NReal augmented reality glasses at CES 2019. Photo: Robyn Beck/AFP via Getty Images

Augmented reality startup Nreal is asking a court to throw out a lawsuit from Magic Leap, saying the heavily touted startup's suit amounts to sour grapes rather than a breach of contract.

Why it matters: The virtual reality and augmented reality markets are taking longer to develop, prompting companies to compete for their slice of a smaller-than-anticipated pie.

  • In June, Magic Leap sued Nreal and CEO Chi Xu, who worked at Magic Leap for about a year, from mid-2015 to mid-2016. The suit alleges that Xu and Nreal are exploiting "Magic Leap's confidential and proprietary information to unfairly compete in the development of wearable spatial computing glasses and other related technology."
  • In its motion to dismiss, Nreal said "rather than focus on developing a superior product, Magic Leap has resorted to filing lawsuits to slow down new entrants in the AR market."
  • Magic Leap was not immediately available for comment.

The big picture: Despite tons of buzz and billions of dollars in funding, Magic Leap has struggled to get its product to market, and recently announced layoffs.

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Updated 1 hour ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 9 p.m. ET: 18,187,396 — Total deaths: 691,352 — Total recoveries — 10,841,436Map.
  2. U.S.: Total confirmed cases as of 9 p.m. ET: 4,711,323 — Total deaths: 155,379 — Total recoveries: 1,513,446 — Total tests: 57,543,852Map.
  3. Politics: White House will require staff to undergo randomized coronavirus testing — Pelosi says Birx "enabled" Trump on misinformation.
  4. Sports: 13 members of St. Louis Cardinals test positive, prompting MLB to cancel Tigers series — Former FDA chief says MLB outbreaks should be warning sign for schools.
  5. 1 🎥 thing: "Tenet" may be the first major film to get a global pandemic release.

In photos: Thousands evacuated as Southern California fire grows

A plane makes a retardant drop on a ridge at the Apple Fire north of Banning in Riverside County, which "doubled in size" Saturday, per KTLA. Robert Gauthier / Los Angeles Times via Getty Images

A massive wildfire that prompted mandatory evacuations in Southern California over the weekend burned 26,450 acres and was 5% contained by Monday afternoon, the California Department of Forestry and Fire Protection said.

The big picture: As California remains an epicenter of the coronavirus pandemic in the U.S., some 15 separate fires are raging across the state. About 7,800 people were under evacuation orders from the Apple Fire, about 75 miles east of Los Angeles, as hundreds of firefighters battled the blaze. CalFire said Monday that a malfunction involving a "diesel-fueled vehicle emitting burning carbon from the exhaust system" started the Apple Fire.

Twitter faces FTC fine of up to $250 million over alleged privacy violations

Photo: Rafael Henrique/SOPA Images/LightRocket

The Federal Trade Commission has accused Twitter of using phone numbers and emails from its users to make targeted ads between 2013 and 2019, Twitter said in an SEC filing published Monday.

Why it matters: Twitter estimates that the FTC's draft complaint, which was sent a few days after its Q2 earnings report, could cost the company between $150 million and $250 million. The complaint is unrelated to the recent Twitter hack involving a bitcoin scam.