Asia-Pacific

Google fine in Australia over Telstra deals

Google fine in Australia highlights Telstra deal and competition crackdown.

Google-Australia-Telstra

Headline

Google fine in Australia highlights Telstra deal and competition crackdown.

Context

• Google admitted that tying pre-installation deals with Telstra and Optus “substantially lessened competition” between late 2019 and early 2021. • The settlement and accompanying commitments mark a turning point in how search engine choice is handled on Android devices, opening the way for more consumer options.

Evidence

Pending intelligence enrichment.

Analysis

Google has agreed to pay a A$55 million fine after the Australian Competition and Consumer Commission (ACCC) found that the company struck anticompetitive deals with leading telcos Telstra and Optus, requiring exclusive pre-installation of the Google Search app on Android devices sold by those providers—a measure that effectively blocked rival search engines. These arrangements, in place between December 2019 and March 2021, meant competing search options were excluded from devices, while the telcos received a share of ad-revenue generated from Google Search. Google conceded that the deals “likely reduced competition” and has since discontinued such agreements, offering a court-enforceable undertaking to remove restrictions on default search-engine contracts. The ACCC and Google have jointly submitted the proposed penalty to the Federal Court, which must still approve the fine. The regulator noted that Google’s cooperation helped avoid protracted litigation. Also read: UK’s CMA targets Apple, Google mobile dominance Also read: Cash App adds group payments with Apple and Google Pay

Key Points

  • What happened:Google fine and telco deals
  • Why it’s important

Actions

Pending intelligence enrichment.

Author

jessie.chen