Google Asia Pacific has agreed to pay a A$55 million fine after admitting to uncompetitive conduct relating to the pre-installation of its search engine on Android phones sold by Telstra and Optus.
The penalty, jointly submitted with the Australian Competition and Consumer Commission (ACCC) and accepted by the Federal Court on Monday, follows proceedings in which Google admitted liability.
Between December 2019 and March 2021, Google struck agreements with Telstra and Optus ensuring Android devices were preloaded exclusively with Google Search. In return, the telcos received a share of advertising revenue generated from search activity on those phones.
ACCC chair Gina Cass-Gottlieb said: “Conduct that restricts competition is illegal in Australia because it usually means less choice, higher costs or worse service for consumers.
“Today’s outcome, along with Telstra, Optus and TPG’s undertakings, have 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.”