Australia fines Google ₹312 crore for blocking rival search engines

New Delhi: Google has agreed to pay a A$55 million (around ₹312 crore or $35.8 million) fine in Australia after regulators found it struck anti-competitive deals with the country’s two biggest telecom operators. The case adds to a series of legal and regulatory setbacks for the US tech giant in the region.

According to a report from Reuters, the Australian Competition and Consumer Commission (ACCC) said Google entered into revenue-sharing arrangements with Telstra and Optus between late 2019 and early 2021. These agreements ensured Google Search came pre-installed on Android devices, effectively keeping rival search engines out of the market.

The ACCC found that these deals had a "substantial impact” on competition. By limiting consumer choice and excluding competitors, the agreements tilted the playing field in Google’s favour. ACCC Chair Gina Cass-Gottlieb said the outcome could reshape the search market in Australia.

"Today's outcome ... created the potential for millions of Australians to have greater search choice in the future, and for competing search providers to gain meaningful exposure to Australian consumers,” she said in a statement.

Google admitted to the regulator’s findings and confirmed it no longer signs such deals. It also agreed to pay the fine, though the Federal Court must still approve the penalty.

The case comes at a time when Google faces multiple challenges in the country. Just last week, a court ruled mostly against the company in a high-profile lawsuit filed by Epic Games, the maker of Fortnite. The case accused both Google and Apple of blocking rival app stores from gaining ground on their mobile platforms.

On top of that, YouTube, which is owned by Google, was recently included in an Australian ban on social media platforms admitting users under the age of 16. The move reversed an earlier exemption for the video-sharing service.

A Google spokesperson said the company was "pleased to resolve the ACCC's concerns which involved provisions that haven't been in our commercial agreements for some time.” The spokesperson added that Google remained committed to giving Android phone makers more flexibility to pre-load browsers and search apps, while balancing innovation and cost concerns.

The fine, which equals about ₹312 crore in Indian currency, may be small compared to Google’s global earnings, but it highlights the increasing pressure regulators are putting on tech giants across the world.