Photo by Sarah Blocksidge
Google has agreed to pay 55 million Australian dollars (equivalent to $35.8 million USD) in penalties after Australia’s consumer watchdog found the company engaged in anti-competitive conduct by paying the country’s two largest telecom providers to pre-install its search app on Android smartphones—effectively sidelining rival search engines.
This fine comes during a turbulent time for Google’s operations in Australia. Just last week, an Australian court largely ruled against the tech giant in a legal battle with Epic Games, the maker of Fortnite, which had accused both Google and Apple of using their mobile operating systems to block competing app stores. Meanwhile, YouTube—owned by Google—was recently added to an Australian ban targeting social media platforms that allow users under the age of 16, reversing a previous exemption granted to the video-sharing platform.
Regarding the telco-related case, the Australian Competition and Consumer Commission (ACCC) stated on Monday that Google entered into revenue-sharing agreements with Telstra and Optus between late 2019 and early 2021. Under these arrangements, the tech firm paid the telecom operators a share of advertising income generated through Google Search on Android devices.
Google acknowledged that these agreements significantly impacted competition by limiting exposure and access for alternative search engines. The company has since ceased entering into similar arrangements and has agreed to the AU$55 million fine proposed by the ACCC.
“Today’s outcome has the potential to give millions of Australians more choice in how they search the web, and opens the door for rival search engines to gain real visibility in the Australian market,” said ACCC Chair Gina Cass-Gottlieb.
The ACCC and Google jointly submitted the proposed penalty to the Federal Court. Although the court must still decide whether to approve the fine, the regulator emphasized that Google’s cooperation helped avoid extended litigation.
A Google spokesperson stated that the company was satisfied to have resolved the ACCC’s concerns, noting that the provisions in question had already been removed from their commercial contracts some time ago.
“We remain committed to giving Android device manufacturers greater freedom in how they pre-load browsers and search apps,” the spokesperson added, “while still maintaining the features that allow us to innovate, compete with Apple, and keep devices affordable.”
