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Google’s $800M Secret Deal with Epic Games to Boost Android

▼ Summary

– A secret deal between Google and Epic Games, revealed during their antitrust court case, involves joint product development, marketing, and partnerships centered on Unreal Engine, Fortnite, and Android.
– The court revealed Epic will help Google market Android, while Google will use Epic’s core technology, raising the judge’s concern this partnership may have influenced the legal settlement.
– Epic CEO Tim Sweeney indicated the agreement relates to the “metaverse” and involves Google using Unreal Engine technology more fully, though specific details remain confidential.
– The financial terms of the deal involve Epic paying Google $800 million over six years, despite Epic being the plaintiff in the antitrust lawsuit.
– The exact nature of the joint product lines remains a court-protected secret, with both companies stating they will work together after their intense legal battle.

A newly disclosed $800 million agreement between Google and Epic Games has emerged from the ongoing antitrust proceedings, revealing a secretive six-year partnership focused on Android, Unreal Engine, and joint product development. This unexpected collaboration, confirmed during a court hearing, raises significant questions about the dynamics behind the recent legal settlement between the two tech giants. The deal involves mutual commitments to marketing and technology sharing, fundamentally altering the relationship between the companies following years of contentious litigation.

During a hearing to review the proposed settlement, Judge James Donato expressed concerns that this previously undisclosed business arrangement may have influenced Epic Games’ negotiating position. The judge noted the partnership includes plans for Epic to assist Google in marketing the Android platform, while Google would gain expanded access to Epic’s core Unreal Engine technology. This reciprocal exchange of resources and support appears to be a central pillar of the new alliance, suggesting a strategic pivot from courtroom adversaries to business partners.

Epic CEO Tim Sweeney acknowledged the existence of what he termed “new business” between the companies, briefly alluding to connections with emerging digital spaces before stopping himself to avoid violating confidentiality. His comments indicated that Google intends to utilize the Unreal Engine more extensively for training and developing its own products, a move that leverages Epic’s established position in game development and simulation tools. The financial structure of the deal, which requires Epic to pay Google the substantial sum over the term, adds another layer of complexity to the arrangement.

The precise nature of the joint projects remains under wraps, with Judge Donato permitting the companies to keep those details confidential. Sweeney described the effort as involving both firms building separate product lines while finding ways to collaborate. This vague description leaves much to speculation, particularly regarding how initiatives around Fortnite, Android, and the Unreal Engine will materialize. The partnership represents a dramatic shift from the fierce legal battle over app store practices, catching industry observers by surprise.

With the settlement pending final judicial approval, this revelation underscores how business interests can realign even after public disputes. The substantial financial commitment and focus on shared technology development suggest both companies see greater value in cooperation than continued conflict, at least in certain areas. While the specific products and marketing campaigns born from this deal are yet to be seen, the alliance undoubtedly signals a new chapter in the relationship between a mobile platform giant and a leading game developer.

(Source: 9to5 Google)

Topics

legal settlement 95% business partnership 95% antitrust case 90% product development 85% unreal engine 85% court hearing 85% android platform 80% financial agreement 80% joint marketing 80% judge scrutiny 80%