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Read moreThe company is now in discussions with Google to ensure the ad-free service is available on Android phones in Australia, the Australian Federal Police has said.
In a statement, the police said it was notifying Google it would be investigating the issue.
The AFP said it had spoken to the owners of two apps and advised them to remove ads from the Google Play store as soon as possible.
The Australian Competition and Consumer Commission has also asked Google to remove the ads from its store.
“This has been a serious breach of the Fair Trading Act,” an ACCC spokeswoman said.
“The ACCC is investigating this matter and has contacted Google to ask them to take action.”
Google is committed to working with the Australian Competition & Consumer Commission to ensure that our fair trading system works for everyone.
“The ACCCs announcement follows a similar action in New Zealand, which banned ads from Google Play.
It has previously recommended Google take a “more proactive approach” to dealing with the issue, saying Google was not the appropriate venue to address it.”
We’re concerned by the recent actions of Google in New England,” ACCC spokesman Stephen Jones said.