SYDNEY: Google has agreed to pay a Aus$55 million (US$36 million) fine for making deals to pre-install only its search engine on Android phones sold by Telstra and Optus.
Australia’s competition watchdog filed proceedings in the Federal Court alongside Google Asia Pacific for the penalty.
The court will now determine if the fine and related orders are appropriate, according to the Australian Competition and Consumer Commission.
“Conduct that restricts competition is illegal in Australia because it usually means less choice, higher costs or worse service for consumers,“ said commission chair Gina Cass-Gottlieb.
Google admitted to striking deals with Telstra and Optus between December 2019 and March 2021 while cooperating with regulators.
Telstra and Optus received a share of advertising revenue in exchange for exclusively pre-installing Google’s search engine.
“Google has admitted in reaching those understandings with each of Telstra and Optus it was likely to have had the effect of substantially lessening competition,“ the commission stated.
Google said it was pleased to resolve the regulator’s concerns, noting the provisions were no longer in its agreements.
“We are committed to providing Android device makers more flexibility to preload browsers and search apps,“ a Google spokesperson said.
Telstra and Optus signed court-enforceable agreements last year not to make new default search deals with Google for Android devices. – AFP