Google pays $360 million for monopolistic preinstallation deals in Australia

In Australia, the government has mandated that Google must pay a penalty of about $360 million due to its admission of engaging in monopolistic preinstallation agreements with Android device manufacturers. This resolution emerged from a legal undertaking between the Australian Competition and Consumer Commission (ACCC) and Google, marking a significant development in the enforcement of competition laws in the country. The ACCC identified that Google, along with its regional entity in Asia Pacific, made arrangements with Android Original Equipment Manufacturers and Australian Mobile Network Operators concerning the exclusive placement of Google Search and the Chrome Browser Application on devices. Such practices allegedly contravene Section 45 of the Australian Competition and Consumer Act 2010, which prohibits anti-competitive agreements. Telstra and Optus, two major telecommunications companies in Australia, entered into agreements with Google from December 2019 to March 2021 to ensure that only Google Search was preinstalled on the smartphones they sold. As a result of these agreements, the companies received a share of the advertising revenue generated through Google Search. These arrangements created a limited environment for consumers, reducing the competition among search engine providers in Australia. The ACCC’s chairperson, Gina-Cass Gottlieb, expressed concerns that such conduct undermines competition and leads to reduced consumer options, higher costs, and diminished service quality. The recent ruling, along with commitments from Telstra, Optus, and TPG to refrain from renewing or forming new exclusive deals with Google, is intended to broaden search options for Australian consumers moving forward. Google's acceptance of these terms demonstrates awareness of regulatory concerns, though the company does not agree with all criticisms presented by the ACCC. The outcome of this case indicates a proactive stance by Australian authorities to promote healthy competition within the digital marketplace.