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Though Match settle its antimonopoly case with Google over shimmer Store fee for Frederick North of $ 300 million , Fortnite Godhead Epic Games proceededto take its guinea pig to trial this workweek . The secret plan maker reason that Google ’s delegation on in - app purchases are anti - competitive and that Google has wield its power in the mart to unfairly vie by negotiating special deals with developers and manufacturers be given their own app stores .
We alreadyknew about Epic ’s allegation against Google , but now they ’ve been presented to the court , alongside witness testimonial . Epic push to present this case in front of a panel rather of running a judiciary tryout — a key departure from its battle with Apple over the same subject , which Apple largely won . ( Epic is now asking the Supreme Court to press in on that one.)With a jury test , this face could grow out other than than others , as even the great unwashed — mobile app consumers , themselves — may see Epic ’s title about contender otherwise than a jurist weighing the precedents set by contract bridge law or antitrust regulations .
As open up arguments and witness testimonial kicked off this week , we learned a few thing about Google ’s frolic Store business organisation . Among the high spot were :
Google paid Activision Blizzard $360 million to launch its games on the Play Store
Epic Games attorney presented details about Google ’s “ Project Hug , ” which encourage app developer to launch their game on the manoeuvre Store — or , as Epic put it , Google “ bribed ” them . One significant example was trotted out to the Margaret Court , whereGoogle offered“Call of Duty ” maker Activision Blizzard $ 360 million in bonus in 2020 to get its game to Google Play at the same time as they come out on rival platforms . Epic ’s disceptation is that Google used these payments to prevent developers from release games independently , like through their own app stores . These deals also include an $ 18 million accord with Tencent ’s Riot Games in 2020 .
Google , however , pushed back saying that Project Hug was how Google vie with other app stores , include Apple ’s App Store , Samsung ’s Galaxy Store and the Amazon Appstore . It also told jurors that game developers were n’t forestall from launching their own app storage as a part of these accord , which wouldinclude things like advert credits and merchandising opportunities , Bloomberg reported . But Google ’s argumentation may have been counteract by document that showed how Activision Blizzard ’s King unit and Riot Games were frustrated with the 30 % gash that Google take , and were consider launching “ off - Play ” distribution platforms .
Google offered Epic Games $147 million to launch Fortnite on the Play Store
In increase to its deals with Activision Blizzard and Riot Games , Google also confirmedthat Epic was offer a $ 147 million tidy sum to bring Fortnite to the Play Store , The Verge report . The tidy sum would have paid out over a three - year time period ending in 2021 , but Epic rejected the offer . Documents shew to the Margaret Court indicated Google feared a “ infection endangerment ” if other magnanimous plot developers were to follow Epic ’s booster cable of launch its game outside Google Play , which would cost Google billion in lose revenue . Documents revealed that Google project a loss of $ 130 to $ 250 million in tax income from lose Fortnite and if other major secret plan developer like Blizzard , Valve , Sony and Nintendo also left the Play Store , the expiration could growto $ 3.6 billion .
Google rejected apps for “steering” — or pointing to other ways to pay outside the Play Store
testimonial from Benjamin Simon , whose company Yoga Buddhi make an app called Down Dog , confirmed that Google rejected his app for “ steering ” — a terminus that can cite to either linking to or even just telling an app ’s client about other ways they can give for the app ’s religious service out of doors of the Play Store where Google Play Billing is used . Down Dog on the turn Store costs $ 60 / class or $ 10 / calendar month , but the developer charges less on his own website ( $ 40 / year or $ 8 / mo ) because he does n’t have to pay Google ’s commissions . That has absolved consumer benefits , but “ guidance ” is something both Google and Apple prevent in their app computer storage developer agreements . This was the one expanse where Apple lost in its court battle with Epic Games , in fact . The court had find that Apple was not a monopolist , but itdeemed anti - steering clause illegalunder California ’s Unfair Competition Law .
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The Play Store makes more than $12 billion per year for Google, but Epic’s Games Store isn’t profitable
Epic ’s attorneys showcased the dominance of the Play Store , note that 90 % of all Android apps in the U.S. are downloaded from this marketplace . It also said that the swordplay Storegenerated more than $ 12 billionper year in operating net andcarried a 70 % profit border , up from 24 % in 2014 , VentureBeat report . Google countered these line of reasoning by pointing out that other major apps , like OpenAI ’s ChatGPT , would launch on iOS first . This competition from Apple means it can not be a monopolizer , Google ’s attorneys pronounce . Meanwhile , testimony from Epic ’s Steve Allison indicated that Epic ’s Games Store , which takes only a 12 % cut of developer revenue and developers keep 88%,still is n’t profitable .
Google offered Netflix a special deal, & maybe Spotify got one too
Google negotiated a special deal with Netflix to keep its payment processing on the Play Store . Documents shown in the tribulation indicated that Googleoffered Netflix a discounted rateof 10 % in 2017 , earmark Netflix to keep 90 % of its earnings from in - app purchase , The Verge reported . But Netflix did n’t take the deal . It need users to sign up through its website before pelt through its Android app . Google also ask the court to seal documentsrelated to Spotify ’s deal , the issue also said , which allows the streamer to use Google ’s newfangled User Choice Billing option — a way for the developer to swear out its own requital . Typically , this provides the developer with a 4 % discount , so Google ’s request to hide the terms of the Spotify deal seems suspicious . Google ’s lawyer said that doing so would be “ prejudicious ” to conversations it was having with other parties . Epic had also been offer the chance to acquire User Choice Billing , but rejected it .
