Tinder-parent Match Group sues Google over app store billing practices

• Dating app company calls itself Google’s ‘hostage’ in the lawsuit

• Unlike Spotify, Match was unable to cut a deal with the tech giant

Dating platform Tinder’s parent company Match Group Inc (NASDAQ: MTCH) on Monday sued Alphabet Inc’s (NASDAQ: GOOGL) Google over its monopolist approach with its app store billing rules, the latest escalation in a fight over the mobile-application industry.

Match Group, which operates dating apps such as Tinder and OkCupid, alleged that Google breaks federal and state laws and abuses its power by requiring app developers to use its billing system on Android devices.

“Ten years ago, Match Group was Google’s partner. We are now its hostage,” the company said in a lawsuit filed Monday in 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.”

Fight over in-app payment system

Google and Apple Inc (NASDAQ: AAPL) have recently faced massive legal and political scrutiny over their respective app stores’ commission fees and billing restrictions.

Although Google has halved its 30% fee for some app developers after facing mounting pressure, it said it would tighten its rules that require Google’s billing system for in-app purchases, citing security concerns, and gave a June 1 deadline to comply.

In March, Google announced it’s letting selected apps, including Spotify, offer their own billing service in addition to Google’s on Android devices, but Match Group was not included in that group.

“This lawsuit is a measure of last resort,” Chief Executive Officer Shar Dubey said, mentioning that her company tried “in good faith” to resolve its concerns with the tech giant but was left with “no choice but to take legal action.” 

In the lawsuit, Match Group said it asked Google to adopt this new “user billing” feature, but it refused.

Fortnite maker Epic Games Inc has previously sued both Apple and Google over similar allegations.

Picture Credit: Reuters

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