ACCC fines Google over Telstra, Optus search deals
According to the ACCC, the deal involved Telstra and Optus pre-installing only Google Search on Android phones the telcos sold to consumers.
In return, Telstra and Optus would receive a share of the revenue generated from ads displayed to consumers via Google Search on these devices.
The ACCC said by pre-installing Google Search engines on these devices, the telcos and tech giant engaged in anticompetitive business practices.
The ACCC said the breaches in competition laws occurred between December 2019 and March 2021.
Google admitted that this relationship with the telcos substantially lessened competition, the ACCC said.
The proceedings started on Monday in the Federal Court, with Google admitting liability
and agreeing to pay $55m.
'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.
Telstra, Optus and TPG last year agreed with the ACCC not to enter into new search exclusive deals with Google.
A Google spokesperson said the company was 'pleased' to resolve the issues with the ACCC.
'We're pleased to resolve the ACCC's concerns, which involved provisions that haven't been in our commercial agreements for some time,' the spokesperson said.
'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.'
'Today's outcome, along with Telstra, Optus and TPG's undertakings, have created the potential for millions of Australians to have greater search choice in the future and for competing search providers to gain meaningful exposure to Australian consumers,' Ms Cass-Gottlieb said.
The three telcos could configure search services on a device-by-device basis and in ways that may not align with Google settings, the ACCC said.
It said Google didn't agree with all of the ACCC's concerns but gave an undertaking to address them.
Originally published as ACCC fines Google over Telstra, Optus search deals
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