Finances

Apple has been fined five million euros for not complying with a recent ruling regarding dating apps leveled by the Authority for Consumers and Markets, a watchdog agency in The Netherlands.

The ACM said that Apple had not yet complied with its order to allow third-party payment options for dating apps on the Apple Store platform, which was issued in late December. The agency also said that it would continue to fine Apple five million euros per week (roughly $5.6 million US) until it properly complies with the order, up to $50 million euros in total, according to The Verge.

The issue is that while developers can now let Apple know if they are interested in using third party payment systems in their apps, Apple has not provided a straightforward way to do this, and there is very little technical support in place from Apple to help developers move forward. Another issue is that Apple is forcing developers to choose between two options: directing users to a third-party site to complete transactions outside of the Apple Store, or to stay in the Store’s ecosystem if they want to keep in-app purchases as an option for users.

An investigation by a UK consumer rights group found that dating app Tinder is charging users over 30 as much as 48 percent more for its premium service Tinder Plus.

The advocacy group Which? said its findings show that Tinder may be discriminating against older users, a “potential breach of UK law,” according to The Daily Mail. The group has reported its findings to the EHRC (Equality and Human Rights Commission) and the Information Commissioner’s office (ICO) and asked them to investigate. The EHRC found the findings “concerning,” according to The Daily Mail.

Which? asked a sampling of 200 people to create real profiles on the dating app and to find out the pricing for the premium services like Tinder Plus, which unlocks certain popular features like unlimited likes and the ability to “rewind” or go back to check out a profile you already swiped left on.

Following a ruling by The Netherland’s privacy watchdog, Apple has agreed to allow dating apps that operate in the country use payment options outside of the Apple Store, according to Reuters.

Previously, all payments made through the apps had to go through Apple’s payment platform, which meant that app developers had little control over billing issues or questions from their customers. But also (and perhaps more importantly to the developers), a certain percentage of every sale (from 15 to 30 percent) was collected by Apple, cutting into their profits.

Match Group partnered with other app developers in lodging the complaint, which resulted in The Netherland’s watchdog agency Authority for Consumers and Markets to investigate. The agency ruled against Apple, so the tech company went to court in December to seek an injunction against the order, according to Tech Crunch. However, the court rejected Apple’s arguments, saying that the company had until January 15th to comply with offering payment options outside of its platform to dating app users, so Apple agreed to the terms.

The online dating market continues to grow in the wake of the pandemic, with expected revenue to increase to $4.5 billion US by 2025.

According to research firm Statista, the industry is expected to reach about $3.7 billion US this year (up from $2.86 billion in 2020) as more people join and become active users, in part due to global lockdowns. The pandemic has shifted attitudes towards dating apps, with more singles than ever before downloading and swiping.

Revenue has increased along with new users, as many of the apps are offering popular “freemium” pricing in addition to subscriptions. While the majority of users don’t want to commit to paying a monthly fee to join a dating app, they are willing to pay for certain features, like messaging, being able to see if someone already liked their profile, or putting their profile at the top of search lists. Offering these services as premium paid features has been a boon for dating apps, increasing overall market revenue substantially, especially during the pandemic.

Match Group, owner of the popular dating apps Tinder, OkCupid and Hinge, has sued dating app MuzMatch for Trademark infringement.

The online dating company said that MuzMatch, a British-based matchmaking app for Muslims, has copied their products and services, according to The Daily Mail. Match Group pointed to the use of the word “match” in the app’s metadata, which are keywords used by companies to make their products more prominent in Internet search findings. Match Group says that MuzMatch has included keywords like “match-muslim” and “uk-muslim-match,” which the company says are its registered marks that MuzMatch is co-opting for their own benefit.

MuzMatch rejects the allegations, saying that Match Group doesn’t have claim to the word “match.” The British company also has a U.S. copyright registration for the wordmark “Muzmatch” that has been in place since 2015, as well as in France and Germany.

Apple will now be required to allow dating app developers to offer in-app payment options for users, or face severe fines.

The Netherlands Authority for Consumers and Markets (ACM) issued the ruling, saying that Apple was taking advantage of dating app developers who rely on the Apple Store to make their products available to iPhone users. Because of Apple’s payment structure, app users are required to go through the Apple Store to subscribe or purchase coveted features on dating apps, rather than purchasing directly. Apple takes a 15 to 30 percent share of every purchase made in its store. 

In the ruling, the ACM said that: “If Apple does not adjust the unreasonable conditions within two months, it will have to pay a periodic penalty of 5 million euros per week up to a maximum of 50 million euros.”