Large telcos in Australia faced anticompetitive dealings by Google, resulting in a €30M fine imposed on the tech giant.
Google Fined AU$55 Million for Anticompetitive Deals with Telstra and Optus
In a landmark decision, Google has agreed to pay a fine of 55 million Australian dollars (approximately $36 million USD) for anticompetitive deals with the two largest Australian telcos, Telstra and Optus. These deals, active for about 15 months until March 2021, restricted competition in the smartphone search engine market.
Under the agreements, Telstra and Optus pre-installed only Google Search on Android devices, effectively excluding other search engines. In return, Google shared a portion of the advertisement revenue generated from their customers. Google acknowledged that these agreements were likely to have the effect of substantially lessening competition.
The Australian Competition and Consumer Commission (ACCC) has taken the matter to the Australian Federal Court to determine the appropriateness of the penalty. Google has also signed a court-enforceable undertaking committing to remove restrictions on pre-installation and default search engine options in future contracts with Android manufacturers and telecommunications companies.
ACCC Chair Gina Cass-Gottlieb emphasized that such conduct reduces consumer choice, increases costs, and worsens service. The fine and undertakings come at a time when AI-driven search technologies are increasing competition in the search market.
Here's a summary of the key aspects of the case:
| Aspect | Details | |----------------------------|----------------------------------------------------------------| | Fine Amount | 55 million AUD (~36 million USD) | | Companies Involved | Google, Telstra, Optus | | Violation | Anticompetitive deals banning competing search engines on Android phones | | Duration of Agreements | Approximately 15 months until March 2021 | | Authority | Australian Competition and Consumer Commission (ACCC) | | Outcome | Fine, court proceedings, and enforceable undertakings by Google to remove restrictions | | Impact | Reduced competition and consumer choice in smartphone search engines |
This penalty and the associated legal actions reflect Australia's commitment to enforcing anti-competitive behavior in the digital economy, specifically concerning default search engine arrangements on smartphones. Google's changes in practices come at a time when AI search tools are revolutionizing information search, creating new competition. The court will decide whether the AU$50 million penalty is appropriate.
The fine imposed on Google for anticompetitive practices in the smartphone search engine market is AU$55 million (roughly $36 million USD), reflecting Australia's commitment to combat such behavior in the digital economy, particularly in relation to default search engine arrangements on smartphones. This move comes as AI search tools are reshaping information search, potentially increasing competition in the business sector.
In the recent case, Google, Telstra, and Optus were involved in agreements that spanned approximately 15 months until March 2021, which restricted competition by pre-installing only Google Search on Android devices, thereby excluding other search engines. These deals also involved sharing of advertisement revenue.
