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TECHNOLOGY

Google Struck $360 Mn Deal with Activision to Block Rival App Store, Lawsuit Says

Epic Games said Google agreed to pay Activision $360 million to block competition.

Alphabet Inc’s Google has struck at least 24 deals with big app developers to keep them from competing with its Play Store, including a deal that paid Activision Blizzard about $360 million.


Google also agreed to pay about $30 million in 2020 to Tencent Holdings Ltd.’s Riot Games unit, which makes “League of Legends,” the document said.


The financial details appear in a new, unredacted copy of the lawsuit that “Fortnite” video game maker Epic Games first filed against Google in 2020. It was accused of anti-competitive practices related to the search giant’s Android and Play Store businesses.


Google called the lawsuit baseless and riddled with mischaracterisations. It said its deals to meet developers reflected healthy competition.


Last year, Epic largely lost a similar case against another leading app store provider, Apple. In that case, an appeal ruling is expected next year.


Google’s agreement with the developer is part of an internal effort called “Project Hug,” described in an earlier lawsuit version without specific terms.


Compensation includes fees for YouTube posts and credits for Google advertising and cloud services. The deal with Activision was announced in January 2020, shortly after Activision told Google it was considering launching its app store. The partnership with Riot was also intended to “thwart their efforts on an internal ‘app store,'” the court documents said.


Google predicted at the time that it would lose billions of dollars in App Store sales if developers switched to alternative systems.


Epic’s lawsuit says Google knew that signing with Activision “effectively ensured that (Activision) would abandon its plans to launch a competing app store.” The lawsuit added that the agreement raised prices and lowered the quality of service.


According to court documents, companies that signed up with Google in July included game maker Nintendo Co and Ubisoft Entertainment, meditation app Calm, and education app company Age of Learning.

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