Australia’s competition watchdog has launched Federal Court action against tech giant Google, after the company admitted to anti-competitive behaviour involving Google Search.
The ACCC said that between 2019 and 2021 Google signed agreements with Telstra and Optus to pre-install Google Search on Android smartphones – and not any other search engines – conduct the watchdog said was anti-competitive.
ACCC chair Gina Cass-Gottlieb.Credit: Oscar Colman
Google has admitted liability, co-operated with the watchdog and agreed to pay a $55 million penalty subject to Federal Court approval.
“Conduct that restricts competition is illegal in Australia because it usually means less choice, higher costs or worse service for consumers,” ACCC Chair Gina Cass-Gottlieb said in a statement.
“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.
“Importantly, these changes come at a time when AI search tools are revolutionising how we search for information, creating new competition. Competition issues in the digital economy are a current priority area.”
Google has admitted liability and agreed to pay a $55 million penalty.Credit: AP
Google did not agree with all the watchdog’s concerns but has committed to removing certain default search engine restrictions with telcos and Android phone manufacturers.
“We’re pleased to resolve the ACCC’s concerns, which involved provisions that haven’t been in our commercial agreements for some time,” a Google spokesman said.
“We are committed to providing Android device makers more flexibility to preload browsers and search apps, while preserving the offerings and features that help them innovate, compete with Apple, and keep costs low.”
Telstra and Optus were contacted for comment.