Google Fined in Australia for Anti-Competitive Practices
SYDNEY (Reuters) – Google has been hit with a A$55 million ($35.8 million) fine in Australia after the country’s consumer watchdog determined that the tech giant compromised competition. This happened by paying the two largest telecommunications companies in Australia to pre-install its search app on Android devices, which effectively sidelined competing search engines.
This fine is just one part of a rocky period for Google, owned by Alphabet. Recently, a court largely sided against the company in a lawsuit brought by Epic Games, the maker of Fortnite. The suit alleged that Google and Apple were blocking rival app stores on their operating systems.
Adding to the challenges, last month Google’s YouTube was included in a new Australian ban affecting social media platforms that allow users under 16, reversing an earlier exemption for the site.
Regarding its deals with Australian telcos, the consumer watchdog noted that Google collaborated with Telstra and Optus, sharing advertising revenues from Google Search on Android devices from late 2019 to early 2021. This arrangement, as Google acknowledged, significantly impacted competition from other search engines and the company has since halted these types of agreements.
ACCC Chair Gina-Cass Gottlieb remarked that this resolution could offer millions of Australians better search options in the future and open up opportunities for competing search providers to connect with Australian consumers.
Both Google and the ACCC have submitted to the Federal Court that the A$55 million fine should be imposed. The court still needs to determine if this penalty is appropriate, but officials noted that the collaboration between Google and the regulator has helped avoid lengthy and complex lawsuits.
A spokesperson for Google expressed satisfaction with the resolution of the ACCC’s concerns, mentioning that the contested provisions had not been part of their commercial agreements for some time. They also emphasized a commitment to providing Android manufacturers greater flexibility to pre-install various browsers and search applications, all while maintaining features that encourage innovation and competitiveness against Apple.
A representative from Telstra referred to a prior statement indicating that both Telstra and Optus, which is owned by Singapore Telecommunications, have fully cooperated with the ACCC and promised not to engage in any agreements with Google for pre-installation of its search product since 2024.
SingTel did not provide immediate comments on the matter.
($1 = A$1.5349)
