On August 18, Google agreed to pay a fine of A$55 million (US$35.8 million) in Australia. This came after the consumer watchdog accused Google of stifling competition by paying the two biggest telecom companies to pre-install its search app on Android phones, sidelining other search engines.
This penalty marks another challenging moment for Alphabet’s Google in Australia. Just last week, a court ruled largely against it in a case filed by Fortnite creator Epic Games, which alleged that Google and Apple were blocking competing app stores on their platforms.
Additionally, last month, Australia’s ban on social media platforms for users under 16 was extended to include YouTube, reversing an earlier decision to exempt the platform.
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Regarding the anti-competitive agreements with Australian telecom companies, the consumer watchdog announced that Google had made deals with Telstra and Optus, sharing ad revenue from Google Search on Android devices between late 2019 and early 2021.
Google acknowledged that these agreements significantly impacted competition from other search engines. It has since ceased such partnerships and agreed to the fine, the Australian Competition and Consumer Commission (ACCC) noted.
“Today’s resolution could allow millions of Australians greater choice in search engines and give competing providers meaningful access to Australian consumers,” said ACCC Chair Gina-Cass Gottlieb.
Google and the ACCC jointly submitted to the Federal Court that Google should pay the A$55 million fine.
The court still needs to approve the penalty, the ACCC said, but the collaboration between Google and the regulator has helped avoid prolonged legal battles.
A Google spokesperson expressed satisfaction with resolving the ACCC’s concerns, which involved “provisions not present in our deals for some time.”
“We are dedicated to offering Android device manufacturers more options to pre-load browsers and search apps, while maintaining features that help them innovate, compete with Apple, and keep costs low,” the spokesperson added.
Google owns Android.
A Telstra spokesperson directed Reuters to a previous statement saying that both it and Optus, owned by Singapore Telecommunications, have fully cooperated with the ACCC and committed not to sign agreements to pre-install Google’s search product from 2024 onwards.
SingTel was not immediately available for comment.
