Google Asia Pacific has agreed to pay a $55 million fine for its anti-competitive conduct related to the pre-installation of Google Search on Android mobile phones sold by local telcos.

The tech giant has cooperated with the Australian Competition and Consumer Commission (ACCC), admitting its liability and agreeing to pay the penalty in a court filing. The court will determine whether the fine and other orders are appropriate.

The ACCC initiated court proceedings after concluding that Google required Telstra and Optus to pre-install Google Search exclusively on Android phones sold to consumers. 

In return, Telstra and Optus received a share of the revenue Google generated from ads displayed to consumers when they used Google Search on their phones. The practice took place between December 2019 and March 2021.

Aside from the fine, Google has committed to removing certain pre-installation and default search engine restrictions from its contracts with Android phone manufacturers and telcos.

Telstra and Optus, as well as TPG, have already agreed not to renew or make new arrangements with Google on the exclusive pre-installation of Google Search on their Android phones. These court-enforceable undertakings were submitted to the ACCC between June and August last year.

“Conduct that restricts competition is illegal in Australia because it usually means less choice, higher costs or worse service for consumers,” said ACCC chair Gina-Cass Gottlieb.

“Today’s outcome, along with Telstra, Optus and TPG’s undertakings, have 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.”

Last week, the Federal Court ruled against Google and Apple over uncompetitive conduct related to their app stores.