Google to Pay Australia $36 Million Settlement for Anticompetitive Search Deal with Mobile Carriers

Google has recently agreed to pay a substantial fine of $55 million AUD ($36 million USD) for engaging in anticompetitive practices, as announced by the Australian Competition and Consumer Commission (ACCC). This fine stems from Google’s deals with Australian telecommunications giants Telstra and Optus, where they were exclusively required to pre-install Google Search on their devices.

The crucial aspect of these agreements was that Telstra and Optus were prohibited from installing any other search engine on their devices. In return, these companies received a share of Google’s ad revenue from users who utilized Google search on their Android devices. Google has acknowledged that these deals likely reduced competition significantly. These agreements were in effect from December 2019 to March 2021.

ACCC Chair Gina-Cass Gottlieb emphasized that anti-competitive conduct is illegal in Australia, as it often leads to limited choices, higher expenses, or inferior services for consumers. She highlighted the impact of AI in search tools, stating that advancements in AI technology are transforming how people search for information, fostering increased competition. As AI search tools become more accessible, consumers have the opportunity to explore diverse search services on their mobile devices.

Unlike previous instances where Google has contested investigations or fines, the company is now cooperating with the ACCC. Google has accepted responsibility and proposed the fine in collaboration with the ACCC. The appropriateness of the fine will be determined by a court. Since 2020, Google has offered a variety of search provider options to European Android users following another antitrust ruling and a €4.3 billion ($5 billion) fine.

In the past year, Telstra and Optus reached agreements with the ACCC, pledging not to enter into similar arrangements with Google in the future.