Google’s $55 million penalty highlights why Australia needs stronger digital competition laws

Australia’s peak communications consumer body, ACCAN, has today welcomed Federal Court proceedings against Google Asia Pacific for anti-competitive conduct involving Telstra and Optus.

Google has admitted to entering into exclusive agreements that limited consumer choice and has agreed to jointly propose a $55 million penalty to the Court.

ACCAN CEO Carol Bennett said the case is yet another clear signal that digital competition reforms are urgently needed to prevent this kind of conduct from recurring.

"Google already has a virtual monopoly on search - and now we have confirmation that they were providing kickbacks to telcos to further entrench their market power."

“In most industries, companies wouldn’t dare try something like this. Tech giants are acting like the rules don’t apply to them.”

“We need real digital competition laws that stop these problems before they start. Consumers and small businesses shouldn’t be left cleaning up the mess after global tech companies misuse their market power.”

“If we’re serious about improving Australia’s productivity, we can’t ignore how anti-competitive behaviour in digital markets holds us back. Search services are core infrastructure in the digital economy, and when choice is limited, innovation is stifled and consumers and small businesses suffer.”

"This is the second time in two weeks that Google has been caught out playing the system for its own ends. It is beyond time we addressed the fundamental issues at play – it is time we enacted digital competition reform.”

ACCAN calls upon Treasury to progress the reforms recommended earlier this year by the ACCC Digital Platform Services Inquiry as a matter of priority.