Google fined $36M in Australia over Telco search deals
The Federal Court will decide on the fine’s appropriateness, although Google’s cooperation with the ACCC has expedited the resolution.
Google has agreed to pay a fine of A$55 million (US$35.8 million) in Australia after regulators found the tech giant restricted competition by striking deals with the country’s two largest telecommunications providers. The arrangements gave Google’s search engine a dominant position on Android phones while sidelining rival platforms.
The Australian Competition and Consumer Commission (ACCC) revealed that between late 2019 and early 2021, Google partnered with Telstra and Optus, offering them a share of advertising revenue in exchange for pre-installing its search app. Regulators said the practice curtailed consumer choice and prevented other search engines from gaining visibility. Google admitted the deals harmed competition and agreed to abandon similar agreements.
The fine marks another setback for the Alphabet-owned company in Australia. Just last week, a court essentially ruled against Google in a high-profile case brought by Epic Games, which accused both Google and Apple of blocking alternative app stores on their operating systems. In a further blow, Google’s YouTube was recently swept into a nationwide ban on social media access for users under 16, reversing an earlier exemption.
ACCC Chair Gina Cass-Gottlieb said the outcome was essential to ensure Australians have ‘greater search choice in the future’ and that rival providers gain a fair chance to reach consumers. While the fine still requires court approval, Google and the regulator have submitted a joint recommendation to avoid drawn-out litigation.
In response, Google emphasised it was satisfied with the resolution, noting that the contested provisions were no longer part of its contracts. The company said it remains committed to offering Android manufacturers flexibility in pre-loading apps while maintaining features that allow them to compete with Apple and keep device prices affordable. Telstra and Optus confirmed they have ceased signing such agreements since 2024, while Singtel, Optus’ parent company, has yet to comment.
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