Latest news with #ACCC
Daily Tribune
16 hours ago
- Business
- Daily Tribune
Google Fined AU$55 Million in Australia Over Anti-Competitive Search Engine Deals
Google has agreed to pay AU$55 million (US$36 million) for making deals that limited competition on Android phones sold by two major Australian telecom companies. The Australian Competition and Consumer Commission (ACCC) said the deals, which ran from December 2019 to March 2021, involved pre-installing only Google's search engine on devices from Telstra and Optus. In return, the telecoms received a share of the advertising revenue generated from the searches. 'Conduct that restricts competition is illegal in Australia because it usually means less choice, higher costs, or worse service for consumers,' said ACCC Chair Gina-Cass Gottlieb. The ACCC and Google jointly asked the Federal Court to approve the AU$55 million penalty. The court will now decide whether the agreed fine and other orders are appropriate. Google admitted the deals were likely to reduce competition, but the company said it has since removed such clauses from its agreements. 'We are committed to providing Android device makers more flexibility to preload browsers and search apps,' a Google spokesperson said. Last year, Telstra and Optus also agreed to court-enforceable measures to avoid making new agreements that would pre-install Google Search as the default on Android devices.
ABC News
18 hours ago
- Business
- ABC News
ACCC to investigate energy plans that promise savings but deliver poor value
The Australian Competition and Consumer Commission (ACCC) has announced it will investigate whether energy retailers are misleading consumers by advertising energy plans that promise savings yet actually provide poor value. This investigation follows a formal complaint filed by Australian Consumers' Association (CHOICE), which raised concerns that many plans marketed as "savings" deals are far from the cheapest options available. The investigation came after consumer group CHOICE filed its first 'designated complaint' to the ACCC in May. Under a new framework that came into effect in May the previous year, CHOICE is one of three bodies that can file a 'super complaint' directly with the ACCC about issues affecting consumers. Each body can file only one complaint per year. Once it is submitted, the ACCC is required to assess and publicly respond within 90 days. CHOICE decided to use its one complaint to flag concerns that energy retailers use words like 'saver' or 'savings' to promote energy plans that are far from the cheapest available. "At a time when Australians are increasingly worried about being able to afford to keep the lights on, this has had a big financial impact," Andy Kollmorgen, Investigations Editor at CHOICE, said in a statement. CHOICE's complaint points to a major issue with how energy retailers advertise "savings" plans. "In some instances, they were even more expensive than the retailer's standing offer," says Rosie Thomas, CHOICE director of campaigns and communications. "Many consumers rely on these representations as indicators of value to inform their decision-making, but we found that many of these names and descriptions may not reflect genuine value." According to the latest national CHOICE survey, 84 per cent of households are concerned about rising electricity prices. But with so many plans marketed with promises of savings, it's hard for consumers to tell if they're actually getting a better deal. "We are concerned that consumers may be misled or deceived by plan names or descriptions of plans that offer 'savings' that are not genuine, or that consumers may be discouraged from switching to cheaper plans that are available to them," ACCC deputy chair Catriona Lowe said. "It is essential that energy retailers provide clear and accurate information about their energy plans so that consumers can make informed decisions when choosing an energy provider and plan." The confusion doesn't stop at the "savings" labels. Many energy retailers use identical names for plans that come with different rates, leading to further confusion for consumers. This issue is especially prevalent with the "better offer" and "best offer" messages on energy bills, which are meant to alert customers to cheaper plans available within the same provider. Unfortunately, these plans aren't always cheaper. A recent decision from the Australian Energy Regulator (AER) requires retailers to provide extra information under "better offer" messages when reusing plan names. "Consumers are often encouraged to shop around in order to save on their energy bills, but that's impossible to do if the information they receive from retailers is inaccurate, incomplete or designed to overwhelm," says Ms Thomas. The ACCC said that after careful consideration, the issues raised by CHOICE relating to the use of identical plan names in "better offer" and "best offer" messaging, are "most effectively addressed through the review and law reform processes currently underway by the AER and the ESC" and not an ACCC investigation. If the ACCC finds that energy retailers are breaching Australian Consumer Law following its investigation, it may take enforcement action where appropriate. It may also "prepare industry guidance or contribute to policy or law reform initiatives".
Sky News AU
19 hours ago
- Business
- Sky News AU
Major energy retailers allegedly using 'misleading' power pricing come under the microscope in upcoming ACCC probe
Energy retailers will come under the microscope after consumer site CHOICE issued a 'super' complaint over companies allegedly using misleading pricing tactics. The Australian Competition and Consumer Commission received a complaint in May that energy retailers may have been 'misleading or deceiving' consumers in how they described their energy plans. CHOICE identified three practices in its complaint: Using identical names for plans with different prices, using names and descriptions that referred to 'savings' for worse-value plans and using prompts to switch to plans which were not available for the customer. The final tactic used prompts known as 'Better Offer' or 'Best Offer' messages. ACCC deputy chair Catriona Lowe said consumers would be worse off if they had been deceived by these pricing practices. 'Energy plans that promote 'savings' or value may entice many consumers to a particular plan and influence their decision making,' Ms Lowe said. 'We are concerned that consumers may be misled or deceived by plan names or descriptions of plans that offer 'savings' that are not genuine, or that consumers may be discouraged from switching to cheaper plans that are available to them. 'It is essential that energy retailers provide clear and accurate information about their energy plans so that consumers can make informed decisions when choosing an energy provider and plan.' CHOICE director of campaigns Rosie Thomas said the consumer site's complaint, which was its first 'super' complaint lodged with the ACCC since the watchdog established a new complaints framework last year, came as Aussies have struggled with enormous energy costs over recent years. 'We chose energy plans for our first super complaint because consumers are very concerned about the cost of electricity,' Ms Thomas said. 'Our latest national survey data shows that 84 per cent of households are concerned about electricity prices, the highest level of concern we've seen since winter 2023. 'Consumers are often encouraged to shop around in order to save on their energy bills, but that's impossible to do if the information they receive from retailers is inaccurate, incomplete or designed to overwhelm.' It comes after the ACCC in December urged customers to shop around or contact their energy retailer to ask whether a cheaper electricity plan is available for them. 'If you haven't changed electricity plans in the past 12 months, chances are you are paying more for your electricity than you need to,' ACCC Commissioner Anna Brakey said at the time.
India.com
20 hours ago
- Business
- India.com
Bad news for Sundar Pichai, Google to pay Rs 3142759867 fine for doing deals with…
Sundar Pichai- File image Google has agreed to pay a fine of 55 million Australian dollars ($36 million) for entering into anticompetitive agreements with Australia's two largest telecom operators that restricted the installation of rival search engines on certain smartphones, the US tech giant and the Australian competition regulator confirmed. The Australian Competition and Consumer Commission (ACCC) said in a statement that it has initiated proceedings in the Federal Court against Google's Singapore-based Asia Pacific division. The court will now determine whether the proposed AU$55 million ($36 million) penalty is appropriate. Why Is Google Fined? Under the anticompetitive agreements, which were in place for 15 months until March 2021, Telstra and Optus only pre-installed Google Search on Android phones sold to customers. Other search engines were excluded. In return, the telcos received a share of the advertisement revenue Google generated from those customers. Google accepted that the agreements were likely to have the effect of 'substantially lessening competition,' the commission said. Google has also signed a court-enforceable undertaking that commits the company to removing certain pre-installation and default search engine restrictions from its contracts with Android phone manufacturers and telcos, the commission said. The tech company said in a statement: 'We're pleased to resolve the ACCC's concerns, which involved provisions that haven't been in our commercial agreements for some time.' What Australian Authorities Say On Anticompetitive Agreements? Commissioner chair Gina-Cass Gottlieb said: 'Conduct that restricts competition is illegal in Australia because it usually means less choice, higher costs or worse service for consumers.' 'Importantly, these changes come at a time when AI search tools are revolutionising how we search for information, creating new competition,' Cass-Gottlieb added. Last year, Telstra, Optus and their smaller rival TPG agreed to court-enforceable undertakings with the commission that they would not renew or make similar deals with Google to limit search options. (With Input From Agencies)
Hindustan Times
a day ago
- Business
- Hindustan Times
Google to pay around ₹300 crore fine in Australia for doing this ‘deal' in mobiles
Google has agreed to pay a fine of US $36 million or around ₹300 crore in Australia after admitting to anti-competitive arrangements that limited search engine choices on smartphones. Google made deals with Telstra and Optus-- leading telcos in Australia-- to ensure its search engine was pre-installed on Android smartphones. Google fined US $36 million in Australia over anti-competitive deals with Telstra and Optus. (Pexels) The arrangements, active between December 2019 and March 2021, restricted the telcos from offering any alternative search engines on devices sold to customers. In return, Google shared a portion of the advertising revenue generated through searches made on those phones. The case was brought forward by the Australian Competition and Consumer Commission (ACCC), which alleged that Google struck deals with the country's two largest telecom providers, Telstra and Optus, to pre-install its search application on Android phones, effectively excluding rival search engines. According to the ACCC, these agreements had a substantial impact on competition. By paying the telcos and offering them a share of advertising revenue, Google secured exclusive placement for its search app during a period that ran for 15 months until March 2021. This restricted consumer choice and reduced visibility for competing search providers. Following an investigation, Google agreed not only to pay the $36 million fine but also to sign a court-enforceable undertaking. This commits the company to removing such restrictive provisions from future contracts, allowing Android device makers and carriers more freedom in pre-loading search engines and browsers. ACCC Chair Gina Cass-Gottlieb said the outcome is significant because it creates the potential for millions of Australians to have greater search choice in the future. She also noted that the decision opens the door for rival search engines to gain meaningful exposure to Australian consumers, who had previously been limited by the agreements. In response, a Google spokesperson said the company was pleased to resolve the ACCC's concerns. The spokesperson added that the contested provisions have not been part of Google's commercial agreements for some time. They also stated that Google remains committed to giving Android manufacturers greater flexibility to pre-load browsers and search applications, while still preserving features that help them compete with Apple and keep device costs lower. This fine adds to a string of regulatory challenges Google has faced around the world over competition and market dominance. In Europe and the United States, similar cases have examined how Google uses its position in search and advertising to influence device makers, app developers and users. The Australian decision is a reminder of how regulators are increasingly scrutinising big tech companies to ensure fair competition in the digital economy. For consumers, the ruling could mean more search options on new Android smartphones sold in Australia. For Google, it highlights the growing pressure to change how it negotiates with partners and adapts its business practices in response to regulatory demands worldwide. Mobile Finder: Google Pixel 10 LATEST specs, features and price
