In a significant development, the antitrust lawsuit jointly brought by Epic Games and Match Group against Google, originally slated for a trial on November 6, has taken a new turn. Google and Match, the parent company of renowned dating apps such as Tinder, OkCupid, and Hinge, have opted for a settlement, mutually dismissing their claims against one another. As per reports from Bloomberg and The Wall Street Journal, Google has agreed to reimburse the $40 million that Match had placed in escrow to cover the service fees that were believed to be owed to Google's Alphabet unit during the ongoing legal dispute.
In addition to this settlement, Match Group has revealed, in its earnings report, that its apps will start using Google's User Choice Billing program from March 31, 2024. Under this program, users will have the flexibility to choose between Google's billing system and the developer's billing system when making in-app purchases or subscribing to services. Opting for Google's system will entail a 15 percent charge for recurring subscriptions and a 30 percent charge for one-time payments, while the developer's alternative system will result in a reduced fee of 11 percent for recurring subscriptions and 26 percent for one-time payments. Match has affirmed that the agreed-upon terms will offset the additional expenses that its apps may incur during the three-year implementation of the User Choice Billing program, commencing in 2024.
The initial lawsuit was initiated by the parent company of Tinder in 2022, accusing Google of violating federal and state antitrust laws. Match contended that Google had previously assured them they could use their own payment system, only to later introduce a new policy mandating all Android developers to process payments through the Play Store billing system. According to Match, Google had threatened to remove their apps from the store if they failed to comply and had purportedly been rejecting app updates that retained their existing payment system.
Subsequently, in the same year, Match and Epic Games joined forces and amalgamated their antitrust lawsuit against Google. They expanded their allegations, asserting that Google had offered substantial financial incentives to major developers in exchange for keeping their apps available on the Play Store. As of now, Epic Games is slated to face Google in court alone on November 2, with the judge awaiting their decision on whether they prefer a jury to decide their case. It's worth noting that Epic Games had also filed a similar lawsuit against Apple. In Google's case, it's pertinent to acknowledge that Android users have the option to sideload applications onto their devices. Currently, there are no indications that Epic Games is in discussions for a settlement with Google, leaving the outcome of the trial scheduled for November 2 in uncertainty.