Match Sues Google Over App Store Billing Rules

Match Group Inc., a mobile-app company, filed a lawsuit againstAlphabet Inc., accusing it of acting as a monopolist with its app store billing rules.

Match Group, the company that operates dating apps such as OkCupid and Tinder, alleged that Google broke federal and state laws by requiring app developers to use its billing system on their phones.

Ten years ago, Match Group was a partner. Match Group said in a complaint that they are now its hostage.

The commission fees and billing restrictions both companies apply to paid services in their app stores have faced enormous recent legal and political scrutiny. Congress is considering a bill that would force Apple and Google to change their business models.

The 30% fee for some apps has been halved. The company said it would tighten its rules because of security concerns. June 1 is the deadline for complying or being removed from the Play Store.

In March, it was announced that select apps would be able to offer their own billing service. One of the app store critics said it was using this option and that more companies would follow.

Chief Executive Officer Shar Dubey wrote in a statement that the lawsuit was a measure of last resort. The executive said that her company tried to resolve its concerns with Google but was left with no choice but to take legal action.

App store fees are controversial.

Match Group said in the filing that it asked for the user billing feature to be adopted by Google.

A request for comment was not immediately responded to.

Gary Swidler told analysts last week that Match expects $42 million in additional costs for the Play Store. The company expects to make $100 million in payments. Swidler said that Match customers use the company's in-app billing system three times as often as they use their own service.

In the past, Epic Games has sued both Apple and Google for similar allegations.

A federal judge ruled last year that Apple had to let developers direct users to web payments services outside of its app store, but stopped short of calling it a monopolist.

Match Group, which was spun off from IAC/InterActiveCorp. in 2020, is a big critic of its business practices. The lawsuit was posted on the website.

The case is in the US District Court for the Northern District of California.