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Google agreed Monday to pay a $35.8 million (A$55 million) penalty in Australia after regulators found it damaged competition by paying the country’s top two telecom companies to embed its search app on Android devices, effectively shutting out other search engines.
This penalty comes amid a rough patch for the tech giant, owned by Alphabet. Last week, a court mostly ruled against Google in a lawsuit from Epic Games, the maker of Fortnite, accusing Google and Apple of blocking alternative app stores within their operating systems.
Last month, YouTube was added to an Australian ban on social media platforms that allow under-16 users, reversing its previous exemption.
Regarding anti-competitive agreements with Australian telecom firms, the country’s consumer watchdog revealed that Google entered into deals with Telstra and Optus, sharing advertising revenue earned from Google Search on Android phones from late 2019 to early 2021.
Google acknowledged that these arrangements significantly impacted competition from rival search engines and has ceased similar deals. The company also agreed to the fine, with the Australian Competition and Consumer Commission (ACCC) stating that both parties have jointly asked the Federal Court to approve the penalty.
ACCC Chair Gina-Cass Gottlieb said, “This outcome helps ensure that millions of Australians could see increased search options in the future and provides competing search providers a real chance to reach Australian consumers.”
Google, along with the ACCC, submitted to the court that Google should pay the $35.8 million fine. The court has yet to determine if the penalty is appropriate, but cooperation between the regulator and the company has prevented prolonged legal proceedings.
A Google spokesperson expressed satisfaction with resolving the issue, noting that the provisions involved haven’t been part of their agreements for some time.
“We remain dedicated to giving Android device manufacturers more freedom to pre-install browsers and search apps,” the spokesperson said, “while maintaining the features that enable innovation, competition with Apple, and affordability.”
Google owns Android.
A Telstra representative pointed to an earlier statement indicating that both Telstra and Optus, owned by Singapore Telecommunications, have fully cooperated with the ACCC and have pledged not to sign agreements with Google to pre-install its search app starting in 2024.
SingTel was not immediately available for comment.
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