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Sean Hollister

Sean Hollister

Senior Editor

Senior Editor

    More From Sean Hollister

    Sean Hollister
    Sean Hollister
    “You want to buy global peace, I get that.”

    Judge Donato tells Android boss Sameer Samat that he already understands Google prefers the new proposed settlement to his injunction partly because it would settle litigation around the world. (Samat said he thinks international regulators may take their cues from the settlement too, because they see Epic as an advocate.) But he wants to know Google’s other motivations.

    “By my reading of the deal, you are getting a lot, everything from hundreds of millions of payments over six years from one partnership, to Epic who said Google was a fake platform now championing the Android ecosystem [..] you’re getting a big present from Epic, so what are you doing for Epic?”

    “Is there anything aside from buying peace globally?”

    Sean Hollister
    Sean Hollister
    Google Android boss Sameer Samat is up in Epic v. Google settlement hearing.

    Samat says yes, he personally negotiated the new proposed settlement with Epic, starting last fall. He’s being questioned by Google’s lead attorney Glenn Pomerantz, as he’s Google’s witness; Epic and the judge have been asking all the questions up till now. Like Epic’s Sweeney, he says the reason to settle was to “reduce the amount of effort and energy” it would spend to keep fighting around the world.

    Sean Hollister
    Sean Hollister
    Epic CEO says scare screens are the problem, not downloading app stores from the web.

    “With the friction screens we lost 65 percent of users, with them removed we’re trending towards a 20 percent drop off rate,” he says, “which gives us confidence that installing stores from the web is a completely viable solution.” The point here is that Google and Epic’s new settlement no longer forces Google to host stores within its own store, but it does commit to removing the friction for web-based sideloading... as long as the stores are registered with Google’s proposed program and jump through whatever hoops Google has.

    Sean Hollister
    Sean Hollister
    We’re back with Epic CEO Tim Sweeney, who says the Epic Games Store won’t get special treatment.

    While Epic may be trying to make secret business deals with Google at the same time it’s trying to settle, Epic’s lead attorney Gary Bornstein made sure to ask Tim Sweeney to clarify one bit as soon as the courtroom re-opened for business. “Will the Epic Games Store get any special treatment from Android in the future under this deal?” he asked. Sweeney said no.

    Sean Hollister
    Sean Hollister
    “Can’t wait to see the bingo card for this one,” Tim Sweeney tells me as he walks out of the room.

    Sweeney told me he loved the bingo card we made during the trial, back in 2023. The courtroom is taking a 15-minute break now.

    Sean Hollister
    Sean Hollister
    Tim Sweeney says it’s not quid pro quo because he’s paying off Google with his secret deal.

    “I don’t see anything crooked about Epic paying Google off to encourage much more robust competition than they’ve allowed in the past,” he says, as the courtroom turns to page 8 of a term sheet that it’s not showing journalists... about Epic and Google’s secret new deal together.

    The secret deal includes Unreal Engine, Tim slipped up to reveal, and it includes Epic spending $800 million over six years to purchase some sort of service from Google. (perhaps cloud?) We put about 80 percent into a different vendor [...] every year we’ve decided against Google, in this year we’re deciding to use Google at market rates,” he says. “We view this as a significant transfer of value from Epic to Google.”

    He claims there’s not a joint product development deal with Google exactly. “This is Google and Epic each separately building product lines,” he says, after the judge points out a line in the document that reads “Google and Epic will work together.”

    Sean Hollister
    Sean Hollister
    “How did you get from that to being willing to do a business deal with the fake open platform people?”

    That’s Judge James Donato to Epic CEO Tim Sweeney, asking him whether he thinks Google is an open platform today, when he called it a “fake open platform” in the past and had publicly given up on that ever changing.

    Sweeney doesn’t have a great answer. Also, I missed copying down what he did said because I was so distracted by what the courtroom revealed right afterwards... one moment on that.

    Sean Hollister
    Sean Hollister
    Epic reached out to Google first to settle, says Sweeney. Why?

    Sweeney says he reached out in late September of last year. “I reached out to Google after the 9th Circuit Court had ruled on the case, and Sameer Samat was willing to discuss.”

    “I felt that events in the world in Epic v. Google and Epic v. Apple were going our way, but globally we were still facing a many year fight, country by country,” he says, deciding that settling was better than continuing to fight other cases around the world.

    The judge is not buying this, as you’ll see in my next dispatch.

    Sean Hollister
    Sean Hollister
    Epic is using its CEO to suggest that it’s better to go global.

    Epic lead attorney Gary Bornstein, earlier:

    “The reason we asked for global, it’s to ensure that even in the United States, there will be sufficient competition because there will be sufficient incentives for people like Epic and small companies to make the investment nescessary to get the scale they need to reach a sufficient portion of the users in the world, not just the 5 percent in the United States.”

    Epic CEO Tim Sweeney, now: “Developers make apps and ship them broadly across all of the world [...] every store will be able to do a much better job of serving US users if it can reach a worldwide audience.”

    The original injunction only applies to the US, but the new proposed settlement has terms that would apply globally.