Omotayo Adigun
Global tech giant Google has agreed to pay a fine of 55 million Australian dollars ($36 million) after admitting to anticompetitive agreements with Australia’s two largest telecommunications companies, Telstra and Optus.
According to the Australian Competition and Consumer Commission (ACCC), the deals – which lasted for 15 months until March 2021 – restricted competition by ensuring that only Google Search was pre-installed on Android smartphones sold by the telcos. Competing search engines were excluded, while the telcos received a share of advertising revenue generated from Google’s platform.
The ACCC commenced proceedings on Monday in the Australian Federal Court, which will review and determine whether the proposed penalty is appropriate. Google has acknowledged that its agreements likely had the effect of “substantially lessening competition.”
In addition to the fine, Google has signed a court-enforceable undertaking pledging to remove pre-installation and default search restrictions from contracts with Android device manufacturers and telcos.
Responding to the settlement, Google stated:
“We’re pleased to resolve the ACCC’s concerns, which involve provisions that haven’t been in our commercial agreements for some time.”
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ACCC Chair Gina Cass-Gottlieb welcomed the resolution, stressing the importance of consumer choice and market fairness.
“Conduct that restricts competition is illegal in Australia because it usually means less choice, higher costs or worse service for consumers,” she said.
She further noted that the changes are significant as AI-driven search tools begin to reshape the way users access information, offering new avenues for competition in the digital search market.
Last year, Telstra, Optus, and rival TPG signed their own enforceable undertakings, agreeing not to enter into similar exclusive deals with Google in the future.