Google and Match Group have reached a settlement in the ongoing antitrust battle, which was initiated by Match, while another court case against Google by Epic Games continues. Under this settlement agreement, Match Group, the owner of popular dating apps like Tinder, Hinge, and OKCupid, will introduce “user choice billing” by March 31, 2024. This feature will allow users to make payments using methods other than Google’s own payment system.
The initial testing of this new billing system included companies like Spotify and Bumble, and it was first introduced in November 2022. While Spotify has extended this third-party billing option to a global audience, the program doesn’t completely eliminate Google’s standard 15% to 30% commission. Instead, it offers a modest 4% discount on the commission fee. At present, this program is open to developers worldwide who sell apps to users in the supported markets where it is available, but Google has not specified when it will become globally accessible.
As part of the agreement, Match Group will be required to offer its billing system alongside Google’s existing Google Play billing system, providing users with a choice in how they want to make payments. Additionally, the settlement agreement stipulates that Google will continue its partnership with Match Group in various areas, including Google Cloud and the utilization of Google’s AI technologies.
The antitrust lawsuit had caused a strain in the relationship between Google and Match, which now appears to have had a broader impact on the business partnership between the two companies. Google maintains that its commission structure supports the entire Google Play and Android app ecosystem, including hosting, app discovery, and developer tools. However, larger companies such as Match and Epic Games have argued that they do not require the same level of support as smaller developers and should have more direct access to their paying customers.
In a statement, Google expressed its satisfaction with the settlement and emphasized its commitment to delivering a high-quality experience through Google Play while sustaining investments in the Android ecosystem. Match Group welcomed the agreement in a statement released alongside its Q3 earnings results.
In the settlement agreement, the two parties have also established that by March 31, 2024, Match Group’s apps will implement Google’s User Choice Billing, which will reduce commission payments to Google from 15% to 11% and from 30% to 26%. This reduction in commission payments will be in effect for three years, starting in 2024.
This settlement could potentially have implications for the ongoing case between Epic Games and Google. If no agreement is reached, the case is scheduled to go to trial in the coming week. Google’s willingness to settle with Match Group could influence the outcome of the upcoming trial.
In the midst of this legal wrangling, Match Group reported a 9% year-over-year increase in revenue in Q3, totaling $882 million, with Tinder contributing significantly to this growth, reaching $509 million, an 11% increase from the previous year.
