Match Group Considers Response To Apple’s New DMA Rules


Dating app giant Match Group is currently evaluating its approach to the EU’s Digital Markets Act (DMA), a new regulation that is compelling Apple to open up its platform to alternative app stores, third-party payments, and more. During the company’s Q4 2023 earnings call, Match President and CEO Gary Swidler stated that the company has not yet determined whether it will opt into Apple’s new rules.

Key Takeaway

Match Group is carefully evaluating its response to Apple’s new DMA rules, considering the potential impact on its business and the broader market. The company, along with other industry players, is closely monitoring the situation as it unfolds.

Match Group’s Evaluation

Swidler mentioned that Match Group, along with other companies like Spotify and Microsoft, is still in the process of understanding the implications of Apple’s response to the legislation. The company is carefully considering the potential impact and is yet to make a decision on its course of action.

Apple’s Complex Rules

Apple recently announced a set of intricate rules regarding its compliance with the DMA. These rules include a new commission structure for apps distributed in the EU, involving separate fees for the use of Apple’s in-app payments and a new “Core Technology Fee” for businesses opting into the new rules. Alternatively, app developers can choose to remain on the existing system, where they pay Apple a commission for in-app purchases ranging from 15% to 30%.

Concerns and Potential Changes

Several large companies, including Match Group, have realized that Apple’s DMA rules may not offer the anticipated benefits in an open app marketplace. This has led to criticism from notable Apple critics, such as Epic Games and Spotify, who have expressed dissatisfaction with the new rules. Swidler noted that there is a possibility for the rules to change, as the European Commission still needs to accept Apple’s proposal.

Potential Impact on Other Markets

Match Group believes that the availability of the new regulations to EU users could create pressure on other markets, such as the U.S., to adopt similar measures. The company sees potential benefits in markets like the U.K. and North America if similar laws regulating app stores were to be implemented.

Match Group’s Q4 2023 earnings exceeded estimates, with a significant increase in earnings per share and record revenue for the full year. The company is closely following the developments related to Apple’s DMA rules and is eager to see how the regulatory landscape evolves in the coming weeks and months.

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