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Sean Hollister

Sean Hollister

Senior Editor

Senior Editor

    More From Sean Hollister

    Sean Hollister
    Sean Hollister
    No longer just an allegation: Google offered Epic a $147 million deal to launch Fortnite on Play.

    We just saw the receipts in court. In a proposal that Google’s VP of Play partnerships confirmed was approved by Google’s business council and actually offered to Epic Games, Google agreed to invest $147M in incremental funding over three years “in an X-PA effort to convince Epic to launch Fortnite on Play.”

    In a document justifying the deal, Google wrote that “Fortnite’s absence could result in $130M (up to $250M) direct revenue loss with Play” and that there could be a “downstream impact of $550M (up to $3.6B) potential revenue loss if broad contagion to other developers.” But Epic said no.

    Sean Hollister
    Sean Hollister
    “The install friction is not only a bad experience, but we know from our data that it will drastically limit their reach.”

    This was the very first in Google’s internal list of “the most principled arguments” it could make to convince Epic to put Fortnite on the Play Store.

    Another argument that Epic’s lawyer didn’t highlight but I spotted below: “the [Play] store will still attract billions of users who will search for Fortnite and run into deadends that aren’t clear how to resolve.”

    I wonder if Google wound up making the latter argument!

    Sean Hollister
    Sean Hollister
    “Frankly, the experience of getting Fortnite on Android from the links Tim sent was frankly abysmal.”

    Those are Kochikar’s words in an email she sent internally, adding, “Do you worry that most will not go through the 15+ steps?”

    She wasn’t just talking about how many steps it took to sideload apps. In the same email, she wrote that “the user experience, and the security risks that come with it, is giving us some real concern.”

    But she also admitted in an old deposition that the steps were definitely part of it — and that even a big company like Amazon would have trouble distributing their apps outside Google Play.

    The context: Google was prepping to convince Epic to launch Fortnite on Google Play instead of as a sideloaded APK.

    Sean Hollister
    Sean Hollister
    Epic moved on from games versus apps pretty quick — now we’re in sideload land.

    Epic lawyer John Hueston did quickly present the read-between-the-lines idea that it might be unfair that Spotify can use its own payments system while game developers cannot.

    But we’re now looking at a painfully slow walkthrough of how many steps it took (in 2015) to sideload an app on a phone — far longer than it takes a user to actually do this themselves.

    I wonder if Google will pull out a phone and show literally just how fast it goes. Still, I admit the sideloading process includes some scary warnings.

    Sean Hollister
    Sean Hollister
    I hope the jury understands what Epic’s saying because this is almost impossible to follow in the gallery.

    Spotify has a special rate, Kochikar agrees.

    The BLANK rate on the page is that rate, right? Yes, says Kochikar.

    There would be an adjustment to that number, right? “Spotify’s number would be adjusted up or down to reflect Google’s actual costs, right?” Yes.

    Oh, but this part is going somewhere: “A games developer does not have the option to use its own payment system, correct?” Yes, except in Korea, she says.

    Sean Hollister
    Sean Hollister
    “You’re going to see this number but now it’s just for you, for me, and the lawyers.”

    Judge Donato telling the jury why we’re not going to say out loud what rate Spotify secretly negotiated with Google to use its own billing option alongside Google Play Billing.

    Ah well, we tried.

    The jury is now getting passed pieces of paper with the numbers on them.

    Sean Hollister
    Sean Hollister
    Epic may have just shown that Google designed User Choice Billing as a fake choice.

    “Our proposal is to price the service fee for devs not using [Google Play Billing] at 5% less than those using GPB — essentially replacement value,” Google wrote in a proposal.

    “Of course, as we noted, at a reduction of 5%, we don’t think this solves the problems of any devs who are complaining about price,” reads another line from the same document.

    Why? “A key element of this optionality proposal is we don’t want to give any artificial reasons to incent devs to switch off Play Billing.”

    Excepting any sweetheart deals, Google wound up launching User Choice Billing at a 4 percent reduction, not even 5 percent. And in an old deposition, Kochikar admitted that devs wound up paying the same effective service fee in the end — apparently because they still have to pay an alternative payment processor in addition to Google’s rate.

    Sean Hollister
    Sean Hollister
    Epic found emails that makes it look like Kochikar advocated for a secret Google-Tinder deal.

    “We would like to discuss mitigating that risk by offering 15% rev share to Match Group,” she wrote in one of them.

    In another, she wrote that Google’s “value exchange models support the hypothesis that custom deals” like Project Hug would be enough to satisfy developers. It sounded like she was in favor of a “policy change without a public change to the business model.”

    Kochikar keeps trying to suggest it’s more complicated than this, that Google looked at multiple factors beyond those “value exchange models,” but Epic lawyer John Hueston is reminding her to just answer the questions.

    Sean Hollister
    Sean Hollister
    Purnima Kochikar admits that we’ll never see her chats.

    “During this case, you had your default setting to delete chats every 24 hours, correct?”

    “That was the default.”

    “And you didn’t take any steps to change deletion settings for your chat software, correct?”

    “Yes.”

    Sean Hollister
    Sean Hollister
    Bumble’s own internal document suggests forced Google Play billing didn’t universally harm it.

    “Bumble is [average revenue per user] neutral since the enforcement,” one line reads.

    “We have seen a decline in payers but an offsetting increase in ARPPU due to the removal of one-day subscriptions and alternative payment methods.”

    Watts was also asked if he thought it was a pro-consumer change that Google notified subscribers that uninstalling the app didn’t cancel their subscriptions. He said yes.

    We’re moving on to Purnima Kochikar, VP of Google Play Partnerships and formerly Director of Apps and Games.