Epic Says Google Paid Activision Millions Not To Launch Rival App Store
Google and Activision Blizzard both denied Epic’s allegations about competing app stores. Google said the agreements are designed to provide incentives for developers to create apps for Google Play. “Epic is mischaracterizing business conversations,” a Google spokesperson said in a statement. “It does not prevent developers from creating competing app stores, as Epic falsely alleges.” Activision, for its part, said Google never “asked us, pressured us, or made us agree not to compete with Google Play.” Activision is in the midst of being acquired by software giant Microsoft for $68.7 billion. […] The filing is the latest allegation in Epic’s ongoing lawsuit against Google, which it accuses of operating a monopoly with Google Play, which sells apps for Android. Epic’s ongoing lawsuit is similar to another battle it’s waging against Apple and its App Store over similar concerns of monopolistic practices. In both cases, Epic is pushing the companies to reduce the control they exert over their respective platforms, both in terms of how phone and tablet owners pay for apps and where to download them from.
It’s unclear whether Epic’s argument that Google paid developers to not compete will win in an eventual court case. Epic said in its complaint that “Google understood” the agreement would mean that Activision would “abandon its plans to launch a competing app store, and Google intended this result.” But Armin Zerza, now Activision Blizzard’s finance chief, said in one of the court filings that the company chose not to launch a rival app store because of the risk of failure, in addition to costs for development and marketing. When asked about entering a deal with Google that “accomplished your objectives,” Zerza said that the Activision Blizzard board approved a deal with the Android maker because it “created multi-hundred-million dollars of value for us across multiple ecosystems.” If Activision is ultimately purchased by Microsoft though, it may end up helping create an app store after all. Microsoft told regulators in October that it intends to build its own mobile app store to rival Google and Apple. Activision’s deep library of popular games, including Candy Crush Saga and World of Warcraft, will be a key part of that effort. “Epic’s allegations are nonsense,” an Activision representative said in a statement sent to PC Gamer. “We can confirm that Google never asked us, pressured us, or made us agree not to compete with Google Play — and we’ve already submitted documents and testimony that prove this.”
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