Google has agreed to pay a fine after Australia’s competition regulator found it hurt market competition. The case relates to deals with major telecommunications companies that gave Google’s search app an unfair advantage.
The Australian Competition and Consumer Commission (ACCC) said Google made agreements with Telstra and Optus. Under these arrangements, the two companies pre-installed Google Search on Android phones. Rival search engines were excluded, limiting consumer choice. The agreements were in place from late 2019 until early 2021.
The ACCC found that this practice reduced competition and gave Google stronger control of the mobile search market. As part of the settlement, Google agrees $36 million fine for anti-competitive deals with Australian telcos. Both the regulator and Google submitted this penalty to the Federal Court, which must still approve the payment.
According to ACCC Chair Gina Cass-Gottlieb, the outcome allows more choice for Australians. She said it also creates opportunities for competing search providers to gain exposure in the market.
Google admitted that the agreements had a substantial effect on competition. The company confirmed it has stopped signing similar deals. A spokesperson said Google is committed to giving Android device makers more flexibility. This includes the ability to pre-load different browsers and search apps while keeping costs low for consumers.
Telstra and Optus said they had fully cooperated with the ACCC during the investigation. Both companies confirmed they no longer make pre-installation agreements with Google.
The decision adds to a challenging period for Google in Australia. Just last week, the company lost a separate legal case involving Epic Games, the maker of Fortnite. That lawsuit accused Google and Apple of blocking rival app stores on their platforms.
Google agrees $36 million fine for anti-competitive deals with Australian telcos, but the matter highlights the wider scrutiny facing big tech firms. Regulators continue to watch closely how large companies use their market power.
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