Google has agreed to pay a fine of A$55 million ($35.8 million) after Australia competition regulator found the company struck deals that weakened competition in the search engine market.
The case centres on arrangements between Google and the two largest telecommunications providers in Australia, Telstra and Optus.
Between late 2019 and early 2021, both companies agreed to pre-install Google Search on Android devices they sold. In exchange, Google shared a slice of advertising revenue with the telcos. These exclusive deals meant rival search engines had little to no access to millions of mobile users.
The Australian Competition and Consumer Commission (ACCC) said the conduct breached competition law. Google has admitted that the agreements had a huge impact on market rivals and promised not to repeat them.
The regulator and Google have jointly recommended the A$55 million penalty to the Federal Court, which will make the final decision on whether the fine is appropriate.
“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.
Regulators worldwide are tightening their belts when it comes to large technology firms, and Australia has taken a particularly aggressive stance.
From forcing Google and Meta to pay local publishers for news content to challenging Apple and Google’s app store dominance in a case brought by Fortnite-maker Epic Games, Canberra has consistently objected against Big Tech.
More recently, YouTube was added to the list of social platforms barred from admitting users under 16.
For Google, this fine adds to a list of regulatory setbacks in the country. Still, the company has sought to present the resolution as constructive.
A spokesperson said Google was “pleased to resolve the ACCC’s concerns which involved provisions that haven’t been in our commercial agreements for some time,” adding that Android device makers would now have “more flexibility to pre-load browsers and search apps.”
Telstra and Optus, both of which have cooperated with the investigation, have also signed undertakings not to renew or enter similar deals with Google since 2024. Their decision opens the door for other search providers to compete for pre-installation space on Android devices.
The ACCC noted that the case arrives at a moment when artificial intelligence is changing the way people search for information. This creates new opportunities for rivals to challenge Google’s supremacy, if they are given fair access to the market.
