Google Fined $36 Million in Australia for Anti-Competitive Telco Deals

Google has agreed to pay a $36 million (A$55 million) fine in Australia after admitting to striking anti-competitive deals with major telecom companies, Telstra and Optus. The Australian Competition and Consumer Commission (ACCC) announced on Monday that the agreements, made between 2019 and 2021, allowed Google to share advertising revenue generated from Google Search on Android devices, undermining fair competition in the market.

The ACCC said Google’s conduct limited exposure for rival search engines and restricted consumer choice. “Today’s outcome created the potential for millions of Australians to have greater search choice in the future, and for competing search providers to gain meaningful exposure to Australian consumers,” said ACCC Chair Gina-Cass Gottlieb.

Google admitted the deals had a substantial impact on competition but noted it had already stopped signing similar agreements. Both the regulator and Google have asked the Federal Court to approve the fine, avoiding what could have been years of costly litigation. The court will now determine whether the proposed penalty is appropriate.

In a statement, Google said it was pleased to resolve the matter, stressing that the disputed provisions had not been part of its commercial contracts “for some time.” The company also reaffirmed its commitment to giving Android device makers greater flexibility in pre-loading browsers and search applications, while ensuring competition with Apple and keeping costs low.

Telstra and Optus, which fully cooperated with the ACCC during the investigation, confirmed they have not signed agreements to pre-install Google’s search products since 2024. The case highlights Australia’s increasingly tough stance on digital giants, coming just weeks after YouTube, owned by Google, was added to a ban on under-16 users joining social media platforms in the country.

Source: Reuters