Google has agreed to pay a fine of 55 million Australian dollars, equivalent to about $36 million, due to anticompetitive agreements with Australia’s two largest telecommunications companies, Telstra and Optus. The Australian Competition and Consumer Commission (ACCC) announced the settlement on Monday, stating that these deals restricted competition by preventing the installation of rival search engines on certain Android smartphones.

The agreements, which were in effect for 15 months until March 2021, allowed only Google Search to be pre-installed on devices sold by Telstra and Optus. In exchange, these companies received a share of the advertising revenue generated from Google Search on those devices. The ACCC noted that Google acknowledged the agreements likely had a significant negative impact on competition.

ACCC Chair Gina-Cass Gottlieb emphasized the importance of competition in the market, stating, "Conduct that restricts competition is illegal in Australia because it usually means less choice, higher costs or worse service for consumers." She added that the changes come at a crucial time as artificial intelligence tools are transforming how information is searched, fostering new competition.

In addition to the fine, Google has committed to removing certain restrictions related to pre-installation and default search engines in its contracts with Android device manufacturers and telecommunications companies. A Google spokesperson expressed satisfaction with the resolution, stating, "We’re pleased to resolve the ACCC’s concerns, which involved provisions that haven’t been in our commercial agreements for some time."

The ACCC has filed proceedings in the Australian Federal Court to determine whether the imposed penalty is appropriate. The cooperation between Google and the ACCC has helped avoid lengthy litigation, according to the commission. Last year, Telstra, Optus, and their smaller competitor TPG agreed to court-enforceable undertakings, promising not to renew or enter into similar agreements with Google that would limit search options.