Alphabet Inc.’s Google has agreed to pay A$55 million ($35.8 million) fine in Australia for paying the country’s two largest telecom firms to pre-install its search application on Android phones.
The operator of the world’s largest search engine struck deals with Telstra and Optus to share with them advertising revenue generated from Google Search on Android devices between late 2019 and early 2021, according to Australian Competition and Consumer Commission on Monday.
That was deemed anti-competitive by the ACCC.
Google admitted the arrangement had a substantial impact on competition from rival search engines, and has stopped signing similar deals while also agreeing to the fine, the ACCC said.
“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,” ACCC Chair Gina-Cass Gottlieb said.
Google and the ACCC have jointly submitted to the Federal Court that Google should pay the A$55 million fine. The court must still decide if the penalty is appropriate, the ACCC said, but the cooperation between the regulator and Google has helped avoid lengthy litigation.
A Google spokesperson said the company was pleased to resolve the ACCC’s concerns which involved “provisions that haven’t been in our commercial agreements for some time”.
“We are committed to providing Android device makers more flexibility to preload browsers and search apps, while preserving the offerings and features that help them innovate, compete with Apple, and keep costs low,” said the spokesperson. Google owns the Android mobile OS as well.
A Telstra spokesperson referred Reuters to an earlier statement saying it and Optus, owned by Singapore Telecommunications, had fully cooperated with the ACCC and promised not to sign agreements with Google to pre-install its search product since 2024.
SingTel was not immediately available for comment.
The fine extends a bumpy period for Alphabet Inc. in Australia.
Last week, a court mostly ruled against it in a lawsuit brought by Fortnite maker Epic Games, accusing Google and Apple Inc. of preventing rival application stores in their operating systems.
Google’s YouTube was also last month added to an Australian ban on social media platforms admitting users aged under 16, reversing an earlier decision to exempt the video-sharing site.
Source link
