147 – Breaking News & Latest Updates 2026
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Sean Hollister

Sean Hollister

Senior Editor

Senior Editor

    More From Sean Hollister

    Sean Hollister
    Sean Hollister
    “Our ultimate goal here would be to have a joint mobile app store,” said Activision Blizzard CFO.

    “Our ultimate goal here would be to have a joint mobile app store — we strongly believe that scale at the front end will benefit all of us and our players, plus increase the odds of success,” Zerza told Tim Sweeney in May 2019.

    “We have already announced CoD and Diablo mobile, more to come,” he teased.

    In a 2022 video deposition, he told the court there were many reasons to explore the idea:

    one of them was to create a more direct relationship with our players, for example, and when we have more direct relationships, then we generally are better able to see what our players are actually engaging with faster. We do have those date form our partners to, but there’s always a time lag.

    It would have had an interoperable account system, and the idea was to build the storefront first, then add marketing and promotions later on, according to the emails.

    But in the 2022 deposition we’re hearing now, Zerza claims they were “very early exploratory discussions.”

    “Obviously we never pursued it because it wasn’t financially attractive for us,” he says.

    Lawyers questioning him are asking questions designed to see how serious ABK really was, and whether it lied to partners about its plans. Whether Google and Epic believed Activision Blizzard is relevant to this case.

    Sean Hollister
    Sean Hollister
    “Steam of mobile”: Activision Blizzard, Epic, and Supercell scrapped a plan to launch their own app store.

    In 2019, Epic Games CEO Tim Sweeney and Armin Zerza discussed a plan to “create a consortium between Epic, Supercell, and ABK.”

    The goal: “one single mobile games store focused on distribution of mobile games (“STEAM of Mobile” concept), including a single payment system.”

    We’re seeing their emails in court right now:

    Sean Hollister
    Sean Hollister
    Activision Blizzard’s CFO confirms ABK was paying 30 percent — and asked Epic’s CEO if he wanted to change that.

    ABK CFO: “I asked Mr. Sweeney whether Epic, in this case, would be open or interested in, you know, joining a conversation on developing our own mobile distribution payment systems.”

    Now, we’re hearing they wanted to build a mobile game store together, too.

    Sean Hollister
    Sean Hollister
    Epic and Google’s economists are done, and we’re moving on.

    Google got a brief chance to ask its economist Tucker a few last questions, but Epic successfully objected to most of them. She did get to say that she doesn’t believe the gap between the time Apple introduced new pricing and Google followed Apple’s lead was relevant, suggesting these things take time in the real world.

    We’ve now moved on to a September 22nd, 2022, video deposition with Activision Blizzard CFO Armin Zerza.

    Sean Hollister
    Sean Hollister
    “I see partnerships, not market power.”

    That’s Google’s economist Catherine Tucker, making an interesting suggestion that fits her proposed market definition: she suggests that OEMs are not customers for Android, and thus Google isn’t a seller in a market because she sees them as partnerships instead.

    Epic moved on to attacking some of Tucker’s earlier points about competing with Apple, suggesting that whether Apple has a better product that indeed competes with Google’s products doesn’t tell us anything about whether Apple “constrains the Play Store as a competitor.”

    Sean Hollister
    Sean Hollister
    “Isn’t everything on the internet designed to facilitate the delivery of digital content?”

    That’s Judge Donato, who interrupted yet again to ask if Tucker’s market definition is... broad. “What’s not in your vision?” he asks.

    “Things which are cumbersome, burdensome, not easy ways of delivering digital content,” she replies.

    “Can you name a couple for us?“

    She suggests that physically going to GameStop to buy a Nintendo Switch cartridge, which technically contains digital content, might be one.

    “Is there anything online that is not in the relevant product market as you define it? Anything at all?”

    A long pause. “So....”

    “I think because I’m including the ability to self distribute...”

    She lands on Disney Plus.

    “There’s many ways I can get that content to you... that would include subscribing on my PC through a website [...] a smart TV would be another way ... I’d include all those ways because we’re allowing for the possibility of self distribution,” she says.

    The judge leaves it at that for now. We’ve just moved on from market definition to other parts of Tucker’s report, but not before Epic tried its best to make Tucker look like she’s in fantasyland, with questions like, “In your view there are not even transactions between the smartphone OEMs and Google, correct?”

    Sean Hollister
    Sean Hollister
    Why I think Google is keen on Tucker’s market definition:

    I went back to check last night, and sure enough: back when Epic lost its first fight against Apple in that separate and earlier case, Judge Yvonne Gonzalez Rogers handed out that loss / victory based on her own chosen market definition of “digital mobile gaming transactions.”

    In a vacuum, that sounds pretty similar to Tucker’s definition of “facilitation of digital content transactions” — except for Google, it’s even better! Because it’s not limited to mobile, Tucker can point out that Android also competes with other gaming platforms like PlayStation, Xbox, and Nintendo, all of which have rigid 30 percent fees.

    Sean Hollister
    Sean Hollister
    Judge Donato: “are browsers included?”

    The judge interrupts Epic’s cross-examination to drill down on Tucker’s market definition yet again, asking if the “the facilitation of digital content interactions” would include web browsers.

    She initially says no, it’s about “an instance where a platform can add value.” But he probes further, asking if they would be such a platform in the online world. She waffles slightly, saying they need to have the ability to self-distribute.

    The judge asks one more time: “Would you include browsers in the relevant product market?”

    She says yes.

    Sean Hollister
    Sean Hollister
    It’s Epic’s turn to question Google’s expert economist Catherine Tucker.

    Google finished up its first round with her yesterday, and now Epic gets to cross-examine. Epic lead attorney Gary Bornstein is beginning with likely the key to this entire case — the relevant product market, which determines whether or not Google has monopoly power to begin with.

    Tucker chose a market definition that gave the judge a double-take: “the facilitation of digital content transactions.”

    Now, Epic will try to poke holes in it.

    So far, Bornstein seems to be implying that Tucker’s definition is not a product — he suggests neither Google nor Apple ever refer to their products this way — but he’s early on in his line of questioning so I guess we’ll see!

    Sean Hollister
    Sean Hollister
    Epic v. Google day 13 begins — the judge demands demands.

    On Tuesday, right before end of day, Epic revealed that it’s never actually formally discussed settling with Google, and Judge Donato ordered a settlement conference before we go to jury verdict.

    This morning, the judge got clearer: Epic must file demands by 9AM Saturday. “The demand is going to be all-inclusive, detailed, and specific,” he says.

    Google gets 24 hours to respond: “Google will serve an all-inclusive, detailed response... by 9AM on Monday morning,” he adds. The settlement conference will be just four people: Epic Games CEO Tim Sweeney, Google’s “right person to sign an enforceable deal,” and lead attorneys for both parties.