Industry

The stock price for dating app conglomerate Match Group dropped after the company revealed that its Tinder app saw a significant drop in paying users. Shares went down more than 15 percent to $29, the lowest price it has traded for since the company spun off from IAC in July of 2020.

According to Newsweek, Match Group sent a letter to shareholders in early November with the news that Tinder had lost 826,000 paying customers. CEO Bernard Kim said in the letter: "While our collective efforts have put the company on much improved footing, there is still much work to be done.”

Match Group’s reported third quarter earnings were a highlight - they beat analyst estimates ($881.6 million compared to the expected $880.6 million), according to LSEG, formerly Refinitiv.

Dating app company Match Group announced it had settled a lawsuit with Google concerning the tech giant’s payment requirements for its Play Store.

Under the terms of the settlement, $40 million currently in escrow will be returned to Match, according to The Verge. Interestingly, Match Group also agreed to Google’s “user choice billing system,” which still allows for Google to get a cut of all transactions, even if Match users pay via Match Group’s payment systems.

Specifically, the settlement notes that by the end of March 2024, Match’s apps will implement the user choice billing system, which means that when dating app members opt to pay using Match’s payment systems, the company will give Google an 11 percent cut of its subscription fees and a 26 percent cut of all purchases. Or for users that go through Google’s in-app purchase system, Match Group will pay Google its standard fees (15 percent and 30 percent, respectively) for transactions.

The U.S. House Energy and Commerce Committee has passed The Online Dating Safety Act. It is now eligible to be brought to a vote on the floor of the House of Representatives, though the timing of the vote remains unclear.

According to The Washington Examiner, the Act would require dating app services to provide a “fraud ban notification” to users who have been in contact with a user who had previously been removed from the platform for fraudulent activity. Additionally, the notification would have to include a statement that the banned member may have been using a false identity or attempting to defraud other users.

Bill H.R. 6125 also requires the notification to include a warning that the user being targeted by the fraudulent actor should not send money or personal information to another member, as well as a link to resources on fraud prevention and tips on how to avoid online fraud, according to The Ripon Advance. The bill stipulates that the dating platforms must provide a customer service number that is attached to the warning so that users have someone to speak with if they have questions or concerns.

Blued, China’s most popular gay dating app, plans to expand in Southeast Asia and in the U.S. while the Chinese government clamps down on LGBTQIA content.

According to Rest of World, Blued’s new parent company New Town wants to make the platform “the world’s largest social network for the LGBTQIA community,” and part of its strategy is to encourage user participation and community interaction, especially outside of China.

New Town’s CEO Li Ping sees enormous potential in the LGBTQIA market, and intends to grow the platform by targeting markets in Thailand, Vietnam, the Philippines, Southeast Asia and North America. “The growth of the LGBTQ population in Southeast Asia and North America is particularly evident,” a spokesperson told Rest of World.

Tinder announced its new exclusive VIP service Tinder Select, which will cost members almost $500 per month (which works out to $6,000 per year!).

The new service will give top-tier members access to new features like a “VIP search, matching and conversation,” according to Bloomberg, none of which are currently available in Tinder’s existing paid subscription plans. Tinder did not reveal any details about the features.

The new service might have some similarities to exclusive dating app The League, which Tinder’s parent company Match Group acquired last year. There’s a market for exclusivity on dating apps, and the company is betting that offering a premium service will work for Tinder, too.

Tinder has been testing the VIP service, but now it’s an official subscription tier, at least for those invited to join. The new service was only offered to less than 1 percent of the most active Tinder users, according to Bloomberg News.

The Australian government told the dating app industry that they must improve safety standards on their apps or risk being forced to make changes through legislation. Dating app companies were given until June 30th, 2024 to develop a “voluntary code of conduct” to address user concerns about safety.

According to the Associated Press, the government was basing its decision on new research that found three-quarters of dating app users in Australia between 2016 and 2021 had suffered some form of sexual violence. The research was conducted by the Australian Institute of Criminology and published last year.

Communications Minister Michelle Rowland noted that dating apps have become the most popular way to meet people, and therefore must improve when it comes to protecting the people using them. “The government is concerned about rates of sexual harassment, abusive and threatening language, unsolicited sexual images and violence facilitated by these platforms,” she said, according to Associated Press.