The Vergecast - Hello and goodbye to the MacBook Air

Episode Date: March 7, 2024

The Verge's Nilay Patel, David Pierce, and Alex Cranz discuss Apple's upgraded MacBook Air, the EU's Digital Markets Act deadline for tech’s biggest “gatekeepers”, and a bunch of tech news from ...this week. Further reading: Apple announces upgraded MacBook Air laptops with M3 chips The MacBook Air’s wedge is truly gone — and I miss it already Apple may not do a spring event this year How the EU’s DMA is changing Big Tech: all of the news and updates How every tech ‘gatekeeper’ is responding to the DMA  iOS 17.4 is here and ready for a whole new Europe  Apple hit with a nearly $2 billion fine following Spotify complaint  Spotify and Epic criticize Apple’s iOS changes as ‘a mockery of the DMA’ Spotify will show pricing options outside its iOS app in the EU — if Apple lets it Apple kills Epic’s iOS game store plans over App Store criticism Apple is bringing sideloading and alternate app stores to the iPhone Apple unbanned Epic so it can make an iOS games store in the EU Alternative iOS app stores won’t work (for long) outside of the EU. Here’s the new iOS default browser nag for iPhone users in Europe. Apple is officially dropping iPhone support for web apps in the EU Apple’s decision to drop iPhone web apps comes under scrutiny in the EU Now Apple says it won’t disable iPhone web apps in the EU Learn more about your ad choices. Visit podcastchoices.com/adchoices

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Starting point is 00:00:22 Build me a revenue dashboard on our Salesforce data. And Retool actually builds it on your company's data, in your cloud with enterprise security built in. Go to retool.com slash Verchcast. We all need to retool how we build software. What's up, y'all. I'm Skylar Diggins, seven-time WMBA All-Star, Olympic gold medalist, and mom. And I'm Cassidy Hubbard, host and reporter for nearly 20 years, covering the biggest names and stories in sports and mom. And this is Am Mom, a community for athletes, game changers, and moms of all kinds.
Starting point is 00:00:59 dropping May 14th. Tap in with us. Hello and welcome to Verne Chast, the flagship podcast of European regulations. Oof. Not the most exciting one we've ever done. It's not great. Look, if you go talk to like entrepreneur, founder, guys, professors, business school professors, that's the word I was looking for. And you're like, what's a good time to start a business?
Starting point is 00:01:26 They're like, regulatory change provides opportunities for new business to form. And they say this in an officious academic way. And they push their glasses up in their nose and they walk away smoking a pipe. This is that moment. Only everyone is also having the most emotional reactions to change that are possible. It's a lot. Anyway, I'm your friend, Neely. David Pierce is here.
Starting point is 00:01:50 Hi. Alex Kranz is here from Texas. Yes. I am currently in the 1970s in Texas, judging from my background right now. It's a lot. It's a lot. You got the room divider. There's a lot going on back there.
Starting point is 00:02:04 It's a good time. The one decorative plate behind you is every house I've ever been in in my life. There's one decorative plate, and I always appreciate it. Well, you can't see them, but there is more than one decorative plate in this space. Everyone pull over in your cars and mail a picture of your decadive plate to David at theverge.com. Yes, please. Thank you. If that, we do an entire installer that is just photos of decorative plates.
Starting point is 00:02:30 It's pretty good. That's fair. I should say, speaking of emails that you have requested, to everyone who emailed asking for Nelai's 10,000 word feature on the Samsung Frame TV, it has been greenlit. I hear you. And now what I would like you to do is yell at Nelai for not filing 10,000 words about the Samsung frame TV. Yeah, just got it done.
Starting point is 00:02:49 I have a, I've already begun to do some reporting, I will tell you. And it is the silliest reporting in all time. Does it mean just yelling at your TV? No, I just ran into the person who runs the art store on the train. That's my reporting. He was like, what's that? There you go. So I'm working on it.
Starting point is 00:03:12 That's your version of all the people who say, like, there are all these politics reporters who are like the best way to get scoops is just get on like an Acela car on Amtrak between New York and D.C. And just listen to people's phone calls. Yeah. Yours is just like get on one going into New York City and ask what startup they found. Pretty much. Pretty much.
Starting point is 00:03:31 I love it. What Samsung acquisition were you in the mid-2010s? I'm working on it. I will say if you're watching this on YouTube, I'm in the new studio that our producer Liam has built for me, mostly by mailing me Amazon packages, which is great. He put up the wall right behind me. Very good. Great with a circular saw that Liam. And there is a frame TV that is yet to be hung on the wall behind me, just looming over the show with a Vergecast logo on it. That's good. It's going to be great. I can't get away from them if I'd tried. But I will, I'm going to do it. I have a lot to say about the frame TV. That is not this show, though. This episode of the show, uh, there's actual news. There's not just me having feelings about a mid-range television that we've darted up there. Uh, there's new MacBook air. We got some Microsoft news coming. There's iPad rumors. Then there is the digital markets act in Europe,
Starting point is 00:04:20 which went into effect today as we are speaking. All the big platforms from Google, Facebook, Apple, they're all changing. All of those people, uh, would say are coping in whatever way you wish to interpret the word cope. There are a lot of people who need hugs, it seems like. Yeah. Cope is a generous term. Yeah. In whichever way you wish to interpret the word cope.
Starting point is 00:04:49 However you want to interpret the word cope, I would say that our major platforms are coping. That's fair. Yeah. Let's start with products. Yeah. Let's start with hardware. There's a new MacBook Air in this world. which Apple just sort of snuck out into the world.
Starting point is 00:05:03 David, what's going on? Yeah, so we've been kind of expecting Apple to announce it was going to have a spring event. Normally in March, not every year, but many years, it'll do a thing where it launches usually new iPads and then a smorgas board of other stuff, depending on what they're doing. But usually iPads at the center. It seems like this year we're not going to get that. And instead we're going to get a parade of press releases. And the first one that came out is two new MacBook airs.
Starting point is 00:05:31 There's the new 13 inch and the new 15 inch. They have M3 chips. They're basically just spec bumps, right? Little faster. There was a mention of 6G in the press release, which I find personally infuriating. There was lots of noise about them being good for AI, which I think is essentially just a way to say like these have pretty fast processors and no one else knows what that means. No, I want to spend maybe an hour on the one paragraph where Apple said these are the best
Starting point is 00:05:56 consumer laptops for AI. The best. Utterly meaningless sentence. It will not be this hour in this second, not starting now. But later in this episode, we're going to take that apart word by word. Okay. I'm excited about that. So yeah, these new ones, they support dual displays for the first time, which people are
Starting point is 00:06:15 excited about it. If the lid is closed. Yeah. It's really something. I feel like my job on this section of the podcast is to copy out everything David is saying. I'm sorry. No, that's okay. we got a real like you finish each other's sentences vibe going on right now.
Starting point is 00:06:30 At the end of the sentence is real mad. Right. Like here's a fact. Here's an angrier fact. Yeah, I love this for us. They also killed the wedge, the M1 MacBook errors, no longer being sold, which is the end of that design. All that's left is the M2 and the M3. I have a lot of feelings about that.
Starting point is 00:06:49 But basically, it's like new MacBook errors. They're a little better. They're a little less expensive. Here you go. I can see why if your Apple, you don't. have an event for this. They're just like, remember the MacBook Air? This is the MacBook Air now. And you're like, all right. Well, they've been kind of doing that a little bit, right? Like, sometimes they're just like, we guys, it's a spec bump. You don't need me, you don't need,
Starting point is 00:07:07 you don't need, like, Tim Cook to dance for this. Just enjoy your spec bump. No, I'm not mad at it. These look like great laptops. Like, it is, the MacBook Air is just so thoroughly the best $1,000 PC on the planet right now that I feel like Apple is just like, you get it. Here it is. Yeah. When they announced these MacBook airs, there was an event, and they kind of didn't have a lot to say. Like the last event with MacBooks at it, they were like, it's 15 inches, you know? Tim Cook just held the camera, just stared it down.
Starting point is 00:07:44 It was like, yeah, that's it. We had a whole conversation about the feet on the MacBook air in the eye. Do you remember that? Because that was the only thing to talk about. It's like, look, there's little feet. Yeah, they did like a demo. of pages. Like, for real.
Starting point is 00:07:55 They did a demo, like, you know, and they're like, it's because the screen is larger, you can make the windows bigger. This is a real thing that happened, Natalie. I'm not making this up even a little bit. That's real. So I get what you're saying when you say that they've run out of things to say. But when they spec bumped Intel MacBooks, they just spec bumped them, which is fascinating, right?
Starting point is 00:08:18 They're like, well, here's some new Intel processors. We didn't want to use them, but we have to, until we figure out how to shove an iPhone processor into here, but here they are. It's a core, whatever Intel says this is called this year, right? Yeah. And they would sometimes do a press release. They sometimes wouldn't. I feel like they've hit that point with the M3, but
Starting point is 00:08:35 because they make the M3 and they're very proud of it, they have to act like it's bigger than it is. Well, it's the best processor for AI, so they have to promote it. Right. Yes. That's like exactly what I mean. It's like, they have to make up some stuff. Yeah. And the world's best consumer laptop for AI is a wild thing to say.
Starting point is 00:08:59 I agree. They are probably very good at some AI-related tasks. They have a list. M3 includes a faster and more efficient 16-core neural engine, along with accelerators and CPU and GPU to boost on-device machine learning, leveraging this incredible AI performance, blah, blah, blah, blah. Here's some stuff you can do. You can check your homework with AI math assistants in Good Note 6.
Starting point is 00:09:21 I love it. If you're doing your math homework in Good Note 6, I'm guessing you don't need AI. Like computers historically great at math. No real problem. Like, I'm just wondering about that. Okay, you can automatically enhance photos in pixel later pro. That's great.
Starting point is 00:09:40 I've talked about how much I like using the enhanced features in Lightroom, if those are faster in the N3. That's great. We're moving background noise from video using Capcut. Who on Earth is using Capcut on a MacBook? I literally didn't know that was a thing you could do, if I'm being completely honest. Do you see what I'm saying? I'm pretty sure that's the iOS Capcut app.
Starting point is 00:09:58 Yeah. That you just use on your Mac. I don't, it's kind of a good idea. I can sort of see it. It's a good app. I just, how do you not read all of this as Apple just being like, our things are very fast.
Starting point is 00:10:09 Do you like to do fast things? Come do fast things. But that's what you do every time. Yeah. Okay, so I'm looking at Capcut. Try out the Capcut desktop version. It's the iPad version of Capcut. Perfect. Great.
Starting point is 00:10:22 Great. But I'm just like, that's not a lot. Like, it's very cool that Apple has these trips and that bite dance ships of video editor that makes use of the tools. But that is downstream of the fact that they make TikTok on the iPhone. Because if people won't know, Capcutt is the TikTok video editor broken out and made into an app. And by the way, if you can figure it out, you're a genius. You don't need AI. because the TikTok video editor and Capcom are very confusing.
Starting point is 00:10:55 Not to say people don't figure them out. Teens. The teens are brilliant. It's just fast things are fast is wild. Then you get down to what people actually think of AI, which is MacBook Air can run optimized AI models, including large language models and diffusion models for image generation locally with great performance. And it's like, I'm also sure that is true.
Starting point is 00:11:15 Yeah. I am also 100% sure that Mark Zuckerberg is out here being like, I've bought more Nvidia H-100s than anyone else in history. Developers should come here because I have them all. Yep. Yeah. And there's a huge split in where AI is being deployed and built, and you can run it on an M3 MacBook Air.
Starting point is 00:11:37 And I think Apple's just trying to... Apple's not the only one that did this, though, right? Because like both Lenovo, HP, everybody at CES was like, look at our new laptops. They're the best at running AI stuff. And you're like, what AI stuff? And they're like, AI stuff, the best. Can I just offer you one more sentence from this press release?
Starting point is 00:11:57 This is the best one. I can't believe it took you this long to get to this. It's been a slow build. Alex, thank you for the alley-oop here. Yeah, I'm here for you. This was the thing that ended all of the Windows laptops when they're like, you know, like Microsoft Copilot. Because what Apple has written in its press release is, in addition to on-device performance,
Starting point is 00:12:17 MacBook Air supports cloud-based solutions, enabling users to run powerful productivity and creative apps that tap into the power of Microsoft AI, such as Microsoft Copilot for Microsoft 365, Canva, and Adobe Firefly? Can I translate that sentence for you just very quickly? Yeah, please. The MacBook Air has Wi-Fi. We did it, everybody.
Starting point is 00:12:42 You know, it's a press really... You can do Internet. Like, whatever, you need to put some words in press release. I'm not, you know, don't overindex on this. It's hilarious, but it's kind of like we're just out of things to say. We're like, we made the best laptop. I don't know, chat GPT says some shit about AI. It's really the funniest set of problems to have because ordinarily, right, they'd be like, okay, here are the list of things that it does that are substantially faster. And this press release has a little bit of that. It's like Excel spreadsheets are up to 35%
Starting point is 00:13:12 faster, which is a completely meaningless statistic about anything. It's very good. Video editing is a Fester. But it's like, this whole thing is just a lot of words to say, this laptop rules. It already does everything you wanted it to. It's done everything you wanted it to for two generations now. Yeah. It's going to be fine. Just buy this laptop. What do you want? A 16 inch screen? Right. Wait one decade. Remember when we fixed the battery and now that's not a thing you worry about in your laptop? You're welcome for that again. That's still here. Okay. I will call it the two things. One, they call out the headphone track, which is a personal. victory for anyone I have to tell. You can't
Starting point is 00:13:49 take it off this computer. It's a disaster and you know it. You know it in your heart. You shouldn't have taken it off the phone, especially now that the phones are huge and you've got to deal with it. Second, the two external displays with the lid closed is what are we doing? By the way, that implies that all the old ones all the old ones can support two displays with, right? Because you've got the lid up in another display. Yeah. It's still just two displays.
Starting point is 00:14:17 Just two displays. You should let all those people have two displays with the lid closed. You're going to force an upgrade to an M3 so they can run Canva on a web browser? Yeah. We've made a gigantic performance breakthrough. The display can be over there now. We've done it, everybody. It's a lot.
Starting point is 00:14:37 What's interesting about this is, you know, it comes on sort of the heels of a report, I believe, from Mark German at Bloomberg, saying they're going to roll out a bunch of stuff over. the next few weeks. So we were expecting the MacBook Air. iOS 17.4 is out. That's the DMA compliance release. We'll get to that in a minute. But that is supposed to support new iPads as well. In days past, a new MacBook, some new iPads,
Starting point is 00:15:04 some other new products, whatever, that is an Apple event. And I think now the pressure is on them to be like, it's a Vision Pro. It's the next iPhone. And I wonder if they've just sort of, gotten themselves miscalibrated on what people actually care about, which is like new products they will use and buy, buy and use. Yeah, I mean, this is like the most mainstream product Apple makes
Starting point is 00:15:27 in this, in this like category, right? So if ever you were going to be like, here's a thing that many, many, many, many people want and are going to buy, this is the one. But it does make for a deeply uninteresting event. Like, I feel for whoever would have to stand there and make a long speech about how the M3 chip is going to change your life. Yeah, but it could have been the thing after an iPad Pro with an OLED display. And you're like, look at the iPad Pro with the OLED display. And here's some iPad airs.
Starting point is 00:15:55 Those are cool. And then one last thing, MacBook Air's got an M3 in them now. Great. And we're done. Like, that would have been a nice, nice event. I would have enjoyed watching that while you guys fly out to it.
Starting point is 00:16:06 It would have been good times. This is the other problem. They have to make infomercials now for all their events. And I bet the infomercial team is like, we don't know what you do here. It's five minutes long. It's old MacBook Air. It's too hard to hold.
Starting point is 00:16:19 Like, what are you going to do? Like someone using a Windows laptop, it explodes in the flames. You're like, whereas when you actually had in-person events, you could talk about the computer. Yeah. By the way, David, I just looked at the, it's 35% faster at Excel. And there's a footnote. And the footnote is, testing was conducted by Apple in January, 2024. see apple.com slash MacBook dash air for more information,
Starting point is 00:16:47 which means Apple just did some tests. Yeah. Literally opened one spreadsheet and said it, we did it. Very unclear what those tests are. And then you go to that webpage and it does not tell you what the tests were. That's very strange. If anyone knows how to measure the performance of Excel, let us know. I'm sure you can.
Starting point is 00:17:08 I'm sure that Microsoft team. But is there a standard Excel? speed test for computers? No. We made one. A place I worked, we had one and it had like 50,000 names on it, and then you'd have to press a button and it would process all the names, and you'd time it. Oh, that's fun. And it was a fun test. I mean, it was really obnoxious to do, but it was kind of cool. And then all of them got to be about the same speed, which was real fast, and it was no longer a useful test. So I guess we'll go make a fun Excel spreadsheet again. You bring up an interesting point with that, actually, which is that like with the AI stuff,
Starting point is 00:17:48 the idea of this benchmarking kind of tool might actually be interesting again. Like one thing I think about a lot is the only AI thing I do on my specific computer locally is transcriptions. I have this app called Mac Whisper that I use. I just feed in an audio file that from an interview or a YouTube video I need quotes from or whatever. and it just transcribes it using Whisper from OpenAI. And it runs locally on the device. It's pretty fast.
Starting point is 00:18:18 But it has this really fascinating. You can either download the small, crappy version of it that's really fast or the huge, really good version of it that's super slow. And for me, the idea of being able to, like, cut in half the time it would take me to do the very good one is like a meaningful thing in a way that a faster processor has not been meaningful to me in a very long time. So I think with the image stuff and with that kind of stuff, like local AI is going to mean something and speed of that is going to mean something. I just think for most people, we're like a generation or two of devices away from that.
Starting point is 00:18:51 And at least for now, basically everything is going to keep happening in the cloud. So like the most AI forward thing Apple did in this moment is Wi-Fi. But like someday I think this will be real. So like the idea that we can be an AI focused laptop, I think is a thing. just not yet for most people. Yeah. Yeah. And the questions is like, what do you want a benchmark in that case?
Starting point is 00:19:13 Is it image generation? Is it AI transcription? Is it text generation? Yeah. Make a image of Hitler that's so not racist, it becomes racist again. It's probably not that one. Probably not. I'm guessing that will not be a released benchmark, but if someone wants to do it.
Starting point is 00:19:33 Sure. So that's that. I want to talk about the iPads. But before we do that, I feel like we should give Alex a moment to just mourn the passing of the wedge MacBook Air. I'm bummed. Alex, I know you hadn't quite a lot of feelings about this. Yeah, I had feelings, and then I made Victoria write the feelings because I'm in Texas. The power of being the editor.
Starting point is 00:19:53 Yeah, the power of being the editor. We know, we both had the same feelings, which was like, the wedge was cool. And it packed a bigger battery, too. Remember, like, the battery life was really, really good on that in one MacBook Air. And I missed that. And it was just like it had an identity. And now the MacBook Air kind of doesn't. Like, there's not a big difference between it and the MacBook Pro physically at all.
Starting point is 00:20:19 Or any laptops. Yeah. It's just like, okay, now it's just a really good laptop. And that's cool. But before it was like, it's a really good laptop that's a little like wedge shaped. And four of us noticed that. But us four really cared about it. We were really passionate about it.
Starting point is 00:20:32 Remember the first MacBook Air, Steve Jobs pulled it out of the Manila envelope, which was a big deal. to be like, look at how small our computer is. One of the great reveals still. So good. One of the great reveals. I encourage you to all go back and look at photos and reviews of that first MacBook error. It was garbage.
Starting point is 00:20:48 Which was such a deeply compromised device. They built it around a custom Intel processor. Intel didn't know what to do with because it was so underpowered. And they're like, and Apple and Steve Jobs and Johnny Ave were like, what if tiny computer? The ports were on a flat-down door on the side. This thing was weird. It was like a different design language entirely. It was very, it was like bulbous.
Starting point is 00:21:12 The second generation MacBook here, the iconic wedge shape, came later when they had done the iPhone and some other things. And they were like, what do we bring back to the Mac? And the thing they wanted to bring back the most was instant on when you open the lid. Because Macs didn't used to wake up right away. They were computers. They would like emit steam and like make whirring sounds. So the main thing they wanted was when you,
Starting point is 00:21:36 open the lid, it would be ready to go, like an iPhone, would be ready to go when you hit the wake button. And they had to build all the stuff. And that was like the moment the MacBook Air became the MacBook Air. You had the wedge shape. It was still really small. Alex, the battery thing was a real big deal back then. They built these, I think they called them terrorist batteries. It's a whole deal. It was a whole thing. Like, there's a Johnny Eye video. He was like, the batteries are in steps, like the terrace. Like a thing. Oh, yeah. You can go watch it. All that is amazing. Walt Mossberg famously bought like five MacBook airs to like have in his house because he didn't want to use any other laptop and he was afraid they were going to discontinue them in that weird period where Apple like stopped caring about the Mac. It was the butterfly keyboard era is what it was.
Starting point is 00:22:18 Like that was the moment that it was like, oh, maybe these are just going to get worse again. And then they stopped and they got better again. Because people realized that Macs were infinitely more capable than iPads. Yeah, what if we just like made computers that were good? wanted to use. What a meeting that must have been. But I think, I mean, to me, like, I've been trying to think about how I feel about the wedge, because the comments on V's piece are very funny because it's a bunch of people being like, oh, the verge, you yell at people for not redesigning their stuff every two years, and then you yell at them when they redesign
Starting point is 00:22:51 their stuff every two years for getting rid of their iconic designs. And I think there's maybe something to that, but I also feel like the wedge was legitimately, like an iconic piece of laptop design. Yep. And also, it was better. Like, I, I cannot prove it, but I sincerely believe that typing on that, like, very slight incline with your hands felt better than the flat thing that I'm kind of perching on top of on other MacBooks. It's why I liked the air over the pro. That, like, it's thinner, it's lighter, but also it felt a little better to just have my hands on. And maybe I just, like, need to get you said. I still mostly use an M1 air all the time and I love it to pieces. And I will say one of the truly wild things for me as a tech
Starting point is 00:23:37 lover is now I am two full revs of this device out of date and still have no compulsion to upgrade. Like I just don't need this computer. My M1 error is still good and is going to be for a long time, which is a crazy place for Apple to be, but is also like as a laptop user kind of amazing. We got a bunch of us last week after we talked about Apple making a TV and like why they didn't make a TV because the upgrade cycles are too long and now the upgrade cycles are too long. And people were like, this is the weirdest I've ever felt. I don't need a new anything. Yep.
Starting point is 00:24:06 And that is a wild place for any of these companies to be in. Like, you just don't need a new one. They all kind of do the things. And everyone's chasing whatever shiny object that you think will be the future. But at the point where you're like, well, it runs Chrome. And using Chrome, I can access cutting edge AIS systems better than ever before. You're kind of at a place where you've got to figure out what the next thing a laptop is going to do. The thing that gets me about the wedge system is going to do.
Starting point is 00:24:30 The thing that gets me about the wedge shape in particular, and Alex, I'm very curious for your read on this. Apple tried to kill the MacBook Air a lot. Yes. Like, they tried really hard. They didn't update it to Retina for years. They just left this thing alone, and they tried to push everyone towards that weird middle 13-inch MacBook Pro that they made that obviously wasn't a MacBook Pro. Like, the real MacBook Pro had four ports, and this one only had two. And it was like, you just made a MacBook Air.
Starting point is 00:25:00 and put it in a case of the retina display and called it a MacBook Pro. Phil Schiller stood on a stage one year and did like volumetric analysis of the MacBook error in the MacBook Pro and was like, this one is actually smaller. Why won't you buy this one? And everyone's like, I don't know, I like the wedge shape. And they kept selling them until they were effectively forced to unkill it. Like their answer to us, to other people who asked was like, people just keep buying this computer. Like, we have to just keep making it. Like, what do you want us to do? So they updated it,
Starting point is 00:25:34 they read it, they put the retina screen in it. They eventually put the M1 in it. And now, I think, Alex, what they did was they just made that 13 inch MacBook Pro. Yes. And they just called it a MacBook Air. Yes. And that's what that's the thing you're reacting to. Yeah. The MacBook Air was a design. Yeah. They, they had something that was like really thoughtfully designed and stood out. And people said, yes, this is a thing I want to own in my house. and if I'm Walt Mossberg, I want to own five of them. And then they said, okay, what if we just took the MacBook Pro, which is very, very good. I'm currently podcasting from one.
Starting point is 00:26:09 Love it. And we just made it a little lighter and cheaper. And we called it an air. That's not the same thing. I mean, technically it is. It is the new MacBook Air, but it's not quite the same. Like, this was a thing that was so well designed. You just wanted to have one, even if,
Starting point is 00:26:29 Even the underpowered versions of it, you still wanted to have it. Even when it had a garbage display, you still wanted it because it was just, it worked. Like the design, everything came together just right. And then they said, nah. Yeah, it's all over. And it feels like they're focused more on the guts than they are on the outside design, which is fine. Like, they've spent a long time only focused on the outside design and not the guts. So it's good that they're thinking about the guts.
Starting point is 00:26:54 but I would like a balance of design and thinking about really smart guts for your cool laptop. That'd be nice. You want them to be beautiful on the inside and the outside. Yeah. The dream. The dream. I think part of it also is that, like, I think the thing that Apple may have underestimated for a while is how good the MacBook Air brand is. Yes.
Starting point is 00:27:17 Like, I just think about Joanna Stern spending a decade reviewing laptops and being, like, for $200 more you can buy a MacBook Air. Like, it became a meme that for $200 more, you can just buy a MacBook Air, and that's the right thing to do. Like, I think that has a sort of immediate reception in people's minds as, like, that's the best laptop. That is just, if you don't know which laptop to buy, just buy a MacBook Air. It has been true for so long, even when it wasn't true. And it wasn't true for a minute there, because it did get weird and old, but it was still, like, the default laptop. And to some extent, I think it's wild that. Apple kind of tried to throw that away.
Starting point is 00:27:55 And I think also thought that that was just a story about MacBooks. But I think it's not. I think it is a thing about the MacBook Air. And so now, even when it is essentially just like a pro minus in a very real way, like the distinction between those two is just dead. Incredible branding, David. Yeah, I thought you'd like that. The MacBook Pro Mini, I don't know, call it everyone.
Starting point is 00:28:17 But it's like the Air name, I think, is actually really important. And I think Apple understands that in a way that it didn't for. a while. Okay, let me make the counter argument just for the sake of it. Then we should move on. Apple's branding is hopelessly confused. Yes. And they are addicted to some words that have lost all meaning, but they don't know what
Starting point is 00:28:37 other words to use. I don't know what AirPods Pro are. I just don't. What is professional on AirPods? Like, unless you're using the Vision Pro, they're necessarily compressed audio, and you shouldn't do anything professional with them, except appear on cable news from time to time. Right?
Starting point is 00:28:58 Like an iPad Pro is just an iPad with a nicer screen and more RAM. Yeah. I know what a MacBook Pro is. That's designed to run like pro applications. I know what a Mac Pro is. It's like we're all over the place. What is, why, what is the Vision Pro? What is the Vision minus?
Starting point is 00:29:19 Like these words, they just have these words that like, signify something to their audience. I think you could get to a place where you have a MacBook. Remember, they used to just have a regular old MacBook. And then you could have a MacBook Air, which would be an ultra-portable, like a 12-inch computer that was really powerful. But I think the problem is consumers have said very loudly what they would like is 13-15-inch laptops.
Starting point is 00:29:43 And so you have to take your best brand and put it in that box. And MacBook Air is before the best brand for that box. Yeah, I think what Apple wants is to have a MacBook and a MacBook Pro. and Apple tried to do that for a while. It's just that it made the MacBook bad and made a bunch of bad decisions about the MacBook and also spent several years sort of steadfastly ruining its entire computer lineup before fixing it.
Starting point is 00:30:07 But I think like 10 years ago Apple wanted to have a MacBook and a MacBook Pro and so badly botched the MacBook that I think it just had to go back to the MacBook era. Like there was a minute. They wanted that to be the one. They should just release that black plastic MacBook again. They should. That black plastic MacBook was a triumph
Starting point is 00:30:25 of design. All right, we should move on from just navel gazing with the MacBook Air. Look, release a wedge shaped computer and Alex will buy it. I will say the fact that I cannot wait for our reviews because if they actually got rid of the fingerprintiness on the midnight one, that might be the thing
Starting point is 00:30:41 that makes me actually kind of lust after an M3 MacBook Air. Because the M2 one looked great, but then you touch it and it's gross forever. And hopefully they fix that. So we are in different places because the other rumor is that they're going to refresh the iPad lineup and actually make it make sense. They will have an iPad Pro and iPad error and the iPad error and the iPad Pro are pretty fuzzy. Have you seen the rumor that there's not going to be a 12.9 inch iPad error?
Starting point is 00:31:05 Because that makes sense. Yeah. What if we had more models, Neelai? Can I interest you in more iPads? Every now and again, I'm reminded that Tim Cook is a supply chain expert. You know, and he's like, what if I just flex on my ability to manage the complexity? of the supply chain. That's what I got.
Starting point is 00:31:24 You want 4,000 SKUs? I got you. 8,000. Come at me. I'm Tim Cook. I mean, that's right. You can just do it. He's like, how many manufacturers
Starting point is 00:31:34 and how many countries? Double. Why are you still in the room? By the way, that's the most famous Tim Cook story when I think about all the time. When he had the meeting about some problem in China, and he looked at his executive
Starting point is 00:31:43 and he's like, why are you still here? And the guy got up in Fluton. Didn't go home. Didn't pack a bag. Just went straight to China. Rules. Very good. And that's,
Starting point is 00:31:51 That's how you get a 12.9-inch iPad error. He's like, what are you doing? This isn't enough. Excuse. Get out of here. I don't know what his meetings are like at all. Is that, you should come on decoder, Tim. Please tell me what actually goes on your life.
Starting point is 00:32:07 What I think is really interesting about the iPads is they're going to put an OLED screen in an iPad Pro and I do not need to upgrade my iPad Pro and I will buy that product so fast. Yes, 100%. Because OLED. Why am I going to do that? It's the same reason you have a stupid Sony TV. It's the same reason.
Starting point is 00:32:26 There is just a subset of people in the world headlined by one Nilai Patel who if you just say the word OLED, they will start just hocking money in your general direction. And when you run out of ideas, you just say OLED now and Nilai buys it. By the way, can I just say, Beck and I watched anyone but you on Bravia Corps
Starting point is 00:32:48 on the new Sony OLED. and boy, if there's one movie that does not be streamed at 80 megabits per second, it is anything but you. Nothing in this movie is moving fast. But that like doubles the amount of stuff that's on Bravia course, so that's pretty exciting. It's like they got one, they did it.
Starting point is 00:33:07 Anyhow, I hope they can reconcile the iPad line a little bit with all of these changes and actually be like, okay, the pro has the nicest display. Yeah. Not the same display with a nice backlight. We'll see. None of this stuff is going to get an event so that we will have very little opportunity to ask questions about it, you know, like we're going to get them and we'll review them and that will be that. But I think it's funny that Apple doesn't think adding up its biggest
Starting point is 00:33:32 products in announcing them all at once merits a moment anymore. Because they're not phones. They're in a place where they have to do really, really flashy things. I think they only do the phone because people expect them to do the phone. I honestly think with the way they're going right now, unless they change the phone in some giant way that, you know, if the next iPhone is a camera bump and a processor bump, the argument to not do an event based on what they're doing here is right there. But there's no way they can't do an iPhone event, right? That's their moment every year. Yeah. I do think we're ramping up towards a pretty huge WWDC in June for a variety of reasons. All the AI stuff is rumored to be coming then. I think like if you want to see a sort of
Starting point is 00:34:15 software-led hardware cycle coming, I think it probably starts it. WWDC. Yeah, I agree with that. And I'm very curious to see the best consumer laptop for AI is a clear potential hint towards the next version of macOS and iOS will have some actual AI features in it, besides whatever LLM they claim is powering the world's worst honor correct on the iPhone keyboard. We should talk about the Microsoft news because right next to all of this is the Service Pro 10, service laptop six. Alex, what's going on there? Yeah, there's some confusion there. Tom, Tom was doing some investigating. And because we had one, we had Zach Bowden, I believe,
Starting point is 00:34:55 say that we were going to get a whole new line of surfaces with OLEDs in them announced this month. It sounds like we're going to get something announced this month, but it's going to be more for like commercial stuff. And then we'll get some consumer stuff later, including some surfaces with OLEDs and arm processors. But we're not really sure. if the arm processors are going to be exclusive to the consumer ones or if we'll also get Intel in them.
Starting point is 00:35:24 So there's still, things are up in the air. But we're going to be getting some new surfaces this year. It sounds like we're going to get a pretty big redesign on the Surface Pro and the Surface laptop for consumers, but not necessarily the commercial version. Yeah. And the fascinating thing here is that Panos Penna is no longer at Microsoft to run this stuff.
Starting point is 00:35:43 So whether or not there is a mission change for service. or philosophy change for surface, I think, is kind of up and... But we won't see it this time, I think. Like, just the product rev cycles are so long that, like, Panos would have led whatever these are. So I think if there is an event at which they talk about it, I think that will be interesting. But also, we're probably a generation or maybe even two away from new leaders showing big changes.
Starting point is 00:36:10 But I also kind of feel like, like, I loved the Surface laptop at the beginning. Loved it. It was so nicely designed. It was, like, soft and... comfortable. It came in those good colors. The battery life was like I loved that thing. And I feel like both the pro and the laptop are kind of long in the tooth at this point. It feels like both are in need of kind of a new idea about what they're supposed to do for you. And I'm sure Microsoft will tell you a whole AI story and there will be a co-pilot button and everything will be everything. But for me,
Starting point is 00:36:42 like there are bits and pieces of the design stuff that Tom has been talking about, but I'm really curious to see if there is a bigger shift in the works here. Yeah, and that thing about the cycles being long, when Panas Panis Panis Panay was out there posting how excited he was about the Alexa Hub, I was like, you didn't know that was coming. Right. Yeah. That literally was finished before you started working. I'm like, I wish I could show up and be like, I'm excited about other people's ideas too. I'm in charge now. I agree with you, but I do think just how they position these products after the leader is gone and there's some new leadership
Starting point is 00:37:16 that has to be accountable for even launching them. Like one thing you do is not make them. Yeah. That's a choice. But I think they're going to do it. I think they're going to launch them.
Starting point is 00:37:24 I think Microsoft has to be in the game. And yet maybe they have a co-pilot button on them. Maybe they put ChatGBTGPT right in the camera just to look at you. Like here's some weird ideas I had. You should leave your wife. That's famously what ChatGPT said to. You remember.
Starting point is 00:37:41 Yeah. It's very much for Kevin Roos. Yeah. Yeah. So does it. So do many readers of The New York Times. But all of that, right, is like, you have to make these products for a reason. And one thing we definitely just saw with Microsoft is some big rethinks of why they do things. Like Xbox just went through a huge rethink of what is Xbox?
Starting point is 00:38:04 What are we doing? Why do we make this stuff? And the answer was, we're going to put the games on the people's platforms now. Like there's more money to be made on the games than making the games put hardware in your living room. And I wonder if surface isn't that place too. I think that's very possible. It's going to be really interesting to see if Microsoft tries to tell a consumer story about these things or is just like, buy these for your point of sale people at work. Which I think it might.
Starting point is 00:38:33 Like I think one of the reasons Panos left was reportedly that Microsoft was pulling back on some of the ambitions for this stuff. That I think you might be right that we might start to see pretty fast. Yeah. All right, we should take a break and we should come back. And it's time to get the Eurozone, which is a real thing. It's a really cool name for a very boring idea. But we're going to leave and come back. And then the Verchast goes to the Eurozone.
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Starting point is 00:42:40 It is a very cool name for a very boring thing. Places where you can spend the Euro, which is only 20 of the 27 countries in the EU. The Eurozone is also an amusement park that's just kind of like, it's just Europe everywhere. It's like Epcot, but it's all Europe. You're just like, here's some cheese, chocolates. Everyone's very trim. Everyone's walking so much, and even though they eat the carbs and the dairy, Eurozone. You know, there's a, there's a proposal in the EU to relabel the fat burning zone on treadmills as the Eurozone.
Starting point is 00:43:18 Had me in the first half. Not going to lie. Oh, boy. Yeah. So look, we're not going to the Eurozone, all right? We're going to the bigger Venn diagram of the Eurozone, the EU itself. Welcome. The EU won't stop.
Starting point is 00:43:35 They're doing things. They love regulating companies. It's what they do. And maybe they're going to do a good job this time. Maybe some real changes will happen. We can talk about some changes in the past, which I think informed the changes here. But the Digital Markets Act has arrived today, Wednesday, March 6, the day we are speaking is the day it has gone into effect.
Starting point is 00:43:55 A bunch of big platforms have been designated as gatekeepers, and they have to change how they work. They have to come more interoperable. They have to provide more choices to consumers. All kinds of things are happening. David, can you run us down? There's quite a few. Sure. So this basically hits six companies.
Starting point is 00:44:11 You have Alphabet, Amazon, Apple, Bight Dance, Meta, and Microsoft. There is a very real one of these things is not like the others thing with BightDance. there, which I actually think is very interesting and we should talk about. But essentially, all of these companies have been designated as, like you said, gatekeepers, which means they are the ones who are so powerful and so important that they should not be allowed to just do whatever they want. And the way that the EU regulates that and has decided has been complicated and everybody is appealing everything and it's all kind of a mess. But essentially, we can go through each company if you'd like to, but essentially the way it has boiled down is that these companies now
Starting point is 00:44:50 have to offer more transparency and data protections for users. And that shows up in a bunch of different ways. Amazon has had to give advertisers more transparency over like what they're doing and how their ads are doing, which is a strange and sort of obvious seeming thing. TikTok is now letting you pull a lot of your data out of TikTok and put it into other apps that support it. Meta is giving you more ways to protect your data and not have it shared across meta services.
Starting point is 00:45:17 So the idea is like your data. should be your data. This is one of the things the EU has been harping on for a long time, right? That I should be in control of my data about me on the internet. And all of these six companies are having to do a lot more. Then there are big debates about app stores. I think this one's largely about Apple, at least from what we've seen so far, but we'll hit Google in the Play Store in pretty real ways too. There's the question of like, are you allowed to build in your own apps and preference them over others? So Microsoft in the EU is now allowing you to disable Bing and uninstall Edge and a bunch of other Microsoft apps.
Starting point is 00:45:53 So the idea is just these big companies relentlessly self-preference themselves. And the EU is essentially saying you have to stop doing that. And there's a fallout in a million directions from that. But that is, I think, kind of the top line as I've come to think about it. Yeah. And what's really interesting about that is the amount of big businesses that exist in the world that are organized or at least adapted to that self-preferencing. Yeah. Google searches, I think maybe the clearest example of this in the world. Many, many huge
Starting point is 00:46:24 industries are just adapted to the notion that Google is where people search for things. Totally. So today, I think a bunch of travel services like flight airlines and hotels and other kinds of things put out a letter that's like, we know Google's going to change, but it should still send us as much traffic as it used to before. Right. And there's like a fear that like change will lead to a different result as opposed to somehow being better but the same, which is, a fascinating way to think about regulatory change. The other thing that's happening is that the changes are hitting things that have never been different, in particular a bunch of Apple services. Right. I think those two things are actually really aligned, and I'd never really
Starting point is 00:47:06 thought about it like that until you just said that. But there is this fascinating thing where it has been like this for so long that actually, even if in theory, some of these things are going to get better and more pro competition and more fair, which there are a lot of smart people who argue it's actually going to be none of those things. But even if it is those things, it's still going to screw up all of the businesses that are going to be affected by it just because it has been this way for so long. And just the sheer amount of change that is going to come for all of these companies, even if it ends up being good in the end, is going to be such a like crazy whirlwind of new stuff over the next 12 months that it's going to like it's going to change a lot of things.
Starting point is 00:47:48 And we should say almost all of this is happening just in the EU and the EEA, the European economic area. And if I'm being honest, I don't totally understand the distinction, but I know our international team gets really mad when we say one and it's not the other. So just know that it is whichever one of those is correct, is what I'm saying. But we expected a lot of this to be like big global change, I think, that the idea was whatever, what happened in the EU would sort of roll out everywhere in the world. And that is in almost every case not happening at all. And in fact,
Starting point is 00:48:18 what's happening is like the European internet is going to be one thing and the rest of the world is going to be another. So I think one of the reasons we all thought this would happen is I always think about the model of car regulation in the United States. California is a huge market for cars in the United States. It passes some rules. The easiest way to make cars is to make them comply to California's rules. And so California's rules sort of affect everybody else across the country because the cars are built for California, like emissions standards and things like that all happen for California. You can see, okay, Europe's a big market. They're going to pass some rules. We're going to have to design the products for the most constricted market that will hit the United
Starting point is 00:48:55 States as well. And what all of these companies are saying is, no, our monopolies are pretty good, actually. So we're going to go ahead and spend more money making weird special European versions of our products. And then unless you force us to, we're going to keep taking the profits, the monopoly profits everywhere else. And I, I, that is a rational response. Like many, many, many things are different in the United States versus Europe. Like Europe has a bunch of different regulations than we do. But it's weird because I think people assume an idealism of some of these companies
Starting point is 00:49:30 that what they want is to compete or what they want is a more level playing field for consumers. And here it's pretty naked that what they want is to preserve their monopoly problems. profits. So they will do a bunch of extra work over there to make a different European internet. And unless they are forced that whatever those goals are will never come here or anywhere else. Right. Yeah. And I think at this moment, there's pretty strong indications that they're right to make that bet that whatever is happening there is not going to percolate elsewhere because so far it really hasn't. But at least so far, I mean, am I right to say that the thing that's going to hit the most people most quickly is this stuff with iOS, right? It feels like Apple is the one that is like
Starting point is 00:50:14 changing in the biggest ways the most quickly and I guess on the side also pissing off the most people the most quickly. Yeah. Yeah. I think that's 100% what's going to happen because that's what everybody actually uses right now and that's actually being changed right now in some cool ways, but mainly ways with what is it, a lot of feelings is what, Neil, I was saying early. It's a lot of feelings. So many feelings are happening. Apple is like screaming as it goes to do all of this.
Starting point is 00:50:48 And everybody, like, in a way that everyone is having to learn more about app store policies than I think most of the European Union ever wanted to. And a really, like, I'm just kind of surprised by how mad Apple is being about all of this. How loudly angry Apple is being. It is true. And you always feel like Apple wants you to not. think about all the mashing missions that make Apple Apple. And now the fact that, like, I can tell you developer deals off the top of my head
Starting point is 00:51:18 feels like a problem for me, a problem for Apple, a problem for the world. Like, this is a strange place we've entered into. And I think it was always going to kind of happen, too, right? If they, like, you guys were talking about this. If they open it up, if we start paying attention to this stuff that we didn't really pay attention to for a very long time, then, yeah, people are going to want to have these conversations about how much money Spotify is getting on the back end and that sort of thing. But at the same time, that is really bad for both Spotify and Apple's business.
Starting point is 00:51:50 Yeah. Or not their business, but their reputation with the public more than anything else. Like the business is all going to keep going. Apple's going to make a lot of money with this new thing where they have to pay 50 euro cents. She says. European Union. I believe it's pronounced doubloons. But for every download over that first million, including every update, like app update, like, that's insane. That's a lot of money. And they're being so petulant about it in a way where I'm like, you just got hit with a $2 billion fine. Like, yeah.
Starting point is 00:52:27 Do you want to get more? That's what usually like, so it's weird. I'm just, I keep being surprised by it. Neil, I'm curious how you feel about this, because I feel like we've reached a point where this fight has been going on so long, specifically between Apple on one side and Spotify and Epic on behalf of lots of others, but especially those two companies on the other side. And it really seems like no one looks good in any of this fight.
Starting point is 00:52:56 Like I feel like everyone has lost this fight now, and it's just bad times all around. Nobody's happy. Everything's worse. This just seems like it sucks. Yeah. I'm always thinking about the beginning of the app store when the thing that Apple would compare it to was app distribution on pre-Iphone smartphones, which was largely handled by carriers. And carriers were capricious and they would get in developers ways and they would charge exorbitant fees.
Starting point is 00:53:26 And it was bad. Yeah. And I would just caution Apple that having a reputation for being capricious and try. charging huge fees and getting in developers ways and then issuing press releases saying things like Spotify has never paid us a cent to be on the iPhone is like, but everyone who has an iPhone paid you the money. Right. Yeah.
Starting point is 00:53:48 They bought an iPhone. This is the problem that Apple is running into almost insistently by saying that when you have an application on someone's computer, Apple deserves a cut of what happens in that app. And I, that is as simple as it gets, right? Like you either agree with that proposition or you don't. When you have a computer, should the person who sold you the computer be in between you and the things you can do on that computer? There are some really good arguments for Apple being in between the iPhone customer and
Starting point is 00:54:22 what they can do on the iPhone. iPhones go everywhere with people. They contain an enormous amount of their personal data. They can track you. They can be used for a whole phone. horrible things. They have a shitload of cameras on them. Just more every year. They're like, we're up to five. It's like, there's a lot of reasons where you want a bunch of extremely motivated, very smart computer scientists and policy people sitting between a computer user
Starting point is 00:54:49 and the things that can happen on their computer. And in particular, what software other people can run on a computer. But you have to have an exit ramp. And the reason you want to protect the computer user should be for safety, not because of money. And what's happening right now is Apple is using the moral argument for, we need to keep our users safe. We need to protect them from themselves when they use these computers that go around in their pockets everywhere they go. They have pictures of their kids on them. And they're using that to justify their economic argument. And that I think that's where it's falling it down. And I think that is candidly where some of the people at Apple are at risk of damaging their reput, like their personal reputations inside this
Starting point is 00:55:28 community because they keep saying it out loud. It's not even Spotify though. For me, it's what's happening with Epic and how they were just like, okay, we don't trust you anymore. So we're going to take your developer account away again. This is what I mean. This is the one, right? Yeah.
Starting point is 00:55:43 This is the one. It's so. The DMA was announced in Apple's compliance plan with the DMA was announced. And Epic immediately reacted by saying we will have an app store with Fortnite on it in the EU. And the Epic Game Store is going to happen. And we're going to do it. And we're going to prove that even under these rules, which we Epic think are too restrictive,
Starting point is 00:56:02 because there's a lot of rules. Apple's going to make all these alternative apps stores under a lot of rules, which are basically designed to make them not good. Yep. Right? Like Apple's design of how alternative app stores should work on iOS under the DMA is basically meant to have it not be a viable thing. And Epic's point has been,
Starting point is 00:56:23 we're going to do it. We'll have Fortnite. We'll bring the other game developers on. And even under these restrictions, which we think are bad and our malicious compliance, we think it'll be good and prove the point. And Epic today, just literally today before we started podcasting, had a press conference. Tim Sweeney spoke. He took questions from reporters, including our own John Porter. And they released a bunch of emails between Epic and Apple, including emails between Tim Sweeney and Phil Schiller, where Epic applied to be a developer to make this app store in the EU under, I believe it's Epic Games Sweden.
Starting point is 00:56:55 Apple wrote back to Epic and said, how can we trust you? You've done all this stuff in the past. Tim Sweeney wrote to Phil Schlerler and said, you can trust us. Tell me what assurances you need. And they got, and Apple replied, at least according to the emails we have seen from Epic,
Starting point is 00:57:12 Apple is free to send us some other emails. But Tim Sweeney said, what other assurances do you need? And Apple replied by sending a letter from a lawyer saying, you have criticized the App Store in our plan for compliance in the EU. You've proven yourself to be untrustworthy. and we are revoking your app store privileges.
Starting point is 00:57:27 And it's like, what are you doing? Like, why would you do that? Like, the only thing that's going to happen is Tim Sweeney, who loves a press conference about how shitty Apple is. It's going to hold a press conference about how shitty you are. And a bunch of European regulators who you have already accused of being anti-Apple are going to look at your behavior and find you again. Yep.
Starting point is 00:57:50 Like, this is not, like, I know a lot of kindergarters. I have a kindergartner. I know kindergartners who are more politically adept than this. I just don't understand it. And that's when I'm saying like people's personal reputations, like this feels like they are personally mad as opposed to playing the long game with a bunch of regulators. And just because we're speaking the day after Super Tuesday
Starting point is 00:58:14 and we all have to think about the prospect of Donald Trump once again being our president, I will remind everyone that Tim Cook did the best job of managing Donald, Trump than anyone, right? Donald Trump went to put a trade war up on China, and Tim Cook managed Apple through a trade war. Yeah. Because he was able to distance himself personally from what Apple needed and what he probably felt and advocate for Apple's interests. And I think here, there's just a collapse. Like, there's just some angry people. And I think that's super weird.
Starting point is 00:58:49 I really, I'm with you. I cannot make heads or tales of how this went down like this, because there was also, after Apple made its announcements about what iOS 17.4 was going to be, one of the things it did that Tim Sweeney hilariously gave Apple credit for was reinstate Epic's developer account, which it had banned what feels like a million years ago now when the whole fortnight debacle first happened and started all of the fights between Epic and Apple about this stuff. So there was this sense in which it was like, okay, Apple is at least outwardly going to attempt to look like it's turning over a new leaf and play nice in these spaces. And then to just so swiftly say, just kidding and just yank the rug out from under them again, knowing full well what Epic
Starting point is 00:59:36 is going to do is, it's just weird. I just truly cannot figure it out because it is so obvious that it was going to go like this if this is how you played it. Epic is the single loudest voice building a third-party app store. and like Apple either wanted to light this on fire or should have known it was going to be lighting this on fire. So we do have a statement from Apple now that kind of directly gets at what you're saying. And it just feels like maybe they didn't do it as cleanly as they wanted to.
Starting point is 01:00:04 So we reached out to Apple, we asked what's going on here. Apple mad. That's the whole statement. Here's the quote. Epic's egregious breach of its contractual obligations to Apple led courts to determine that Apple has the right to terminate any or all of Epic Games, wholly on subsidiaries, affiliates, or other entities under Epic Games as control at any time and at Apple's sole discretion. In light of Epic's past and ongoing
Starting point is 01:00:31 behavior, Apple chose to exercise that right. So this is just nakedly revenge. Yeah. Well, and the ongoing behavior is Tim Sweeney continuing to be loudly mad on Twitter about what's going on with the DMA. Great. But I'm just saying, like, you could have just said, in light of the Epic's past behavior. You don't have to say ongoing behavior. Fair. Right? And that's the part where it's like, oh, this company is just vengeful.
Starting point is 01:00:59 You can say, look, we had a lawsuit. They broke the rules. We sued them. They sued us. We had an antitrust trial. The result of the antitrust trial is we don't have to do business with them. We're just going to not, we're going to keep not doing business with them. That relationship was broken.
Starting point is 01:01:14 Saying we sort of maybe thought we'd do business with you and we approved a thing. and we did some weird letters, ah, fuck it. I don't know. There's just something that, like, if you want to build a business
Starting point is 01:01:27 on these platforms, I don't know that that feels like a stable foundation. And I think a lot of these companies, Spotify, Netflix, Epic, whoever we've heard now, as David pointed out earlier, we've just heard too much about the reality of doing business on this store.
Starting point is 01:01:44 And at the end, I think consumers don't know, they don't feel it, right? Like, it's hard to be sad about a thing that doesn't exist. But the point of this regulation is, like, what if it was different? What if the stores are more vibrant? What if there are more kinds of apps, including apps Apple, would never allow? I'm shocked we have not seen a store spring up just for gambling in Europe, right?
Starting point is 01:02:08 Like, European laws of gambling are actually much more permissive than laws of the United States by gambling. I'm shocked that there is not already a storefront for gambling apps in Europe because Apple would never allow it. And it's like, you can, I, I'm not a gambler. I go to Vegas and I ask people how much money they're going to spend on gambling, and I spend that money on Windowsines because that is a better investment, my friend, every single time. It has been for decades. Everyone remembers the windows.
Starting point is 01:02:32 No one remembers the block. I remember the windows. It's pretty good. It was good. I'm not a gamble. It's like, whatever. I'm just saying like, that is a world that could exist. That is an industry that could exist that Apple right now just prevents from existing.
Starting point is 01:02:43 There are lots and lots and lots of things like this. And it's hard to prove the negative. and I think Apple not even allowing Epic to prove the negative is like all they're proving is that they're capricious. Yep. And they're pretty mad. And I just, I don't know that that is the smart political play. And you might feel it's a smart moral play, but it just feels like a bunch of European regulators is not going to look at that and be like, yes, we, we also have to abide by what an American court said. Right.
Starting point is 01:03:11 Yeah. Well, I think in this case, like so much of the question of what's happening on iOS particularly is, is somewhere in this gray area between technically doing what is required, right? The sort of malicious compliance that a lot of folks have talked to Apple about and doing things that are just nakedly not solving the problem that you claim they're solving. Right? Like I think the Apple's browser choice screen on iOS and the EU is, to me, perfect malicious compliance. Apple is on the record over and over in the Google antitrust case and elsewhere
Starting point is 01:03:44 for saying that it hates choice screens. and it is now required to have a choice screen asking, what browser do you want to use as your default browser on your iPhone? And when you upgrade to iOS 17.4 in the EU, that you will get that. This screen is ugly. It's unhelpful. It takes you to the App Store in a really confusing way. It includes a bunch of browsers no one's ever heard of.
Starting point is 01:04:05 It's just not good. And it's very clear that Apple has no investment in making it good. And they're like, well, you're making us do this dumb thing. We're going to do it in the dumbest way we can think of. that is very hard to fight. That, like, that argument is hard to prove that that's what's happening. It's very obvious that that's what's happening. But this thing where it's like, oh, you, you claimed to be opening up the app store because
Starting point is 01:04:28 that is what by law we are requiring you to do. And now you are just vengefully shutting down the biggest, loudest player that wants to do this just feels like a bad call. Yeah. I think Apple making it really, really hard. and arduous to open a third-party app store is in a certain way very clever. I think it's it's conniving and it's cynical, but it's very clever for a company that has a lot to protect in that space.
Starting point is 01:04:57 To just pick this fight with Epic again over and over and just kick it out and threaten to have all of this come back at you just seems dumb. I just don't get it. I feel like it's a company who is seeing their power wane in this marketplace, right? They're seeing it happen really quickly and they have to, assert their dominance? Like they have to show everybody know we're the boss. We still control it, right? Like Spotify, you start mouthing off like this. That's what happens to you. And that's certainly like a take. That's a thing you can do. Plenty of businesses have played that kind
Starting point is 01:05:33 of hardball. But very few that are so consumer facing and really dependent on consumer goodwill in a way that Apple is very much dependent on. Like, you know, we have to deal with our ISPs, even though we hate them. They are some of the most hated companies in the United States, but we have to deal with them because they're monopolies. And this is a very common reaction of a monopoly is to be like, okay, if you're going to fight our monopoly, if you're going to try to counter our monopoly,
Starting point is 01:06:03 we're going to, like, grind you into dust repeatedly. And you shouldn't probably do that if you're someone like Apple, who is a monopoly on the app store, but is it necessarily like a monopoly in a lot of other places? Like, you can go buy a Samsung phone. You can go buy a Google Pixel. You can just not use Apple products eventually.
Starting point is 01:06:25 The best thing you can do when you're a monopoly is not act like one. And I feel Apple didn't know that lesson. Like a very, like, you know, Microsoft, when they were the Death Star, they acted like, you know. Yeah. And they got in a lot of trouble.
Starting point is 01:06:41 And like, you know, why Chrome has way more market share than IE? It's because Microsoft got itself in a lot of trouble and the sources stop bundling IE with Windows. That's a real thing. That was the antitrust case. And it's because Microsoft went and killed
Starting point is 01:06:55 Netscape with a bunch of moves just like this. And I worry all the time with the modern Apple that the people who are coming into the company, the people who work there, like, you know, this company's been around for a long time.
Starting point is 01:07:10 they have only worked at the apple that is this apple. And the people who built it from the underdog apple are, you know, they're just getting older. It's just like time or tie. There's been a wave of departures from Apple recently reported all over the place. And you're just like, oh, if you walk around, like, you're that thing and you're not, you don't have that little like chip on your shoulder. You've got to earn it from consumers already.
Starting point is 01:07:35 Like you've got to take one piece of market share away from Windows every single day, which is what the version of Apple that became this thing came from, like you are just going to act like a bully. Yep. Because you have no conception of when you weren't. And I think the flip side of that is consumers, a lot of newer, younger consumers, do not have any recollection at all of Apple on the come-up, right?
Starting point is 01:08:00 Of that incredible run of Apple just sort of like creating product after product that revolutionized industry after industry. They're like, yep, we grow up, we get a phone. my parents put a watch on me so I can leave the house without them. So they can track me everywhere. Like my friends are all an I message and I bully people with Greenbelt. And it's like, yo, there's no like long history of goodwill here. There's just this.
Starting point is 01:08:23 Right? And it's like I can't get Fortnite on my phone because these two billionaires are fighting. And like I said, I will just out of Lended here. We talked about EU regulation for a long time. People are going to email us. They're going to talk to me about Apple's business model and how much money they make and stock price. I get all the,
Starting point is 01:08:39 whenever we criticize Google, people are like, I bet you, I dare you to short Google. I can't. We cannot buy the stock. We cannot do that. And I will just remind you
Starting point is 01:08:47 of a quote that I think about maybe once a week. It's in a wired profile of Walt Mossberg walking through the CES show floor. And he had just written a bad review. This is a true story. He had just written a bad review
Starting point is 01:08:57 of like the Sirius radio when it had first come out. And the CEO of Sirius started yelling at Walt Mossberg on the show floor of CES. And he said, you brought our stock price down. And Walt Mossberg looked at him dead in the eye and said, I don't give a fuck about your stock price.
Starting point is 01:09:12 And that's it. I don't care about the richest company in the world making more or less money or where their stock price goes. I care like, are we getting more interesting, innovative products? Are we building cooler experiences for people? Do I feel like when I spend my money as a consumer, I've done it in a way that feels good and healthy? I don't know if these EE regulations are going to achieve that. I don't know if Apple's compliance or malicious compliance will achieve that. I have no idea.
Starting point is 01:09:37 I do know that right now, the way it has been going, our choices are getting smaller and smaller and smaller, and more and more of the dollars are flowing to Apple instead of app developers, and that feels weird. So, like, I'm all for flipping the table and everyone can have their feelings, but I would just caution Apple in particular, acting like this right now does not get you the goodwill so that the next time you're like, I think all of you should rewrite your apps in a different language that we invented.
Starting point is 01:10:02 People aren't going to do it. And that's where the power comes from. You know what I've been thinking about a lot recently is Apple Pay, which I think Apple Pay on the iPhone is like essentially a perfect product. And the way they've integrated it into websites so that like, like for me, it's, it's take out food over and over, right? Where I'm like, I'm on a website. I'm ordering and my options are either spend eight minutes entering my contact information,
Starting point is 01:10:27 which I can do, but it's 12 fields and I have to go get my credit card and remember what it is. Or I tap the button that says Apple Pay. I double click on the side. It scans my face and I've paid for dinner. That is winning with product in an open ecosystem and it kicks ass. And it is like that is Apple at its best. The opposite of that is this fight that Apple is in about all the anti-steering stuff
Starting point is 01:10:48 and the $2 billion fine that just came from the EU about all the Spotify stuff, which is Apple saying you are not allowed to tell people the other places they can go pay for your stuff. And for years with Apple Music was preferencing Apple Music. Apple Music was allowed to have ads and notifications that Spotify. and others are not allowed to have. And that is the opposite of winning with product. That is saying we are going to prevent you from doing anything, including save your customers money because we can.
Starting point is 01:11:18 And to me, it's like I want to see the Apple Pay Apple and not the Apple Music Apple. Because that was, go. Can I tell you story about Apple Pay? Yes, please. Over the weekend, this is like what happens when you're the industry of a tech website. I went to pay with Apple Pay and it didn't work. Right? My credit card got declined.
Starting point is 01:11:39 And I was like, this is weird. And I called the bank and the bank was like, Apple Pay is having an unexpected upgrade, which is an incredible euphemism. Like an absolutely incredible euphemism. It broke in a cool way. So I was like, that's weird. And I posted on threads about it.
Starting point is 01:11:56 Like, is anybody else having problems with trace? And a lot of people got acting like, this is broken for me all day. It's like, email Apple. It's the weekend. Email Apple. It's like, is Apple Bay broken? I'm just one already story.
Starting point is 01:12:05 this down. And it took a minute because it's a weekend, fine. And they got back to me and they Apple, you can read the story. Apple basically was like, this is Chase's fault. It's not Apple Pay's fault. And I was like, great. You know Apple Pay doesn't work. Right. Like it doesn't matter to anyone whose fault it is. What matters is that Apple, like people are trying to pay with their phones. It's not working. And they're like, yeah, but it's Chase's fault. And I was like, cool. Like, cool. Like I will happily write that down. You know, but here's the information I can give you, have you thought about updating your status page to say it's what's the choice fault?
Starting point is 01:12:38 Like it's, this is what people are reacting to. There's the information you can give them. And the idea that Apple had a dependency on one of the largest financial institutions in the world. And they were like, but blame them. Right. When it's like, but what people are holding is a phone that has your logo on it. You know, and it's like when AT&T goes down, people don't blame Apple.
Starting point is 01:13:00 They blame AT&T. You're very happy for that. Like, that's fine. Like, people understand these relationships. but at the end of the day, like, you are responsible for the products. And, like, that thing where Apple pay is an almost perfect product because Apple has managed all these relationships for you, that's what I mean about the hubris.
Starting point is 01:13:16 Like, Apple's like, it's not our fault. It's like, no, it's your product. Right. It's your magic, right? Like, you are the ones who made this almost perfect product, and you're pissed that you have a dependency on someone else, and you would prefer Apple, in particular, is famous, for prefering to have no dependencies on anyone at any time.
Starting point is 01:13:32 Yep. And I get it because I would love to have no dependencies on it. But then you look at some of the moves, like this web app stuff, right, where they, the DMA, they said, we're going to disallow web apps because we think we have to allow other browser engines. And people said, no, no, no, like the EU got a little weird. And Apple said, okay, we'll have web apps again. And we'll just do it this way. I will just remind everyone that the reason Apple exists today at all is because Steve Jobs could do the IMAC and tell people they could get on the internet. And the only reason that was a viable thing to say was because what people wanted was web browsers.
Starting point is 01:14:03 Yep. And so the web browser on the iMac was approximately the same as the web browser on Windows. And so he could sell you an iMac instead. If he had been like, well, you can use here as Microsoft Excel, Microsoft could have just turned off Apple. They could have turned off the business. But because of the internet, like the open application architecture of the internet, he was able to sell Macs again. And it's weird now for Apple to be at the point where they're like, what if we don't have an open application architecture? Right.
Starting point is 01:14:30 And like that's weird. Like, that's where you came from. The company would have not made it out of the 1990s, if not for that. And I just, I don't know how to, like, underline for people. Like, a lot of our audience is young. But these things are not new. Like, these moves are old moves. And it's just weird for Apple, which is a company built out of some of these changes a long time ago,
Starting point is 01:14:55 to be making the same mistakes. Yep. We'll see. We'll see. There's a chance that this just results in a bunch of, like, weird here. talking about how much better they're like 15 browsers are. I also think it's possible this results in nothing. Like I think I think what Apple clearly wants to change is nothing.
Starting point is 01:15:10 And I think you're going to get a bunch of people who like accidentally set Ecosia as their default browser for 10 minutes. And then they go back to Spotify and nothing at all changes. Well, here's my real question. The one thing that could change that. Because choice screens have not worked in Europe. Right. Right. Famously in one of our pieces about it, we linked to a long analysis of where choice screens came from and whether
Starting point is 01:15:31 they work or not. But what has never happened is you've never been able to pick Chrome, right? The choice screen has always been designed to make you not pick Chrome. Well, it's been designed to make you pick a browser you've never heard of or the only one you've heard of. In this case, there are at least two you've heard of. There's Safari and Chrome. So the idea that people will pick Chrome is actually fascinating. I'm dying to see what happens there. I don't know what's going to happen. I don't know what's going to happen. But the Chrome versus Safari and Choice screen, that seems very interesting. It could happen.
Starting point is 01:16:01 All right. We've got to take a break. We've been going on way too long about here. All right. We're leaving the Eurozone. Goodbye, Eurozone. Get the . . The Eurozone. All right.
Starting point is 01:16:10 All right. We've got to take a break. We'll be back on the landing round. Support for the show comes from MongoDB. If you're tired of database limitations and architectures that break when you scale, it's time to think outside of rows and columns. Because let's be honest, you didn't get into tech to babysit a broken database. You got into it to actually build. something. MongoDB lets you do that. It's flexible, developer first, asset compliant, enterprise
Starting point is 01:16:40 ready, and built for the AI era. Say goodbye to bottlenecks and legacy code. Start innovating with MongoDB. There's a reason it's trusted by so many of the Fortune 500, and that's because it's a platform built by developers for developers. MongoDB, it's a great freaking database. start building at MongoDB.com slash build. Buzzwords like progressive and affordability are thrown around all the time in politics. But what do they actually mean? For me, being a progressive means at least two things. One, being willing to unite lots and lots of people,
Starting point is 01:17:24 all of the folks that are getting screwed over against the powers that be that are making your life worse. And then second, being progressive is essentially a hopeful enterprise that you think, I think that the world can be much better, that we don't have to settle for crumbs or settle for the status quo. And is there a difference between what it means to the elected officials and what it means to the people? So money is essentially the root of everything. I don't care if you're gay.
Starting point is 01:17:51 I don't care if you have all that. That's like secondary, third. Like that doesn't, that's not a priority. That's this week on America Actually. Let's begin. Complex and unprecedented, the Spanish authorities are calling it. Before the disembark, asymptomatikas. Passengers who'd been stuck aboard the Hanta or maybe Hanta virus-stricken Dutch cruise ship
Starting point is 01:18:17 disembarked in the Canary Islands this weekend, prompting the highest stakes game of where are they now since maybe COVID? Some of the evacuees, American and French, have since tested positive for the virus. And yet public health officials seem remarkably calm. We do have one individual who was taken to the biocontainment unit early early this morning. and we assess that individual. They are doing well.
Starting point is 01:18:41 Possibly because this is not the one to freak out over. Today, Explain, drops every weekday afternoon. We're back. We're out the Eurozone. We made it. We landed in America. We landed America where we're going to talk about Elon Musk and pickup trucks in short order. That's really going to happen here.
Starting point is 01:19:17 All right, we got to make this lightning round quick. We went on too long. This shows too long. Wait, do we have a sponsor for this lightning round? I don't think so. Sony Bravia Corps. That's not, that's all. Sony has to pay the money to sponsor the line of that.
Starting point is 01:19:31 Other people don't know if it, but if you're a big company, if the European Union has designated you a gatekeeper, you have to pay money to sponsor the lighting. All right, Dave, what you got? Okay, I have two, which is a good start. One is very fast, which is just that there are now transcriptions in Apple podcasts for all of its shows, including the Vergecast. Sometimes they are very wrong in very funny ways,
Starting point is 01:19:53 but it's actually a great feature. You can tap on a paragraph and it'll take you to that part of the show. It's a great way to go back and be like, what was that thing I missed without actually having to like scan back 15 seconds in the show?
Starting point is 01:20:06 It's just an awesome feature. I am not an Apple podcast fan in general, but it is like I'm tempted back to it because of it. It's just a cool thing. So if you make a podcast app, do transcripts, it's great.
Starting point is 01:20:18 And also don't yell at us for things they get wrong in the transcripts because they're not our transcripts. But my real one, is, sorry, Sean Hollister has been covering a bunch this week, that is something we talked about a bunch on the Vergecast last year, which is game emulators. So there's this emulator called Yuzu that was for emulating Nintendo Switch games.
Starting point is 01:20:36 And basically, Nintendo picked a fight and Yuzu just caved. And this has been the thing that a lot of the folks in the emulator community have worried about for a long time, which is that emulators are very popular and kind of just, unproblematic enough that it has not been worth it for the game companies to pick this fight. But Yuzu kind of crossed that threshold for a couple of interesting reasons. People were using it to play unreleased games. So it got the kind of press and attention from these companies that you don't typically get.
Starting point is 01:21:11 And basically what it sounds like happened is Nintendo just showed up and was like, we will crush you to death. And they said, okay, we're shut down. And took all their stuff offline. They shut down the discord. They've been doing stuff. And it has had this real, like, immediate chilling effect on emulators all over the place. There are folks shutting down discords.
Starting point is 01:21:28 There are folks saying you can't talk about emulation here because of the legal repercussions that we're worried about. And it just literally took Nintendo picking one loud fight with one company. And all of a sudden it feels like this whole emulator world is kind of in peril. Which is kind of weird because Yuzu, like, I had it on my steam deck. I own a Nintendo Switch. I feel totally morally. Notable Plex user. Fine with my choices.
Starting point is 01:21:59 Has the emulator on her Steam duck. Who knew? But it was always kind of a weird one because generally emulators only emulate older systems. So it doesn't emulate the PS5. It emulates the PS4 or whatever. And Nintendo, because of the switch architecture, was really, really easy to emulate. And it has been since the Wii. It's just been like super, super easy to emulate.
Starting point is 01:22:21 And people just started getting more aggressive with that. And it's like, yeah, if I can go download the unreleased Metroid game and play it on my Steam deck, that probably is actually a pro. Like, I was kind of, when that happened, I was like, isn't Nintendo going to come down like a bag of bricks on them? Because that's not how emulators have worked for the last 30 years. And yeah, they did in fact come down like a bag of bricks on YouTube. But also, if you wanted to make that same case, about a 20-year-old Mario game, it's just as true.
Starting point is 01:22:54 It's just that it's such a smaller, less interesting business for Nintendo that it's better off just leaving well enough alone and let the people who want to play these old games who are then probably likely to come by the new games do so. Right. Like it's this very sketchy, but sort of workable balance.
Starting point is 01:23:10 And I do agree. I think Yuzu did something slightly different to trip over it. Because it was a current thing. It was current games. Because even like the 3DS emulator they had was, it was just, Not as many people are playing a 3DS nowadays. Totally.
Starting point is 01:23:24 Or like there's a really good one called Dolphin for Wii games and GameCube games. And that's a 20-year-old system. That's different than like I can just go buy a bunch, get a bunch of unreleased games on a torrent site and play them on my steam deck and never play Nintendo at Dime right now. Like, no, that's just like, that's just piracy. Why do you know that information? I have no idea. I got to go. I have no idea what's happening here.
Starting point is 01:23:52 But it was like... You're in Texas. There are no laws there. Yeah, there are no laws here in Texas. We don't do regulations here. Here's what we do. We roll call and we play on release Metroid games. But it was, it was all...
Starting point is 01:24:05 The US thing was always wild. I wish it didn't have such a chilling effect on the emulator community because, like, emulators are sick. And I still want somebody to make a good N-64 emulator, which is still a weird challenge. But... We think analog is up to... something. I'm hoping. Oh, my God. Oh, right. They did. They did the tease that thing. I will say, you know, the trope at the verge is that copyright law is the only law on the
Starting point is 01:24:29 internet because it's the only thing that can stop anyone from doing anything for some reason. Well, the reason is for Smith. But copper law is the only law on the internet. And here, I think there's, we still don't know the answer, right? It's actually kind of fascinating that they settled. Because what you get is people don't know if I'm related or legal or not. Some of them are taking a court. but usually the way the cases are structured is you have a big rich corporation and then an emulator which is just like a handful of people in a GitHub right that's the fight yeah so the big huge corporation shows up and says ah we're going to sue you that's going to cost a lot of money and that usually crushes the thing it's the same in the fan fiction community actually like fan fiction is
Starting point is 01:25:12 something that is sort of just tolerated by large publishing houses there have been a handful of cases but like it's bad it's probably bad to piss off the people who love your work so much that they're writing their own versions of your work yeah like that's just like a bad move so it's like tolerated but you could just stop it if you want it to or you could at least file a bunch of lawsuits and get around to spend a lot of money and chill it out of existence and i think here what you have is uh nintendo probably said look we can make your lives horrible we can cost you a lot of money and we will probably win because we can afford even more lawyers and like who knows what this outcome can be this could take years or you could just shut it down
Starting point is 01:25:51 past the money and this will be over and I I I don't I I feel conflicted about that right like that didn't get anyone to an answer the next emulator can start right there's no law against it there's no precedent saying it's illegal like you could probably take the source code of us you today and start it all again but these people can't because they signed the settlement to rank it go away and I I just wonder like at some point, the amount of DRM and protection and lockdowns and stuff that are around all digital content is going to run against the reality that people are going to build emulators. Right. And like we just haven't, we just haven't run the process to its end because the money has never been aligned to let us have the fight all the way to the end. Nintendo, though, has always been pretty consistent with like emulators versus, I guess, piracy.
Starting point is 01:26:44 I think they think of those as two very different things. And for a long time, there's a lot of different ways you can pirate games on older Nintendo systems. They did a lot of like these cartridges that you can go and you can put in a system. And they were really aggressive about stopping those. When the 3DS system had a pirate, like little people were out there selling a little SD card you could put in a 3DS and just pirate everything. Nintendo was super aggressive about that. So like the user thing, I know everybody's being like, What does this mean for the emulator community?
Starting point is 01:27:16 But it really was more, what does this mean for the game piracy community? And that will probably piss off a bunch of emulator people. I do feel like there's a difference between selling atoms, like selling physical Nintendo's. And like it's a little bit hard where you can figure it on software. All right. Alex, what's your lightning round? My lightning round is I want to be really fiscally and irresponsible and get the new Lenovo Legion go.
Starting point is 01:27:40 It's $700. I don't need it. Sean reviewed it. I want it so bad. It's Windows, which means it's not as good as the Steam Deck because the Steam Deck, the Steam OS is just superior. But you can turn it into a tablet. You can take both of the handles off. And one of them, you can then turn into a mouse, like a vertical mouse. And that is just, that just rules. I just, I want this thing so bad. It's the gadgetiest gadget we've covered in a while, I think, where it was like Lenova was basically, like we are prevented for a variety of reasons from making a really great handheld gaming thing because you just kind of can't do that with Windows the way that it works now. Everybody agrees with that,
Starting point is 01:28:24 including Microsoft. So we're just going to do a bunch of weird, fun stuff where you can flip everything around and cool things happen. Is any of it any good? Sometimes, but is it cool and rad and you're going to want one anyway? Like, yeah.
Starting point is 01:28:41 Yeah. You do. And I do. Like this might not be a good device, but I want it anyways. Sean did give it six. The everything old is new again vibes of this thing are like, man, I've seen Microsoft try to shove windows on a handheld in so many different ways. And now it's like, yeah, it rules now. You know, it's like, fine, fine.
Starting point is 01:29:06 You want this little crap laptop you can have it. And I want it. I kind of love it. I love it. I love it. I can't say no. Also, I love Sean has a long history. Sean is one of our co-founders. He has a long history here at the verge of extremely, like, just Sean photo choices.
Starting point is 01:29:28 There's no adjective describing except Sean. In here, it's like, it's a Windows handheld. It's obviously being photographed on a chair outside. They're beautiful photos. They're very good. But only the mind of Sean Hollster can produce these images. They're beautiful. I love it.
Starting point is 01:29:42 It's very good. It's a very, you just go read it. It's a fun read. All right, here's my lightning round. It's our boy Elon Musk. We haven't talked about Elon on the show for a long time. I feel like we've done a good job, but we can't not talk about this. Elon sued Open AI this week for a breach of contract, which I will come to, saying that
Starting point is 01:30:03 when he was a founder of Open AI, he was coming a lot of money, it was supposed to be open source, and now Open AI is a proprietary extension of Microsoft. he wants the court to declare the GPT4 is actually artificial general intelligence and must be open source. It's crazy. The whole thing's crazy. Open AI released a reply. We thought it would be a legal filing, but it's just a blog post that says Elon's dumb. Yeah. It's like more or less, that's what it says with a bunch of emails where Elon is like, we should make open AI part of Tesla. We obviously can't compete with Google. Like there's a bunch of emails in here, which are, which is just a weird way to respond to this.
Starting point is 01:30:43 Like, here's the receipts. Also, notably, Ilya Sutskover, who has not been heard from since the Sam Altman OpenAI CEO signed the OpenAI response blog post. So they're united on this. Here's what I will say about this. Open AI's response. And they say they're going to move to dismiss the lawsuit, all the claims. This is just very basic stuff.
Starting point is 01:31:04 And I will say I got one thing wrong in the blog post, but I did it on purpose as a test, if you believe me. Sure. So I wrote about this. Okay. I'm not wrong. You're wrong. I'm not wrong. I was testing you. Sure. As you may know, I was once a lawyer. I was not good at being a lawyer. I'm not claiming that I was a good lawyer. I very quickly moved to blogging about cell phones. That's how my legal career is going. I was like, what if I memorized the name of every HTC cell phone, right? That was a better choice for me as a person. But I did the thing. I know a bunch of lawyers. I'm married to a lawyer. We got lawyers on our staff. We've got lawyers at the company. They're everywhere. You can't get away from them. And I was like, hey, can you sue someone for breach of contract if there isn't a contract?
Starting point is 01:31:51 And the answer is basically no. That fundamentally is the answer. Like, you have to have a contract, particularly if the performance of said illusory contract takes place over a year, like longer than a year. So, for example, I'll give you a law school hypothetical. Alex and I are friends, right? I said to Alex, this is like some real law school shit. I said, Alex, like, I'm going to deliver you 50 pieces of lumber a week for $50. And Alex says, cool. And then we shake hands, right? And then I show up and I say, here's my 50 pieces of lumber. And Alex says, here's a 50 bucks. And we just do that over and over again for 11 months, right? And on the 12th month, I show up, I delivered the lumber. Alex doesn't pay me the money. I can probably
Starting point is 01:32:37 sue her for breach of contract. Rude. You got all this performance. I took the lumbered. By the way, in law school, it's like always lumber. It's always something like this. Things of like, what are you talking about? It's nails of hay. Yeah, you're like, most law students are like,
Starting point is 01:32:52 one, I was like 23 years old and the ancient law professors like, and then what would happen if you didn't deliver the lumber? And they're like, what are you talking about? What is, I didn't do the reading. So I promise to Venmo you every week. Yeah, okay. Like, it's always like this.
Starting point is 01:33:08 Then you could sue, right? You have this, like, I did this thing called Reliance where, because Alex had paid me before, I went, I dropped out the lumber, I left. I assumed the money would come. She didn't pay me. I say, you got to pay me. I'd go to the court and say, look at all this history. And then look at the negative thing that happened to me because I assumed that she would do the thing,
Starting point is 01:33:28 which is pay me the money for the lumber that for some reason I had been delivering for 11 months without a written contract. Sick for it. And that's like the classic law school. can you enforce a contract that's not written down example? Elon is saying not that. Like so much not that. Like the most not that. He's saying there is a contract.
Starting point is 01:33:50 But the contract called the Founders Agreement only exists in other pieces of paper. He's like, it's in these emails I have between me and the other founders. It's in the articles of incorporation that they filed the city of California. Like, court, just read some stuff I'd like you to read. Write me a contract and then say they breached that contract. Right. He's saying if you read all these things, like, you'll get the idea. Right.
Starting point is 01:34:16 That when I was donating money to a nonprofit, I assumed that they would do. And it's like, if you are a first year of law school, you're listening to this, or you attended law school, or even if you're thinking about attending law school, just ask yourself, you're a judge. You're looking at the richest man in the world. And he's like, I don't know, I'm kind of an idiot. like I just gave him all this money without contract. And the judge is going to get out of here.
Starting point is 01:34:39 Like my own 1L contracts professor named Stuart McCauley used to say to us all the time, what happens? You pays your money and he takes your chances. And like if you buy the stuff and it's bad, like that's on you. And like here Elon's like donated the money. And he had he has all these emails. Like these other emails are like that opening I is publishing where he's like, this isn't enough money.
Starting point is 01:35:02 We're never going to succeed. I want total control of this. I'm not going to give you more money. And it's like, dude, you just didn't have the first thing. Yep. Like the first thing. Right. Which is, what are the terms of me giving you this money?
Starting point is 01:35:13 You didn't write them down. It is the silliest one L law school problem I can think of to file a claim for breach of contract. And then within the breach of contract claim that the contract does not exist, but is actually located in some emails. Like, I cannot tell you what every, like, I showed it to Becky and she just gave me the face. I don't want to think about this. I like she's like I graduated from law school. I'm a practicing attorney. We don't do this anymore.
Starting point is 01:35:40 And then the second one, the claim is for promissory estoppel, which is long term, but that's the thing where it's like I delivered the lumber and Alex to pay me the money. And so I have what's called detrimental reliance. So I like assumed she would do the thing. Sorry, Alex. I assumed Alex to pay me the money.
Starting point is 01:35:57 She was paying me for months and months and months. And I did the thing she didn't pay me the money. I've now relied on her promises to me. and performance of those promises in the past. There's none of that here because the detrimental reliance is that Open AI was supposed to deliver AGI which you cannot possibly claim.
Starting point is 01:36:16 Just what are you talking about? They didn't make SkyNet. Anyway, it's all very dumb. The thing I got wrong is that I put a joke at the end, another one-l law school joke where I was like, the thing that will happen is Open AI will file a motion to dismiss and I use the federal name of the motion this list,
Starting point is 01:36:33 and on California, it's called a demur. I'm very sorry, I'm not going to correct it because it's a honeypot for nerds. First of all, it's a really good joke. It's a really good, funny joke that lots of people got and enjoyed, so great job. Sarah John thought it was hilarious. I'm glad. There you go.
Starting point is 01:36:48 The audience is small, but it's there. I think, to me, the wildest thing about this is this now marks two episodes in two weeks in which we have talked about Elon Musk demanding to take over another company. Last week it was Elon saying, I'll sell Tesla to you, Tim Cook, but I want to be the CEO of Apple.
Starting point is 01:37:05 And now it's OpenAI. And true, true, like, you miss 100% of the shots you don't take. You know what I mean? Cheap your shot, Elon. Next, he's going to be like, listen, Larry Page, just give me Google. Just shut up.
Starting point is 01:37:18 Just give me Google. Well, I mean, he's actually two Tesla shareholders saying, give me more of Tesla, which is very funny. Yeah. Elon also has a very expansive view of what a contract is. In another case, X is suing the centers for combating digital hate for a report they put out saying hate speech had risen on Twitter.
Starting point is 01:37:36 Now X after Elon took over. They're claiming this interfered with advertisers, blah, blah, blah. And their legal theory is that it's a breach of the contract. That when they sign up for their Twitter account, they knew they weren't supposed to do X, Y, and Z. And they could foresee that they would be interfering in X's business relationships by doing whatever they did. And the judge, I want to say this as clear as I can, the judge evaluating this case, said to X's lawyers, quote, this is the most vapid extension of contract law I have ever seen. Sex. That's incredible. Like, what are you doing?
Starting point is 01:38:16 I like, you would be, I would be embarrassed if I went into court and that. I've never been in court. But if I did. You would be embarrassed until you went to bed on your bed of dollar bills, my right? Yep. Just dollars, though. It's a dollar bill. single dollar.
Starting point is 01:38:29 He was a ex-lawyer. Yeah. These aren't hundies. That same law professor, Stuart McCawley, a contract professor, Stumach, we called him. He was very good. He would often ask us as we went through the facts of some esoteric lumber case. Why do you think this case was filed?
Starting point is 01:38:46 And we would all answer, you know, some high-minded question. He would start cackling. And he'd be like, no, no, no. The lawyer wanted a BMW. Uh-huh. It's like very good. Elon's buying a lot of BMWs. Elon's buying a lot of BMWs.
Starting point is 01:39:04 I'm just saying, like, if you want to stand in front of a judge, have the judge call you VAPID. Like, I don't think of BMWs enough. You got to at least hit Aston, you know? Yeah. If not, full G-Wagon situation. There you go. Like, a lot of electric G-Wagon pre-orders are being placed around the I should run
Starting point is 01:39:21 open AI lawsuit. All right, that's it. I'm sorry that we talked about him again. Ugh. It's going to, it's an election year. We're going to end up talking about it. Yeah. can feel it coming.
Starting point is 01:39:31 But don't worry. We'll also talk about the law of emulation. Dodge released the electric charger this week, the EV charger. It's got some big speakers in the back to make vrum-vrum noises. That's coming up next week on the Vodcast, everybody. We should do it a whole thing where we just compare the brim-vrum noises that various muscle car EVs make. Yeah, 100% should. That's been in the works for a while, actually.
Starting point is 01:39:53 It's going to happen. It's going to be great. Next week, we're also going to talk about lying down mode in the Quest headset. It's very exciting. A lot of stuff to get to. Very good. I should tell everyone that we recorded this day early, because the three of us will be at South by Southwest on March 8th doing a live verge cast. David has set up quite the game for us to play on that stage. If you are in Texas, come see us March 8th on a Vox Media podcast stage at South by Southwest. We would love to see you. The very next day on March 9th, I'm doing a live decoder in interviewing the CEO of Figma, Dylan Field, which will be very fun. Obviously quite a lot to talk about there, life post Adobe, but, Dylan really wants to talk about the web and the future of the web. Like, Figma is a web app.
Starting point is 01:40:34 I don't know if you caught it. I'm very interested in the web. It's like a thing I care about a bit. So I'm very excited with that. Alex is like, I didn't know what I was signing up for. March 8th, the Vergecast at South by Southwest, March 9th Decoder. We would love to see it. That's it.
Starting point is 01:40:50 That's a Vergecast. And that's it for the Vergecast this week. Hey, we'd love to hear from you. Give us a call at 866 Verge 1-1. The Verge cast is a production of the Verge and VoxMe, a podcast network. Our show is produced by Andrew Marino and Liam James. That's it. We'll see you next week.

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