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Australia sues Google for search deals with Singapore’s Optus, Telstra

Google has admitted liability and agreed to a US$36 million penalty over its anticompetitive agreements, Australia’s regulator says

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A pedestrian walks past the Google office in London on Thursday. Photo: Reuters
Reuters
Alphabet’s Google was taken to court by Australia’s regulator on Monday over the company’s “anticompetitive” Google Search deals with telecom operators Telstra and Singapore Telecommunications-owned Optus.

The Australian Competition and Consumer Commission (ACCC) said Google Asia-Pacific reached “understandings” with Telstra and Optus between December 2019 and March 2021 to pre-install only Google Search on Android phones they sold.

“In return, Telstra and Optus received a share of the revenue Google generated from ads displayed to consumers when they used Google Search on their Android phones,” the ACCC said in a statement.

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Google has cooperated with the regulator, admitted liability and agreed to jointly submit to the Federal Court that it should pay a total penalty of A$55 million (US$35.8 million), according to the ACCC.

An Optus shop in Sydney. Google has admitted to reaching an understanding with the Singapore-owned company to pre-install only Google Search on its Android phones. Photo: Reuters
An Optus shop in Sydney. Google has admitted to reaching an understanding with the Singapore-owned company to pre-install only Google Search on its Android phones. Photo: Reuters

The regulator has accepted an undertaking from Google Asia-Pacific and its parent company, Google, committing to removing certain pre-installations and default search engine restrictions from contracts with Android phone makers and telcos.

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