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Sean Hollister

Sean Hollister

Senior Editor

Senior Editor

    More From Sean Hollister

    Sean Hollister
    Sean Hollister
    Dr. Rose says Epic and Google’s proposed settlement would ‘fall far short’ of fixing things.

    She tells the court it’s like a market owner who bars the doors and locks the gates after customers arrive, then a ditch outside fills with water “too deep and wide for anyone to cross.”

    “It’s not going to help to tell the market owner to unlock the doors,” she says. “You have to lower the drawbridge for a while.” She says Judge Donato’s original injunction, which forces Google to crack open its app store by letting the apps out, is that drawbridge, and that Epic and Google are now trying to get rid of the drawbridge part.

    Sean Hollister
    Sean Hollister
    We’re back in Epic v. Google with Nancy Rose, an MIT economics professor.

    Now that we’re done with Epic’s CEO and Google’s Android boss — both of whom are still in the room — Dr. Rose is here with her thoughts after evaluate the antitrust and economic effects of the proposed settlement. She says the court assigned her to do that.

    Sean Hollister
    Sean Hollister
    Epic judge shortcuts the question about Google’s motivations.

    Judge Donato asks Google’s Android boss whether he sees the catalog injunction (which would force Google to share its catalog of Google Play apps with rival stores) as a plus or minus. Samat says it’s a minus, primarily because Google doesn’t want to get blamed by developers and users when there are issues. He says he foresees Google getting caught in the middle between users, developers, and competing stores.

    “Is that the only thing you can think of, that a developer might get upset because there’s a store they don’t want to be associated with?” asks Judge Donato. “The minus for Google is that catalog access and hosting rival app stores on Google Play creates competition that didn’t exist before, right?”

    I missed getting the whole quote, but Samat says “we were seeking a way of achieving that goal without a fee in the middle.” Samat is done for the day, and we’re all taking another 10-minute break.

    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.”