Google has agreed to pay a $35.8 million (AU$55 million) fine in Australia after the country’s consumer watchdog found that Google Telco deals with leading telecom operators restricted competition in the mobile search market.
The Australian Competition and Consumer Commission (ACCC) announced on Monday that Google struck revenue-sharing agreements with the country’s two largest telecom companies, Telstra and Optus, between late 2019 and early 2021. These Google Telco deals ensured that the tech giant’s search application was pre-installed on Android phones, sidelining rival search engines.
According to the ACCC, this arrangement had a substantial impact on competition, making it harder for alternative search providers to reach users. Google has since stopped signing such agreements and accepted the fine to resolve the case.
“Today’s outcome creates 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.
The fine adds to Google’s challenges in Australia, where courts recently ruled against it in a lawsuit brought by Fortnite maker Epic Games over restrictions on third-party app stores. Google’s YouTube was also added to a nationwide ban on social media platforms for users under 16 last month.
Both Google and the ACCC have submitted the $35.8 million penalty to the Federal Court for approval. A Google spokesperson said the company was pleased to resolve the matter and is committed to giving Android device makers more flexibility to pre-load browsers and search apps while keeping costs low and competition alive.