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NEWS / 2023 / 11 / 06 / TINDER OWNER MATCH GROUP SETTLES ANTITRUST CLAIMS AGAINST GOOGLE"S APP STORE

Tinder owner Match Group settles antitrust claims against Google"s app store

19:40 06.11.2023

Epic Games, the creator of the popular game "Fortnite," kicked off a high-stakes antitrust battle against Google in federal court today. The lawsuit, filed in the US District Court in California's Northern District, takes aim at Google's policies regarding fees for in-app subscriptions and one-off transactions, as well as other terms that app developers argue have allowed Google to maintain an illegal monopoly in app distribution. This legal showdown could have far-reaching implications for how smartphone users access Android apps and pay for in-app content.

The legal battle between Epic Games and Google is part of a broader debate surrounding the role of app store operators, such as Google and Apple, in fostering an open and competitive app ecosystem. Both companies argue that their app stores not only generate significant revenue for small businesses but also provide crucial security oversight for Android and iOS users. As the trial progresses, high-profile witnesses from both sides, including Google CEO Sundar Pichai and Epic CEO Tim Sweeney, may take the stand.

The origins of this court fight can be traced back to 2020 when Epic Games launched "Project Liberty," a plan to bypass the app store terms imposed by Apple and Google. The move was met with resistance from both tech giants, leading to the removal of the Fortnite app from their platforms. While Apple users were no longer able to play Fortnite on iOS devices, the game remained available on Android devices through alternate channels. Epic's case against Apple is also expected to be reviewed by the Supreme Court in the near future.

In the meantime, Epic Games has accused Google of violating US antitrust laws by exerting control over and profiting from transactions between users and developers. Google, on the other hand, argues that Epic simply wants access to its massive user base without paying the necessary fees to support the platform. Google's vice president of public policy and government affairs, Wilson White, emphasized the importance of showcasing how Android has provided more choice, flexibility, and openness than any other platform.

While this trial initially involved multiple plaintiffs, including Match Group, the owner of popular dating apps like Tinder and Hinge, settlements have led to a reduction in the number of opponents Google will face in court. Match Group recently dropped its antitrust lawsuit against Google, with both companies announcing a settlement that allows Match Group to offer alternative payment options for in-app content without being forced to use Google's payment channels. This development further demonstrates Google's ability to narrow down its list of adversaries ahead of the trial.

The outcome of this high-profile trial could have significant implications for app developers and the flow of billions of dollars in economic activity. It remains to be seen how the court will rule and whether this battle against Google will reshape the landscape of app distribution and in-app purchases.

/ Monday, 6 November 2023 /

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