Australia imposes A$55 million fine on Google for search application deals

ISLAMABAD: Google has agreed to pay a A$55 million($35.8 million) fine in Australia after the consumer watchdog found that the company harmed competition by paying the country’s two largest telecommunications providers to pre-install its search application on Android services , effectively excluding rival search engines.

This penalty adds to a challenging period for the Alphabet-owned tech giant in Australia. It is where court recently ruled against Google in a lawsuit filed by The Creators of Fortnite, Epic Games. The lawsuit accused both Google and Apple of blocking rival app stores on their operating systems.

Additionally, Google’s YouTube was also last month added to an Australian ban on social media platforms admitting users aged under 16, reversing an earlier decision to exempt the video-sharing site. On anti-competitive tie-ups with Australian telcos, the country’s consumer watchdog on Monday said Google struck deals with Telstra and Optus, under which the tech giant shared with them advertising revenue generated from Google Search on Android devices between late 2019 and early 2021.

Google admitted the arrangement had a substantial impact on competition from rival search engines, and has stopped signing similar deals while also agreeing to the fine, the Australian Competition and Consumer Commission (ACCC) added.

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ACCC Chair Gina-Cass Gottlieb said, “Today’s outcome 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”.

Google and the ACCC have jointly submitted to the Federal Court that Google should pay the A$55 million fine. The court must still decide if the penalty is appropriate, the ACCC said, but the cooperation between the regulator and Google has helped avoid lengthy litigation.

A Google spokesperson expressed satisfaction in resolving the ACCC’s concerns which involved “provisions that haven’t been in our commercial agreements for some time”.

The spokesperson further added that Google is committed to providing Android devices manufacturers with greater flexibility to reload browsers and search applications with maintaining innovative features.

A Telstra spokesperson referred Reuters to an earlier statement saying it and Optus, owned by Singapore Telecommunications, had fully cooperated with the ACCC and promised not to sign agreements with Google to pre-install its search product since 2024. SingTel was not immediately available for comment.