Match Group signs a temporary agreement with Google to use a payment system other than Play Store
Google and Match Group have signed a temporary agreement so that all in-app payments made in Tinder and Hinge will be made using a third-party system.
Details of this arrangement were shared in a dedicated Google blog post ahead of the full trial and ensures that Match Group’s most popular apps – including Hinge and Tinder – will continue to be listed on the Play Store despite “its violation of our [Google’s] terms.”
Match Group filed a lawsuit claiming that Google has “unlawfully monopolized the app distribution market” due to the in-app billing system requirement that takes a 30% share of all in-app purchases on Android devices that make payments through the Play Store.
This temporary agreement will remain in place until the start of the trial between Match Group and Google, which is expected to begin in 2023. Prior to this procedure, Google and the Tinder developer made certain promises which enabled the signing of this agreement. .
Instead of paying Google’s regular commission for all payments that will be made through its app portfolio, Match Group has set up a $40 million escrow fund for service fees that is inaccessible until that an agreement is reached. The company will also provide Google with a monthly tally of all in-app purchases starting June 1 through the next trial period.
There must also be a “good faith” effort for Match to integrate or offer Google’s billing systems as options in its app portfolio – which primarily includes dating apps and services.
Match Group’s claim against Google mimics or mirrors that of Epic Games. The Fortnite developer has been embroiled in a long-running dispute with Apple and Google over in-app purchases, but, like Match Group, has signed a temporary Bandcamp deal. This allows Bandcamp to remain on the Play Store with funds placed in escrow until the antitrust case against Google is over.
Google is planning a countersuit alleging breach of developer obligations under the Developer Distribution Agreement requirement for all Play Store publishers and developers.
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