190 – 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
    Epic is attempting to prove Google paid Activision Blizzard and Riot to contain the contagion.

    I would not say Epic’s close to proving it yet, but Koh did testify both Activision Blizzard and Riot had signaled they were looking into building their own app stores and that King (part of Activision Blizzard) agreed not to ship their games on any other platform before Google Play and with feature parity.

    We’re also seeing emails between bizdev leaders at Google about how Activision was trying to negotiate $20M via YouTube and $100M of credits, plus many more millions of dollars for exclusive rights to stream all of Activision’s esports including the Overwatch League and Call of Duty League — $50M for year one of that, $60M for year two, with an option for a year three.

    Ryan Wyatt, head of YouTube gaming, seemed skeptical in an email about the size of that deal, saying Activision didn’t yet generate $20M a year for YouTube.

    And now we’re going on lunch break.

    Sean Hollister
    Sean Hollister
    The Hug ask.

    According to the internal Google document, the Play bizdev team wanted to invest $575 million in game developers at risk of “contagion” through 2022, giving them a mix of “3-year credits,” “ad investments,” YouTube and esports deals, and co-marketing valued at hundreds of millions of dollars.

    It also wanted to hire 59 new employees to manage these deals. With Samsung specifically, it wanted to “initiate gaming collaboration discussions, including direct financial value to Samsung of up to $250M through 2022.” We’ll hear about this more as Project Banyan.

    It’s not clear from these documents alone if Google approved the first ask. Google has already said Banyan never happened.

    Sean Hollister
    Sean Hollister
    The “agitators.”

    Epic wasn’t the only company that Google was worried about setting off a “contagion effect.” The document we’re looking at shows the Samsung Galaxy Store was asking for 20 percent rev share, rather than 30 percent, and that OnePlus was asking for 20 percent as well — and also offered third-party billing options for a 5 percent rev share.

    Koh confirms that Google internally referred to those with a lower than 30 percent fee as “agitators.”

    Google planned to target developers who were discontent with Google’s 30 percent rev share and had the capabilities to “go-it-alone” on Android, according to the document.

    Sean Hollister
    Sean Hollister
    The “contagion effect.”

    Lawrence Koh, who ran Google Play’s games bizdev, is getting quizzed about a document that seems to show Google running scared.

    If I’m reading it correctly, Google was forecasting that 100 percent of top game developers would defect from Google Play by 2020 and that the “contagion effect” would consume an increasing percent of Google’s app store revenue every year, including 6 percent ($630M worth) in 2021, and 7 percent (over $800M) in 2022, for a cumulative total of $2B by the end of that year.

    Sean Hollister
    Sean Hollister
    Time for a hug.

    “Project Hug,” to be specific, the one where Epic alleges that Google paid off game developers to stick with the Play Store.

    Lawrence Koh, former director of games business development at Google from 2019–2020, is now on the stand answering questions from Epic about Hug and a presentation titled “Boosting Top Game Developer Support & Securing Play Distribution on Samsung Devices.”

    Sean Hollister
    Sean Hollister
    “You cannot guarantee that the documents that were destroyed will contradict the testimony we’re going to hear?”

    Lopez couldn’t.

    “We’ll never know that,” Moskowitz replied.

    And with that, Epic seems to have thoroughly made its point that Google may have destroyed evidence. Not that it did — but that it might have.

    The court is going on a short break.

    Sean Hollister
    Sean Hollister
    Google says there are important reasons not to retain employees’ personal chats.

    Lopez says some employees are in substance abuse recovery groups, for example. Most of Google’s questions about their own information retention policies seemed to be about how they work, though. I may have missed the point there.

    Epic lawyer Moskowitz is asking tough questions again: “[The legal hold] required employees to take affirmative steps to retain chats, and you didn’t take affirmative steps to ensure they did so?”

    “That’s right,” he says.

    Sean Hollister
    Sean Hollister
    She went in for the kill.

    Google’s chats czar is looking a little dodgy right now! Moskowitz asked: “You concede that business chats were destroyed while Google was under a legal obligation to preserve evidence?”

    Lopez repeatedly said he didn’t know, couldn’t know, and wouldn’t speculate on what was inside them — even though he admitted earlier that Google employees absolutely use them for business, and after we’d seen Google employees turning off Chat History. “It’s quite possible that those chats contained substantive business information, right?” He wouldn’t say.

    Google’s turn to talk to him, and perhaps make the decision not to retain employee’s personal chats seem reasonable.

    Sean Hollister
    Sean Hollister
    Google is not denying that it could have changed its retention policies — forcing every employee to automatically retain all their chats.

    Epic’s attorney Lauren Moskowitz is on a roll here, with Lopez agreeing again and again that Google technically had the ability to force Chat History on for every conversation — but didn’t.

    “Google did not change its normal retention policy for chats, even when it was on a legal hold to do so?”

    “That’s right,” answered Lopez.

    Sean Hollister
    Sean Hollister
    Google’s HR training for employees suggested that chatting off-the-record was better.

    In a theoretical scenario where an angry Google employee might send an email to another employee, the “correct” answer was to “talk to the team lead in the morning,” partially because, “It’s less likely that a record of the conversation could be discovered by an adversary and used against you, and Google, in ways you didn’t imagine.”

    The second-best answer was not to send the email and chat “off the record” via Hangouts instead because there’s still a risk that “any chat participant may save the conversation by simply pasting it into a doc or email.”