Leading donald trump in pennsylvania. Libertarian gary johnson is at 6 . Global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. Im mark crumpton. Bloomberg west is next. Emily im emily chang and this is bloomberg west. Harshestnds apples penalty ever, ordering them to cough up 14 billion. But will will the worlds Richest Company pay . Is europe putting the tech giant on notice . Hes the godfather of online usgging as williams join on a conversation from everything on the freedom of internet in the future of publishing. And making tech m a history dealo close a megahead after was rubberstamped by chinese regulators. But first to our lead european regulators slam apple with a 14. 5 lien dollar tax bill, far and away the largest tax will in a crackdown on socalled sweetheart deals. 14. 5 billion dollars. In this case, ireland, its Corporate Tax rate is the lowest in western europe and has attracted more than 700 u. S. Companies to set up shop, including google and facebook. Apple employees about 6000 people in ireland but the eu competition commissioner says ireland allowed apple to pay an effective tax rate of 1 on. 005 an profits down to in 2014 and that gave apple an unfair advantage. Withshe is in an interview bloomberg earlier. That tax rate in ireland is 12. 5 and obviously, most companies at the national or taxinational level pay the rate or Corporate Tax rate in ireland and they have to look at some companies in case apple only pays a tiny, tiny fraction a themselves have to pay. That is obviously not fair competition. It is not a level playing field. The irishspoke to finance mr. Finance minister. But first, i want to bring in matt larson who has been doing a as well as our Bloomberg News reporter who covers apple for us. We knew apple was going to appeal, but what was the response from the company . Alex that they are not happy. I think a lot of people were surprised about the scale of the back payment date are going to have to come up with. This agreement has been put in place since 1991 and it was always legal. They never used any illegal loopholes that the agreement they had was such that it was above board. Emily we have a letter from tim cook to users, including the original pictures of steve jobs at the factory in ireland. Alex he went along and opened a plant in cork. Apple, as ever, they talk about the customer and not journalists. Who is writing the story, of course, the journalists. Apple in ireland will appeal this to the General Court in luxembourg. Its the court early hearing the appeals in the starbucks netherlands investigation and the Fiat Chrysler case, both of which are significantly smaller but could give some indication into how this Appeals Court may take the decisions. This whole process is going to take two years at least to determine and after that, there are further opportunities to appeal to even higher courts in europe. Its going to be quite a while before we get a decision in these cases. Been the u. S. Has stepping up its defense apple, calling the eu a supernatural tax authority, indicating they are overstepping their bounds. What did we hear from the United States government today . Alex i think you have to be careful about calling it a defense of apple. They are interested in ensuring he taxes paid in the u. S. Every dollar apple pays and taxes overseas is deductible from the tax they might have to pay should they have to repatriate their fund. Emily we mentioned that apple is fighting this ruling. Ireland is fighting this as well. Why would ireland want to collect 14 billion from the Richest Company in the world . Mark barton spoke to Michael Noonan earlier and pointed out the Opposition Party in ireland would like to see just that. Mark why do you just accept money and shut up . Money. Lion is a lot of guest i have a responsibility for devising the government on these matters. This has rescued ireland from 2011 on and from the creation of high level jobs, its fundamental to our economic policies and we stand by our economic policies and were going to protect our economic policies. We are not going to get into a situation of short term gain for longterm damage to the economy. Standing his ground there. What kind of longterm advantage are we talking about . Yesterday, heard people were saying on a scale of one to 10, 10 being extremely damaging, 23. Ireland has 140,000 people employed by u. S. Tech companies is they start to be put at risk and it ceases to be the place where Companies Might go if they go to europe. About 180 ilion euros in debt, so this will go toward paying that off. Why should i subsidize apple to have 5500 jobs in ireland . Emily youve been looking at the tax structure other companies have. Do any of them have this similar arrangement . Companies make use of ireland we think about it as the austin, texas of europe. Theyve developed favorable tax laws related to transfer pricing. As a result, you have a lot of companies that have organizations, subsidiaries set up in ireland that have transfer pricing arrangements in place. Life science from a cynical companies that have significant operations. Favorable tax laws and favorable treatment for other tax system treats these pricing agreements. Its a little bit of a warning shot and may encourage some companies to take a look at tother maybe they negotiated suite a deal or take a look at corporate structures and how their overall setup is working for them. How about Companies Like google or facebook which have egg bases in ireland and are based in all of europe big aces in ireland. Matt a lot of companies have headquartered there. Fidelityypal, ea investments even has significant operations there. Of theseare one organizations, you have to take a very close look at how your taxation is working, not just in the revenue you are sending but what are the communications you have had with the tax authorities . Its not just here is our revenue, take a percentage of it. Looking at Company Transfers and deals amongst the subsidiaries. You have to take into account what the basis is there and what percentage you are applying to that base that is going to be taxed. I think companies will have to take a look at the way there internal operations look and look at the deals they have struck with irish tax authorities. Emily apple shares ending today slightly down. How did esters react . Alex they are relatively blase about it. Its 6 of their cash reserves. The thing investors want to see is the ability to repatriate the money to the u. S. Because they want to get it in the form of dividends and buybacks. Its not the end of the world for them. Emily our Bloomberg News reporter and our Bloomberg Intelligence litigation manager. We will continue to follow these stories very closely. Coming up, our guest host for the rest of the hour, ed Williams Joins us. The cofounder of twitter avenue Williams Joins us. Our social Media Networks becoming too powerful and where does Digital Publishing go from here . Stay with us. This is bloomberg. Emily Evan Williams has made a major role in shaping how users , from themselves online founding blogger which he sold to google, he focused on podcasting and from there, a side project that he called twitter was born. He remains on the board of directors. He started medium as a way to publish posts longer than twitters character limit. Here with me for the hours the hour, Evan Williams. I want to start with medium because you play a tremendous role in how we publish online and express ourselves online. Medium is your vision for the future. Give us an update on where it is and where its going. Medium is a place to write stories and ideas. Its meant to be open to anyone and anyone who has something of Say Something to say of substance to find their audience. Its an a on blogging or social media but it is focused on things that tend to be longer. Its used by both amateurs and professionals. Toryone from the president individuals with stories to tell. Obama, bono,ent Hillary Clinton you have publishers like bill simmons, betweenthe balance amateurs, influencers and publishers . Isn we think the mix important and makes the conversation better. The entire point of medium is, unlike a standalone website, you are in the mix. Your ideas bounce around with other people. You can respond and highlight and people can find you. One of our mottos is great ideas can come from anywhere. To writing, there are tens of individuals with unique perspectives and ideas and the ability to articulate them. We offer a place to do that. It is where a Business Leader can write something and a customer can respond. Because theres the diversity of voices, you get much more insight. Emily it is beautiful, simple and elegant. Where are you on monetization . Evan we are working on growing the monetization peace right now. Really making it work for individuals. Now, we are focused on enabling professionals which means getting them paid. Publishing and toking with the publishers tell their stories and gain audiences to the stories. Some publishers are implementing our Substitution Program as well so you can create a pay wall. Thats looking good but its in its early stages. Tim kaine responded and mitt romney announced why hes not running for president on medium. How does that come about . Do you have a team of people trying to get hillary to post on medium . Whats the playbyplay . Evan we have an Outreach Team thats a white love service team and they help get the ball rolling. It has taken on its own momentum. In dce or inre if you want to find in audience, medium becomes the default for that. It really has gotten this momentum now and people from that world read it. If you have something to say, there is you go there and say it. Mentioned there is one person who has not posted on medium and that is donald trump. Are happily open to what he would have to say but so far he has not chosen to expand much beyond his 140 characters in writing. Taken fineas advantage of twitter. He seems to prefer expressing himself in 140 characters. What has that been like watching trump take off on twitter . Evan kind of the same as everyone. A mixture of the wildermuth and and fear. Bewilderment and fear. It has been fascinating, especially most recent revelation that his tweets were, you could distinguish his tweets from his staff by looking at the source. Years ago, when we held in that ability to see the source, we did not picture that reticular use case but im glad its there. Fair had aty provocative article that said Silicon Valley created donald trump. Do you think Silicon Valley or that without twitter, trump would be not where he is . Us to takeld hate to the credit or the blame for that. Its a result largely of our media ecosystem which has tremendously good and bad things. When i started working on the internet, i was excited anyone could that their voice out there and i thought the world is going to be smarter, wiser, when the truth is out there and unfettered, the reason im still working in this area is that i realize it not as the blas that. The tremendous amount of noise has not made us or in many ways, it has made us dumber. Theyre so much we have to do on top of this system to take full , we stillas a society have a lot of work to do. Emily you have monday of highprofile tech ceos saying that they are against trump. Where do you stand . Evan i am firmly against trump. Emily how do you, as someone who has old multiple platforms for free speech, how do you balance your clinical views with your responsibility to the platform . We just saw this, in the section that they deemphasized conservative stories. Not unfriendly against all republicans. Im proud that both on twitter and on medium, we have told that an equalt are giving side. We have many senators and congresspeople and about an even mix on both sides. In fact, in our Outreach Team, we employ an equal number of people who reach out to the right and left. Theres nothing in her system that biases one side against the other. Created a Healthy Exchange and i read and recommend viewpoints from both sides. Because they are on the same form, i think people are more open to them. Emily bloomberg had a scoop today that donald trump wants to start a media business. Evan i think that would be very smart of them. I think there will be an audience. What do you think . Emily he seems to be getting a lot of interest. Evan maybe he could cohost. Emily Evan Williams, we will be speaking with you about the next hour. Thank you so much for joining us. Still ahead, we will continue our deep dive with my cohost looking at the future of medium and twitter. This is bloomberg. Emily a story we are watching so those cutting a deal with amazon. Soon they will be able to control their speakers from amazon at go. A longterm Partnership Marks a major pivot for the company. Theyve maintain the tightest possible control over the software its listeners used to control their speakers. Next week the Company Received clearance to go ahead with the deal that would bring to leading providers on data center and corporate computing acquitted together as they chase faster growth. Month on close next the seventh. The combined company will Begin Operating under the new name dell technologies. Still to come, more of our exclusive conversation with ev williams. We will talk about how his gumbys shape the future of how we talk about ourselves. The radio you can listen on the Bloomberg Radio app. This is bloomberg. Mark im mark crumpton. You are watching bloomberg west. On wednesday, brazils center will vote whether to remove the suspended president from office. She has denied breaking rules in her management of the brazilian budget. Deadlyims of last weeks earthquake in italy were honored at a state general today. An italian bishop said that town and neighboring towns must be rebuilt because abandoning them would kill them a second time. The death toll from the quake is at 292. The state Department Says about 30 emails regarding the benghazi attack have been recovered by the fbi. They are among the thousands of Hillary Clinton emails uncovered during the bureaus investigation into the former secretary of states use of a private server. The agency says it needs until the end of september to review them before they are released. President obama short the sentences of 111 federal inmates convicted of nonviolent drug offenses. The white house says mr. Obama has granted 673 commutations, more than the previous 10 president s combined. Im mark crumpton. This is bloomberg. Its 8 30 wednesday morning in sydney. Paul allen joins us with a look at the markets. Paul the trading day is 30 minutes old and new zealand and its not moving much. Indicate a similar inconsequential gain when we start trading. We have some data out of japan. Thats expected to show a gain for a second straight month, though slowing from the 2. 3 we saw in june. Its first will get chance to react to big tank earnings at china as well. That was in line with estimates. They saw their first decline in the bad loan ratio since 2012 and wrote off 6. 3 billion in bad loans, up 35 . Bank with secondquarter profits up to 6. 9 billion, beating estimates despite the bank setting aside a larger buffer for bad loans. At some of what we are watching around the region today. Im paul allen for bloomberg tv in sydney, australia. Emily this is bloomberg west. Im emily chang. Medium has become the place where people post longer and indepth pieces president obama, bill gates and bono are just a few of the people who have used this forum to share their thoughts with the world. The former leader of now bankrupt gawker just posted her thoughts. Cofounder ofe medium and twitter, Evan Williams. I is supposed she posted this on medium because the idea is you cant take it down. On Peter Thielke versus gawker . Is that going too far or fair play . Evan four gawker or peter thiel . Emily either. Evan its scary for the press. Especially if unknown sources of money are fighting you. And of everything gawker did but in general, im a fan of freedom of the press. I think it is critical. Avail,ely, gawker should but it would be a bad thing if random media sites can be taken out by people who dont like what they say. A question you deal with behindthescenes what is free speech . What counts as fair . What is going too far . Im sure when you started blogger, there were trolls and Online Harassment. It seems like nothing has changed. Evan it has gotten worse, for sure. The early days of the internet, it was a little better and we club and ifs a big you are there, you are welcome and we have dinner parties with our front door open. If you stop by, everyone is glad to see you and so much has evolved with that default framework. The idea that anyone can join any conversation is not something we expect in the real world. Because so many wonderful things come from online, theres a lot of desire to hold onto to that ability and yet it causes so much problems when you open it up to the massive society. To cracky is it hard down on Online Harassment and quiet the trolls . Evan because the line is fuzzy. When you dig in, it seems much easier from the out side then when you look at the details. Would givee rhetoric you the impression that twitter or other services dont do anything. Theres a huge team focused on this and delete stuff all of time. What is tricky is where the line its blurry and we want to thend free speech and al