Google to pay $36m fine over Australia telco deals




The Google logo can be seen outside a building with Google offices in Beijing on February 4 -AFP

On Monday, Google agreed to pay a fine of $ 55 million ($ 35.8 million) in Australia after the consumer’s watchdog discovered that it had hit competition by paying the two largest telcos in the country to install its search application on Android phone calls, excluding riving search machines.

The fine extends a bumpy period for the internet giant of Alphabet in Australia, where last week a court usually ruled in a lawsuit filed by Fortnite Maker Epic Games accusing Google and Apple of the prevention of rival application stores in their control systems.

Google’s YouTube was also added last month to an Australian ban on social media platforms that allow users under the age of 16, so that an earlier decision to release the site for sharing videos.

On anti-competitive tie-ups with Australian telcos, the consumer watchdog of the country said on Monday that Google Deals closed with Telstra and Optus, including the tech giant with them advertising income generated by Google search on Android devices between the end of 2019 and early 2021.

Google admitted that the scheme had a substantial impact on the competition of rival search engines and stopped signing similar deals, while also agreed with the fine, added the Australian Competition and Consumer Commission (ACCC).

“The outcome of today … created the potential for millions of Australians to have more search choice in the future, and for competing search providers to get meaningful exposure to Australian consumers,” said ACCC chairman Gina-Cass Gottlieb.

Google and the ACCC jointly submitted to the federal court that Google must pay the fine of $ 55 million.

The court still has to decide whether the fine is suitable, the ACCC said, but the cooperation between the regulator and Google has helped to prevent long -term lawsuits.

A Google spokesperson said the company was delighted to resolve the concerns of the ACCC, which concerned “provisions that have not been in our commercial agreements for some time”.

“We are committed to offer Android device makers more flexibility for pre-loading browsers and search apps, while retaining the offers and functions that help them innovate, compete with Apple and keep the costs low,” the spokesperson added.

Google owns Android.

A Telstra spokesperson referred Reuters to an earlier statement and said that Optus, owned by Singapore Telecommunications, had worked together completely with the ACCC and promised not to sign agreements with Google to install his search product in advance since 2024.

Singtel was not immediately available for comment.



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