Tinder Owner, Match Group Settles Antitrust Claims Against Google’s App Store Ahead of Trial

Match Group, the parent company of popular dating platforms like Match, Tinder, and Hinge, has reached a settlement with Google, withdrawing a significant antitrust lawsuit against the tech giant’s app store. The resolution, announced on Tuesday, comes just before the trial’s commencement in San Francisco federal court.

The agreement marks an end to the dispute between Google and Match Group, focusing on allegations that Google’s app store terms stifled competition. As part of the settlement, Match Group gains the liberty to provide users with alternative payment methods for in-app purchases, freeing them from the obligation to use Google’s exclusive payment channels.

This resolution is a significant development in the legal battle as it significantly reduces the number of plaintiffs challenging Google. Previously, a coalition of 52 attorneys general withdrew from the case after reaching a settlement, the specifics of which were not disclosed.

Amidst this settlement, the trial now centres on Epic Games, the developer of the popular video game “Fortnite,” positioning the gaming company as Google’s remaining adversary in the high-profile legal dispute concerning the control wielded by app store owners over app developers.

The core of the antitrust dispute revolves around the substantial fees app store owners charge developers, with concerns escalating over the limitations and restrictions imposed by app store terms. Notably, in 2020, Epic Games initiated lawsuits against both Apple and Google, highlighting similar antitrust concerns. While the Apple case might soon undergo Supreme Court scrutiny, Match’s lawsuit against Google was consolidated with other cases against the search engine giant.

The repercussions of these app store lawsuits could significantly shape the future of app developers and dictate the course of the multibillion-dollar app economy.

In the settlement terms with Match, Google has agreed to incorporate Match’s applications into its user choice billing program, enabling the dating platform to offer its payment channels to users. The alternative payment method will have lower in-app payment fees compared to Google’s charges. Match’s apps will continue to support Google’s payment channels, but transactions through Match’s channels will incur lower fees than Google’s standard rates, as outlined in a shareholder letter issued by Match on Tuesday.

The settlement includes the return of $40 million that was held in escrow for the litigation. A Google spokesperson stated, “We are pleased to reach a settlement agreement with Match Group,” emphasizing Google’s commitment to offer a secure and high-quality user experience while investing in the Android ecosystem.

Despite the Match settlement, Epic Games CEO Tim Sweeney expressed defiance, affirming that they will proceed to trial against Google independently, rejecting Google’s proposed ‘user choice billing.’