Google Faces Major Setback in Australia: AU$55 Million Fine and YouTube Ban for Under-16s
Google has suffered a significant regulatory blow in Australia as the Australian Competition and Consumer Commission (ACCC) imposed a AU$55 million (US$36 million) fine for anticompetitive practices. At the same time, the government has moved to ban YouTube access for children under 16, marking a global first in youth digital safety regulations.
Google Fined AU$55 Million for Anticompetitive Deals
The ACCC found that between 2019 and 2021, Google entered into anticompetitive agreements with Telstra and Optus, Australia’s two largest telecom providers.
These deals ensured that Google Search came pre-installed as the default browser on Android smartphones sold through the telcos. In return, the companies received a share of advertising revenue, creating an unfair advantage that restricted rival search engines from competing in the Australian market.
The regulator stressed that these practices reduced consumer choice and stifled competition.
Google Admits Impact and Accepts Settlement
Google acknowledged the impact of the pre-installation arrangements and agreed to pay the AU$55 million fine.
A company spokesperson said Google was “pleased to resolve the matter” and noted that such provisions are no longer included in its commercial agreements. The company also emphasized its commitment to giving Android device manufacturers greater flexibility to pre-load different search apps and browsers, supporting a fairer digital ecosystem.
The Federal Court of Australia will now review whether the proposed fine is appropriate. The ACCC highlighted that the settlement avoided a lengthy legal battle.
Australia Introduces YouTube Ban for Children Under 16
In a separate but related development, Australia has announced a ban on YouTube for users under the age of 16.
This move is part of the world’s first youth social media ban, which aims to protect children from harmful online content and addictive digital platforms. The decision is being framed as a pioneering step in digital safety, potentially influencing other nations to adopt similar restrictions.
Impact on Google and the Tech Industry
The dual actions—a hefty antitrust penalty and the youth ban on YouTube—represent a major setback for Google in Australia, one of the company’s key markets in the Asia-Pacific region.
Regulators worldwide are tightening scrutiny on Big Tech practices, and Australia’s approach could become a model for other countries seeking to rein in anticompetitive behavior and strengthen online safety laws.
Key Takeaways
- Google fined AU$55 million (US$36 million) in Australia.
- ACCC ruled that Google’s deals with Telstra and Optus restricted competition.
- Google admits impact and agrees to court-enforceable undertakings.
- Federal Court to review final penalty approval.
- Australia introduces YouTube ban for children under 16 as part of a global-first youth social media ban.
- Moves highlight rising global regulatory pressure on Big Tech.
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