Google has agreed to pay a fine of A$55 million ($35.8 million) in Australia after the country’s competition regulator found that the tech giant had engaged in anti-competitive practices. The Australian Competition and Consumer Commission (ACCC) said Google struck revenue-sharing deals with Telstra and Optus between late 2019 and early 2021 to have its search application pre-installed on Android devices, excluding rival search engines. Google admitted the arrangement had a significant impact on competition and pledged to avoid such agreements in the future.
The settlement adds to a series of regulatory challenges faced by Google in Australia. Only last week, a court largely ruled against the company in a case brought by Fortnite developer Epic Games, accusing both Google and Apple of stifling competition by blocking rival app stores. In addition, YouTube, owned by Google, was recently included in a nationwide ban on social media platforms for users under 16, reversing an earlier exemption.
According to the ACCC, the outcome opens the door for millions of Australians to enjoy greater search engine choice while allowing competing providers meaningful access to consumers. Both the regulator and Google jointly submitted the agreed penalty to the Federal Court, which will now determine whether to approve the fine. The ACCC stressed that the cooperation between both parties helped to avoid drawn-out litigation.
In a statement, Google expressed satisfaction with the resolution, noting that the provisions in question were no longer part of its commercial arrangements. The company said it remains committed to giving Android device manufacturers more flexibility to pre-load browsers and search apps, while still ensuring innovation and competition with Apple. Telstra and Optus confirmed they had fully cooperated with regulators and pledged not to enter into similar agreements with Google going forward