Google to Pay $ 36M Fine for Anticompetitive Deals
Google has consented to pay a fine of 55 million Australian dollars ($36 million) for entering into anticompetitive agreements with Australia's two largest telecommunications companies that prohibited the installation of rival search engines on certain smartphones, according to the U.S. tech giant and Australia's competition regulator.
The Australian Competition and Consumer Commission announced that it has initiated legal action in the Australian Federal Court against the Singapore-based division of Google Asia Pacific. The court will determine if the AU$50 million ($36 million) fine is suitable.
During the 15 months until March 2021, Telstra and Optus had anticompetitive agreements that mandated the exclusive pre-installation of Google Search on Android phones sold to consumers. Additional search engines were not included. In exchange, the telecom companies earned a portion of the ad revenue that Google produced from those users.
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The commission stated that Google acknowledged the agreements were likely to significantly reduce competition.
The commission stated that Google has entered into a court-enforceable agreement that obligates the company to eliminate specific pre-installation and default search engine limitations from its arrangements with Android device makers and telecom companies.
The technology firm announced: “We’re happy to address the ACCC’s issues, which pertained to clauses that have not been present in our business contracts for a while.”
Commissioner chair Gina-Cass Gottlieb stated: "Actions that limit competition are unlawful in Australia since they often result in reduced options, increased prices, or inferior service for consumers.”
"Significantly, these alterations occur at a moment when AI search tools are transforming our information-seeking methods, introducing fresh competition," Cass-Gottlieb noted.
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Last year, Telstra, Optus, and their lesser competitor TPG consented to court-enforceable commitments with the commission to avoid renewing or entering into similar agreements with Google that would restrict search alternatives.