Google has agreed to pay a A$55 million ($35.8 million) fine in Australia after regulators found it hurt competition by striking deals with the country’s two largest telecom providers, Telstra and Optus, to pre-install its search app on Android devices—shutting out rival search engines.
The Australian Competition and Consumer Commission (ACCC) said Google shared advertising revenue with the telcos under the arrangements, which ran from late 2019 to early 2021. Google admitted the deals had a “substantial impact” on competition and has since stopped signing similar agreements.
“Today’s outcome created the potential for millions of Australians to have greater search choice in the future, and for competing search providers to gain meaningful exposure to Australian consumers,” ACCC Chair Gina-Cass Gottlieb said.
Google and the ACCC jointly submitted the fine to the Federal Court, which will decide if it is appropriate. Both sides said cooperation helped avoid drawn-out litigation.
A Google spokesperson said the company was glad to resolve the matter, adding it is now giving Android device makers “more flexibility to pre-load browsers and search apps, while preserving features that help them innovate and keep costs low.”
The fine marks another setback for Google in Australia. Last week, a court largely ruled against the company in Epic Games’ lawsuit over app store restrictions, and in July, YouTube was added to Australia’s under-16 social media ban.
Telstra and Optus, owned by Singapore Telecommunications (SingTel), said they had fully cooperated with regulators and would not enter such agreements again.
