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Google has admitted to anti-competitive conduct involving Telstra and Optus and has offered to pay $55 million penalty.
The Australian Competition and Consumer Commission has commenced court proceedings against Google Asia-Pacific regarding agreements the search giant made with Australia’s largest telcos: Optus and Telstra.
Between December 2019 and March 2021, both telcos agreed to pre-install Google Search on Android devices to the exclusion of other search options. Both Optus and Telstra received a share of Google’s advertising revenue in return.
Google has now agreed that this behaviour likely had the effect of “substantially lessening competition” in the market and has signed a court-enforceable undertaking to address the ACCC’s concerns.
“Conduct that restricts competition is illegal in Australia because it usually means less choice, higher costs or worse service for consumers,” ACCC chair Gina-Cass Gottlieb said.
“Today’s outcome, along with Telstra, Optus and TPG’s undertakings, has created 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.
“Importantly, these changes come at a time when AI search tools are revolutionising how we search for information, creating new competition.”
While Google has said it does not agree with all of the ACCC’s concerns, it nonetheless acknowledges them. The company has also offered to pay a $55 million penalty if the court decides.
The ACCC’s latest action follows court-enforceable undertakings offered by Optus and Telstra, in addition to TPG, whereby the companies agreed to do away with any pre-installation deals with Google in 2024.
“Co-operation with the ACCC is encouraged. It can avoid the need for protracted and costly litigation and lead to more competition. More competition in markets drives economic dynamism, but the reverse is true when markets are not sufficiently competitive,” Cass-Gottlieb said.
“The ACCC remains committed to addressing anti-competitive conduct like this, as well as cartel conduct. Competition issues in the digital economy are a current priority area.”
A Google spokesperson told Cyber Daily the company was “pleased to resolve the ACCC’s concerns, which involved provisions that haven’t been in our commercial agreements for some time”.
“We are committed to providing Android device makers more flexibility to preload browsers and search apps, while preserving the offerings and features that help them innovate, compete with Apple, and keep costs low.”
David Hollingworth has been writing about technology for over 20 years, and has worked for a range of print and online titles in his career. He is enjoying getting to grips with cyber security, especially when it lets him talk about Lego.
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