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23 Jan 2026

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Epic and Google Have a Secret $800 Million Unreal Engine and Services Deal

A federal judge revealed a previously undisclosed ~$800 million, six-year partnership between Epic Games and Google tied to Unreal Engine services and joint marketing. It raises questions about whether the deal influenced Epic's willingness to settle its antitrust case over Android. The Verge reports: [California District Judge James Donato] allowed Epic and Google to keep most of the details of the plan under wraps. But during the hearing, he quizzed witnesses, including Epic CEO Tim Sweeney and economics expert Doug Bernheim, on how it might impact settlement talks -- revealing some hints in the process. "You're going to be helping Google market Android, and they're going to be helping you market Fortnite; that deal doesn't exist today, right?" Donato asked Bernheim, who answered in the affirmative. He also described it as a "new business between Epic and Google." Sweeney's testimony cracked the mystery a little further. He referred to the agreement as relating to the "metaverse," a term Sweeney has used to refer to Epic's game Fortnite. "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. Donato then offered a hard dollar figure on one part of the deal: "An $800 million spend over six years, that's a pretty healthy partnership," he said. We soon learned that refers to Epic spending $800 million to purchase some sort of services from Google: "Every year we've decided against Google, in this year we're deciding to use Google at market rates," he said. Sweeney did throw cold water on the idea that Epic and Google are jointly building a single new product together, though. "This is Google and Epic each separately building product lines," he clarified, when Judge Donato asked what the term sheet referred to with the line "Google and Epic will work together." Donato seemed potentially leery of the partnership, asking Bernheim whether it could constitute a "quid pro quo" that reduced Epic's incentive to push for terms that would benefit other developers. Currently, Epic is backing a settlement that would see Google reduce its standard app store fees worldwide and allow alternative app stores to register for easy installation on Android. Sweeney disputed the notion that Epic might be getting paid off to soften its terms, when it's the one paying out. "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 said. "We view this as a significant transfer of value from Epic to Google." He also says the Epic Games Store won't get any special treatment from Android in the future under this deal. It appears that the settlement arrangement is tied to the business deal. Judge Donato suggested that Epic and Google would only make the deal if the settlement goes through. Sweeney says the specific terms of the deal have not yet been reached, but admitted that he expects them to. He told Judge Donato that yes, he considers the settlement and deal "an important part of Epic's growth plan for the future."

Read more of this story at Slashdot.

23 Jan 2026 1:25am GMT

EU Parliament Calls For Detachment From US Tech Giants

The European Parliament is calling on the European Commission to reduce dependence on U.S. tech giants by prioritizing EU-based cloud, AI, and open-source infrastructure. The report frames "European Tech First," public procurement reform, and Public Money, Public Code as necessary self-defense against growing U.S. control over critical digital infrastructure. Heise reports: In terms of content, the report focuses on a strategic reorientation of public procurement and infrastructure. The compromise line adopted stipulates that member states can favor European tech providers in strategic sectors to systematically strengthen the technological capacity of the Community. The Greens even called for a stricter regulation here, where the use of products "Made in EU" should become the rule and exceptions would have to be explicitly justified. They also pushed for a definition for cloud infrastructure that provides for full EU jurisdiction without dependencies on third countries. With the decision, the MEPs want to lay the foundation for a European digital public infrastructure based on open standards and interoperability. The principle of Public Money, Public Code is anchored as a strategic foundation to reduce dependence on individual providers. Software specifically developed for administration with tax money should therefore be made available to everyone under free licenses. For financing, the Parliament relies on the expansion of public-private investments. A "European Sovereign Tech Fund" endowed with ten billion euros was discussed beforehand, for example, to specifically build strategic infrastructures that the market does not provide on its own. The shadow rapporteur for the Greens, Alexandra Geese, sees Europe ready to take control of its digital future with the vote. As long as European data is held by US providers subject to laws such as the Cloud Act, security in Europe is not guaranteed.

Read more of this story at Slashdot.

23 Jan 2026 12:45am GMT

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