Google Faces $55 Million Fine for Locking out Rival Search Engines: ACCC

The Australian Competition and Consumer Commission (ACCC) has commenced Federal Court proceedings against Google Asia Pacific after the tech giant admitted to striking anti-competitive agreements with Australia’s largest telcos to pre-install its search engines.

In a statement, ACCC Chair Gina Cass-Gottlieb confirmed Google has “admitted liability and agreed to jointly submit to the court that Google should pay a total penalty of $55 million.”

The case is now before the Federal Court, which will determine whether the proposed $55 million (US$35.8 million) penalty and other measures are appropriate.

Cass-Gottlieb explained that between December 2019 and March 2021, the agreements required both Telstra and Optus  to pre-install only the Google Search app on Android phones sold to Australian consumers, excluding rival search engines.

In exchange, the telcos received a share of advertising revenue generated from Google searches on those devices.

“Conduct that restricts competition is illegal in Australia because it usually means less choice, higher costs or worse service for consumers,” Cass-Gottlieb said.

Commitments to Remove Restrictions

Google has now signed a court-enforceable undertaking, alongside its U.S. parent company Google LLC, pledging to remove certain contractual restrictions that limit competition.

The undertaking was accepted by the ACCC as part of efforts to address broader concerns dating back to 2017 about agreements between Google, telcos, and Android phone manufacturers.

In 2024, Telstra, Optus, and TPG agreed not to strike such deals.

Meanwhile, Google, when contacted by The Epoch Times said it was pleased to resolve the ACCC’s concerns.

“We are committed to providing Android device makers more flexibility to preload browsers and search apps, while preserving the offerings and features that help them innovate, compete with Apple, and keep costs low,” a Google spokesperson said.

The ACCC’s investigation into Google’s practices began during its multi-stage Digital Platform Services Inquiry, which raised concerns about the influence of the tech giants on competition in Australia.