Google Hit with $35 Million Penalty in Australia Over Anti-Competitive Practices

• Google to pay A$55 million ($35.4M) following ACCC action.

• Case involves exclusive pre-installation of Google Search on Android phones sold by Telstra and Optus.

• Broader investigations into Google Search competition practices continue.

Alphabet Inc.’s Google (NASDAQ: GOOGL) faces a A$55 million ($35.4 million) penalty from Australia’s competition regulator over anti-competitive agreements with major telecom operators.

The Australian Competition and Consumer Commission (ACCC) said Monday it had initiated federal court proceedings against Google Asia Pacific. The case centered on Google’s deals with Telstra and Optus, under which only Google Search was pre-installed on Android smartphones sold by the carriers between December 2019 and March 2021.

In exchange, Telstra and Optus received a portion of Google’s advertising revenues. Google admitted liability in the case and agreed with regulators to submit a proposed A$55 million penalty to the court.

The ACCC said Google also signed an undertaking to address its competition concerns, following similar commitments last year by Telstra, Optus, and TPG.

The action comes as the ACCC conducts a broader inquiry into Google’s dominance in the search market, including investigations into default search engine settings and consumer choice.

Google also continues to face mounting antitrust scrutiny in the U.S., where regulators accuse the company of monopolizing both online search and digital advertising markets.