Google fined $55m for anticompetitive telco deals
The consumer watchdog began legal proceedings against Google Asia Pacific in the Federal Court on Monday over deals that required the telcos to pre-install Google's own search engine on Android phones between December 2019 and March 2021. In return, Telstra and Optus received a share of Google search advertising revenue.
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Sky News AU
3 hours ago
- Sky News AU
Google hit with $55m fine after ACCC took it to court over 'anti-competitive' Android deals with Optus and Telstra
Google Asia-Pacific has agreed to pay a $55m fine after the Australian Competition and Consumer Commissions took the search engine to court for striking a 'anti-competitive' deals with the nation's two largest telcos. The search engine made a deal with Telstra and Optus to only pre-install Google Search, and not other search engines, on Android phones the telcos sold to customers between December 2019 and March 2021. In return for Google's exclusivity on these devices, Optus and Telstra would receive a share of the revenue the search giant earnt from ads on Google it showed to customers on the Android phones. Google admitted that by striking the deal with the telco giants it would likely reduce competition. The search engine's massive fine comes alongside Telstra, Optus and TPG last year agreeing not to enter exclusivity deals with Google. ACCC chair Gina Cass-Gottlieb said the deal between Google and the telcos posed a detriment to Aussie consumers. 'Conduct that restricts competition is illegal in Australia because it usually means less choice, higher costs or worse service for consumers,' Ms Cass-Gottlieb said. '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. 'Importantly, these changes come at a time when AI search tools are revolutionising how we search for information, creating new competition.' A Google spokesperson said the search engine 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,' the spokesperson said. Ms Cass-Gottlieb lashed out at the deal as she noted the increasing availability of AI search tools allowed consumers opportunities to 'experiment with search services on their mobiles'. Google's fine follows a long investigation by the ACCC and concerns from the consumer watchdog about the contractual arrangements for Google search, which include how ubiquitous it is as the default search engine on devices. The ACCC chair stressed that co-operation with the ACCC is encouraged as it "avoids the need for protracted and costly litigation and leads to more competition'. 'More competition in markets drives economic dynamism, but the reverse is true when markets are not sufficiently competitive,' Ms Cass-Gottlieb said. 'The ACCC remains committed to addressing anti-competitive conduct like this, as well as cartel conduct. Competition issues in the digital economy are a current priority area.' The consumer watchdog settled on this matter with Optus and Telstra in June 2024 and with TPG in August 2024.
Sky News AU
6 hours ago
- Sky News AU
ACCC fines Google over Telstra, Optus search deals
Tech giant Google has agreed to pay a $55m fine for a deal with Australia's major telcos aimed at reducing search competition. 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
AU Financial Review
6 hours ago
- AU Financial Review
Google fined $55m for anticompetitive telco deals
Google has agreed to pay a $55 million fine after it admitted that deals the tech giant struck with Telstra and Optus banning them from installing rival search engines on some smartphones they sold amounted to anticompetitive conduct. The consumer watchdog began legal proceedings against Google Asia Pacific in the Federal Court on Monday over deals that required the telcos to pre-install Google's own search engine on Android phones between December 2019 and March 2021. In return, Telstra and Optus received a share of Google search advertising revenue.
