Google Fined $35.8 Million for Pre-Installing Google Search on Android

Google Agrees to Pay $35.8 Million in Australia for Its Anti-Competitive Behaviour, Here’s What Happened

Google gets accused of anti-competitive practices and is charged with a $35.8 million fine in Australia. The Australian Competition and Consumer Commission (ACCC) made the allegations after Google signed a deal with two of the largest telecommunications companies in Australia: Telstra and Optus.

According to a Reuters report, Gina-Cass Gottlieb, Chair of ACCC, 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.”

Why was Google Charged $35.8 Million in Australia?

Google arranged an agreement with Telstra and Optus to pre-install its popular Google Search feature on Android. This move excluded the rival search engines, giving Google an edge over them. As part of this deal, the tech giant offered a share of its advertising revenue to the Australian companies.

This agreement went unnoticed for 15 months until March 2021. Regulators, in response to this anti-competitive move, demanded changes to this policy immediately. Post ACCC investigations, Google was fined $35.8 million and warned against including such clauses in future contracts.

What Did Google Say About Its Deal with Telstra & Optus?

In response to these allegations, a spokesperson from Google said that the company is willing to resolve the concerns raised by ACCC investigations as soon as possible, including “provisions that haven't been in our commercial agreements for some time.”

He further added, “We are committed to providing Android device makers more flexibility to pre-load browsers and web search apps while preserving the offerings and features that help them innovate, compete with Apple, and keep costs low.”

A spokesperson from Telstra also said that, along with Optus, the company has completely cooperated with ACCC, and that they will not sign any agreement with Google to pre-install its search feature.

To summarize, Google is heavily charged for including its search product in Android by default, cutting off the competition. The Australian telecommunications firms, Optus and Telstra, which are owned by Singapore Telecommunications, have agreed with the ACCC not to sign such a contract with Google. Google has also expressed its willingness to resolve this concern as soon as possible and agreed not to sign any such agreements in the future.