Google allegedly paid millions to top game developers to prevent them from launching rival app stores
According to a recent report, Google has invested hundreds of millions of dollars in agreements with prominent game developers to discourage them from creating their own app stores for Android devices. This information was uncovered in an unredacted version of Epic's 2020 lawsuit against Google, which was reviewed by Reuters. The documents reveal that Google paid $360 million to Activision Blizzard over a three-year period and $30 million to Riot Games over one year as part of these agreements. A total of 24 deals were identified between Google and well-known developers, including Ubisoft and Nintendo, as well as non-gaming app providers. These agreements, known as 'Project Hug', involved payments for posting videos on YouTube and credits for various Google services, such as advertising and cloud computing. Google claims that these deals were intended to keep developers satisfied and promote healthy competition. However, the lawsuit alleges that the agreements were actually designed to prevent the creation of rival app stores. For instance, the deal with Activision was reportedly made shortly after the company informed Google of its plans to launch its own marketplace on Android. Similarly, the partnership with Riot Games was allegedly intended to 'halt their in-house app store efforts'. Both Riot Games and Activision have responded to these claims, with Activision stating that the allegations are 'baseless' and that Google never asked or pressured them to refrain from competing with Google Play.