ACCC Files Lawsuit Against Google for Anti-Competitive Search Practices

The Australian Competition and Consumer Commission (ACCC) has initiated court proceedings against Google Asia-Pacific concerning agreements made with Australia’s largest telecommunications companies, Optus and Telstra. Between December 2019 and March 2021, both telcos agreed to pre-install Google Search on Android devices, effectively excluding other search options. In return for this arrangement, Optus and Telstra received a share of Google’s advertising revenue. The ACCC has raised concerns that this conduct likely resulted in a substantial lessening of competition in the market.

Google has acknowledged the ACCC’s concerns, agreeing that its actions may have restricted competition. The company has signed a court-enforceable undertaking to address these issues. ACCC Chair Gina-Cass Gottlieb stated that conduct that restricts competition is illegal in Australia, as it typically leads to less choice, higher costs, or inferior service for consumers. The outcome of this case, along with commitments from Telstra, Optus, and TPG, has the potential to enhance search options for millions of Australians and provide competing search providers with greater visibility in the market. Google has also proposed to pay a $55 million penalty in response to the allegations. 

Categories: Competition Law, Digital Advertising, Consumer Choice 

Tags: Competition, Proceedings, Agreements, Telcos, Devices, Revenue, Undertaking, Choice, Tools, Penalty