Google has offered to pay a $55 million fine for anti-competitive behaviour in Australia.
Australian Competition and Consumer Commission (ACCC) Chair Gina Cass-Gottlieb said Federal Court proceedings against Google Asia Pacific had commenced over anti-competitive understandings that Google admitted it reached in the past with Telstra and Optus regarding the pre-installation of Google Search on Android mobile phones.
Ms Cass-Gottlieb said Google had co-operated with the ACCC, admitted liability and agreed to jointly submit to the Court that Google should pay a total penalty of $55 million.
“It is a matter for the Court to determine whether the penalty and other orders are appropriate,” she said.
Ms Cass-Gottlieb said the understandings, which were in place between December 2019 and March 2021, required Telstra and Optus to only pre-install Google Search on Android phones they sold to consumers, and not other search engines.
She said, in return, Telstra and Optus received a share of the revenue Google generated from ads displayed to consumers when they used Google Search on their Android phones.
“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.”
Ms Cass-Gottlieb said Google had also signed a court-enforceable undertaking which the ACCC has accepted to address the ACCC’s broader competition concerns relating to contractual arrangements between Google, Android phone manufacturers and Australian telcos since 2017.
She said Google did not agree with all of the ACCC’s concerns but had acknowledged them and offered the undertaking to address these concerns.
“In the undertaking, Google commits to removing certain pre-installation and default search engine restrictions from its contracts with Android phone manufacturers and telcos.”
Ms Cass-Gottlieb said Google’s undertaking is in addition to court-enforceable undertakings provided by Telstra, Optus and TPG last year.
“Conduct that restricts competition is illegal in Australia because it usually means less choice, higher costs or worse service for consumers.
“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.”
