Google has agreed to pay a AUD 55 million (USD 35.8 million) fine after Australia’s consumer watchdog found that the company harmed competition by paying the country’s two largest telecom companies to pre-install its search app on Android phones.
The fine comes amid a challenging period for the Alphabet-owned internet giant in Australia. Last week, a court ruled against Google in a case filed by Epic Games, the maker of Fortnite, accusing Google and Apple of blocking rival app stores on their operating systems. Additionally, Google’s YouTube faced restrictions last month in Australia regarding access for users under 16.
The Australian Competition and Consumer Commission (ACCC) said Google entered agreements with Telstra and Optus, under which it shared revenue from Google Search ads on Android devices between late 2019 and early 2021. The ACCC added that Google acknowledged the agreements had a significant impact on competition and has since stopped signing similar contracts.
“Today’s outcome… creates opportunities for millions of Australians to access a wider choice of search services and for competitive search providers to reach Australian consumers in a meaningful way,” ACCC Chair Gina Cass-Gottlieb said.
Google and the ACCC jointly filed in federal court for Google to pay the AUD 55 million fine. While the court must still determine if the penalty is appropriate, cooperation between the regulator and Google helped avoid prolonged legal proceedings.
A Google spokesperson said the company was pleased to address the ACCC’s concerns, which “included clauses that had not been part of our commercial agreements for some time.” The spokesperson added that Google remains committed to providing Android device manufacturers with greater flexibility in pre-loading browsers and search apps while maintaining offerings that support innovation, competition with Apple, and cost efficiencies.
Telstra confirmed to Reuters that it, along with Singapore-based telecommunications company Optus, fully cooperated with the ACCC and pledged not to sign pre-installation agreements with Google for search products from 2024 onward. Singtel was not immediately available for comment.
