Match Group Settles Lawsuit Against Google, Preparing for Epic Games Antitrust Trial

Google and Match have officially resolved the antitrust dispute, a significant development in light of the upcoming legal showdown with Epic Games. This new feature empowers users to opt for payment methods other than Google's proprietary system.

Reaching a Settlement

Match Group and Google reached a settlement, effectively ending Match's lawsuit against the tech giant. The Verge reported that this unexpected resolution now positions Google to face Fortnite publisher Epic Games on its own in an upcoming antitrust trial. Epic Games has accused Google of enforcing anticompetitive payment policies on Google Play.

Match initiated the lawsuit against Google in May 2022, alleging the company's unlawful monopolization of the app distribution market through Google Play and imposing excessive fees on marketplace transactions, which they deemed an "extortionate tax." These claims closely aligned with Epic Games' existing complaint and a collective lawsuit from state attorneys general.

Google had previously settled with the states in September. Under the terms of the settlement, Match Group, the parent company of popular dating apps like Tinder, Hinge, OKCupid, and Match.com, will introduce "user choice billing" by March 31, 2024. This new feature empowers users to make payments using alternative systems instead of being limited to Google's payment methods.

Maintaining Collaborating with Match Group

Under the terms of the settlement, Match Group will be granted the ability to provide its billing system in conjunction with Google Play's existing billing system. This means that users will have the option to select their preferred payment method. Furthermore, the agreement encompasses a provision indicating that Google will maintain its collaboration with Match Group.

This includes areas like Google Cloud and the utilization of Google's AI technologies. TechCrunch reported that the existence of this provision suggests that the legal dispute may have introduced complexities into the broader relationships between Google and Match Group, extending beyond the lawsuit itself.

Moreover, the agreement stipulates that Match Group must continue offering Google's billing system alongside its own. Users will have the option to decide how they prefer to make payments. The settlement extends beyond the billing aspect. This ongoing collaboration indicates that the legal dispute hasn't led to a complete rupture in their relationship across various business domains.

In their official statements, both companies expressed satisfaction with the settlement's terms. Google believes it will ensure a secure and high-quality experience for users on Google Play, while Match Group noted that the $40 million held in escrow will be returned to them, and no additional payments will be required in connection with the lawsuit's claims up to December 31, 2023.

Both Google and Match Group anticipate that their renewed partnership agreement will compensate for any additional expenses incurred by Match Group's brands due to the implementation of User Choice Billing, which will be in compliance with Google's payment policy from 2024 onwards.

Aside from the settlement, Wall Street Journal reported that Match Group has disclosed impressive financial results for Q3, with a noteworthy 9% year-over-year increase in revenue, totaling $882 million. Tinder, one of Match Group's flagship brands, contributed significantly to this growth, reporting an 11% revenue increase to $509 million.