one of the biggest changes we have ever made to dropbox, and it is our first step toward building what we call the smart workspace, which is a calmer, more focused work environment, and changes the dropbox experience from being a folder full of files to a Collaborative Team workspace for all your cloud content. This news becoming kind of app that brings all these other apps together and cuts down on the noise and makes it smarter and calm her. York, so im from new should have known that your name owston. On and not h taylor talk to me about how you are building on current customers or if you want dropbox spaces to be new customers. Drew we have built our entire business on collaborating on files, but with the smart workspace, we are going beyond that on a bunch of dimensions. First is supporting every kind of cloud content. Second is it is a much more engaging experience. In addition to the content, you can see all the conversations around it and the context around it, and you can send someone a slack message from dropbox or see your calendar or start a zoom meeting. We found users struggling to piece all this together. We see an opportunity to organize your working life across all these different tools while still maintaining a choice to use what you want to use. Taylor talk to me about Topline Revenue growth. When we dig into your financials, very strong doubledigit topline growth. Some analysts, though, at least on the average consensus on the terminal, say it looks like it could slow to the midteens. What are you doing to maintain that Topline Revenue growth . Ough drew first, we start with a huge opportunity. In many ways, dropbox spaces expands on our opportunities because any companies or many teams need to collaborate on files, but every team needs to collaborate around content, so we start with solving a problem that every person in every company has, and with the new dropbox and with spaces, we are evolving the experience. Now we have a new generation of our product that does a lot more for our users than we have in the past, and now our focus is getting in into peoples hands. Taylor analysts are starting to forecast w