Google Faces AU$55 Million Fine for Anticompetitive Practices in Australia

Google has agreed to pay a AU$55 million fine for anticompetitive contracts with Australia's major telcos, which restricted rival search engine installations. Australia's competition watchdog initiated proceedings in court. Google has agreed to revise contracts, while rivals Telstra and Optus pledged not to renew similar deals.

Google is set to pay a fine of AU$55 million after signing anticompetitive contracts with Australia's major telecommunications companies. These agreements prohibited the installation of competing search engines on Android phones, according to statements from both the US tech giant and the Australian Competition and Consumer Commission.

The Australian Competition and Consumer Commission filed a case in the Australian Federal Court against Google's Asia Pacific division. The court will determine whether the proposed AU$50 million penalty is suitable.

The agreements, lasting until March 2021, allowed only Google's search engine on some Android devices. In exchange, companies like Telstra and Optus received a portion of advertising revenue. Google confirmed these arrangements likely reduced competition and has committed to eliminating certain restrictions on pre-installation with manufacturers and telcos.