Google has agreed to pay a AUS$55 million (US$36 million) penalty after admitting to striking “anti-competitive” deals that restricted competition in Australia’s mobile search market.
The Australian Competition and Consumer Commission (ACCC) confirmed on Monday that it launched proceedings in the Federal Court, with both Google Asia Pacific and the regulator jointly submitting the penalty for approval. The court will now determine whether the fine and related orders are “appropriate.”
The Case Against Google
Between December 2019 and March 2021, Google reached agreements with two of Australia’s largest telecom operators Telstra and Optus to ensure that its search engine was the only one pre-installed on Android smartphones sold through their networks.
In exchange, the telecoms received a share of the advertising revenue generated through Google searches.
According to the ACCC, these arrangements likely had the effect of “substantially lessening competition” by shutting out rival search engines, limiting consumer choice, and reinforcing Google’s dominance in the market.
Regulator’s Position
“Conduct that restricts competition is illegal in Australia because it usually means less choice, higher costs, or worse service for consumers,” said ACCC chair Gina-Cass Gottlieb.
The watchdog added that Google fully cooperated during the investigation and admitted to the conduct.
Google’s Response
Google expressed satisfaction that the matter had been resolved, stressing that the restrictive 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 Google spokesperson said.
Both Telstra and Optus had already signed enforceable undertakings last year, committing not to enter into any new agreements that make Google Search the exclusive pre-installed option on Android devices.
If approved by the court, the AUS$55 million fine will mark another significant step in Australia’s ongoing efforts to curb anti-competitive behavior in the digital economy.
