Industry

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. 

Bumble says that singles are turning to dating apps more than ever, evidenced by its recent finding that over a billion matches were made on its app in 2021, a 25 percent increase from the previous year.

The dating app also shared that over 9 billion messages were exchanged globally, up nearly 40 percent from 2020, showing that dating app usage during lockdowns wasn’t a temporary thing. Rather, once restrictions lifted, people were more eager to login to the app and start looking for matches as well as virtual date, and were also eager to use dating apps to get back out there and meet matches in real life.  

Bumble said that the highest number of message exchanges were between October and early November, just prior to the holiday season. It’s also worth noting that this was just prior to the emergence of the highly contagious Omicron variant of Covid, which has led to global lockdowns and restrictions once again. Still, the company doesn’t see things slowing down as we enter into dating’s “high season,” between New Year’s and Valentine’s Day.

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. 

The dating app industry is expected to grow to over $11 billion by 2028, thanks to the increased use of smartphones and people turning to them for connection during the pandemic.

A new report by Grand View Research found that the industry is doing better than ever and will only continue to grow at a rate of 5.6% compound annual growth rate (CAGR) through 2028. The increasing global reach of smartphones and internet access has helped to propel the industry forward, as well as pandemic lockdowns and the increased interest in virtual dating.

The study also found that the 18- to 25-year-old market is expected to register the second largest CAGR of 5.8 percent over the same period. Dating apps have their eyes on Gen Z daters who are looking for something more engaging than the typical routine of swiping through profiles on an app, as they have grown up with smartphones and virtual experiences. Many of the new offerings that apps like Tinder are unveiling include interactive content. Tinder and Bumble have both recently announced that they will be offering experiences in the metaverse where daters can create avatars and meet in virtual spaces to date.

Shares for Bumble Inc, which owns the popular dating apps Bumble and Badoo, fell more than twenty percent after the company’s third quarter earnings call in November. 

The dating app went public earlier this year, with shares taking off out of the gate. In recent weeks however, investors have cooled on the stock, and Bumble has pointed to pandemic lockdowns in strong markets like Japan which have cut into the company’s overall revenue. The latest dip after the earnings call was the stock’s lowest point yet. 

According to Forbes, for the first time since its IPO, Bumble posted a decline in overall user growth, with total paying users dropping to 2.87 million through September, down from 2.93 million in the second quarter.