Google Agrees to AU$55 Million (US$36 Million) Fine Over Android Search Engine Deals

Google has agreed to pay AU$55 million (US$36 million) in penalties over alleged “anti-competitive” arrangements to pre-install only its own search engine on Android mobile phones sold by two major Australian telecommunications companies.

The Australian Competition and Consumer Commission (ACCC) confirmed that it had initiated proceedings in the Federal Court and jointly submitted with Google Asia Pacific that the company should pay the fine. The court will now decide whether the agreed penalty and other orders are “appropriate.”

“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.

According to the ACCC:

Google admitted that these arrangements were likely to substantially lessen competition by restricting the choice of search engines on Android devices, the commission stated.

In return for making Google the default search engine, Telstra and Optus received a share of the advertising revenue generated.

A Google spokesperson said: “We are pleased to have resolved the regulator’s concerns over these provisions, which have not been part of our commercial agreements for some time. We are committed to providing Android device makers more flexibility to preload browsers and search apps.”

Telstra and Optus had previously entered court-enforceable agreements in 2022, pledging not to make new arrangements that pre-install Google search as the default on Android devices.

The ACCC highlighted that cooperation by Google was a factor in resolving the matter and said the case underscores Australia’s strict stance against practices that reduce competition and consumer choice.