Google admits liability in Australian antitrust case, fined $36M
What's the story
Google has been sued by Australia's competition watchdog, the Australian Competition and Consumer Commission (ACCC), over alleged anti-competitive practices in its search engine agreements. The ACCC claims that between December 2019 and March 2021, Google Asia Pacific reached "understandings" with telecom giants Telstra and Optus. These agreements allegedly mandated the exclusive pre-installation of Google Search on Android phones sold by these companies.
Revenue sharing
Revenue sharing with telcos
The ACCC further alleged that Telstra and Optus were given a share of the revenue generated by Google from ads shown to consumers using Google Search on their Android phones. This arrangement, according to the regulator, was part of the anti-competitive practices being investigated.
Penalty agreement
Google to pay A$55 million penalty
In response to the allegations, Google has admitted liability and agreed to pay a total penalty of A$55 million ($35.8 million). The tech giant has also committed to removing certain pre-installations and default search engine restrictions from contracts with Android phone makers and telcos. This undertaking was accepted by the ACCC as part of their resolution process.
Chair's statement
ACCC chair's statement on the case outcome
ACCC Chair Gina-Cass Gottlieb said the outcome of this case "created the potential for millions of Australians to have greater search choice in the future." She also emphasized that it would allow competing search providers to gain meaningful exposure to Australian consumers.