In a recent court case, Google confirmed that it offered Epic, the publisher of the hit game Fortnite, a $147 million deal to launch the game on Android’s Google Play store. The deal, which was presented to Epic but not accepted, would have seen the money dispensed over a three-year period. The purpose of the deal was to prevent popular apps from bypassing Android’s official store and thereby avoiding Google’s in-app purchase fees.
Epic initially launched Fortnite on Android in 2018 directly through its website, allowing the game to sell its in-game currency V-Bucks without paying the commission required of Play Store apps. However, in 2020, Epic relented due to “scary, repetitive security pop-ups” and other factors that put it at a severe disadvantage. This decision ultimately led to an antitrust lawsuit filed later that year, which is currently being argued before a jury.
In the lawsuit, Epic alleges that Google attempted to forestall its initial decision and claimed that Google feared a “contagion risk” if other game developers followed Epic’s lead. Internal documents cited in court indicated that Google was concerned that virtually all top game developers could defect from Play within a couple of years, potentially resulting in a significant loss of revenue for Google. The documents projected that Fortnite’s absence could result in a direct revenue loss between $130 and $250 million, with a broader downstream loss of up to $3.6 billion if a massive defection took place.
In response to these allegations, Google maintains that it was concerned about losing games on Play, particularly when Apple’s iOS was a competitive alternative. The company asserts that there was nothing nefarious about its concern and that it simply wanted developers to choose Play. Google’s position is that getting games on the service was an investment worth pursuing.
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On the other hand, Epic is using these documents to argue that Google feared competition for Android app distribution and has maintained its Play store as an unlawful monopoly. While the deal’s existence doesn’t prove this assertion, it provides insight into how Google views its games business.
Overall, the legal battle between Epic and Google sheds light on the competitive landscape of app distribution and in-app purchases, particularly on the Android platform. The outcome of this case could have significant implications for the mobile gaming industry and the way app developers distribute and monetize their products. As the trial continues, it will be interesting to see how the court’s decision ultimately impacts the practices of major tech companies in the mobile app ecosystem.
