Court reveals secret $800m deal between Google and Epic Games amid antitrust case

• The partnership covers joint product development, marketing, and collaborations tied to Fortnite, Android, and Unreal Engine.
• A judge said Epic would help market Android, while Google would begin using Epic’s core technology.
• The agreement runs for six years and will see Epic pay Google $800m.

A US court-hearing has revealed how Google and Epic Games quietly entered into a new $800 million partnership amid their antitrust case.

As reported by The Verge, the details emerged during a court hearing in San Francisco. California District Judge James Donato questioned whether a previous settlement proposed in November, which would see new global Android rules based on monetisation type, was influenced by a previously undisclosed agreement between Google and Epic Games.

The deal reportedly includes joint product development, marketing commitments and partnerships centred on Fortnite, Android and Unreal Engine.

During the hearing, Donato suggested that Epic would be “helping Google market Android”, while Google would begin using Epic’s core technology, raising concerns that the arrangement may have softened Epic’s stance in the antitrust case. 

Most details of the partnership are being kept confidential, though the judge confirmed the deal is valued at $800m over six years, with Epic paying Google.

New business ties

Epic CEO Tim Sweeney described the agreement as relating to the “metaverse”, a term he often uses to describe Fortnite’s broader platform ambitions. 

“Epic’s technology is used by many companies in the space Google is operating in to train their products, so the ability for Google to use the Unreal Engine more fullsome… sorry, I’m blowing this confidentiality," he said. 

The judge ultimately characterised the arrangement as “new business between Epic and Google”, noting that while the two companies will continue building their own product lines, they plan to work together going forward.

The agreement marks a surprising turn for two companies that have been locked in a legal battle for several years. 

Epic Games had accused Google of operating an anti-competitive Android ecosystem, with the dispute spanning multiple court rulings before now appearing to move toward a final resolution.

No decision has been made as yet on whether the newly proposed fee structure, which would change the court's previous ruling, will be accepted or rejected.

“The main question on developers’ minds is whether Google will move forward with the fees outlined in its settlement proposal and its December 9th policy update, including different fee structures for cosmetic versus consumable items, a 25% fee for alternative in-app billing, and a 20% fee for in-app linking to web-based payments," Neon CEO and founder Chris Faught told PocketGamer.biz.

"None were addressed in the hearing, which focused primarily on third-party app stores and catalog access. Based on what was discussed, we are unlikely to have clarity on any changes to the fee structure until at least March.”