Tinder parent Match Group sues Google, alleging anticompetitive app store behavior

The
dating-app company behind Tinder, OkCupid and Match.com sued Google on Monday, alleging
that the technology giant runs an illegal monopoly in the Google Play Store and
that its in-app payment policies, including
its 30% cut of some in-app purchases, are anticompetitive.
The
suit by Match Group is
the latest antitrust complaint to hit Google
after years of scrutiny over its business practices. The suit, which was filed
in the US District Court for the Northern District of California, alleges that
Google not only has a monopoly on the distribution of Android apps, but also
forces app makers to accept contract language that locks them into using
Google's in-app payment technology and requires them to pay fees to Google.
"These exorbitant 'fees' force developers to charge
users more for their services and utilize resources they would otherwise invest
in our employees, technologies, and user-requested features," Match Group
said in its announcement. "In addition, monopolizing the market for in-app
payments will further cement Google's near-total control of the Android
ecosystem."
In
a release, Match Group CEO Shar Dubey described the complaint as a
"measure of last resort," adding that Google has informed Match its
apps will be removed from the Google Play Store at the beginning of June unless
Match complies with a rule introduced in 2020 requiring apps to exclusively use
Google's in-app payment processing.
"By
insisting on exclusive use of Google Play Billing, Google seeks to insert
itself as a middleman between users and developers, preventing Match Group from
directly servicing its customers on many important issues," the company
said, arguing that Google "has left us no choice but to take legal
action."
In
response, Google said in a blog
post Monday that Match Group is simply trying to get out of
paying for the services Google provides as part of its platform.
The
vast majority of apps on Google's app store do not pay any fees, Google said,
and Match Group's apps are among the 3% on its platform that do. Furthermore,
Google added, Match has had "ample time" to adjust to Google's
announced changes in 2020.
"As
a platform, we're always looking to work in good faith with partners to grow
and evolve the ecosystem, but we'll stand firm against false attacks on our
business, especially when it puts users at risk and endangers our ability to
continue investing in and serving our developer community," wrote Wilson
White, Google's VP of government affairs and public policy.
The
Match Group suit echoes that of Epic Games, the maker of "Fortnite,"
which has sued both Apple and Google over similar claims. Last year,
a federal judge largely ruled in Apple's favor and against Epic, though her
decision is under appeal.
Major tech companies including Apple and Google have reduced some of the app store fees they charge in recent years, amid rising complaints from app developers and policymakers. This year, for example, Google reduced its fees on in-app subscriptions from 30% to 15%. In 2020, Apple announced a new program for small-time developers that reduces their commissions to 15%.
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