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Google has been fined $55 million by the Federal Court for anti-competitive conduct with Telstra and Optus for pre-installing search on android phones.
Between December 2019 and March 2021, Telstra and Optus were allowed to pre-install the google search engine on android phones, and not other search engines.
In return, the telcos would receive a share of Google’s revenue from ads when the search engine was used.
Google has admitted misconduct to the ACCC (Australian Competition and Consumer Commission) that it engaged in anti-competitive conduct that had the likely effect of “substantially lessening competition”.
“This penalty should send a strong message to all businesses that there are serious and costly consequences for engaging in anti-competitive conduct,” ACCC deputy chair Mick Keogh said.
“Our market economy is predicated on businesses competing freely with each other, which is why locking out competing businesses in a way that substantially lessens competition is illegal.”
On August 18 there was a court-enforceable undertaking to ensure Google removes certain pre-installation and default search engine restrictions from contracts with Android phone manufacturers and telcos.
There were also court-enforceable undertakings provided by Telstra, Optus and TPG last year to ensure they do not take part in these type of arrangements.
The three telcos can also enter into pre-installation agreements with other search providers.
“Today’s outcome, combined with the undertakings from Google and the telcos, creates the potential for millions of Australians to have greater search choice in the future. Other search tools, including those enhanced by artificial intelligence, can now compete with Google for pre-installation on Android phones,” Keogh said.
“Search tools, including those that incorporate AI, are rapidly changing how we search for information, and it’s critical that competitors to Google can gain meaningful exposure to Australian consumers.”
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