Finances

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.”

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.