Google struck $360-mln Activision deal to block rival app store, lawsuit says - Reuters

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[1/3] The logo of Google is pictured during the Viva Tech start-up and exertion acme successful Paris, France, May 25, 2018. REUTERS/Charles Platiau//File Photo

OAKLAND, Calif., Nov 17 (Reuters) - Alphabet Inc's (GOOGL.O) Google has struck astatine slightest 24 deals with large app developers to halt them from competing with its Play Store, including an statement to wage Activision Blizzard Inc (ATVI.O) astir $360 cardinal implicit 3 years, according to a tribunal filing connected Thursday.

Google besides agreed successful 2020 to wage Tencent Holdings Ltd's (0700.HK) Riot Games unit, which makes "League of Legends," astir $30 cardinal implicit 1 year, the filing stated.

The fiscal details emerged successful a recently unredacted transcript of a suit that "Fortnite" video crippled shaper Epic Games archetypal filed against Google successful 2020. It alleged anticompetitive practices related to the hunt giant's Android and Play Store businesses.

Google has called the suit baseless and afloat of mischaracterizations. It said its deals to support developers satisfied bespeak steadfast competition.

Riot said it was reviewing the filing. Activision did not respond to requests for comment.

Epic past twelvemonth mostly mislaid a similar case against Apple Inc (AAPL.O), the different starring app store provider. An appellate ruling successful that lawsuit is expected adjacent year.

The Google agreements with developers are portion of an interior effort known arsenic "Project Hug" and were described successful earlier versions of the suit without the nonstop terms.

The remuneration includes payments for posting to YouTube and credits toward Google ads and unreality services.

The woody with Activision was announced successful January 2020, soon aft it told Google it was considering launching its ain app store. Partnering with Riot besides intended to "stop their in-house 'app store' efforts," tribunal papers say.

Google astatine the clip forecast billions of dollars successful lost app store sales if developers fled to alternate systems.

Epic's suit alleges that Google knew signing with Activision "effectively ensured that (Activision) would wantonness its plans to motorboat a competing app store." The statement increases prices and lowers prime of service, the suit added.

Among others that signed with Google, arsenic of July, were gamemakers Nintendo Co (7974.T) and Ubisoft Entertainment SA (UBIP.PA), meditation app Calm and acquisition app institution Age of Learning, according to the tribunal papers.

Reporting by Paresh Dave; Editing by Jonathan Oatis, Richard Chang and Josie Kao

Our Standards: The Thomson Reuters Trust Principles.

Thomson Reuters

San Francisco Bay Area-based tech newsman covering Google and the remainder of Alphabet Inc. Joined Reuters successful 2017 aft 4 years astatine the Los Angeles Times focused connected the section tech industry.

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