Google cops $55m fine for ‘stitching up’ Aussie telcos

Turns out even the biggest tech giants can get a slap on the wrist. Google has agreed to pay a whopping $55 million after the consumer watchdog, the ACCC, caught it cutting anti-competitive deals with Telstra and Optus to lock Aussies into using Google Search on their Android phones.

Between December 2019 and March 2021, Google paid the telcos a slice of ad revenue in exchange for making sure only Google Search came pre-installed on Android handsets. No Bing, no DuckDuckGo, no competition, just good old Google front and centre.

That, according to the ACCC, is a big no-no. Chair Gina Cass-Gottlieb described the behaviour as anti-competitive.

“Conduct that restricts competition is illegal in Australia because it usually means less choice, higher costs or worse service for consumers.”

The upshot of this decision? Aussies should now have more choice over how they search, and rival search providers might finally get a bit of sunlight. Google’s admitted fault, promised to stop making these kinds of exclusivity deals, and says it will loosen up its contracts with device makers and telcos so other search apps can get a look in.

What Google did wrong and the takeaway for you

This case isn’t just another headline about Big Tech getting fined. It’s a reminder that Competition Law is more than red tape. It exists to keep the playing field fair.

While global giants like Google may have legal teams ready to defend exclusive deals, what flies for them won’t always protect a small business. If you’re considering arrangements that shut out rivals, the court ruling is clear: you need to tread carefully.

Customers value choice

Choice matters to customers. Whether it’s search engines or sandwiches, Aussies like options. If your business model relies on limiting choice, don’t be surprised if regulators or customers push back.

Google’s now saying it’s committed to giving Android makers more flexibility. For smaller businesses, being upfront about partnerships, pricing and products can stop you from landing in hot water down the track.

The disruption of Search

The fine also comes at a time when Search itself is changing fast. With AI-powered search tools gaining traction, there’s more room than ever for disruption, and more opportunities for businesses that can think outside the box.

A Google spokesperson said the company was “pleased to resolve” the issue and that the provisions in question hadn’t been in agreements for some time. Telstra and Optus, for their part, say they’ve already sworn off these kinds of deals.

While the Federal Court still has to rubber-stamp the fine, for now, it seems that even tech giants can’t stack the deck forever.

Want more? Get our newsletter delivered straight to your inbox!  Follow Business Builders on Facebook , X , Instagram , and LinkedIn.