Google to Pay US$36 Million Fine for Anti-Competitive Deals in Australia
In a significant move, Google has agreed to pay a AU$55 million (US$36 million) penalty for engaging in anti-competitive deals with two leading Australian telecom firms, Telstra and Optus. The fine is a result of an investigation by the Australian Competition and Consumer Commission (ACCC), which found that Google had breached the country’s competition laws.
According to the ACCC, Google had entered into exclusive agreements with Telstra and Optus to pre-install its search engine on Android mobile phones sold by the two companies. In return, the telecom firms received a share of the resulting advertising revenue. The deals, which were in place from December 2019 to March 2021, restricted competition and limited consumer choice.
The ACCC launched proceedings in the Federal Court and jointly submitted with Google Asia Pacific that the company should pay the fine. The court will now decide whether the agreed penalty and other orders are “appropriate.” In a statement, ACCC Chair Gina Cass-Gottlieb emphasized that conduct that restricts competition is illegal in Australia, as it usually leads to less choice, higher costs, or worse service for consumers.
Google has admitted to reaching the deals with Telstra and Optus, which were likely to have substantially lessened competition. The company has also acknowledged that it has not included such provisions in its commercial agreements for some time. A Google spokesperson stated that the company is committed to providing Android device makers with more flexibility to preload browsers and search apps.
Telstra and Optus have entered court-enforceable agreements not to make new agreements to pre-install Google search as the default on Android devices. The ACCC has welcomed this move, stating that it will promote competition and consumer choice.
The US$36 million fine is a significant penalty for Google, which has faced several antitrust investigations and fines globally in recent years. The company’s commitment to providing more flexibility to Android device makers and the telecom firms’ agreements not to engage in similar deals in the future are seen as positive steps towards promoting competition and consumer choice.
As the tech giant continues to face regulatory scrutiny worldwide, this latest development highlights the importance of adhering to competition laws and promoting consumer choice in the digital market.
