Google has agreed to pay a substantial fine of A$55 million (approximately USD 35.8 million) to resolve accusations of anti-competitive behavior in Australia. The Australian Competition and Consumer Commission (ACCC) found that Google engaged in practices that stifled Competition by paying Telstra and Optus, Australia’s two largest telecommunications companies, to pre-install its search application on Android phones, effectively excluding rival search engines. These agreements, active between late 2019 and early 2021, involved Google sharing advertising revenue generated from Google Search on Android devices with the telcos.
This penalty marks another setback for Google in Australia. Last week, a court largely sided against Google in a lawsuit brought by Epic Games, the maker of Fortnite, alleging that Google and Apple prevented rival app stores on their operating systems. Adding to its challenges, Google’s YouTube was recently included in an Australian ban on social media platforms that allow users under 16.
Google admitted that its arrangement with Telstra and Optus had a significant negative impact on Competition among search engines. The company has since ceased entering into similar agreements and cooperated fully with the ACCC to resolve. ACCC Chair Gina-Cass Gottlieb stated that the outcome will provide millions of Australians with more search options and increased visibility for competing search providers.
While the A$55 million fine has been jointly submitted to the Federal Court by Google and the ACCC, the court must still formally approve the penalty. However, the cooperative approach has streamlined the process and avoided protracted legal battles. Google expressed its satisfaction with resolving the ACCC’s concerns, emphasizing that the problematic provisions have been removed from its commercial agreements. The company highlighted its ongoing commitment to providing greater flexibility for Android device manufacturers regarding pre-loaded browsers and search applications, while maintaining features that support innovation and cost efficiency.
