Google has agreed to pay a $55 million AUD ($36 million USD) fine for anticompetitive practices stemming from exclusive pre-installation deals with Telstra and Optus on Android devices from December 2019 to March 2021.
The Australian Competition and Consumer Commission (ACCC) announced the agreement, which addresses arrangements where Telstra and Optus exclusively pre-installed Google Search. These telecommunication companies subsequently received a share of Google’s advertising revenue generated from customers utilizing Google Search on their Android devices. Google acknowledged that these agreements were “likely to have had the effect of substantially lessening competition.”
ACCC Chair Gina Cass-Gottlieb stated that “Conduct that restricts competition is illegal in Australia because it usually means less choice, higher costs or worse service for consumers.” She further noted the emergence of AI search tools, remarking, “With AI search tools becoming increasingly available, consumers can experiment with search services on their mobiles.”
Google has cooperated with the ACCC investigation, admitting liability and jointly proposing the fine. The proposed payment of $55 million AUD ($36 million USD) now awaits a court’s determination regarding its appropriateness as a penalty. This contrasts with previous cases, as Google has offered a range of search provider options to EU Android users since 2020, following an antitrust ruling and a €4.3 billion ($5 billion) fine.
Separately, Telstra and Optus reached agreements with the ACCC last year, committing not to enter into similar exclusive arrangements with Google in the future.
