Australian regulators have fined Alphabet’s Google (GOOGL) $36 million for antitrust violations. The Australian Competition and Consumer Commission (ACCC) accused the tech giant of paying major telecom companies to give its search app priority on Android phones, blocking rival search engines.
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Key Details of Google’s Antitrust Trouble
The ACCC found that Google struck anticompetitive deals with Telstra (AU:TLS) and Optus, giving its search app exclusive placement on Android phones for 15 months until March 2021. In return, the telcos received a share of Google’s ad revenue.
The regulator has taken the case to federal court to confirm the $36 million penalty. Meanwhile, Google admitted the deals hurt competition, agreed to pay the fine, and said it has stopped such practices. The company also pledged to drop pre-installation and default search engine restrictions from its contracts with Android phone makers and telecom operators.
Google Under Growing Scrutiny
The latest penalty adds to a rough stretch for Google in Australia. Just last week, a court largely sided with Fortnite-maker Epic Games in a case accusing Google and Apple (AAPL) of blocking rival app stores on their platforms. Meanwhile, Google’s YouTube was recently included in Australia’s ban on social media platforms for users under 16, overturning its earlier exemption.
Google’s $36 million fine in Australia may signal the start of deeper antitrust challenges. The latest ruling shows Australia is willing to confront the company’s dominance, raising the possibility of tougher battles ahead over competition and consumer choice.
Is Google Stock a Buy, Sell, or Hold?
While the fine itself is small for a company of Google’s size, it highlights rising regulatory risks that could weigh on GOOGL stock performance if similar antitrust actions expand globally.
Overall, Wall Street analysts have a Strong Buy consensus rating on GOOGL stock based on 27 Buys and nine Holds assigned in the past three months. The average GOOGL price target of $217.25 per share implies a 6.5% upside potential.
