A San Francisco court hearing has brought a shocking revelation that Google and Epic Games have entered into a secretive $800M business partnership. The partnership is drawing intense scrutiny from the court as these two are in the midst of their long-running antitrust battle settlement.
Notably, Epic sued Google in 2020 as it removed Fortnite from the Play Store after Epic bypassed Google’s in-app payment system to avoid a 30% commission. A settlement is underway, awaiting the judge’s approval.
Breakdown of Google and Epic’s $800M Agreement
According to the Verge report, Google and Epic’s court hearing reveals their $800M deal, including “joint product development, joint marketing commitment, [and] joint partnerships” around Unreal Engine, Fortnite, and Android.
This is not a simple settlement payment, but a 6-year-long commercial agreement, creating new business for both parties. The agreement states that Epic Games will pay $800M to Google over six years for various tools and technical integrations.
More importantly, both businesses will run joint marketing. Epic will market the Android ecosystem, while Google will help market Fortnite. Technical integration is also part of the deal, where Google will be able to train and enhance its cloud and AI services with Epic’s Unreal Engine.
“You’re going to be helping Google market Android, and they’re going to be helping you market Fortnite; that deal doesn’t exist today, right?” Donato asked Epic’s economics expert Doug Bernheim, to which he answered affirmatively.
Epic Games CEO Hints at Metaverse Connection
Verge notes that Epic Games CEO Tim Sweeney further cleared the mystery of the agreement with Google. He stated that the deal is related to the metaverse, which refers to Epic’s game Fortnite.
Also Read: Amazon Prepares for Major Layoff Round, Up to 16,000 Jobs at Risk
“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,” Sweeney said.
Although the $800M agreement is now disclosed, the details of their joint product remain confidential.
Judicial Concerns with Google and Epic’s Agreement
U.S. District Judge James Donato remained skeptical of the agreement during the hearing and expressed concerns about conflict of interest, the secret nature of the deal, and its impact on public interest.
Also Read: Donald Trump to Visit China in April, “Always Had a Great Relationship with Xi Jinping”
Conflict of interest, because the judge worries this $800M deal might have an influence on Epic’s demand from Google in the settlement.
Public interest is also a concern, since it’s an antitrust case. The judge clarified that the settlement should protect the welfare of consumers and the broader market rather than just facilitating a private corporate alliance.
What’s Next?
The antitrust settlement is still not finalised, but the companies do have proposed new rules. The new settlement terms ask to cap Play Store fees between 9% and 20%. Additionally, terms include Google providing easier access for third-party stores, including the Epic Games Store, to operate on Android without objection.
Clarity on the settlement finality of the partnership is expected to come by March 2026.