Epic claims that Google paid Activision Blizzard $360 million to stop it from creating a rival app store.
Google paid about $360 million to Activision Blizzard to keep the publisher from competing directly with its Play Store. The deal is one of at least 24 signed by the giant as part of its Project Hug initiative, according to court documents obtained by Reuters.
Epic claims Google paid Activision Blizzard $360 million
The financial details of Project Hug, which was later renamed the Apps and Games Velocity Program, are the source of the legal battle being played out between Epic Games and Google. In 2021, the studio accused Google of spending millions on perks to keep top developers on their Play Store. A new, uncensored version of Epic’s complaint was made public this week, offering new yet-unknown details about the scope of this app and game speed program.
According to the documents submitted to the court, Google also has agreements with Nintendo, Ubisoft and Riot Games. According to Epic, in the case of Riot, Google paid about $30 million to “prevent”the League of Legends studio from developing its own app store.
to prevent the creation of a competing app store
The filing also alleges that Google knew that signing a contract with Activision would result in the publisher abandoning “its plans to launch a rival app store”, which Activision strongly disputes. “Google has never asked, pressured or forced us to agree not to compete with Google Play,”a Reuters spokesman said. “Epic’s accusations are groundless.”
Google accused Epic of “misdefining”the purpose of the app and game speed program. “Programs like Project Hug offer developer perks that give users benefits and early access to Google Play when they post new or updated content; this does not prevent developers from creating competing app stores, as Epic erroneously claims,” a Google spokesperson told Engadget. “In truth, the program is proof that Google Play competes fairly with the many competitors for developers who have multiple options for distributing their apps and digital content.”