Google has agreed to pay a fine of 55 million Australian dollars ($36 million) after admitting to anticompetitive agreements with Telstra and Optus, the country’s largest telecommunications firms.
The Australian Competition and Consumer Commission (ACCC) announced the development on Monday, August 18, describing it as a significant win against antitrust practices.
The regulator revealed that Google’s Asia Pacific division, based in Singapore, struck contracts with the telcos that blocked the installation of rival search engines on Android smartphones sold to customers.
These exclusive deals, which lasted 15 months until March 2021, ensured Google Search remained the only pre-installed option on Android devices.
In return, both Telstra and Optus received a share of advertising revenue generated from user searches.
According to the ACCC, Google accepted that the agreements likely worked to “substantially lessen competition” in Australia’s digital market.
The watchdog has filed proceedings in the Federal Court, which will decide whether the AU$55 million penalty is adequate.
Google also signed a court-enforceable undertaking, requiring it to remove restrictions on pre-installation and default search engine settings in future contracts with Android manufacturers and telecom operators.
In its response, Google said:
“We’re pleased to resolve the ACCC’s concerns, which involved provisions that haven’t been in our commercial agreements for some time.”
ACCC chair Gina Cass-Gottlieb emphasized the broader impact of such agreements on consumers.
“Conduct that restricts competition is illegal in Australia because it usually means less choice, higher costs or worse service,” she stated.
She further highlighted the timing, noting that competition is vital at a moment when AI search tools are reshaping how people access information.
“Importantly, these changes come at a time when AI search tools are revolutionising how we search for information, creating new competition.”
The case is not isolated. Last year, Telstra, Optus, and TPG signed undertakings with the ACCC, pledging not to renew or enter similar agreements with Google that restrict rival search engines.
Meanwhile, the fine represents a sharp reminder to global tech firms that Australia’s competition watchdog is keeping a close eye on practices that may hinder consumer choice.
However, while Google described the case as resolved, the Federal Court will still have the final say on whether the penalty is sufficient.
