Telefnica Partners with Epic Games: Pre-installed Epic Games Store Challenges Google Play Monopoly

Telefnica Partners with Epic Games: Pre-installed Epic Games Store Challenges Google Play MonopolyTelefnica, one of the world's largest telecommunication companies, and its O2 and Movistar networks spanning the UK, Spain, Germany, and Latin America, announced it will pre-install the Epic Games Store on every new Android-compatible phone it sells, including Samsung devices. This move is part of a long-term partnership between Telefnica and Epic Games, aiming to bring the Epic Games Store and popular titles like Fortnite to millions of users

Telefnica Partners with Epic Games: Pre-installed Epic Games Store Challenges Google Play Monopoly

• Telefnica, one of the world's largest telecommunication companies, and its O2 and Movistar networks spanning the UK, Spain, Germany, and Latin America, announced it will pre-install the Epic Games Store on every new Android-compatible phone it sells, including Samsung devices. This move is part of a long-term partnership between Telefnica and Epic Games, aiming to bring the Epic Games Store and popular titles like Fortnite to millions of users. This marks the first time the Epic Games Store is pre-installed on consumer phones and could be a pivotal step in Epic Games' challenge to Google Play's alleged monopoly and its revenue-sharing model.

• This collaboration comes against the backdrop of Epic Games' years-long legal battle with Google. Last December, a federal jury ruled that Google illegally monopolized its Android app store and Google Play billing services in the Epic Games v. Google case. Epic Games filed the lawsuit in 2020, alleging that Google prevented the pre-installation of games like Fortnite and alternative app stores on Android phones through blacklisting or bribing manufacturers and mobile carriers.

Telefnica's move is momentous, coming roughly a month after Judge James Donatos injunction against Google further preventing or bribing related manufacturers. It signifies the pre-installation of a full-fledged competing game store (potentially expanding to non-gaming apps in the future) on consumer devices outside of the Google Play Store.

• It's noteworthy that Epic Games only officially launched its mobile Epic Games Store in August this year. Prior to this, Epic Games attempted to partner with various phone manufacturers and carriers to pre-install different versions of Fortnite installers. Manufacturers like Samsung, LG, OnePlus, and Huawei had agreements with Epic Games, but these collaborations ultimately fell short for various reasons. For example, OnePlus only successfully pre-installed Fortnite in India, allegedly due to requiring permissions Google wouldn't provide (a claim disputed by Google). LG abandoned its collaboration due to its contract with Google.

• Epic Games spokesperson Natalie Muoz confirmed that Telefnica was not a recipient of Google's alleged "bribes," thus Judge Donato's order wasn't a direct cause of the partnership. In fact, Telefnica and Epic Games have a history of collaboration. As early as 2020, Telefnica allowed Movistar users in Spain to pay for in-app purchases in Fortnite through their mobile bills. Court documents show Telefnica received a 5% cut from Fortnite players through this arrangement. Verizon and Hutchison (Three, WindTre) had similar agreements with Epic Games, but it remains unclear if they will follow Telefnica's lead.

In September, Epic Games further demonstrated its commitment to challenging Google's alleged monopoly by suing Samsung.

Telefnica's partnership is undoubtedly a significant advancement in Epic Games' fight against Google Play's alleged monopoly. The pre-installation of the Epic Games Store means millions of users will have direct access to Epic Games' ecosystem without needing Google Play. This will directly impact Google Plays market share and revenue, forcing Google to reconsider its Android app store strategy.

For consumers, this partnership means more choice. Users can download and install games from the Epic Games Store, experiencing different gaming experiences and potentially more favorable pricing. This breaks Google Play's alleged monopoly, offering consumers greater freedom and options.

For Epic Games, it's not just about increasing user numbers and market share; it's a fundamental shift in its business model. By partnering with major carriers, Epic Games bypasses Google Play's restrictions, directly reaching a vast user base and securing higher revenue shares. This will significantly strengthen Epic Games' competitiveness, enabling it to engage in more intense competition with Google in the mobile gaming market.

Telefnica's collaboration sets a precedent for other carriers and phone manufacturers. Other carriers may emulate Telefnica's action, partnering with Epic Games to pre-install the Epic Games Store, further challenging Google Play's alleged dominance. This will create a multi-party competitive landscape, ultimately benefiting consumers.

In the long term, the impact of this collaboration extends far beyond the gaming sector. It signals a significant shift in the mobile app market's competitive landscape, foreshadowing potentially more similar collaborations that disrupt existing tech giants' monopolies, offering consumers more choices and a fairer competitive environment.

This partnership isnt just a powerful challenge to Google Play; it's a major transformation for the mobile app market. It suggests a more diverse and fiercely competitive app store market in the future, ultimately benefiting consumers. Telefnicas move has laid a solid foundation for this transformation.

Legally, the Telefnica-Epic Games partnership provides essential precedent for future similar lawsuits. The Epic Games v. Google litigation and this collaboration will profoundly influence the future development of the mobile app market, pushing it toward a more open and equitable direction.

In conclusion, the Telefnica and Epic Games partnership is a significant milestone in the evolving competitive landscape of the mobile app market. It not only challenges Google Plays alleged monopoly but also provides consumers with more choices and introduces a new model for future app store market competition. The long-term effects remain to be seen, but the partnership has already made a profound impact on the mobile app market.