Google is paying rivals not to create alternatives to the Play Store, it’s illegal

Google would pay some amount $360 million to Activision Blizzard so that the latter does not create its own app store. Under the terms of this agreement, the video game giant commits not to compete with Google’s Play Store for three years. Mountain View company Signed at least 24 contracts of this type Along with Activision, along with various development studios such as TenCent, Nintendo and Ubisoft.

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After learning these procedures Epic Games decided to sue Google as early as 2020 He is in court for anti-competitive practices aimed at ensuring the Play Store’s monopoly on the marketing of Android apps. This procedure also reminds us of the lawsuit between Epic Games and Apple. Fortnite’s publisher is accusing the Cupertino company of demanding an unfair share of in-app payments on video games.

Among other major contracts, Google would pay Activision Blizzard $360 million

Google admits that the Play Store generates billions of dollars in profits. The proliferation of competing app stores would be disastrous for the company. Epic Games especially criticizes Google for leaving all its financial power and infrastructure behind. Consolidation of the Google Play Store monopoly. This secret initiative even has a name: “Project Hug”. Developers are paid to post videos on YouTube, as well as credits to be spent on the company’s cloud services and Google Ads.

Once again, Google finds itself on the hot seat due to anti-competitive practices. According to Epic Games, “such an agreement increases prices and reduces the quality of service.” Arguments that American officials will likely be sensitive to. The Mountain View giant isn’t the only giant being scrutinized by the American FTC. The European Union and the latter are currently reviewing the viability of Microsoft’s acquisition of Activision Blizzard. The merger of these two video game giants would create a dangerous monopoly from a competitive standpoint.

Source : Reuters