Slapped them with an antitrust complaint. The eu began investigating Google Search practices. After competitors complain. Google started to settle, three times to no avail. The eu has filed specifically the eu claims google favors its Shopping Service over that of its rivals, for instance, when you search for an item like a laptop, google shopping results show up and are prominently displayed. Leading the charge is a top danish competition. It is of course limited and is also the first place where we have a complaint. First place where we got a complaint, that google is favoring its products in search for the longest period of time. However, we will continue to look at googles conduct in other areas. Emily vestager also opened a probe into android. She is still investigating search results for hotels. Google controls 92 of the Search Market in europe, compared with just 75 here in the United States. In response, google is not backing down. Meaning the case is likely to go to trial. Googles head of search on that says google might be the most used Search Engine for finding information in different ways, and allegations of harm for consumers and competitors have proven to be on the mark. Wide of the mark. In 2013, the u. S. Ftc launched a similar investigation the close it without taking action. Not so in europe. If found guilty, google could be fined as much as 10 of its revenue, which would amount to 5. 3 billion last year. They could face severe restrictions on how it operates. Still, lingered legal experts believe such a fine is highly unlikely. I spoke with paul, an antitrust lawyer ben, a former coo of google europe. And our own editor at large, cory johnson. Ben this is been going on for quite a while, it is not a new revelation. The statements of objection are relatively bland. I think a lot of it will come down to is google dominant, and how they view that dominance. If you look at a universal search, google versus yahoo, if you look at how people shop for hotels, Consumer Electronics credit card banks etc. , they use mobile apps. Google has not passed that. For example, yelp says 40 of their restaurant bookings come straight through their app. With no use from google at all. Number one, are they dominant . Number two is are they abusing it . Google will always say, how do we give consumers what they want . Knowing google in the way that that they work i dont think , they will have ever said lets place our products first. They would have said, consumers seem to like vertical specialist search. Lets change our format and see if they like it. Before handing back to you, every time google makes product searches, algorithm changes, there are no surprises that people have had been hit and have complained. The question is is that it is upheld based on our they dominant. Emily paul, how serious is this allegation against google . How serious is it that the eu has ratcheted this up to formal charges . Paul i think it is important to emphasize that this is that the first stage, it is just an interim stage, this marks the end of the first phase of the investigation. The statements of objection is a short surmise of where it has gone to in its investigations. And no google will have the opportunity to go in more detail. Is important to emphasize there is no finding in liability. It is the direction of travel in the commissions thinking. We do not have a conclusion in terms of if there should be a fine. If there is a fine, it could be up to 10 of its turnover. Of googles Group Worldwide turnover. I think it is fair to say it is serious. Google has been trying to settle this through some form of commitments. Unfortunately, that has not worked. It will still have the opportunity to offer concessions, but unlike the ftc investigation, it has not been able to close it via that channel. Emily in the worst case, cory how could this hurt google . Cory what is google actually doing . I looked back at the google ipo today, and the company has set our search results are unbiased. People believe google will give them the best search results. If you are to go on google and search for flights from Charles De Gaulle airport the results of will be the same. I did a kayak search and a google flight search and guess what . I found cheaper flights on kayak. That says to me, the real risk is that the information is sometimes biased in favor of google favored results. Not the best deals for consumers. That could hurt this company even more than 5 billion. Emily ben, what is your reaction to that . Ben my reaction is that they not that google is being biased but if they do not do a better job, they may become irrelevant to consumers because they are realizing they are not getting the best deals on google. It is a proven fact with lots of data with desktops and mobile, that less and less consumers especially sophisticated ones with a lot of money are starting , their search journey with google because theyre finding better deals and better experience elsewhere. Google has an obligation to its customers and shareholders to improve its results. That means improving formats. That means having more choice, more images. More ability to select and filter and sort the way kayak does. The way amazon does, etc. Otherwise, they will become irrelevant. Corys point to me is that kayak is still winning so why would kayak worry about google . I realize there are more subtleties and that, but google needs to keep improving if it wants to do more of the same rather than lose its battle. Coming back to the 5 billion fine, i think a fine is far less 5 billion worrying to google than saying you cant do vertical search or you have to separate it and run it separately because that would mean the Google Experience would get worse and worse compared to the virtual search specialist over time which would make , google less and less relevant. I think the fine is far less worrying than google having to stop innovating or Something Like that. Emily paul, paint the most dramatic scenario for google. In the most dramatic scenario, does google have to breakup in europe . Paul i dont think it could come to that. Under what we call a behavioral investigation. It could be that google would, in search of a concession, i think this is an unlikely scenario it could have a formal breakup to placate the commissions concerns. I think as your guest said, the most worrying aspect is that google will be forced to comply with a legal precedent. Which really drives the coach and horses through the way it does business. Emily paul henty, partner at charles russell, ben legg formerly of google europe, and our own cory johnson. Up next, Hillary Clinton is in the race for the white house but the Digital Campaign will be different from the last time she ran. Her former Senior Adviser joins for innovation at the state department alec ross joins me next. Later, how will social media be a game changer in 2016 . That is all coming up on bloomberg west. Emily this is the best of bloomberg west. I am emily chang. She is in. Former first lady Hillary Clinton has finally announced her candidacy for the white house. The response on social media has been overwhelming with over 5 million video views in the first 24 hours of her new campaign video. How big a role will text continue to play her campaign . I spoke with alec ross, former her former Senior Adviser and at the state department, and started by asking what his involvement would be. Alec i do not think she wants more from me than the other 320 million americans, which is support for her president ial run. When we connected, she was in ohio on her way to iowa. And very excited about her new president ial run. Emily how did she feel about the rollout so far . Alec the rollout has been a huge success. It is kind of bananas. They came out with this new video, and in the, i do not know, the first 18 hours, it was viewed 5 million times. One of the other president ial candidates who gets credit for being tech savvy is rand paul. His introductory video had been watched 250,000 times. I think 20 times as well as the next tech savvy candidate is not too shabby. So she feels pretty good. Emily here is the question do video views and likes and followers on twitter and facebook, do they translate into votes . Alec i do not think that those individuals metrics do, but i think engagement does. We are far past the days of Ronald Reagan doing a perfectly executed Campaign Event with the flag positioned just so, and then he shows up again three days later. You have to have a continuous dialogue with the american people. You have to educate them about who you are and why you are running. That is what really matters. The 5 million video views and so matters insofar as it means 5 Million People people listened to what she had to say in her rational for running. Emily using social media is a given these days, yet she literally just joined facebook. She is already doing quite well but still she joined twitter relatively late. Why has it taken her longer than some of the candidates to embrace these platforms . Alec the biggest reason was that when she was secretary of state, secretary of state is a lousy job to be using social media because in diplomacy there is so much nuance, so much attention given to every little comment, every little semicolon, and it just did not lend itself to 140 characters or lend itself to liking and unliking. I was with her at the state department, and i was all for diplomats using social media but i do not blame her for not using it personally while she was at the state department. Emily the republicans have caught on. Marco rubio saying he is on snapchat. How big are hillarys challenge s going to be in the new different, and hit to the change republican media landscape . Alec in 2008, obama won because insignificant measure because he figured out how to use technology very effectively. Then almost surprisingly, in 2012, the republicans were still fairly incompetent. Mitt romneys Technology Platform broke down on election day. That will not happen in 2016. Whoever the republican candidate is whether it is bush or paul or cruz, they are all technologically savvy. And they all get it. I think will be a challenge for hillary in that they are going to be competing fiercely with her, and whatever democrats run against her in the primary as well. They are quite likely to understand the importance of technology from day one. Emily what is her mindset when it comes to leveraging technology, leveraging these new tools . Obviously we saw a different kind of campaign announcements. What else are we going to see . Alec we will see which tools get used. What i do believe we will see is an unprecedented use of big data in this campaign. To the extent of that social media was defining in the 2012 race, i think big data will make a big impact. Emily alec ross, former Senior Adviser for innovation at the United States state department. The 2016 candidates are already sparring over twitter and youtube, but when it comes to tech and politics, campaigns it is not just about social media. Campaigns, including marco rubios, are already investing and big data to learn more about voters and competitors. I spoke with someone who has seen firsthand obamas campaign. He has seen the impact of the data on a president ial campaign firsthand as the head of analytics of president obamas campaign. I think rubios approach is clever. He is going up against a incumbent who has a huge amount of Technology Behind him. Using the strategies of his father and brother, they are planning on raising hundreds of millions of dollars through traditional means. Rubios strategy is about raising money from investing in areas where they can have a big impact in terms of efficiency. That is where i think using data to help make decisions is critical. Emily areas like what . Dan i think particularly around fundraising. That is the strength of data decisionmaking right now. If you think about where the campaign can spend their time, certainly as a candidate going through and doing traditional fundraisers in hotels will bring some money, but if they can use optimization and testing to improve the effectiveness of their website and online presence, that can raise money through many small donors. Emily what is more powerful big data or money . Who would you rather be . Dan big data is a way to become potentially become big money. If you look at the history of the Hillary Campaign versus obama in the primaries in 2007 the first quarter, hillary used traditional means to raise slightly more than obama. But the following quarters through many small donations obama was able to beat a traditional big fundraiser. Tactic of doing traditional fundraising. Emily former president obama campaign, dan siroker. Ceo Tim Armstrong explains new technology. Emily this is the best of bloomberg west. I am emily chang. Aol is taking aim at google and facebook with new advertising technology. On monday, aol unveiled a new ad n open program at ad platform designed to help advertisers figure out how to spend their ad dollars. The Technology Takes all of aols ad tech and puts it in a onestop shop platform. It will allow brands to measure the effectiveness of their ads across all platforms are mobile to desktop to television. Cory johnson spoke with aol ceo, Tim Armstrong to find out more. Tim what is happening today is the biggest pivot point in media, from the way traditional media was done to the way it will be done in advertising, which is the automation and targeting of advertising at a much deeper level. Ott. Today, our launch of oneaol was probably the forefront product for the next generation of internet advertising systems. I think as you just described, it is the most powerful time for period for marketplaces in the world. Aol is stepping up as the most powerful futuristic marketplace. It has been five years of work. It is exciting externally, but our teams internally are more excited. We know the power of this product. Cory not least of which your m a team. You guys have done so many acquisitions of little companies. Is this the stitching together of all technologies in a single platform . Tim we started five years ago as a team, making large bets before others did. One was an video wanting Global Advertising one was in global content brands. When you think about those three areas overall, we have knitted together aol historic platforms together with exciting acquisitions in our space. When you take a step back, aol is a top player in video top player in distributed content on facebook, for social, content news for huffington post, the newsroom is behind me for social, no one has a more advanced system for programmatic platforms that touches ott all the way through mobile than aol does. I think the stitching together of our strategy has been really really important. We have not changed in five years. It is a 20 year to 30 year strategy in front of us. Cory yea,h so ott, over the top. When i think about this, i think about what clever marketers do. I have the ceo of carls junior. They did not right around the super bowl. They did not buy it a super bowl ad, but they went to the markets were they thought they had the most impact. They recognized they were not mcdonalds, so they wanted a particular ad that would reach a young male customer. They were clever the way they reached tv markets and markets on the web. Social media, going up to the demographic. It sounds like what youre talking about is the shift from demographically focused advertising to results focus. Ed. Tell me how that might work in a real case example. Tim if you are intouit, which is one of our partners they are , taking advantage of a singular trend, which is media was built in bulk and sent to consumers in bulk. Now it is being built on a singular basis in many cases and sent to consumers on a singular basis, so as an appetizer like intouit we are in the tax season super bowl right now intuit can talk individually to , consumers. When you think and when you think about it, the future of connecting with people will be on a singular basis. That is why social networking is important. That is why people doing individual searching is important. Our platform is the first platform to take advantage of the singular nature of singular content going to singular consumers. And the other thing when you look at recent tv statistics that have come out the fact that , almost all human beings are Walking Around with machines in their pockets that are essentially as powerful as a cable box, all of our systems are built to essentially deliver highquality content and highquality advertising and a in a singular way into everyones pocket. That is going to be a very significant shift for the entire media and Internet Business for the next two or three decades. Cory ok, but theres a technological problem there, right, because smartphones do not have cookies. How can you track an ad on a smart phone when you cannot get the feedback from a cookie like you can on the web . Tom mobile is about device targeting, for us we have about 100 million devices in the United States that we recognize and understand and we can crosslink that device and ott. That creates a powerful union. If you think about the way consumers consume media, on digital, a broadcast Network Today with aols new system one by aol, we can cross format target and target you in general. It actually makes what cookie targeting was in a more powerful way. It is cross device. When you think about advertising in the future, a lot of people think technology will deflate ad prices over time. I would make two bets. One will get better and more creative for consumers, and two is ad prices will go up. There are a lot of ads and you do not know how they work. People still spent 600 billion. Imagine how much people will spend when you know how each ad to each consumer works. Emily aols Tim Armstrong with cory johnson. Hundreds of commercial planes could be vulnerable to hacking according to a new government report. We talked to o