Google has agreed to a AU$55 million fine for entering anticompetitive agreements with Telstra and Optus that banned competing search engines on Android phones for 15 months. The Australian Competition and Consumer Commission initiated proceedings against Google’s Singapore division. The agreements led to only Google Search being pre-installed on devices, while the telcos received revenue shares. Google acknowledged the agreements likely reduced competition and has since committed to altering its contracts with phone manufacturers, following legal guidance to ensure additional search engine options are available.
The Australian Competition and Consumer Commission stated it had commenced proceedings in the Australian Federal Court on Monday against Google Asia Pacific over anticompetitive agreements.
Under the anticompetitive agreements, Telstra and Optus only pre-installed Google Search on Android phones sold, excluding other search engines, while receiving ad revenue.
Google accepted that the agreements were likely to have the effect of substantially lessening competition, leading to a AU$50 million penalty for the company.
Commissioner chair Gina Cass-Gottlieb emphasized that conduct restricting competition is illegal in Australia, typically resulting in less choice or higher costs for consumers.
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