SYDNEY, Aug 18 (Reuters) - Google agreed on Monday to
pay a A$55 million ($35.8 million) fine in Australia after the
consumer watchdog found it had hurt competition by paying the
country's two largest telcos to pre-install its search
application on Android phones, excluding rival search engines.
The fine extends a bumpy period for the Alphabet-owned
internet giant in Australia, where last week a court
mostly ruled against it in a lawsuit brought by Fortnite maker
Epic Games accusing Google and Apple ( AAPL ) of preventing
rival application stores in their operating systems.
Google's YouTube was also last month added to an Australian
ban on social media platforms admitting users aged under 16,
reversing an earlier decision to exempt the video-sharing site.
On anti-competitive tie-ups with Australian telcos, the
country's consumer watchdog on Monday said Google struck deals
with Telstra ( TTRAF ) and Optus, under which the tech giant
shared with them advertising revenue generated from Google
Search on Android devices between late 2019 and early 2021.
Google admitted the arrangement had a substantial impact on
competition from rival search engines, and has stopped signing
similar deals while also agreeing to the fine, the Australian
Competition and Consumer Commission (ACCC) added.
"Today's outcome ... created the potential for millions of
Australians to have greater search choice in the future, and for
competing search providers to gain meaningful exposure to
Australian consumers," ACCC Chair Gina-Cass Gottlieb said.
Google and the ACCC have jointly submitted to the Federal
Court that Google should pay the A$55 million fine.
The court must still decide if the penalty is appropriate,
the ACCC said, but the cooperation between the regulator and
Google has helped avoid lengthy litigation.
A Google spokesperson said the company was pleased to
resolve the ACCC's concerns which involved "provisions that
haven't been in our commercial agreements for some time".
"We are committed to providing Android device makers more
flexibility to pre-load browsers and search apps, while
preserving the offerings and features that help them innovate,
compete with Apple ( AAPL ), and keep costs low," the spokesperson added.
Google owns Android.
A Telstra ( TTRAF ) spokesperson referred Reuters to an earlier
statement saying it and Optus, owned by Singapore
Telecommunications, had fully cooperated with the ACCC
and promised not to sign agreements with Google to pre-install
its search product since 2024.
SingTel was not immediately available for comment.
($1 = A$1.5349)