Alphabet Inc. agreed to pay $40 million to Match Group Inc. to settle claims that Google Play policies are unlawful, resolving an antitrust complaint that endangered billions of dollars in revenue generated by the search engine’s app marketplace, according to the online dating service.
Lawyers representing Match and Google said in a court filing Tuesday they’ve agreed to drop all claims and counterclaims against each other. Match said in its earnings report that its brands will get more favorable conditions on Google Play as part of the accord, which was announced before a trial scheduled for Nov. 6 in San Francisco federal court.
The dating-app company’s complaint was part of a sprawling antitrust fight that also includes attorneys general of almost three dozen states, consumers and Epic Games Inc., all of whom accuse Google of monopolizing its app store’s distribution, payment and fee policies.
The fight doesn’t end for Alphabet as it will still have to face Epic at a trial set to start Nov. 2. US District Judge James Donato told both companies to let him know by Wednesday if they would like to proceed with selecting a jury or have him decide the case himself.
In August, the technology giant tentatively settled claims in complaints brought by consumers and state attorneys general that Google Play abuses its control over Android mobile applications. Terms of that deal also weren’t disclosed in court filings.
Match Agreement
All Match Group apps will use Google’s User Choice Billing program that gives developers an opportunity to try out alternative billing methods by March 31, 2024, the dating service said in its earnings report. Match Group brands will pay standard rates of 15% on subscriptions and 30% for transactions that go through Google’s payment system and 11% on subscriptions and 26% for in-app transactions made through its own payment options, according to the report.
The deal ensures Google can “continue to provide our shared users the secure, seamless and high quality experience people expect from apps on Google Play while maintaining Google’s ability to invest in the Android ecosystem and deliver value across an app’s full life cycle,” Google said in a statement.
Witnesses in the Epic case include Chief Executive Officer Tim Sweeney and Alphabet CEO Sundar Pichai, according to court filings.
The high-stakes fight kicked off after Epic, maker of the popular Fortnite game, sued Google in 2020. Match brought similar claims against the search giant in a suit last year.
The case is In Re Google Play Store Antitrust Litigation, 21-md-02981, US District Court, Northern District of California (San Francisco).
(Updates with terms of agreement, Google comment)
