Google fined A$55 million in Australia over anti-competitive search deals

Google has agreed to pay a fine of A$55 million (US$35.8 million) in Australia after the country’s competition regulator found it had stifled rival search engines by striking exclusive agreements with major telecommunications companies.

The Australian Competition and Consumer Commission (ACCC) announced on Monday that Google entered into revenue-sharing deals with Telstra and Optus, the nation’s two largest telcos, between late 2019 and early 2021. Under the arrangements, the Alphabet-owned company paid the carriers to pre-install its search application on Android devices, effectively locking out competitors.

According to the ACCC, Google admitted that the deals had a “substantial impact” on competition and limited exposure for alternative search providers. In a joint submission to the Federal Court, Google and the regulator agreed on the A$55 million penalty, which still requires judicial approval. The ACCC said the cooperation avoided what could have been a lengthy and complex legal battle.

“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 in a statement.

The fine marks another setback for Google in Australia. Just last week, a court largely ruled against the company in a lawsuit filed by Fortnite-maker Epic Games, which accused Google and Apple of blocking rival app stores on their operating systems. In July, YouTube, also owned by Google, was added to a national ban on social media platforms accessible to users under 16, reversing an earlier exemption.

A Google spokesperson said the company was “pleased to resolve” the ACCC’s concerns and noted that the provisions in question had not been part of its commercial agreements for some time. “We are committed to providing Android device makers more flexibility to pre-load browsers and search apps, while preserving the offerings and features that help them innovate, compete with Apple, and keep costs low,” the spokesperson added.

Telstra and Optus, meanwhile, said they had fully cooperated with the regulator and have pledged not to enter into similar arrangements since 2024. Optus is owned by Singapore Telecommunications. However, this also reflects the fact that big tech companies can just accept the fines and get away with such anti-competitive deals.