Google To Pay $36 Million Fine Over Exclusive Android Search Deals In Australia

Google To Pay $36 Million Fine Over Exclusive Android Search Deals In Australia

Google has agreed to pay a Aus$55 million (US$36 million) penalty following allegations of anti-competitive conduct involving exclusive search engine pre-installation deals with Australian telecom giants Telstra and Optus.

The Australian Competition and Consumer Commission (ACCC) announced that it had initiated proceedings in the Federal Court, jointly submitting with Google Asia Pacific that the tech company should pay the fine.

The court will now determine whether the proposed penalty and accompanying orders are appropriate.

The ACCC revealed that between December 2019 and March 2021, Google entered into agreements with Telstra and Optus to exclusively pre-install its search engine on Android devices sold through their networks. In exchange, the telcos received a portion of the advertising revenue generated through Google Search.

Google admitted that these arrangements likely had the effect of substantially reducing competition in the search engine market. The company stated it was pleased to resolve the regulator’s concerns and noted that such provisions had already been removed from its commercial contracts.

In response to the investigation, Telstra and Optus signed court-enforceable undertakings last year, pledging not to enter into similar agreements that would make Google Search the default on Android devices going forward.

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