Google Fined $35.8 Million in Australia

On Monday, Google was hit with a $35.8 million fine in Australia. The country’s consumer watchdog found that the tech giant stifled competition by paying the two largest telecom providers to preinstall its search app on Android devices, effectively sidelining competing search engines.

This fine adds to a challenging period for Google, which faced a court ruling last week against it in a case involving the maker of Fortnite. That lawsuit claimed Google and Apple were obstructing rival app stores through their operating systems.

In a related decision, Google’s YouTube recently reversed its previous stance and added restrictions for social media platforms, now banning accounts for users under 16 years old, which affects video-sharing sites.

The Australian Competition and Consumer Commission (ACCC) noted that Google’s dealings with Telstra and Optus had a significant adverse impact on competition for search engines, stating that Google had undermined the competitive landscape.

ACCC Chair Gina-Cass Gottlieb commented on the outcome, suggesting that it opens up the potential for many Australians to have more diverse search choices and offers competing search providers better visibility to consumers.

In coordination with the ACCC, Google acknowledged its agreement to the fine and expressed its desire to address the commission’s concerns, stating that they are keen on allowing flexibility for Android device makers regarding preloaded browsers and search apps.

As the penalty’s appropriateness is still up for consideration by the court, the collaboration between regulators and Google is seen as a way to avoid lengthy legal disputes.

A Google spokesperson indicated they are pleased with the resolution of ACCC issues, mentioning ongoing efforts to innovate while remaining competitive against Apple.