Epic Games spent years shouting that the Android ecosystem was strangling competition, even as it negotiated a cosy business arrangement with Google worth roughly $800 million over six years.
This only came out because a federal judge started asking the sort of questions lawyers prefer not to answer in public.
During a recent hearing, California District Judge James Donato revealed the existence of a previously undisclosed partnership between Epic Games and Google, tied to Unreal Engine services and joint marketing around Android and Fortnite.
Most of the deal remains under seal, but Donato made it clear that this was not a minor collaboration. He described it as a “new business” between Epic and Google, valued at $800 million over six years.
According to testimony, the deal involves Epic paying Google for services rather than Google writing a cheque to Epic. Epic chief executive Tim Sweeney explained that while Epic had previously avoided Google services, it is now planning to use them at market rates. In his words, this represents a “significant transfer of value from Epic to Google”, which is an interesting way to describe handing over $800 million to a company you were suing for anti-competitive behaviour.
Things got more awkward when Sweeney started talking about Unreal Engine, Fortnite, and the so-called metaverse, then abruptly stopped himself mid-sentence for “blowing confidentiality”.
Judge Donato was clearly unimpressed by the timing. He pressed Epic’s economics expert, Doug Bernheim, on whether the deal might have influenced Epic’s willingness to settle its Android antitrust case. Specifically, he asked whether the partnership could amount to a quid pro quo that softened Epic’s demands in ways that might not benefit other developers.
Epic is backing a settlement that would see Google reduce Play Store fees worldwide and allow easier installation of alternative app stores on Android. On paper, this looks like a win for competition. In practice, the judge appears concerned that Epic may be trading broader reform for a private commercial arrangement that suits its growth plans.
Sweeney pushed back hard on the suggestion that Epic was being paid off, pointing out that Epic is the one spending the money. He insisted that the Epic Games Store would not receive any special treatment on Android as part of the deal, and that Epic and Google are not jointly building a single product.
Still, Donato suggested that the business agreement and the settlement appear linked, hinting that the deal would proceed only if the settlement is approved. Sweeney confirmed this, admitting that he expects the agreement to be finalised and describing both the settlement and the partnership as “an important part of Epic’s growth plan”.
