Google will pay a A$55 million fine after Australia’s consumer regulator discovered the company had abused agreements with the nation’s two largest phone carriers to promote its search app unfairly. The arrangements led Google Search to be included as a pre-loaded app on most Android phones, making it more difficult for competitors to be discovered by users.
The regulator stated the payments were made by Google paying to share ad money with Telstra and Optus between late 2019 and early 2021. The agreement provided Google with a dominant position on new phones and made it less likely for competing search tools to access Australian customers.
Google has complied with the concerns raised by the watchdog and ceased to make such deals. The firm, along with the Australian Competition and Consumer Commission (ACCC), has sought the approval of the fine and the settlement from a court. The court will determine whether the penalty is adequate.
What The Deal Did And Why Regulators Acted
The ACCC stated the revenue-sharing agreements provided Google Search a significant advantage on Android devices. When an app is pre-installed, consumers tend to retain it and do not often seek alternatives. The watchdog is concerned this constrains choice and damages competition.
Google acknowledged its transactions had a “substantial impact” on other search engines. In public statements, ACCC chair Gina-Cass Gottlieb stated the result may assist other search providers with greater exposure to Australians in the future.
Google stated that it was happy to settle the case. A Google company spokesperson stated that the dispute concerned contract terms no longer in use, and that Google is willing to provide manufacturers with more flexibility to pre-install alternative browsers and search applications.
What This Means For Users And Companies
The deal does not prevent Google from installing its apps on phones. What it seeks to prevent is deals that make it difficult for other apps to compete. Telstra and Optus stated they collaborated with the regulator and have not entered similar pre-install deals with Google since 2024.
For new phone buyers, the decision could result in more control over what search engine gets displayed when users first activate a device. For smaller search firms, it could be simpler to acquire users if phone manufacturers are not constrained from offering alternatives.
The case is part of a series of recent regulatory and legal hurdles for big technology firms in Australia and globally. Regulators are scrutinizing more closely how large companies strike deals that may restrain competition on devices and services.
FAQs
- How much will Google pay?
Google and the ACCC requested the court to endorse a A$55 million fine, equivalent to US$36 million.
2. Who were the phone companies involved?
The arrangements were with Telstra and Optus, which are Australia’s largest telcos.
3. When did these arrangements occur?
The revenue-sharing arrangements occurred between late 2019 and early 2021.
4. Will Google continue to put its apps on phones?
Yes. Google indicated phone makers will continue to be able to pre-load Google apps but that it will end similar revenue-sharing arrangements that shut out competitors.
5. What was the objective of the watchdog?
The ACCC sought to preserve competition so users have greater option over search engines and apps on their devices.
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