Google to pay around ₹300 crore fine in Australia for doing this ‘deal’ in mobiles
Google has agreed to pay a US $36 million fine in Australia after admitting to anti-competitive agreements with Telstra and Optus to pre-install Google Search.
Google has agreed to pay a fine of US $36 million or around ₹300 crore in Australia after admitting to anti-competitive arrangements that limited search engine choices on smartphones. Google made deals with Telstra and Optus-- leading telcos in Australia-- to ensure its search engine was pre-installed on Android smartphones.
The arrangements, active between December 2019 and March 2021, restricted the telcos from offering any alternative search engines on devices sold to customers. In return, Google shared a portion of the advertising revenue generated through searches made on those phones.
The case was brought forward by the Australian Competition and Consumer Commission (ACCC), which alleged that Google struck deals with the country’s two largest telecom providers, Telstra and Optus, to pre-install its search application on Android phones, effectively excluding rival search engines.
According to the ACCC, these agreements had a substantial impact on competition. By paying the telcos and offering them a share of advertising revenue, Google secured exclusive placement for its search app during a period that ran for 15 months until March 2021. This restricted consumer choice and reduced visibility for competing search providers.
Following an investigation, Google agreed not only to pay the $36 million fine but also to sign a court-enforceable undertaking. This commits the company to removing such restrictive provisions from future contracts, allowing Android device makers and carriers more freedom in pre-loading search engines and browsers.
ACCC Chair Gina Cass-Gottlieb said the outcome is significant because it creates the potential for millions of Australians to have greater search choice in the future. She also noted that the decision opens the door for rival search engines to gain meaningful exposure to Australian consumers, who had previously been limited by the agreements.
In response, a Google spokesperson said the company was pleased to resolve the ACCC’s concerns. The spokesperson added that the contested provisions have not been part of Google’s commercial agreements for some time. They also stated that Google remains committed to giving Android manufacturers greater flexibility to pre-load browsers and search applications, while still preserving features that help them compete with Apple and keep device costs lower.
This fine adds to a string of regulatory challenges Google has faced around the world over competition and market dominance. In Europe and the United States, similar cases have examined how Google uses its position in search and advertising to influence device makers, app developers and users. The Australian decision is a reminder of how regulators are increasingly scrutinising big tech companies to ensure fair competition in the digital economy.
For consumers, the ruling could mean more search options on new Android smartphones sold in Australia. For Google, it highlights the growing pressure to change how it negotiates with partners and adapts its business practices in response to regulatory demands worldwide.
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