Epic claims Google paid $360 million to stop Activision from launching its own app store

Activision Blizzard and Riot Games at one point told Google they could launch their own mobile app stores, according to new documents filed in Epic’s antitrust lawsuit against the search giant. Details have emerged regarding the alleged signing of important contracts with the two companies. Google has reportedly agreed to pay Activision about $360 million over three years, and Riot has agreed to pay about $30 million for a one-year deal.

inside single documentKaren Aviram Beatty, a Google executive, reported a conversation with Activision Blizzard’s current CFO Armin Jerza, a month before the mega deal was signed between the two companies. If this agreement fails [Zerza] It demands They will launch their own mobile distribution platform (in partnership with “another major carrier” – I’m assuming Epic).Doubly so with Amazon/Twitch (or MSFT) for cloud/esports [sic]And stay away from stadia,” wrote Betty (the strain my king). While Zerza may face some tough negotiations, Activision has yet to launch its own mobile app store, so it seems the company was ultimately happy with how the deal turned out.

Another document is the testimony of an unnamed witness who participated or appears to have participated in Google’s “Project Embrace” program designed to encourage and support Play Store developers. inside SedimentationRiot Games has told Google it is considering launching a competing Android app store, the witness said. Sakshi later said that “Riot and Activision Blizzard King spoke to us most directly” when they were considering opening their own app store.

Project Embrace contracts were first revealed in August 2021 as part of an unmodified Epic complaint. But epic, in A new amended complaint was filed on ThursdayClaims that Project Hug’s offerings aim to “prevent developers from opening a competing store or otherwise distributing their apps outside of the Google Play Store.”

Epic launched originally fourteen days From Google Play in 2018, it allowed Google to waive its fees, and Epic had previously argued that Project Hug was designed to entice developers to stay with Play rather than start their own businesses. (Epic was finally brought in fourteen days on the Play Store in 2020, but was removed a few months later.) But based on new documents, it appears that Activision and Riot are considering going it alone.

In the comments edgesGoogle and Activision have dismissed Epic’s claims. According to Google, programs like Project Embrace don’t discourage developers from creating their own app stores, and Activision says Google couldn’t convince them not to compete with Google Play.

“Epic is misrepresenting commercial negotiations,” Google spokesman Michael Appel said. “Activities Project Embrace motivates developers to provide Google Play users with convenience and early access when new or updated content is released; This does not prevent developers from creating competing app stores, as Epic falsely claims. In fact, the program proves that Google Play is fairly competitive with many competitors for developers who have a variety of options for distributing their apps and digital content.”

Activision spokesman Joe Christinat said, “Activision has testified in court that Google and Activision never entered into an agreement that Activision would not open its own app store.” “Google has never asked, pressured or forced us to compete with Google Play. We have provided documents and certifications to prove it. Epic claims are meaningless.”

Riot did not respond to requests for comment.

An exhibit from Epic included a list of more than 20 companies that Google has signed Project Embrace agreements with until July 2022 (now technically the “Games Velocity Program”). Both Activision and Riot are listed, as are EA, Niantic, Nintendo, as well as major gaming companies such as Tencent and Ubisoft.