Google fined A$55mln in Australia over Android search deals
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Google to pay A$55 million in Australia after the country's ACCC found it hurt competition by paying Telstra and Optus to pre-install its search app on Android phones.
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A file photo shows the Google app on an iPad in Baltimore on March 19, 2018. (AP)
Google has agreed to pay an A$55 million ($35.8 million) fine in Australia after the country’s competition watchdog found it struck anti-competitive deals with major telecommunications companies.
The Australian Competition and Consumer Commission (ACCC) said the Alphabet-owned internet giant paid Telstra and Optus to pre-install its search application on Android devices, effectively locking out rival search engines. The agreements covered the period between late 2019 and early 2021 and included revenue-sharing arrangements based on Google Search advertising.
According to the ACCC, the arrangements had a "substantial impact" on competition, limiting the ability of other search providers to gain exposure in the Australian market.
"Today's outcome ... created the potential for millions of Australians to have greater search choice in the future, and for competing search providers to gain meaningful exposure to Australian consumers," ACCC Chair Gina-Cass Gottlieb said.
Google admitted the practices had restricted competition and has since stopped signing similar agreements. Additionally, Google and the ACCC jointly submitted the proposed penalty to the Federal Court, which will decide whether the fine is appropriate. Regulators said cooperation between both parties helped avoid a drawn-out legal battle.
Google responds to the ruling
A Google spokesperson said the company was "pleased to resolve the ACCC’s concerns," noting that the provisions under scrutiny "haven’t been in our commercial agreements for some time."
The company added it remains committed to giving Android device makers "more flexibility to pre-load browsers and search apps, while preserving the offerings and features that help them innovate, compete with Apple, and keep costs low."
Google owns the Android mobile operating system, the most widely used globally.
The fine comes during a turbulent period for Google in Australia. Just last week, a court largely ruled against the company in a case brought by Epic Games, which accused both Google and Apple of restricting rival app stores.
Telstra and Optus, owned by Singapore Telecommunications (SingTel), have pledged not to sign any new pre-installation deals with Google since 2024. Telstra said it had fully cooperated with the ACCC throughout the investigation.
