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Monday, December 5, 2022
HomeWorldGoogle: $360 million agreement to not activate rival play store

Google: $360 million agreement to not activate rival play store

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One of the deals calls for Activision Blizzard Inc to pay about $360 million over three years, according to court documents released Thursday.

THE Google Alphabet Inc’s has finalized at least 24 deals with major app development companies to end their competition with the company’s online store Play Store.

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One of the agreements provides for the payment to Activision Blizzard Inc amounting to about $360 million over three years, according to court documents released Thursday.

Google had agreed in 2020 to pay the Riot Games, its subsidiary Tencent Holdings Ltd which makes the “League of Legends” game software, about $30 million in a year, according to the same court documents.

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The financial details were made known by a copy of a lawsuit against Google, which the company had filed in 2020 Epic Games which produces the online video game Fortnite. That lawsuit alleges anti-competitive practices related to research on Android devices, but also on Play Store of Google.

Google, for its part, had characterized this lawsuit as groundless, arguing that it contained misleading characterizations in its entirety. The company argued that its agreements, to satisfy video game software producers, reflect healthy competition.

Riot said it is reviewing the court documents. Activision did not respond to requests for comment. Epic last year lost a similar case against Apple Inc, which also has a leading position in the market for applications through the app store. An appellate court decision on this case is expected within the next year.

The deal with Activision was announced in January 2020, shortly after it was briefed on Google’s thoughts on activating its own app store. The partnership with Riot was also aimed at “stopping their own efforts to set up an internal ‘app store,'” according to the court documents.

During this period, Google estimated that it would have lost billions of dollars in lost app sales if the companies that develop them resorted to alternative systems.

Epic’s lawsuit suggests that Google knew that by signing with Activision it “effectively ensured (Activision’s) abandonment of plans to activate a competing app store.”

According to the lawsuit, the agreement increases prices and reduces the quality of services offered.

Among others who have signed up with Google since July are video game producers Nintendo Co and Ubisoft Entertainment SAthe spiritual meditation app Calm and the educational application Age of Learningaccording to the same court documents.

RES-EMP

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Nina
Nina
I have worked as a journalist for over 8 years. I have written for many different news outlets, including the New York Times, Wall Street Journal and CNN. I have also published my own book on the history of the world. I am currently a freelance writer and editor, and I am always looking for new opportunities to write and edit interesting content.

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