Google to pay $55m fine over anti-competitive deals with Telstra, Optus
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More news: Google says it is “pleased to resolve the [Australian Competition and Consumer Commission’s] concerns” after it agreed to pay $55 million worth of penalties and admitted to making anti-competitive deals with Telstra and Optus to exclusively pre-load its search engine services onto Android phones the telcos supplied.
However, a Google spokesperson said the competition watchdog’s concerns “involved provisions that haven’t been in our commercial agreements for some time”.
“We are committed to providing Android device makers more flexibility to preload browsers and search apps, while preserving the offerings and features that help them innovate, compete with Apple, and keep costs low,” the spokesperson said.
The Federal Court will decide whether the total penalty of $55 million and other orders are appropriate.
Google to pay $55m fine over anti-competitive deals with Telstra, Optus
The news: Google and the competition regulator have jointly submitted to the Federal Court that the tech giant should pay $55 million penalties for signing anti-competitive deals with Telstra and Optus regarding preinstallation of Google Search on Android phones.
The context: Following an Australian Competition and Consumer Commission (ACCC) investigation, Google Asia Pacific admitted it engaged in anti-competitive conduct by securing understandings with Telstra and Optus between December 2019 and March 2021 that Google Search alone be pre-installed on Android phones they sold.
Telstra and Optus received a share of Google’s advertising revenue generated from Google Search on those Android phones.
Google admitted that the arrangements were “likely to have had the effect of substantially lessening competition,” according to a statement from the competition watchdog.
Google Asia Pacific and its US parent company also signed court-enforceable undertakings to remove “certain pre-installation and default search engine restrictions from its contracts with Android phone manufacturers and telcos”.
This is in addition to undertakings from Telstra, Optus and TPG made in mid-2024 “not to renew or make new arrangements with Google” to exclusively pre-install and set as default its search services on Android devices the telcos supplied.
What they said: “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,” ACCC chair Gina Cass-Gottlieb.
The source: ACCC media release
