Google has agreed to pay AU$55 million (US$36 million) after admitting to anticompetitive agreements with Australia’s two largest telecom operators, Telstra and Optus.
The Australian Competition and Consumer Commission (ACCC) announced the penalty on Monday, August 18, stating that Google’s Asia-Pacific arm, based in Singapore, had signed contracts that prevented the installation of rival search engines on Android smartphones sold to customers.
The agreements, which lasted 15 months until March 2021, ensured Google Search remained the sole pre-installed option, while Telstra and Optus received a share of advertising revenue from users’ searches.
Google acknowledged that the deals were likely to “substantially lessen competition.” The ACCC has filed proceedings in the Federal Court, which will determine if the AU$55 million fine is appropriate.
In addition to the penalty, Google has agreed to a court-enforceable undertaking that bans it from imposing similar restrictions in future contracts with Android device makers or telecom operators.
“We’re pleased to resolve the ACCC’s concerns, which involved provisions that haven’t been in our commercial agreements for some time,” Google said in a statement.
ACCC Chair Gina Cass-Gottlieb welcomed the outcome, stressing that anti-competitive practices harm consumers.
“Conduct that restricts competition is illegal in Australia because it usually means less choice, higher costs, or worse service,” she said. “This comes at a crucial time, as AI-driven search tools are reshaping how people access information, creating new competition.”
Last year, Telstra, Optus, and rival TPG also entered into court-enforceable undertakings with the regulator, pledging not to sign similar deals with Google that limit search engine options.
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