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Sean Hollister

Sean Hollister

Senior Editor

Senior Editor

    More From Sean Hollister

    Sean Hollister
    Sean Hollister
    Epic v. Google day 14 — here are the questions each party wants the jury to decide.

    I’ve been wondering for many days — what will the members of the jury actually be allowed to decide? They’re not going to define the relevant product market all on their own, right?

    I can now give you a slightly better idea — last night, Epic and Google submitted dueling proposed jury verdict forms (pdf). As you’ll see right away, Epic is trying to avoid defining the market, while Google is asking jurors if Epic proved that an “Android app distribution market” and an “Android in-app billing services market” exist to begin with.

    It can’t be both ways: only one final judge-edited verdict form will reach the jury.

    Sean Hollister
    Sean Hollister
    The forbidden popcorn button.

    Technology Connections is a phenomenal YouTube channel, and I have no qualms letting Alec’s latest video take the place of our regularly scheduled Button of the Month for December — it’s very good.

    I got a tad too busy with daily live courtroom reporting and some gaming handhelds to write or edit this month’s column, but I promise it’ll be back in January! Hint: think blue.

    Sean Hollister
    Sean Hollister
    Epic v. Google day 13 is over — a few last things.

    We’ve nearly spent a fortnight in Fortnite court.

    Here’s how we ended the day: Judge Donato told Epic that he doesn’t believe any of Google’s conduct reaches the standard of being “per se anticompetitive.”

    “I’m perfectly fine with rule of reason but I’ve having trouble saying they’re so egregious on their face,” he said.

    Epic lead attorney Bornstein says he’s only seeking per se for the Project Hug agreements with Riot, Activision, and Supercell, and the judge says he’s willing to hear more but isn’t inclined to take this away from the jury. He thinks we’ll be deciding everything under the rule of reason standard instead, partly because of a Circuit Court decision (presumably referring to where Epic v. Apple went on appeal.)

    Judge Donato also wanted to know where Epic thought we’d land on the relevant product market, and Bornstein said he’s handling it differently than in Apple because of Google’s very different structure of business relationships. The judge wound up saying, “I don’t think aftermarket concepts are in play here.”

    I am not a lawyer or even a legal reporter, so I’m not going to translate any of this for you on the spot. It’s not worth getting it wrong.

    Sean Hollister
    Sean Hollister
    Google’s payments to Motorola / Lenovo didn’t wholly prevent it from preloading competing apps.

    Motorola’s Christensen has testified that Motorola is the one that chooses to enter into a Mobile Incentive Agreement (MIA) with each new device, and it can apply for an exemption if it really wanted to preload another app.

    “Even if it didn’t get the exemption, Motorola could still enter into the preload deal, that would just reduce the percentage of devices in the MIA portfolio, right?” asks a lawyer.

    “That’s a fair way to say it,” replies Christensen. (So Lenovo is simply getting paid less for fewer devices in compliance, I believe I’m hearing.)

    We are done with testimony for the day but listening to the judge talking to both lawyers about what’s coming next.

    Sean Hollister
    Sean Hollister
    Motorola had its own reasons for only preloading the Google Play store, though.

    Christensen has been asked about the company’s “Pure Android strategy,” where the company tends to put more of a stock Android / Google experience on its phones rather than reinventing the wheel by creating its own apps.

    “The primary benefit had been for us to differentiate ourselves compared to the likes of Samsung, for example,” he says.

    Later, he was asked if Motorola had any non-contractual reasons to avoid preloading another store. “The most common reason that exists is because of redundancy for consumers,” he says. Obviously Motorola can’t pre-load the iOS App Store, and “most stores available as a third-party store are more limited,” he says.

    “So we think it’s in the consumer’s best interests to have one.” Google Play is that one.

    Sean Hollister
    Sean Hollister
    An internal Lenovo / Motorola document shows the company gets paid millions when it complies with Google.

    A document titled “Impact of non-compliance” lists different payments for different percentages of Motorola phones that comply with Google’s rules under its Mobile Incentive Agreement (MIA), ranging from hundreds of thousands of dollars to multiple millions.

    In 2020, if over 95 percent of Motorola devices were compliant, parent Lenovo would receive $5.3 million, Christensen explained.

    For 2021, the amount was $6 million.

    One of the requirements for compliance (bolding mine):

    We are prohibited from:

    Pre-loading our own or third-party apps that are similar to theirs including: wallets, payment apps, browsers, search providers, other assistants like Alexa, or apps that download other apps such as Digital Turbine or another app store

    This may be a good find for Epic, because it appears to be a direct payment — not a complicated deal that involves co-marketing or revenue share. Even though it’s similar to what Google requires with its RSAs, it looks more like Epic’s argument that Google pays some companies not to compete. Not every OEM had an MIA — the Department of Justice alleged that LG and Motorola were the ones.

    Sean Hollister
    Sean Hollister
    Motorola says it went all in on Android because it was “struggling financially.”

    Christensen says he doesn’t think Motorola would still be in phones if not for Android because the company was struggling financially after attempting to support multiple operating systems simultaneously, including Symbian and Microsoft (presumably Windows Mobile).

    “To consolidate our engineering efforts into fewer OS solutions was definitely the priority at the time,” he says.

    Earlier: “I don’t think we’re able to license iOS from Apple, so Android is what we end up shipping.”

    Sean Hollister
    Sean Hollister
    Epic v. Google is back with Motorola — specifically Eric Christensen.

    His LinkedIn lists him as “Executive Director, Software Product Management and Partner Management,” but that’s a recent title. Back in 2008, he would have been “Director, North America Software Planning and Systems Engineering, Mobile Devices,” and thus been there for the beginning of Motorola’s relationship with Android.

    (Motorola arguably produced the first breakout hit Android phones with the Motorola Droid line. The first Android phone was an HTC device, the HTC Dream, which was branded as the carrier-exclusive T-Mobile G1 in the United States.)

    He says he was responsible for the revenue sharing agreements between Motorola and Google, in a taped deposition we’re watching from July 2022 — and they were initially about a share of Google’s search revenue, he says. Google has tried to suggest that its search revenue share (with Apple, anyhow) isn’t relevant to this Android case.

    Sean Hollister
    Sean Hollister
    “Sir, you’re not suggesting to this jury because Google had a pro-competitive vision in 2008, what Google did in 2018 is pro competitive, are you?”

    “No, I couldn’t be making that statement,” says Miner.

    And with that, Miner’s purpose in the courtroom for Google has largely ended? Google asked one last question — Miner said he believes Android would have been confusing if there wasn’t “a single place for people to publish their apps.”

    He has stepped down from the witness stand, and we’re on break.