Google Fined $36 Million In Australia Over Anticompetitive Search Deal

Google has agreed to pay a fine of $55 million AUD ($36 million USD) after Australia’s competition watchdog found the tech giant engaged in anticompetitive practices.

The Australian Competition and Consumer Commission (ACCC) revealed that Google struck deals with major carriers Telstra and Optus to ensure Google Search was the only pre-installed search engine on their Android devices between December 2019 and March 2021.

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As part of these arrangements, both Telstra and Optus received a share of Google’s advertising revenue generated from customers who used Google Search on their phones.

The tech company has since admitted that the agreements were “likely to have had the effect of substantially lessening competition.”

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“Conduct that restricts competition is illegal in Australia because it usually means less choice, higher costs or worse service for consumers,” said ACCC Chair Gina Cass-Gottlieb.

She also pointed to the rise of AI-powered search tools as an important shift in the market: “Importantly, these changes come at a time when AI search tools are revolutionising how we search for information, creating new competition.

“With AI search tools becoming increasingly available, consumers can experiment with search services on their mobiles.”

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Unlike in some previous antitrust cases, the tech giant is not fighting the allegations in Australia. Instead, it has admitted liability and worked with the ACCC to propose the $55 million AUD penalty. The Federal Court will now decide whether the fine is appropriate.

This case follows a similar situation in Europe, where Google was fined €4.3 billion ($5 billion) in 2018 and subsequently introduced alternative search provider options for Android users.

Meanwhile, Telstra and Optus have agreed not to enter into similar exclusive arrangements with the tech giant in the future.

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