Google Agrees to Change Practices After Australia’s Antitrust Action
444Google has agreed to a big change in Australia after the country’s competition watchdog found its deals with phone companies limited consumer options. The tech giant will pay a fine of $35.8 million Australian dollars, roughly $24 million US, and promises to alter its business practices to promote fairer competition.
The Australian Competition and Consumer Commission (ACCC) accused Google of making secret deals with Telstra and Optus. These agreements, made between December 2019 and March 2021, required the telcos to only install Google Search on the Android phones they sold. In return, Google shared advertising revenue with them when users searched through Google. The contracts also barred Telstra and Optus from installing or even suggesting other search engines.
How Google’s Deals Stifled Competition
The ACCC explained that these arrangements created barriers for rival search engines. The contracts included what the regulator called “Platform-wide Provisions,” which made it so Google Search was the default on all search access points on the devices. This meant other search engines couldn’t be used or even suggested to consumers. As a result, Google’s market share in Australia’s search market was likely boosted at the expense of competitors.
The ACCC pointed out that these restrictions likely reduced consumer choice and might have led to higher costs or worse services. Gina Cass-Gottlieb, the ACCC Chair, emphasized that restricting competition can hurt consumers by limiting options and driving up prices. The regulator was pleased to resolve its concerns while noting that Google had not been in these types of agreements for some time.
Google’s Promised Business Changes
Google has agreed to stop these restrictive practices. It signed binding commitments to remove restrictions that forced phone makers and telcos to pre-install Google Search as the default. This means that Android device manufacturers now have more freedom to choose which search engine to set as default. They can also make deals with other search providers, giving consumers more options.
The company said it doesn’t agree with all of the ACCC’s concerns but accepted them and promised to address them. Alongside Google’s commitments, Telstra, Optus, and TPG also made similar promises in 2024. They agreed not to enter into new deals requiring Google Search to be the exclusive default on devices.
The ACCC believes these changes will give millions of Australians more search choices and encourage more competition in the market. The telcos are now able to configure search services on individual devices and work with other search providers. It’s important to note that they are not part of the current court case against Google.
Global Context and Future Outlook
This Australian case is part of a wider global effort to challenge Google’s dominance. In August 2024, a US court found Google had illegally monopolized the search market. Google had paid billions to Apple and Samsung to keep its search engine as the default on their devices. The US authorities are now pushing for Google to sell its Chrome browser as part of this ongoing legal battle.
European regulators have also been active, fining Google over €8 billion since 2017 for antitrust violations. Under Europe’s Digital Markets Act, Google must follow strict new rules, but the European Commission recently said the company isn’t fully compliant. Additionally, the US is pursuing cases related to Google’s advertising technology, and in December 2024, a judge declared Google’s Android app store a monopoly. Canada has also sued Google over anti-competitive behavior in online advertising.
This enforcement effort in Australia is based on a five-year investigation by the ACCC into how big tech companies affect competition and consumers. The regulator found that Google’s contractual practices contributed to less competition and fewer choices for users.
The ACCC noted that cooperation with regulators can help avoid lengthy and costly court fights. The outcome is expected to be finalized in the coming months, and once approved by the court, Google’s new commitments will take effect immediately. The ACCC remains focused on tackling anti-competitive practices to foster a healthier, more competitive digital economy.
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