Google has decided to pay a US$35.8 million penalty after Australia’s competition regulator found the tech giant hit anti-competitive contracts with the country’s two key telecommunications providers.
The Australian Competition and Consumer Commission (ACCC) said on Monday that Google paid Telstra and Optus to pre-install its search engine on Android devices between 2019 and 2021, therefore, restricting it for other search engines.
The ACCC decided that these agreements harmed competition by tumbling consumer choice and stifling innovation in mobile search services. Google acknowledged its conduct had a considerable effect on the market and confirmed it no longer enters into such agreements.
The proposed penalty, jointly submitted by Google and the ACCC, is now expecting approval from the Federal Court. If accepted by the court, it will mark one of the largest fines for anti-competitive conduct in Australia’s digital economy segment.
Implications for Global Android Market
Though the arrangements were precise to the Australian market, the case raises broader questions about how search engines are globally distributed on Android. Google, which owns Android, said it has since restructured its policies and no longer includes such requirements in its commercial contracts.
Both Telstra and Optus confirmed they have not entered into any parallel deals with Google since 2024. They also have cooperated fully with the investigation.
Legal Setbacks Continue for Google in Australia
This fine enhances to a series of legal challenges Google faced not only in Australia but in other parts of the world as well. Just last week, a federal court mainly sided against the company in a lawsuit from Fortnite maker Epic Games over limitations on other app stores. YouTube, also owned by Google, was recently included in Australia’s under-16 social media restrictions.
Ankur Mishra is a journalist who covers an extensive range of news, from business, stock markets, IPOs to geopolitics, world affairs, international crises, and general news. With over a decade of experience in the business domain, Ankur has been associated with some of the reputed media brands. Through a sharp eye on global marketplaces along with deep insights and analysis of business strategies, Ankur brings simplicity to the complex economic matrix to decode market trends and empower people.
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