How Google may have a Tinder problem

How Google may have a Tinder problem

In a move that will hurt Google, popular dating app Tinder has said that it won’t pay app store fees to the search giant. According to a report by Bloomberg, the dating app has now launched an in-app payment option under which it will “skip Google Play’s default payment process.” TheBloomberg report quotes a spokesperson from Match Group – Tinder’s parent company – who confirmed this move. Justine Sacco, Match Group spokesperson told Bloomberg, “At Match Group, we constantly test new updates and features to offer convenience, control and choice to our users. We will always try to provide options that benefit their experience and offering payment options is one example of this.”

App store hosts like Google and Apple generally charge 30% from in-app subscription from apps like Tinder and others. Tinder has decided that it won’t be paying that fees anymore with this latest move. As per a report by The Verge, Tinder users can input their credit card details directly for any in-app purchases that they will make in the future.

Tinder’s move is likely to upset – and hurt – Google as the app is one of the biggest revenue rakers amongst apps. According to a report by Sensor Tower, Tinder earned about $497 million across Google Play and Apple App Store in the first half of 2019.

Interestingly, Tinder isn’t the first high-profile app to dish out this treatment to Google. Earlier in 2018, Epic Games’ popular game Fortnite did the same. Epic Games CEO Tim Sweeney had then said that paying 30% to Google was “disproportionate”. He said, “On open platforms, 30 per cent is disproportionate to the cost of the services these stores perform, such as payment processing, download bandwidth, and customer service.”

Google hasn’t made any comment so far on the move by Tinder and it will be interesting to see if the tech giant does take any ‘action’ against the popular dating app.

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