Finances

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.”

Match Group announced that the company will go carbon neutral by March of 2022 thanks to its purchase of offsets to carbon emissions, leading the way for dating apps to address issues of climate change.

The company announced the move in a press release, noting that it commits to offsetting its carbon footprint going forward, though the offset purchase made lasts only two years. Match Group invested in Hyundai Green Power Corporation, which captures and recycles waste gases to generate electricity through its Steel Waste Energy Cogeneration Project. (The site’s steel mill reuses waste gases and what remains is used by the project’s power plant.)  

When that energy is repurposed, it supplies power to the local grid in Dangjin, South Korea, instead of that grid relying on fossil fuels. This means a reduction of 1.8 million tons of carbon emissions per year, according to Match Group. 

Gay dating app Grindr was fined $7.16 million (65 million kroner) by Norway’s Internet watchdog agency for violating the privacy rights of its users.

According to ABC News, The Norwegian Data Protection Authority said that Grindr had shared the sensitive personal data of its users, including sexual orientation, to hundreds of potential advertising partners without their consent. 

It’s not the first time Grindr has been accused of violating privacy rights by the watchdog. In 2020, it filed a complaint against Grindr not only because of sensitive data that was shared with third parties, but also because it shared IP addresses and GPS locations, which could identify individual users. 

Match Group has agreed to pay $441 million in a settlement with some of Tinder’s former employees, shutting down the lengthy trial before closing arguments, according to Reuters.

The plaintiffs included Tinder co-founder Sean Rad among other former employees, and the trial got heated between Rad and former IAC CEO Barry Dillard. Prior to the trial, emails from former Match Group CEO Gregg Blatt were released to the public, showing that he tried to woo talented people into key roles at the company with a higher stock valuation compared to what he told the Tinder employees who had options to exercise.

According to The Daily Mail, emails revealed that Blatt valued the dating app at nearly $12 billion in 2016, more than a year before Match Group valued Tinder at only $3 billion as Sean Rad and other employees were forced to exit the company. Rad and the other plaintiffs who filed the lawsuit claim Blatt purposefully devalued the stock in their negotiations, citing the emails as evidence.