Doctor Octopus stole Iron Man's designs and made his own Mega Morph, and was out to create a device that would sap the world's superhumans of all their powers, and would allow Octavius and Doctor Doom to take over the Earth until the original Mega Morphs stopped him.
The Mega Morph toys came with short minicomics that served as prequels to the Marvel four-issue series.
However, in the Daily Bugle: Civil War Special, there was an article about Tony Stark denying any involvement in creating gigantic fighting machines, which seemed to indicate that it did take place in regular continuity.
The comic also featured references to past events in mainstream continuity, including Spider-Man, Ghost Rider, the Hulk and Wolverine's brief tenure as the "New Fantastic Four", and an appearance of the Red Ronin, a giant robot of the Marvel universe.
However the series was confirmed as taking place on an alternate Earth (Earth-50810) in the 2015 ongoing series Web Warriors, which had the Mega Morphs versions of Spider-Man and Doctor Octopus appearing among the myriad of characters who were displaced from their home dimensions by the Web of Life and Destiny.