Google Claims Match Group Owes Additional Fees in Antitrust Battle
In its ongoing antitrust battle with Epic Games and Match Group, Google has filed a new motion to the court, stating that the dating app maker owes additional fees beyond the $40 million previously set aside in escrow. Google argues that Match’s in-app payments on Google Play, which Match claims are “illegal under federal and state law,” should result in a total of around $84 million instead, based on Match’s public earnings.
The relevant portion of the filing reads as follows:
Google and Match reached a stipulation in May 2022 resolving a TRO that Match filed in this case. Dkt. 21, No. 3:22-cv-02746-JD. That stipulation allowed Match to continue distributing its apps through the Play store despite its noncompliance with Google’s payments policies, provided that, among other things, Match pay $40 million in payments to escrow. While those payments have now ended, the service fees that Match owes Google substantially exceed that amount. See Match Group Letter to Shareholders, Q1 2022, at 9, 10, https://s22.q4cdn.com/279430125/files/doc_financials/2022/q1/Earnings-Letter-Q1-2022-vF.pdf (noting negative financial impact from Google’s requirement to use its payment system). Google intends to try its counterclaims to recover the full amount it is owed.
The escrow account was part of an agreement between Google and Match to resolve a temporary restraining order. The restraining order was filed after Match accused Google of unfair monopolistic practices in its mobile app marketplace, the Google Play Store. In addition to placing $40 million in escrow, Match secured a commitment from Google not to reject or delete its dating apps like Tinder, Hinge, and OkCupid from the Play Store for providing alternative payment options.
The $40 million held in the escrow account was meant to replace direct payments to Google for in-app purchases made outside of Google Play’s own payment system. This arrangement was decided upon while the courts determine if the commissions charged by Google on in-app purchases are legal.
However, Google is now arguing that $40 million is insufficient, citing Match’s public earnings. According to Match’s Q2 2022 shareholder letter, the company states, “While our Q2 Adjusted Operating Income outlook includes an estimated $6 million of negative impact from Google’s policy change beginning June 1st, we need to see the actual effects once the change is implemented.”
Google claims that this $6 million represents the amount that Match owes in fees. With the lawsuit pausing the payments, Google estimates that Match owes fees of $6 million per month for the past 14 months, totaling $84 million in fees. As a result, Google plans to pursue a higher amount in its counterclaims.
“While those payments have now ended, the service fees that Match owes Google substantially exceed that amount,” the filing explains. “Google intends to try its counterclaims to recover the full amount it is owed.”
Match Group has been requested to provide a comment regarding this matter.
