Google Fined forAnticompetitive Practices in Australia
Google has been fined A$55 million (approximately US$36 million) in Australia after the Australian Competition and Consumer Commission (ACCC) found the company had engaged in anticompetitive practices. The case, which was heard in the Australian Federal Court, centered on exclusive deals Google had with Australia's two largest telecommunications companies, Telstra and Optus.
The Agreements: Between late 2019 and early 2021, Google had agreements with Telstra and Optus that restricted them from pre-installing any search engine other than Google Search on the Android phones they sold.
The Motive: In exchange for this exclusivity, the telecommunications companies received a share of the advertising revenue that Google generated from searches made on those devices.
Google's Admission: Google has formally admitted that these agreements were likely to have "substantially lessened competition" in the Australian market.
Remedial Action: As part of a court-enforceable undertaking, Google has committed to removing these restrictive clauses from its contracts with Android phone manufacturers and telcos in Australia.
Wider Context: The ACCC stated that this resolution, combined with similar commitments from Telstra, Optus, and their rival TPG last year, is expected to provide Australians with more choice in search engines. This also gives competing search providers a better opportunity to reach consumers.
