• Australia fines Google AU$55 million ($36 million) for exclusive search engine deals.
• The agreements limited competition by pre-installing only Google Search on Android devices.
• Google admitted liability and has committed to removing similar restrictions.
• The Australian Competition and Consumer Commission emphasizes the importance of competition for consumer choice.

Australia's competition regulator, the Australian Competition and Consumer Commission (ACCC), has initiated legal proceedings against Google over its "anticompetitive" agreements with local telecommunications companies, Telstra and Optus. These arrangements required pre-installation of Google Search exclusively on Android smartphones sold by these companies, effectively blocking competing search engines from being available. Google has agreed to pay a total penalty of AU$55 million (approximately $36 million) as part of the resolution, signalling its admission of liability in this matter, according to Reuters and South China Morning Post.

The ACCC's findings indicate that between December 2019 and March 2021, these deals significantly impacted competition by channeling advertising revenue from Google Search exclusively to Telstra and Optus. In exchange, these telecoms benefited financially from the ads shown to users of the pre-installed application. This practice led to questions about the integrity of market competition in the region, as noted by ACCC Chair Gina-Cass Gottlieb, who stated that such arrangements "usually mean less choice, higher costs or worse service for consumers," according to Los Angeles Times and India Times.

In response, Google has expressed its commitment to amending its business practices, stating it has ceased signing similar agreements before the investigation. The company has also agreed to a court-enforceable commitment that obliges it to eliminate restrictive terms regarding search engine pre-installations in future contracts with Android device manufacturers and telecommunications firms. This change is part of a broader effort to enhance search choices for Australian consumers and allow competing search services greater visibility, according to Jakarta Post and Reuters.