Match Group withdraws restraining order against Google over alternative payment methods

By: Ruchi Gupta
Ruchi Gupta
Ruchi is a News Reporter at Invezz covering the US stock market. She is located in India but has… read more.
on May 21, 2022
  • Match and Google reached an agreement over the payment system and splitting revenue.
  • Match filed a lawsuit against Google
  • Match commits $40 million into an escrow account rather than paying Google directly.

Match Group Inc. (NASDAQ: MTCH) has announced that Alphabet Inc.’s (NASDAQ: GOOGL) Google will allow the Tinder parent to give users a choice in payment, doing away with Google’s control regarding user data. The company said that it had withdrawn a request for a restraining order against Google stating that the search engine giant has made concessions to its demands.

Match filed a lawsuit against Google

In May, Match filed a lawsuit against Google, claiming it is a “last resort” to keep Tinder and other applications off the Play store after they refused to share around 30% of sales. On May 9, Match filed a lawsuit against Google in the United States District Court for the Northern District of California.

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According to the lawsuit, Google warned it would restrict downloads of several of Match’s applications by June 1, 2022, unless they utilized Google’s billing system solely and split revenue. Match stated on Friday that the fees demanded by Google for cash payments outside of Google’s invoicing system are prohibited.

The company said that the agreements entail a commitment that Match applications will not be banned or withdrawn from Google’s Play Store because they provide options to Google’s pricing structure.

Match commits $40 million into an escrow account rather than paying Google directly

Match has promised to submit around $40 million into an escrow rather than paying Google outright for billing processes that occur beyond the Google Play Billing on the Android system.

 At the beginning of this month, Google commented on the suit, stating:

“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.”

Match claimed it has consented to retain the payments in escrow till the allegations it brought against Google are heard and decided by a court. The company that runs dating applications stated that the trial will take place in April 2023.

 According to Match, Google and Match can end their current arrangement at any time, but Match has the right to restore its temporary injunction if that occurs.

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