Google Slapped With $36M Fine For Anticompetitive Android Search Deal With Mobile Carriers

Google has agreed to pay $36M (USD) after findings by the Australian Competition and Consumer Commission (ACCC) revealed that Google had an arrangement with two of Australia's largest telecommunications companies, Telstra and Optus, that stifled competition.

The ACCC found that from December 2019 to March 2021, the agreement between Google and the two carriers required the latter to only pre-install Google Search on Android devices they sold. In return, Google shared some of the ad revenue generated from searches on those devices. Google has admitted that its deals with the two companies were "likely to have had the effect of substantially lessening competition."

In her remark, ACCC chair Gina-Cass Gottlieb stated, "Conduct that restricts competition is illegal in Australia because it usually means less choice, higher costs or worse service for consumers."


In addition, Google has also entered into a court-enforceable undertaking with ACCC to address its concerns over anti-competitive practices dating back to 2017. Hence, Google will no longer require that its search engine be the default option in contracts with Android phone manufacturers and telcos.

This undertaking follows those made by Telstra and Optus last year, where the companies both decided not to renew or sign new deals that will make Google Search the only search engine pre-installed on the phones they sell.

While ACCC has commended Google for its cooperation, which avoided lengthy litigation, the Federal Court will still have to decide if the fine is appropriate.