Moin Khot
Nov, 23.2023
Some hidden secrets about Google’s covert ambition involving Epic Games and Tencent have come to light. These companies have been fighting in the courtroom for almost three years over a disagreement about the commission Google gets from in-app purchases—30%, to be exact.
Epic Games was discontent over the hefty toll imposed by Google while making in-app purchases, leading them to create an independent payment channel. In response, Google kicked Fortnite, which was in the center of this dispute, out of Google Play Store. But there's more to this fight than just legal stuff—it's like a secret plan.
"Project Elektra" came into the light when Verge shared secret talks. It was a chat between Phil Harrison, who used to work for Google, and Dan Sabota, who was in charge of business development. They talked about Google thinking of acquiring Epic Games, envisioning a seamless integration of Fortnite into Google's ecosystem.
The revealed information highlights how important Fortnite is for Google's business, spreading its impact on YouTube, GCP, and Yeti. But things get more interesting as we find out that Google thought about working closely with Tencent. They talked about teaming up to buy all of Epic or buying some shares for $2 billion. It's like a secret plan unfolding in the documents.
The dance of negotiations hinted at the possibility of involving a secondary strategic investor to balance things out with Tencent. But unfortunately, Google's plan to buy Epic Games didn't work out. It just stopped without any clear actions being taken.
While all this was happening, Epic Games' CEO, Tim Sweeney, went to court. He wanted to show that Google has too much control over the Play Store. Sweeney tried to explain that Google is too powerful in deciding which apps can be on Android. A tug of war ensued as Google's legal representative, Jonathan Kravis, questioned Epic's double standards in paying console makers while challenging Google's fees.
Sweeney said he wants to create more games, but he's having trouble because Google is blocking him financially, according to him. On the other hand, Kravis said Epic is making a lot of money and keeping prices the same for in-game purchases on all devices.
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In the ongoing story, the tricky moves and deals between Google, Epic Games, and Tencent are coming to light. It makes us question what we thought we knew about the situation. As the legal fight goes on, there are still hidden secrets waiting to be uncovered in the shadows.