Australia (Commonwealth)_
In a major development from a five-year investigation, Google has agreed to a A$55 million (US$35.8 million) fine in Australia after admitting that its business deals with major telecommunications providers were anti-competitive. The company’s admission, made to the Australian Competition and Consumer Commission (ACCC), resolves a long investigation into its strong position in the digital search market. The final decision on the fine and other actions now rests with the court.
These agreements required the telecommunications companies to pre-install only Google Search on the Android phones they sold. In exchange for this exclusivity, Google provided a share of its search advertising revenue to the carriers. Moreover, the contracts clearly prohibited Telstra and Optus from installing or suggesting any other search engines to their customers.
The commission stated that these provisions required all search access points on the devices to be set up for Google Search “out-of-the-box” and prevented the telcos from offering any “general search engine service that was substantially similar to Google Search.” Google has admitted that these practices likely reduced competition in the Australian search market.
A Google spokesperson stated that the company was glad to have resolved the ACCC’s concerns, noting that the provisions in question had not been part of their business agreements for some time. The spokesperson reiterated Google’s commitment to providing Android device makers with greater flexibility. Despite not agreeing with all of the ACCC’s claims, Google acknowledged them and formally promised to address the issues.
This action follows similar commitments made by Telstra, Optus, and TPG in 2024. The telcos agreed not to renew or enter into new exclusive default search arrangements with Google. The ACCC has noted that these changes would give millions of Australians more search options. With the new arrangements, the telecommunications companies will have the freedom to set up search services on individual devices and to engage in agreements with other search providers. The commission clarified that the telcos are not part of the current court action against Google.
This case arises at a crucial time, as AI search tools are starting to change how people discover information online, introducing new competition. The ACCC’s Gina Cass-Gottlieb pointed out that these changes are timely due to the new competition from AI-driven search technologies.
In conclusion, it can be mentioned that the Australian case is part of a larger global effort to tackle Google’s market dominance. European regulators have also fined Google for antitrust violations, and the company faces further antitrust scrutiny regarding its advertising technology business and Android app store in other regions.
The ACCC has expressed its commitment to addressing anti-competitive behavior and has encouraged cooperation from companies to avoid lengthy legal battles. The final court decision on the penalty is expected in the coming months, with Google’s new business commitments taking effect immediately upon court approval.
