Epic Games & Google Reveal Secret $800 Million Deal During Legal Battle

January 26, 2026

Epic Games’ sudden willingness to settle its long-running antitrust lawsuit against Google raised eyebrows last year — especially in the courtroom.

Back in November, California District Judge James Donato openly questioned the abrupt shift in tone between the two companies.

“The only changed circumstance that I can see right now is Epic and Google — two mortal enemies who pounded each other relentlessly in this courtroom for many years — are suddenly BFFs.”

Now, the reason behind that truce is becoming clearer.

The $800 Million Partnership

According to new revelations, Epic and Google have entered into a massive $800 million partnership, covering:

  • Joint product development

  • Joint marketing commitments

  • Joint partnerships

The deal, first reported by The Verge, suggests that Epic would help market Android, while Google would make deeper use of Epic’s core technology.

This partnership appears to coincide with Google agreeing to reduce its Play Store fees to 20% or even 9%, depending on the transaction. However, Judge Donato remains unconvinced that this change meets the legal threshold required to alter an existing court ruling.

In his view, the deal doesn’t represent a sufficiently dramatic shift in circumstances — especially given Google’s ongoing dominance of the Android ecosystem.

Fortnite, Metaverse… and a Slip of the Tongue

During a recent hearing in San Francisco, Epic CEO Tim Sweeney shed light on the deal’s true focus: Fortnite’s metaverse ambitions.

Sweeney explained that Google’s interest lies in Epic’s technology stack — particularly Unreal Engine, which is widely used to train and build products in emerging virtual and interactive spaces.

At one point, Sweeney even caught himself mid-sentence:

“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.”

Not a Joint Product — But a Value Transfer

Importantly, Sweeney emphasized that this is not a joint product between Epic and Google. Instead, Epic will spend $800 million purchasing unannounced services from Google, while both companies independently develop their own product lines.

Sweeney defended the arrangement, arguing that paying Google could actually encourage more competition than Google has allowed historically:

“We view this as a significant transfer of value from Epic to Google.”

And that’s where the controversy lies.

A Shift From Platform Justice to Self-Interest?

What once looked like a landmark case that could empower developers and weaken Google’s platform control now appears far more complicated.

Critics argue that Epic’s legal pressure may have been used less to reform the Android ecosystem — and more to secure favorable terms for Epic itself.

The deal hasn’t officially begun yet. Judge Donato suggested that both companies may proceed only if the settlement is approved. Meanwhile, Sweeney insists that the Epic Games Store will not receive any special treatment on Android, even under the agreement.

Whether this partnership represents pragmatic compromise or a quiet retreat from antitrust principles remains an open question.