Google agrees $36m fine for anti-competitive deals with Australia telcos

After the consumer watchdog found Google had harmed competition by paying the country’s two largest telecom companies to install its search app on Android phones without using any of its rival search engines, the company has agreed to pay 55 million Australian dollars ($35.8 million) in fines.

The fine extends a turbulent time for the Australian-based Alphabet-owned internet company, where a court majority ruled in a Fortnite maker’s lawsuit accusing Google and Apple of preventing rival application stores from being installed in their operating systems.

In response to an earlier decision to exempt the video-sharing site, Google’s YouTube was added to the Australian ban on social media last month that added users under the age of 16 to.

The consumer watchdog in Australia reported on anti-competitive tie-ups with Australian telcos on Monday when Google announced it had struck agreements with Telstra and Optus, sharing with them advertising revenue generated from Google Search on Android devices between late 2019 and early 2021.

The Australian Competition and Consumer Commission (ACCC) noted that Google stopped signing similar deals while also agreeing to the fine and acknowledged the arrangement had a significant impact on competition from rival search engines.

According to ACCC Chair Gina Cass-Gottlieb, “Today’s outcome opened the door for millions of Australians to have more choice in terms of search options in the future” and for rival search companies to gain significant exposure for Australian consumers.

Joint submission

The ACCC and Google have jointly requested that Google pay the 55 million Australian dollar fine.

The court must still decide whether the punishment is appropriate, according to the ACCC, but Google and the regulator’s cooperation has prevented lengthy legal battles.

The ACCC’s concerns involved “provisions that haven’t been in our commercial agreements for some time,” according to a Google spokesman.

The spokesperson continued, “We are committed to giving Android device makers more freedom to pre-load browsers and search apps while maintaining the offerings and features that enable them to innovate, compete with Apple, and keep costs low.”