Google Hit With $55 Million AUD Fine Over Anticompetitive Deals

Google has agreed to a $55 million AUD fine (roughly $36 million USD) from the Australian Competition & Consumer Commission (ACCC) and admitted liability for anticompetitive practices. According to an August 18 release by the watchdog, Google engaged in an illegal deal with two Australian telecom companies from 2019 to 2021.

According to the ACCC, Google made agreements with Telstra and Optus to pre-install its Google search function on all Android devices they sold, while preventing them from pre-installing rival search engines. In return, the companies would get a share of the ad revenue generated from customers using Google Search.

Google admitted to the ACCC that such agreements were likely to have a substantial impact on competition.

“Today’s outcome … created the potential for millions of Australians to have greater search choice in the future, and for competing search providers to gain meaningful exposure to Australian consumers,” ACCC Chair Gina Cass-Gottlieb said.

Google also signed a commitment to remove specific pre-install and default search engine restrictions from its agreements with Android phone manufacturers and national telecommunications companies.

“Importantly, these changes come at a time when AI search tools are revolutionising how we search for information, creating new competition. With AI search tools becoming increasingly available, consumers can experiment with search services on their mobiles,” added Cass-Gottlieb.

The fine is yet to be approved by Australia’s Federal Court, though it is expected that the joint submission by Google and the ACCC is likely to appease the court.

“We are committed to providing Android device makers more flexibility to pre-load browsers and search apps, while preserving the offerings and features that help them innovate, compete with Apple, and keep costs low,” said a Google spokesperson.

The agreement was reached as Google faces other important legal challenges in Australia. Earlier this month, Australia’s Federal Court ruled against both Google and Apple over anticompetitive conduct regarding their respective app stores.

On July 30, the Australian Prime Minister Anthony Albanese also confirmed that Google-owned YouTube would no longer be exempt from the country’s historic ban on social media for children under 16, as it was originally announced.