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Sean Hollister

Sean Hollister

Senior Editor

Senior Editor

    More From Sean Hollister

    Sean Hollister
    Sean Hollister
    Epic’s VP of marketing admits Epic chose not to target its partner Samsung.

    We’ve known for years that Epic’s Project Liberty was a hush-hush plan to draw Apple and Google into a legal antitrust battle — and Epic just admitted it built a “coalition” lobbying group to help achieve its aim.

    But the company’s Project Liberty never targeted Samsung, Weissinger just admitted on the stand — after also admitting that, yes, Samsung does things that the Coalition for App Fairness rejects.

    “You do not believe that Samsung abides by the principles for app fairness that are on your coalition’s website?” asked Google’s attorney.

    “I agree with your statement,” he replied.

    “Epic has a special deal with Samsung Galaxy, correct?” Correct.

    “Epic chose not to focus Project Liberty on Samsung, correct?”

    “Yes, that’s correct,” said Weissinger.

    Epic’s attorney got a chance to redirect, and Weissinger started off weak, suggesting that Samsung are “exceptional promotional partners that really go above and beyond.”

    Epic attorney Moskowitz tried again. “Does Samsung have the same reach and control and power as Google?”

    “No it does not,” said Weissinger.

    Sean Hollister
    Sean Hollister
    Epic just admitted the “Coalition for App Fairness” was created solely by Epic.

    I personally broke this story in 2021, but Epic would not confirm or deny the details to me back then.

    Weissinger just did that today on the stand. “Yes, it was our idea,” he said, confirming that Epic paid a consultant $100,000 to start the lobbying group, and that there were no other founding members.

    In 2020, the “Coalition” told press that Epic Games, Spotify, Basecamp, Match Group, Tile, Blix, and Deezer were all “founding members” of the organization, but Google just asked if any of them were indeed founding members.

    “If you’re referring to the incorporation, no they were not,” said Weissinger.

    Here’s how my request for comment went in 2021, in case you’re curious:

    But Epic would not confirm or deny whether it provided the original funding, hired a consultant to form the group, or bound that consultant to report directly to Epic, after repeated requests, and no CAF member we contacted would comment on that.

    Sean Hollister
    Sean Hollister
    Google suggests Epic’s sideloading fail was about Fortnite, not friction.

    We’ve heard a lot about the friction Google erected to keep “unknown” sources from installing apps on Android phones and how Epic believes it’s detrimental, but Google just showed that Epic knew Fortnite’s high minimum requirements to play on Android phones and its huge download size were also barriers.

    Epic estimated that 37 percent of users gave up between “Clicked Download on Web” and opening the Epic Games app — but 40 percent dropped off after opening the Epic Games app and before passing a minimum spec check.

    Weissinger says 40 percent is not bigger than 37 percent “in terms of absolute players,” suggesting more players were dissuaded by the former, but had to admit that 40 is bigger than 37 “as a number.”

    Update: Weissinger has now explained that the 40 percent was of the remaining players after 37 percent of those attempting to download had already been dissuaded.

    Only 260M phones met Fortnite’s minimum system requirements, compared to billions for competitors, the document showed.

    “Download and Patching Process remains a challenge on mobile due to Fortnite Download Size relative to competitors,” reads another line from Epic’s document, showing that Fortnite’s first download took over 14 minutes, compared to under a minute for PUBG and Call of Duty: Mobile.

    Sean Hollister
    Sean Hollister
    Fortnite’s initial launch on Android “was not what we hoped for.”

    That’s Epic’s VP of marketing today.

    In a February 2020 internal document, Epic wrote that “mobile drives new accounts,” with 38 percent of daily new accounts in 2019 coming from a mobile platform.

    But it also wrote that “mobile retention is low compared to other platforms,” with iOS retaining just 6 percent of players and Android retaining just 4 percent after the 30-day mark, compared to 16 percent on PS4, 11 percent on Xbox One, and 21 percent on Nintendo Switch.

    And as we’ve already covered, players weren’t buying their V-Bucks on Android but, rather, on console. Just 0.7 percent of purchases were on Android as of 2018. Players who were introduced to Fortnite on PS4 bought 94.2 percent of their V-Bucks on PS4, but only 21.6 percent of those who started with Android bought their V-Bucks there. (34.8 percent of them bought them on PS4. Over 5 percent bought them on iOS.)

    These all predate Fortnite’s launch on the Play Store — they’d have been from the sideloading days.

    Sean Hollister
    Sean Hollister
    We’re back with Matthew Weissinger, VP of marketing at Epic Games.

    Google’s Paul Gennai was dismissed just before lunch, and we’re now hearing from Epic’s marketing chief — but he’s Google’s witness, which means Google is asking the questions, which means we’re not starting with pleasantries.

    Google has just asked about Fortnite’s low retention of players on mobile — a point I myself brought up the other day.

    Sean Hollister
    Sean Hollister
    Epic may have found a smoking gun after all.

    In a March 26th, 2019, email from Google’s Paul Gennai to Atul Kumar (bolding mine):

    In terms of the Samsung proposal, a few thoughts:

    I realize that Jim noted a $50M a year number, but it’d be helpful to put that into perspective. What would that be in terms rev-share number, recognizing we might prefer to hide it in some way?

    Note that I do think that a rev-share would be better at disincentivizing other app stores from being preloaded (given it’d defray revenues), which is why I liked the idea of offering a rev-share across Search and Play, but not breaking out the figures in our accounting to them.

    I’m confused on the homescreen exclusivity part. If they’re distributing via Play, is the fight to have them remove Galaxy Store from the homescreen really worth fighting? I can see them digging in here and I’m not sure it’s worth us being tied to it.

    Google did wind up doing the revenue sharing arrangements with RSA 3.0. Wouldn’t companies have to factor in this lost revenue share before preloading another store? asked Epic. “Yes, another app store would have to compete on a similar basis,” said Gennai.

    We’re going to lunch now.

    Sean Hollister
    Sean Hollister
    Google Gets = No Galaxy Store.

    Epic just showed us an internal Google proposal document from May 23rd, 2016, where it was figuring out its “next steps with Samsung.”

    Within that document, there’s a list of what “Google Gets” and what “Samsung Gets” for each of the proposed items.

    One of those proposed items was “Samsung Zone in Play replaces Galaxy Store.”

    The “Google Gets” field reads: “No Galaxy Store.”

    The “Samsung Gets” field reads: “Stop wasting resources on Galaxy Store.”

    Epic’s attorney summed up: so, there was an offer for Google to pay Samsung $50 million a year to close the Galaxy Store?

    Gennai said he didn’t recall it like that. “I recall it being a separate storefront that would use Google Play infrastructure.”

    Sean Hollister
    Sean Hollister
    “I don’t think of Hug as secret deals.”

    That’s Google’s Paul Gennai, who pushed back reasonably well against Epic’s assertion that these were so secret as to be illicit. “I don’t think Google publishes most commercial relationships with companies,” he said.

    When he pointed out that most companies in Hug deals “continue to pay the published rate,” though, Epic leapt at that.

    “Yes, exactly, they just got millions and millions of dollars on the side.”

    Gennai protested that those companies work with Google.

    “To the tune of millions of dollars in cash and prizes,” asserted Moskowitz.

    “I don’t know the numbers,” replied Gennai.

    Sean Hollister
    Sean Hollister
    The magical change has arrived.

    We’re looking at Gennai’s big document again, the one Judge Donato said would magically change, and I’m pleased to say I have now copied down a huge chunk in full for your reading pleasure.

    Epic’s lawyer is asking a variety of questions about various passages, but the most compelling ones were these:

    Was “contagion” the driver behind Project Hug?

    “Yes, we did not want the loss of titles from Google Play to start a chain reaction of more and more titles on Google Play leaving.”

    Was Google worried about losing them to other competing app distribution mechanisms on Android?

    “They could just leave Android entirely and keep focusing on iOS.”

    Would a developer like Activision Blizzard King just up and abandon Android’s billions of users?

    “They can use it as a threat. We didn’t see it,” says Gennai.

    Sean Hollister
    Sean Hollister
    Google’s “biggest Play priority” for Q1 2019 was to address agitators like Epic.

    January 11th, 2019, in an email from Gennai to a “Sri” who’s being tasked with a big project:

    The project that Mike will talk to you about is our biggest Play priority for Q1, but one that we don’t have the resources to staff (our Play strategy team had a lot of departures into the business).

    Essentially, Jamie and Sameer are asking us to consider what Play should do in the face of increasing app store competition on Android, both from OEMs (who are looking to increase services revenue / differentiate devices with content) and other large platforms (like Epic). In that context, they’re willing to consider all options, including changes to our business model, considering paying our OEMs and carrier partners, and more.

    We see it as two phases: setting the scene for why it’s important (some scenarios for impact on Play, Android and Google), then onto solution design.

    It’s a huge project and one where we’d definitely appreciate the help. Jamie and Sameer have already confirmed they can allocate an hour every other week to keep track of progress and make decisions.