Match Group sues Google, alleging monopoly in app store
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Match Group (NASDAQ:MTCH) has sued Google (NASDAQ:GOOG) (NASDAQ:GOOGL) over its Play Store billing system, saying the tech giant has "monopolized the Google Play Store and is now abusing its power."
"Ten years ago, Match Group was Google's partner. We are now its hostage," the suit says, alleging strategic manipulation of markets, broken promises, and abuse of power.
The suit comes as Google touts that it's cut store fees for many subscriptions to 15% from 30%, and that it's offering many apps the chance to offer their own billing service on Android devices - but it's also tightening the rules that require using its billing system.
"Earlier this year, when Google touted the benefits of 'user choice,' I was hopeful they were going to lead the way to a fairer Google Play Store," says Match Group CEO Shar Dubey. "Unfortunately, their demand that we now remove user choice from our apps, something we've offered for years, and mandate their billing system which doesn't have many features our users are used to and depend on, can only mean they don't really care whether users are harmed in their efforts to extract their unfair share of fees from developers like us, while regulators in the U.S. are investigating this very issue, and regulators abroad are calling it illegal."
Controlling app distribution on Android while saying developers could reach Android users elsewhere is akin to saying "You don't have to take the elevator to get to the 60th floor of a building; you can always scale the outside wall," Dubey says.
Threats to remove Match Group apps from the store by June 1 left the company with no choice but to sue, Dubey says.