Google fined $36m for anti-competitive deals in Australia

Google has agreed to pay a penalty of Aus$55 million (US$36 million) after admitting to striking “anti-competitive” deals that ensured its search engine was pre-installed as the default option on Android mobile phones sold by Australian telecoms giants, Telstra and Optus.

The Australian Competition and Consumer Commission (ACCC) disclosed in a statement on Monday that it had taken proceedings to the Federal Court and jointly submitted with Google Asia Pacific that the fine should be imposed.

The court will now determine if the agreed penalty and orders are appropriate.

“Conduct that restricts competition is illegal in Australia because it usually means less choice, higher costs or worse service for consumers,” ACCC chair Gina-Cass Gottlieb said.

The regulator explained that between December 2019 and March 2021, Google entered into agreements with Telstra and Optus to exclusively pre-install its search engine on their Android devices. In return, the telecoms companies received a share of Google’s advertising revenue.

Google admitted the arrangements were likely to have substantially reduced competition. However, the tech giant noted that such provisions were no longer part of its commercial agreements. “We are committed to providing Android device makers more flexibility to preload browsers and search apps,” a company spokesperson said.

Both Telstra and Optus had, last year, entered court-enforceable undertakings not to engage in similar agreements in the future, according to the ACCC.