Explosive new documents filed in Epic’s antitrust lawsuit against Google alleges the search giant paid Activision and Riot Games millions of dollars not to launch their own app stores.
Google allegedly agreed to pay Activision roughly A$540 million over three years, and Riot A$45 million for a one-year agreement not to compete in the app store space.
Epic alleges these deals, with the codename ‘Project Hug’, are designed to “prevent the developer from opening a competing store or otherwise distributing its apps outside of the Google Play Store.”
Epic says EA, Niantic, Nintendo, Tencent, and Ubisoft are among other gaming companies with Project Hug deals.
Documents show Google executive Karen Aviram Beatty reporting back from a meeting with Activision Blizzard’s now-CFO Armin Zerza a month before the deal was struck.
“If this deal falls through, Zerza claims that they will launch their own mobile distribution platform (partnering with another “major mobile company” — presume Epic), double down with Amazon / Twitch (or MSFT) for Cloud / eSports, and pull away from Stadia,” Beatty wrote.
Another document filed is a deposition from an unnamed witness, who said “Riot and Activision Blizzard King were the ones that were the most direct with us” about their plans to stop a competing app store.
Google and Activision are both denying these deal involved blocking a potential Activision app store.
“Epic is mischaracterising business conversations,” Google spokesperson Michael Appel said.
“Programs like Project Hug provide incentives for developers to give benefits and early access to Google Play users when they release new or updated content; it does not prevent developers from creating competing app stores, as Epic falsely alleges.
“In fact, the program is proof that Google Play competes fairly with numerous rivals for developers, who have a number of choices for distributing their apps and digital content.”
“Activision testified in court that Google and Activision never entered into an agreement that Activision would not open its own app store,” Activision spokesperson Joe Christinat said.
“Google never asked us, pressured us, or made us agree not to compete with Google Play. We submitted documents and testimony that prove this. Epic’s allegations are nonsense.”
