Australian regulator sues Google over anti-competitive Search agreements with telcos

Alphabet's Google has agreed to pay a penalty of AUD $55 million ($35.8 million) after Australia's competition watchdog accused the tech giant of striking anti-competitive deals with telecom operators Telstra and Optus, Reuters reported.

The Australian Competition and Consumer Commission (ACCC) said Google Asia Pacific entered into agreements with the two telcos between December 2019 and March 2021 to pre-install only Google Search on Android smartphones they sold.

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In exchange, Telstra and Optus received a share of Google's ad revenues generated from user searches on those devices.

According to the ACCC, these exclusive arrangements curtailed consumer choice by blocking rival search engines from reaching millions of Australian users, the report added.

Google has admitted liability and cooperated with the regulator, jointly submitting with the ACCC to the Federal Court that it should pay the AUD $55 million fine.

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The regulator has also accepted commitments from Google Asia Pacific and parent company Google LLC to remove pre-installation and default search restrictions from future contracts with Android device makers and telecom providers.

ACCC Chair Gina Cass-Gottlieb said the resolution would "create 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," the report added.

Google, Telstra, and Optus have not yet commented on the settlement.

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