Google has faced a $55 million penalty after being found guilty of anti-competitive practices by the Australian Competition and Consumer Commission (ACCC). The ruling stems from agreements the tech company had with Australia’s major telecommunications providers, Telstra and Optus, which mandated that only Google’s search engine be pre-installed on Android devices sold between December 2019 and March 2021, excluding alternatives.
Under these arrangements, Google shared advertising revenue generated from users of its search engine on these devices with the telcos. However, the ACCC deemed this conduct illegal, asserting that restricting competition typically leads to reduced consumer choice, increased costs, and inferior services. ACCC Chair Gina-Cass Gottlieb noted that the settlement opens doors for millions of Australians to access a wider range of search engine options, fostering competition, particularly as AI technologies continue to evolve the landscape of online search.
In agreeing to the penalty, Google acknowledged its misconduct and consented to adapt its contracts to eliminate certain restrictions related to pre-installation and default search engines on Android devices. A spokesperson for the company expressed satisfaction with resolving the ACCC’s concerns, explaining that the provisions in question have been absent from their commercial agreements for some time.
Moving forward, Google intends to offer Android device manufacturers greater flexibility in preloading various browsers and search applications, while still supporting innovations that enable them to compete effectively against Apple and manage costs. This change follows similar agreements made by Telstra, Optus, and TPG last year, promising not to solely install Google’s search engine on their Android offerings.