ACCC penalty: Google to pay AU$55m for exclusive preinstall deals

Google has agreed to pay AU$55 million in penalties after admitting that exclusive preinstallation deals with Australia’s two largest mobile carriers limited competition by steering Android users toward Google Search. The arrangement, in place from late 2019 to March 2021, saw Telstra and Optus preinstall only Google’s search app on devices, while receiving a share of ad revenue generated from those users. The matter is being considered in the Australian Federal Court, where judges will decide whether the proposed penalty is appropriate. The case marks another high-profile enforcement action by the Australian Competition and Consumer Commission, which has signaled that conduct limiting consumer choice in digital markets will be closely scrutinized.

The ACCC charged that the agreements between Google Asia Pacific, Telstra and Optus substantially lessened competition by restricting the presence of rival search engines on Android devices. Google conceded liability and noted that it had ceased entering into similar exclusive arrangements in its current contracts. In addition to the financial penalty, Google has signed a court-enforceable undertaking to remove certain...