We are committed to providing Android device makers more flexibility to preload browsers and search apps
Google has agreed to pay an A$55 million (US$36 million) fine after striking “anti-competitive” agreements that pre-installed only its search engine on Android smartphones sold by Australia’s two leading telecom operators. The Australian Competition and Consumer Commission (ACCC) said that it jointly submitted the proposed penalty with Google Asia Pacific to the Federal Court, which will now decide whether the amount and other orders are appropriate.
The ACCC noted that the arrangements, in place from December 2019 to March 2021, restricted competition by excluding rival search engines. In return, Telstra and Optus received a share of advertising revenue generated from the pre-installed Google Search.
ACCC Chair Gina-Cass Gottlieb emphasised the consequences of such conduct: “Conduct that restricts competition is illegal in Australia because it usually means less choice, higher costs or worse service for consumers.”
Google said it was “pleased to have resolved the regulator’s concerns over the provisions,” adding that the clauses “have not been in its commercial agreements for ‘some time’.” A spokesperson added: “We are committed to providing Android device makers more flexibility to preload browsers and search apps.”