Google faces $55m fine over Telstra, Optus search deals

Google is facing Federal Court proceedings and a $55 million fine over historical agreements struck with Telstra and Optus to put Google Search on Android phones sold by the telcos.

The Australian Competition and Consumer Commission (ACCC) has filed suit, alleging anti-competitive behaviour on Google's part.

The agreements with the telcos were not renewed mid last year when they expired.

Google had agreements with the telcos in place between December 2019 and March 2021, preventing other search engines from being installed on retailed Android devices.

Telstra and Optus received a share of the revenue Google generated through displaying advertisements for consumers, when they used Google Search on their phones.

The telcos are not parties to the court proceedings.

Google has admitted its conduct "was likely to have the effect of substantially lessening competition," according to the ACCC.

Subject to court approval, Google will pay a $55 million fine and has also agreed to an enforceable undertaking to allow any general search engine to be preloaded and promoted on Android devices by phone manufacturers and telcos.

Google will also ensure that Android device makers and Australian mobile operators are not restricted from using other general search engine services, and will also allow them to licence applications such as Google Play separately from Search and the Chrome browser.

The Federal Court will now decide on whether the penalty for Google, as agreed with the ACCC, is appropriate, along with other orders.