Android Manufacturers Fined $35.8 Million for Preloading Google Search
The Australian Competition and Consumer Commission (ACCC) has charged Google with anti-competitive behavior, resulting in a fine of $35.8 million. The agreement, which went unnoticed for 15 months until March 2021, saw Google offering a share of its advertising revenue to the two largest Australian telecommunications providers, Telstra and Optus, in exchange for pre-installing Google's search app exclusively on Android smartphones.
The ACCC's investigation, which is ongoing, revealed that this deal excluded rival search engines, giving Google an advantage over them. This move was deemed harmful to competition, prompting regulators to demand immediate changes to Google's policy.
In response, Google has expressed its willingness to resolve concerns raised by the ACCC investigations, including provisions that haven't been in its commercial agreements for some time. Google is also committed to providing Android device makers more flexibility to pre-load browsers and web search apps, aiming to preserve offerings and features that help device makers innovate, compete with Apple, and keep costs low.
Optus and Telstra, who cooperated with the ACCC in the investigation, have agreed not to sign a contract with Google to pre-install its search feature. A spokesperson from Telstra stated that they will not sign any agreement with Google in this regard.
The ACCC Chair, Gina-Cass Gottlieb, stated that the fine could create potential for greater search choice for millions of Australians. The Google spokesperson did not specify the exact nature of the provisions that haven't been in its commercial agreements for some time.
The fine was reported by Reuters. Google has also expressed its willingness not to sign any such agreements in the future. The Australian telecommunications firms, Optus and Telstra, have agreed to comply with the ACCC's decision.
The ACCC made the allegations after Google signed a deal with Telstra and Optus to pre-install its Google Search feature on Android devices. The Google Search feature is a popular feature of Google on Android devices.
The fine is a significant step towards ensuring fair competition in the Australian market. The ACCC continues to monitor the situation closely, ensuring that companies adhere to fair trade practices.
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