Google Slapped With $36 Million Fine Amid Anti-Competitive Practices In Australia

Alphabet‘s Google GOOG GOOGL has agreed to pay a hefty fine of $36 million in Australia. This comes after allegations of anti-competitive practices involving the country’s two largest telecom companies.

Google Faces Fine In ACCC Search Deal Case

Google faced allegations of stifling competition by paying Telstra and Optus to pre-install its search app on Android devices, effectively shutting out rival search engines. The Australian Competition and Consumer Commission (ACCC) stated that Google acknowledged the arrangement, which was in place from late 2019 to early 2021, significantly affected competition and has since ceased entering into such agreements, as per Reuters on Monday.

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Google and the ACCC have jointly proposed to the Federal Court that Google pay a fine of A$55 million ($36 Million), though the court has yet to rule on its appropriateness.

According to a Google spokesperson, the company welcomed the resolution of the ACCC’s concerns and emphasized its dedication to offering Android device manufacturers more options for pre-loading browsers and search applications.

ACCC Chair Gina-Cass Gottlieb expressed optimism that the outcome of the case would pave the way for greater search choice for Australians and provide competing search providers with meaningful exposure to Australian consumers. The proposed fine is yet to be approved by the Federal Court.

Telstra had earlier told Reuters that both Telstra and Optus, owned by Singapore Telecommunications, had fully cooperated with the ACCC and agreed not to enter into deals with Google to pre-install its search product since 2024.

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Fresh Legal Battles Add To Google’s Growing Troubles

This fine is another blow for Google in Australia, following a court ruling last week that largely sided against the tech giant in a lawsuit filed by Fortnite creator Epic Games. The lawsuit accused Google and Apple Inc. AAPL from blocking rival app stores on their operating systems.

Australia also has extended its social media ban for users under 16 to include Google’s YouTube, overturning an earlier decision to exempt the platform.

Earlier in the year, Google also agreed to pay a $28 million settlement in a class-action lawsuit that alleged the company favored white and Asian employees over others

These legal challenges, along with others, have led to a surge in Google’s legal costs, which some analysts believe could be a drag on its stock performance. Alphabet’s Q2 operating expenses rose 20% to $26.1 billion, driven largely by a $1.4 billion legal settlement charge, stated Anat Ashkenazi, senior vice president at Alphabet and Google. Despite this, operating margin held steady at 40.1%.

According to Benzinga Edge Stock Rankings, Google has a growth score of 76.95% and a value rating of 51.89%. Click here to see how it compares to other leading tech companies.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.