Google (GOOGL, Financials) agreed to pay a A$55 million ($35.8 million) fine in Australia after regulators found the company limited competition by paying the country’s two largest telecom operators to pre-install its search app on Android phones.
The Australian Competition and Consumer Commission said Google struck revenue-sharing agreements with Telstra and Optus, owned by Singapore Telecommunications, covering late 2019 through early 2021. Under the deals, Google Search was pre-installed on Android devices, excluding rival search engines.
Google admitted the arrangements had a substantial impact on competition and has stopped signing similar contracts, according to the ACCC. The regulator and Google jointly submitted to the Federal Court that the fine should be imposed. The court will decide whether the penalty is appropriate.
The ruling follows a broader series of legal setbacks for Google in Australia, including a recent court decision against the company in a lawsuit brought by Epic Games over app store restrictions. Google’s YouTube was also recently included in an Australian ban on social media platforms for users under 16.
A Google spokesperson said the company was pleased to resolve the regulator’s concerns, noting that the provisions in question have not been in its commercial agreements for some time. Telstra said it and Optus have not signed such deals with Google since 2024.
This article first appeared on GuruFocus.
