Google, Epic reveal $800 million deal during antitrust trial over Play Store
The long-running legal battle between Google and Epic Games has shifted from a courtroom war to a commercial alliance as a massive $800 million deal was revealed during the proceedings of Epic's antitrust case against Google.
- Jan 23, 2026,
- Updated Jan 23, 2026 5:06 PM IST
Google and Epic Games revealed a previously undisclosed $800 million partnership during a US antitrust trial, surprising an industry that has watched the two companies fight for years over Google’s Play Store policies.
The deal came to light during Epic’s antitrust case against Google in California. Court filings show the companies agreed to a six-year strategic partnership involving Android, Fortnite and Epic’s Unreal Engine, even as their legal battle continues.
Epic sued Google in 2020 after the Fortnite maker bypassed Google’s in-app payment system to avoid a 30% commission. Google removed Fortnite from the Play Store, setting off a global fight over app-store control.
According to a report in the Verge, the partnership was disclosed during a recent court hearing. US District Judge James Donato questioned whether the agreement was a “sweetheart deal” that could benefit Google and Epic while leaving other developers at a disadvantage.
Court documents describe the deal as covering “joint product development, joint marketing commitment, [and] joint partnerships” tied to Android, Fortnite and Epic’s Unreal Engine.
When Epic Chief Executive Officer Tim Sweeney was asked whether Google would get broader access to Epic’s technology, he briefly stopped himself.
“Epic's 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… sorry, I'm blowing this confidentiality,” Sweeney said.
Sweeney rejected the idea that the agreement was improper. “I don't see anything crooked about Epic paying Google off to encourage much more robust competition than they've allowed in the past,” he testified. He described the $800 million payment as “a significant transfer of value from Epic to Google.”
Under the deal, Epic will pay Google $800 million (about Rs 7,356 crore) over six years. The direction of the payment has raised eyebrows, given Epic’s public criticism of Google’s Play Store.
Sweeney said the companies are not building a single shared product. “This is Google and Epic each separately building product lines,” he said, adding that they plan to “work together.”
Judge Donato said he was concerned that Epic may have “softened” its demands to secure the deal, but allowed the terms to remain confidential for now.
The broader settlement could change how Android works worldwide. If approved, Google’s Play Store fees would be capped between 9% and 20% for several years. Google would also be required to allow third-party app stores, including the Epic Games Store, to operate on Android without objection.
The court has not yet approved the final settlement.
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Google and Epic Games revealed a previously undisclosed $800 million partnership during a US antitrust trial, surprising an industry that has watched the two companies fight for years over Google’s Play Store policies.
The deal came to light during Epic’s antitrust case against Google in California. Court filings show the companies agreed to a six-year strategic partnership involving Android, Fortnite and Epic’s Unreal Engine, even as their legal battle continues.
Epic sued Google in 2020 after the Fortnite maker bypassed Google’s in-app payment system to avoid a 30% commission. Google removed Fortnite from the Play Store, setting off a global fight over app-store control.
According to a report in the Verge, the partnership was disclosed during a recent court hearing. US District Judge James Donato questioned whether the agreement was a “sweetheart deal” that could benefit Google and Epic while leaving other developers at a disadvantage.
Court documents describe the deal as covering “joint product development, joint marketing commitment, [and] joint partnerships” tied to Android, Fortnite and Epic’s Unreal Engine.
When Epic Chief Executive Officer Tim Sweeney was asked whether Google would get broader access to Epic’s technology, he briefly stopped himself.
“Epic's 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… sorry, I'm blowing this confidentiality,” Sweeney said.
Sweeney rejected the idea that the agreement was improper. “I don't see anything crooked about Epic paying Google off to encourage much more robust competition than they've allowed in the past,” he testified. He described the $800 million payment as “a significant transfer of value from Epic to Google.”
Under the deal, Epic will pay Google $800 million (about Rs 7,356 crore) over six years. The direction of the payment has raised eyebrows, given Epic’s public criticism of Google’s Play Store.
Sweeney said the companies are not building a single shared product. “This is Google and Epic each separately building product lines,” he said, adding that they plan to “work together.”
Judge Donato said he was concerned that Epic may have “softened” its demands to secure the deal, but allowed the terms to remain confidential for now.
The broader settlement could change how Android works worldwide. If approved, Google’s Play Store fees would be capped between 9% and 20% for several years. Google would also be required to allow third-party app stores, including the Epic Games Store, to operate on Android without objection.
The court has not yet approved the final settlement.
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