Google Faces Lawsuit from Tinder and OkCupid Group Over App Store Billing Rules

Alphabet Inc.’s Google is now facing a lawsuit filed by Match Group, the company behind popular dating apps such as Tinder and OkCupid. According to Match Group, Google has allegedly abused its power concerning a requirement imposed upon app developers for its billing system. The company has also alleged that Google breaks federal and state laws.

“Ten years ago, Match Group was Google’s partner. We are now its hostage,” says Match Group in its complaint filed last Monday in the Northern California federal court. “Blinded by the possibility of getting an ever-greater cut of the billions of dollars users spend each year on Android apps, Google set out to monopolize the market for how users pay for their Android apps.” the company adds.

Google has stated a deadline on June 1 for app developers wherein they have to comply with Google’s requirements on using its billing system for in-app purchases, or their apps will be removed from the Play Store. Google has said that they will be tightening these requirements for security purposes but has halved its 30% fee for a few apps due to public sentiment.

Match Group’s Chief Executive Officer Shar Dubey writes that “the lawsuit was a measure of last resort”, and they were left with “no choice but to take legal action” since the company has already tried to resolve their conflict with Google “in good faith”. Last March, Google announced it was letting selected apps use their own billing service apart from Google’s. Match Group states that they have asked Google to adopt this new billing system, only to be refused by Google. Epic Games Inc., the company behind the popular game Fortnite, has also sued both Google and Apple over similar allegations.

Meanwhile, Google insists on charging for their services, stating, “Like any business, we charge for our services, and like any responsible platform, we protect users against fraud and abuse in apps,” Google’s spokesperson also adds, “This is just a continuation of Match Group’s self-interested campaign to avoid paying for the significant value they receive from the mobile platforms they’ve built their business on.”

Both Google and Apple Inc. have dealt with immense backlash and political and legal scrutiny over their commission fees and billing restrictions. Currently, Congress has been deciding on a bill ordering both companies to change their existing business models.

Source: BusinessMirror