By Cristian Bustos. Originally published at ValueWalk.
Match Group Inc (NASDAQ:MTCH), the parent company of Match.com, OkCupid, and Tinder, has sued Google – Alphabet Inc (NASDAQ:GOOGL) – claiming that the internet giant runs a monopoly on Google Play Store and forces app developers to pay Google expensive fees in their own detriment.
Lawsuit
Match Group said in an announcement that Google forces the company comply with a rule stating that apps must use Google’s in-app payment processing, besides allegedly holding a monopoly on the distribution of Android apps.
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The release said, “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.”
“In addition, monopolizing the market for in-app payments will further cement Google’s near-total control of the Android ecosystem,” it added.
Match argues that Google, “By insisting on exclusive use of Google Play Billing,” wants to “insert itself as a middleman between users and developers, preventing Match Group from directly servicing its customers on many important issues.”
Google issued a response stating that Match Group is trying to shirk payment responsibilities for the service the internet giant renders as part of the platform
Not The First Time
Match Group’s suit comes, CEO Shar Durby says, as a last resort, while Google asserts it will block downloads of the company’s apps as of June 1 should the online dating giant not comply.
Wilson White, Google’s VP of government affairs and public policy, was quoted as saying on CNN Business: “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.”
Google has attracted similar lawsuits in the past. Epic Games, a subsidiary of Tencent Holdings Ltd. ADR (NASDAQ:TCEHY), sued both Google and Apple Inc (NASDAQ:AAPL) on the same grounds, with the ruling landing in Apple’s favor.
Amid antitrust allegations and monopoly accusations, Google and other big tech companies have reduced app store fees.
Earlier in 2022, Google cut its in-app subscription fees from 30% to 15%, while Apple issued a new program for small-time developers that reduces their commissions to 15%, back in 2020.
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