Google has agreed to pay Aus$55 million (US$36 million) after admitting it struck “anti-competitive” deals to pre-install its search engine on Android phones sold by two major Australian telecoms firms.
Australia’s competition authority confirmed it launched Federal Court proceedings and jointly submitted with Google Asia Pacific that the company should pay the fine. The court will now decide if the penalty and related orders are appropriate.
“Conduct that restricts competition is illegal in Australia because it usually means less choice, higher costs or worse service for consumers,” said ACCC chair Gina-Cass Gottlieb.
Google admitted reaching the agreements with Telstra and Optus between December 2019 and March 2021. In exchange for exclusively installing Google search, the telecoms firms received a share of the advertising revenue.
The watchdog said the deals were likely to have substantially reduced competition.
Google stated it was pleased to resolve the regulator’s concerns, adding that such provisions had not been part of its commercial agreements “for some time”.
“We are committed to giving Android device makers more flexibility to preload browsers and search apps,” a spokesperson said.
Telstra and Optus last year entered enforceable agreements not to strike new deals that would make Google search the default on Android devices.