Google to pay $36m fine in Australia over anti-competitive search engine deals

Tech giant Google has agreed to pay a penalty of Aus$55 million (US$36 million) after being accused of engaging in anti-competitive practices in Australia.

According to the Australian Competition and Consumer Commission (ACCC), the case centered on deals struck between Google and two major telecom operators in the country. The agreements ensured that only Google’s search engine would come pre-installed on Android mobile devices sold through these telecom firms, effectively shutting out competitors.

In a joint submission to the Federal Court, Google Asia Pacific admitted to the arrangement and agreed to pay the fine. The court will now determine whether the penalty and other proposed orders are “appropriate.

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

Google had cooperated with the competition commission and admitted reaching the deals with telecoms firms Telstra and Optus, which were in place from December 2019 to March 2021, the body said.

In return for only installing Google’s search engine, Telstra and Optus had received a share of the resulting advertising revenue, the commission said.

“Google has admitted in reaching those understandings with each of Telstra and Optus, it was likely to have had the effect of substantially lessening competition,” it said.

Google said it was pleased to have resolved the regulator’s concerns over the provisions, adding that they had not been in its commercial agreements for “some time”.

“We are committed to providing Android device makers more flexibility to preload browsers and search apps,” a Google spokesperson said.

Telstra and Optus entered court-enforceable agreements last year not to make new agreements to pre-install Google search as the default on Android devices, the competition watchdog said.

(AFP)