Google has agreed to pay a $36 million fine in Australia after the country’s consumer watchdog found the tech giant engaged in anti-competitive behavior by paying major telecom companies to pre-install its search app on Android devices, effectively excluding rival search engines. This fine adds to Google’s ongoing legal challenges in Australia.
On Monday, Google consented to a A$55 million ($35.8 million) fine after Australia’s consumer watchdog, the Australian Competition and Consumer Commission (ACCC), concluded that the company had harmed competition by striking deals with Telstra and Optus. These agreements, which lasted from late 2019 to early 2021, involved Google sharing advertising revenue generated from its Search on Android devices in exchange for exclusivity. This practice led to the exclusion of rival search engines, limiting consumers’ choice.
This fine marks the latest chapter in a challenging period for Google in Australia. Just last week, the company lost a lawsuit filed by Epic Games, accusing it, along with Apple, of preventing the establishment of rival app stores on their respective operating systems. Additionally, Google’s YouTube was recently added to an Australian ban on social media platforms admitting users under 16, overturning an earlier exemption.
The ACCC’s Chair, Gina Cass-Gottlieb, commented that the resolution created an opportunity for Australian consumers to have greater access to competing search engines in the future. The regulator emphasized that the settlement would potentially provide meaningful exposure to rival providers, which had been significantly limited by Google’s past agreements.
Google admitted that the deals had a substantial impact on competition and pledged to halt similar arrangements moving forward. The company cooperated with the ACCC, avoiding prolonged litigation, and the fine is expected to be finalized by the Federal Court, which will determine if the penalty is appropriate.
In response, a Google spokesperson stated the company was pleased to resolve the matter and reiterated its commitment to offering Android device manufacturers more flexibility in pre-loading apps, ensuring competitive innovation. They also confirmed that provisions central to the issue have not been included in their agreements for some time.
Telstra and Optus, both of which were part of the deals, have fully cooperated with the ACCC and pledged not to enter into similar agreements with Google from 2024 onward.
