ACCC attempt to temper dominance of Google’s Android unlikely to succeed, say experts

Attempts to rein in Google’s search dominance on Android will have little impact, say experts.

Analysts say Australians will likely continue to turn to Google’s search engine and web browser even if the regulator forces the tech giant to offer consumers a choice. Picture: AFP

Any move from the federal government to quell Google’s search and browser dominance on Android devices will likely have little impact, experts say, bringing a key recommendation from the ACCC’s digital platforms inquiry into question.

The regulator has called on Google to allow its millions of Australian Android users to choose their default browser and search services from a number of options, and urged the government to force the tech giant to do so if it refuses.

The ACCC said that in terms of mobile, Apple and Android take a 40 and 55 per cent market share respectively in Australia, both of which use Google Search as a default search option.

That gives Google a 95 per cent of the Australian mobile search market by default.

“Google should provide Australian users of Android devices with the same options being rolled out to existing Android users in Europe; that is, the ability to choose their default search engine and default internet browser from a number of options,” the ACCC said in its report released by the government on Friday.

“If Google does not introduce similar options for Australian Android users by six months from the date of the Report, the ACCC will submit to the government that it should consider compelling Google to offer this choice.”

Analysts say however that Australians will naturally turn to Google’s search engine and web browser anyway, given the interconnected nature of those services, and that the move therefore would have little value.

Telsyte senior analyst Alvin Lee told The Australian Telsyte research shows there were around 11 million Android smartphone users at the end of 2018, while 3.4 million Australians also had access to Android tablets during the same period.

“Chrome and Google’s search engine are the most popular choices on Android smartphone currently,” Mr Lee said.

“While it is important that consumers have different options, Telsyte believes majority of existing Android users will still gravitate toward Chrome and Google’s search engine as they also likely use other Google’s services that will work hand-in-hand.”

He added that Telsyte estimates there are 13.9 million Australians that use Google’s online services or have devices that are based on Google’s operating systems, for example Android or Google OS.

“It’s also worth noting that Samsung preloads its own web browser on Samsung mobile devices alongside Chrome,” he said.

“Telsyte’s latest smartphone research shows Samsung holds close to 60 per cent of Android smartphone installed base in Australia.”

Google said in a blog post that it welcomed the opportunity to consult with the federal government over the next 12 weeks as it finalises its response to the inquiry, but ignored the browser and search recommendations.

The company’s local boss Mel Silva instead declared that Google’s advertising platforms help publishers make more money online and drive traffic to their websites.

Ms Silva also said Google still competes with other mediums for advertising dollars.

“The tech industry is dynamic and drives innovation that gives consumers better products, services and choices. For example, when consumers are looking for information online, they go to a range of places in addition to Google,” she said.

“For furniture and electrical products they might go to Harvey Norman. For homes, they might go to Domain or Realestate.com. For reviews they might go to TripAdvisor.

“When it comes to advertising, search advertising is one of many online and offline channels in which advertisers invest. We compete directly for advertising dollars with other digital channels, as well as television, print, radio and outdoor advertising.”