Match Group, Google Reach Settlement In App Store Antitrust Case

(RTTNews) - Match Group plaintiffs and Google have reached a binding term sheet for a settlement of their respective claims against each other in lawsuit, Match Group (MTCH) said in a statement on Tuesday.

Under the terms of settlement, the $40 million placed in escrow will be returned to Match Group and no other amounts will be owed by the Match plaintiffs to Google relating to the claims in the lawsuit for the period ending December 31, 2023.

Match Group noted that the parties have agreed that by March 31, 2024 Match Group's apps will implement Google's User Choice Billing pursuant to which Match Group brands will pay standard rates of 15% on subscriptions and 30% on a la carte transactions for in-app transactions processed through Google's payment system and 11% on subscriptions and 26% on a la carte transactions for in-app transactions processed through payment systems.

The parties will enter a new partnership agreement that will provide value exchange across their broad relationship, which Match Group expects will essentially offset the additional costs that Match Group brands expect to incur over the three years starting in 2024 associated with the implementation and continued use of User Choice Billing in compliance with Google's payment policy during that period.

Match Group reported that its third quarter net earnings attributable to shareholders rose to $163.73 million or $0.57 per share from $128.70 million or $0.44 per share in the prior year.

Quarterly total revenues were $881.60 million up 9% year-over-year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.54 per share and revenues of $881.15 million for the third quarter. Analysts' estimates typically exclude special items.

For the fourth quarter, Match Group expects total revenue to be in the range of $855 million to $865 million, which includes $27 million more in fourth quarter FX headwinds than we anticipated at the time of last earnings call and risk on approximately $7 million of quarterly revenue that brands collectively generate in Israel, given the ongoing events there.

For the full year 2023 Match Group expect to deliver total revenue growth company-wide towards the lower end of the range we provided a year ago