Google and Match Group Settle Antitrust Case: What You Need to Know
Background
The antitrust lawsuit filed by Epic Games and Match Group against Google was expected to go to trial on November 6. However, a recent settlement has been reached between Google and Match Group, the parent company of popular dating apps like Tinder, OkCupid, and Hinge. Both parties have agreed to drop all claims against each other.
Terms of the Settlement
As part of the settlement, Google will return the $40 million that Match had placed in escrow to cover service fees that it would supposedly owe to Google while the dispute was ongoing.
In addition, Match has announced that its apps will be using Google’s User Choice Billing program as of March 31, 2024. Under this program, users will have the option to choose between Google’s billing system and the developer’s billing system when making a purchase or paying for a subscription. If users opt for Google’s system, Match will be required to pay Google 15% for recurring subscriptions and 30% for one-off payments. On the other hand, payments made through the developer’s provided alternative will result in Google receiving 11% and 26% of the revenue, respectively. Match believes that the agreed-upon terms will help offset the additional costs its apps will incur in implementing the User Choice Billing program.
Origins of the Lawsuit
Match initially sued Google in 2022, accusing the company of violating federal and state antitrust laws. Match claimed that it had been previously reassured by Google that it could use its own payment system. However, a new policy was announced that required all Android developers to process payments through the Play Store billing system. Google allegedly threatened to remove Match’s apps from the store if the company did not comply.
Match also alleged that Google had rejected app updates that maintained the payment system the company was using. Later on, Match teamed up with Epic Games, and the two consolidated their antitrust lawsuit against Google, expanding their allegations to include claims that Google had been paying large developers significant sums of money to keep their apps in the Play Store.
Upcoming Trial
It is currently scheduled for Epic Games to face Google in court alone on November 2. The judge is waiting for both parties to decide whether they prefer a jury trial for their case. Although no hints have been given regarding a potential agreement between Epic Games and Google, it will become clear if the trial proceeds as planned on November 2.
Source: Google and Match Group settle antitrust case before it goes to trial
