{"id":298481,"date":"2026-01-22T23:17:09","date_gmt":"2026-01-22T23:17:09","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/298481\/"},"modified":"2026-01-22T23:17:09","modified_gmt":"2026-01-22T23:17:09","slug":"epic-and-google-have-a-secret-800-million-unreal-engine-and-services-deal","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/298481\/","title":{"rendered":"Epic and Google have a secret $800 million Unreal Engine and services deal"},"content":{"rendered":"

A judge is questioning whether Epic Games and Google are settling their long-running antitrust fight<\/a> partly because of a previously unannounced partnership involving the Unreal Engine, Fortnite, and Android. In a hearing in San Francisco today, the court revealed that Epic and Google have struck a new deal that apparently includes \u201cjoint product development, joint marketing commitment, joint partnerships.\u201d California District Judge James Donato expressed concerns that the agreement \u2014 which he indicated would involve Epic \u201chelping Google market Android\u201d and Google newly \u201cusing Epic\u2019s core technology\u201d \u2014 could have led Epic to soften its demands for changes to the overall Android ecosystem.<\/p>\n

Donato allowed Epic and Google to keep most of the details of the plan under wraps. But during the hearing, he quizzed witnesses, including Epic CEO Tim Sweeney and economics expert Doug Bernheim, on how it might impact settlement talks \u2014 revealing some hints in the process. \u201cYou\u2019re going to be helping Google market Android, and they\u2019re going to be helping you market Fortnite; that deal doesn\u2019t exist today, right?\u201d Donato asked Bernheim, who answered in the affirmative. He also described it as a \u201cnew business between Epic and Google.\u201d<\/p>\n

Sweeney\u2019s testimony cracked the mystery a little further. He referred to the agreement as relating to the \u201cmetaverse,\u201d a term Sweeney has used to refer to Epic\u2019s game Fortnite. \u201cEpic\u2019s technology is used by many companies in the space Google is operating in to train their products, so the ability for Google to use the Unreal Engine more fullsome\u2026 sorry, I\u2019m blowing this confidentiality,\u201d Sweeney said.<\/p>\n

Donato then offered a hard dollar figure on one part of the deal: \u201cAn $800 million spend over six years, that\u2019s a pretty healthy partnership,\u201d he said. We soon learned that refers to Epic spending $800 million to purchase some sort of services from Google: \u201cEvery year we\u2019ve decided against Google, in this year we\u2019re deciding to use Google at market rates,\u201d he said. Sweeney did throw cold water on the idea that Epic and Google are jointly building a single new product together, though. \u201cThis is Google and Epic each separately building product lines,\u201d he clarified, when Judge Donato asked what the term sheet referred to with the line \u201cGoogle and Epic will work together.\u201d<\/p>\n

Google declined comment on the deal; Epic did not immediately reply to a request for comment.<\/p>\n

Donato seemed potentially leery of the partnership, asking Bernheim whether it could constitute a \u201cquid pro quo\u201d that reduced Epic\u2019s incentive to push for terms that would benefit other developers. Currently, Epic is backing a settlement<\/a> that would see Google reduce its standard app store fees worldwide and allow alternative app stores to register for easy installation on Android.<\/p>\n

\u201cI don\u2019t see anything crooked about Epic paying Google off to encourage much more robust competition\u201d<\/p>\n

Sweeney disputed the notion that Epic might be getting paid off to soften its terms, when it\u2019s the one paying out. \u201cI don\u2019t see anything crooked about Epic paying Google off to encourage much more robust competition than they\u2019ve allowed in the past,\u201d he said. \u201cWe view this as a significant transfer of value from Epic to Google.\u201d He also says the Epic Games Store won\u2019t get any special treatment from Android in the future under this deal.<\/p>\n

It appears that the settlement arrangement is tied to the business deal. Judge Donato suggested that Epic and Google would only make the deal if the settlement goes through. Sweeney says the specific terms of the deal have not yet been reached, but admitted that he expects them to. He told Judge Donato that yes, he considers the settlement and deal \u201can important part of Epic\u2019s growth plan for the future.\u201d<\/p>\n

Sweeney has said in the past that Epic won\u2019t cut sweetheart deals with platforms. In 2023, after the Epic v. Google victory, he told The Verge<\/a> that \u201cwe\u2019ve always turned down special deals just for Epic. We\u2019ve always fought on the principal that all developers should be, you know, given the same opportunities.\u201d<\/p>\n

Disclosure: Vox Media, The Verge\u2019s parent company, has filed a lawsuit against Google<\/a>, seeking damages from its illegal ad tech monopoly.<\/p>\n

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