Google will pay Australia $36 million over anticompetitive search deal with mobile carriers

Google has agreed to pay a fine of $55 million AUD ($36 million USD) for anticompetitive practices, the Australian Competition and Consumer Commission (ACCC) announced. It stems from deals Google undertook with Australian telecommunications companies Telstra and Optus to only pre-install Google Search.

The key there is that these companies couldn’t install any other search engine. Telstra and Optus then got a share of Google’s ad revenue from customers using Google search on their respective Androids. Google admitted these agreements were “likely to have had the effect of substantially lessening competition.” These deals were in place from December 2019 to March 2021.

“Conduct that restricts competition is illegal in Australia because it usually means less choice, higher costs or worse service for consumers,” ACCC Chair Gina-Cass Gottlieb said before turning the emphasis to AI. “Importantly, these changes come at a time when AI search tools are revolutionising how we search for information, creating new competition. With AI search tools becoming increasingly available, consumers can experiment with search services on their mobiles.”

Unlike some past instances in which Google has defended itself against an investigation or fine, the company is cooperating. It has admitted liability and proposed the fine alongside the ACCC. A court will determine whether its an apt punishment. Google has offered a range of search provider options to EU Android users since 2020 — after facing another antitrust ruling and a €4.3 billion ($5 billion) fine.

Last year, Telstra and Optus came to agreements with the ACCC that they wouldn’t make similar arrangements with Google moving forward.