Google has agreed to pay 55 million Australian dollars ($ 35.8m) in fines after the country’s consumer watchdog found it harmed competition by paying the country’s two largest telecommunications companies to pre-install its search application on Android phones, excluding rival search engines.
The fine extends a bumpy period for the Alphabet-owned internet giant in Australia, where last week a court mostly ruled against it in a lawsuit brought by Fortnite maker Epic Games, accusing Google and Apple of preventing rival application stores in their operating systems.
Google’s YouTube was also added to an Australian ban on social media platforms last month admitting users aged under 16, reversing an earlier decision to exempt the video-sharing site.
On anti-competitive tie-ups with Australian telcos, the country’s consumer watchdog on Monday said Google struck deals with Telstra and Optus, under which the tech giant shared with them advertising revenue generated from Google Search on Android devices between late 2019 and early 2021.
Google admitted the arrangement had a substantial effect on competition from rival search engines, and has stopped signing similar deals while also agreeing to the fine, the Australian Competition and Consumer Commission (ACCC) added.
“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.
Joint submission
Google and the ACCC have jointly submitted to the Federal Court that Google should pay the 55 million Australian dollar 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 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.
Google owns Android.
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