Match Group, the maker of dating apps Tinder and Hinge, is on track to pay Apple and Google, which controls a similar app store for phones running its Android software, more than $ 500 million in commissions this year, the largest company. expenses, said Gary Swidler, Match’s chief financial officer. The company was already considering ways to use Friday’s ruling to lower that bill as much as possible, even by charging less for subscriptions that are paid on one of its websites, he said.
One analyst estimated that the change could save Match $ 80 million a year, but Swidler said there were too many questions to make such a forecast.
“Depending on what the extraction rate is, it will help us from a results perspective, it will allow us to invest more in our business and it will also allow us to pass the benefits on to consumers,” he said.
Michael Love, founder and CEO of a Chinese dictionary app called Pleco, said the prospect of avoiding a commission (it pays Apple 15 percent) was good news. Even better? The ability for you to interact directly with customers in ways that App Store rules prevented, such as sending promotional emails, issuing refunds, and searching for old orders.
“I’m excited about the payment possibilities without Apple getting in the way,” he said.
Love, 39, said he hadn’t been able to reach many deals with other dictionary publishers because those publishers did not want to pay commissions to both Apple and him and lose a lot of money.
Now, by avoiding Apple fees and working directly with publishers, it could potentially transform its business and become a “boutique e-book retailer,” Love said. That could increase your income from around $ 500,000 a year to $ 5 million or $ 10 million, he said.
“It makes it possible for the little ones to compete,” he said.