Google’s $8 Billion Deal with Samsung Revealed in Epic Trial

In a testimony during the Google vs. Epic trial, it was disclosed that Google paid Samsung a whopping $8 billion over four years to secure its position as the default search, assistant, and Play Store provider on Samsung devices. This revelation underscores Google’s strategic intent to assert its dominance in the Android ecosystem.

James Kolotourous, Vice President for Partnerships at Google, revealed that the tech giant entered into deals with various Android Original Equipment Manufacturers (OEMs) to ensure pre-installation of the Play Store on their devices. The significance of these deals becomes apparent when considering that Samsung devices alone account for half or more of all Play Store devices, given Samsung’s status as the largest Android OEM.

Google’s ambitious “Project Banyan,” initiated in 2019, aimed to maintain the Play Store on all Samsung devices by investing substantial funds. The company offered $200 million annually over four years to Samsung, encouraging the coexistence of the Galaxy Store within the Play Store, complete with its own billing system.

An internal document brought to light during the trial indicates that Google managed to save $1 billion over four years by retracting a proposal that would have made the Play Store the sole digital storefront on Samsung device home screens. According to Kolotourous, this proposed deal did not materialize.

Google vs. Epic trial, Games, in presenting this information, seeks to underscore how Google’s practices discourage the presence of third-party app stores on Android by offering lucrative deals to manufacturers. Despite being a lifelong Samsung user, many may not even recall frequenting the Galaxy Store, further emphasizing the impact of Google’s strategic maneuvers.

This revelation exposes the lengths to which Google is willing to go to maintain its monopoly within the Android ecosystem, sparking discussions about the implications of such practices on fair competition and consumer choice.

Source: Bloomberg