Google has agreed to pay a fine of 55 million Australian dollars (US$36 million) after admitting it struck anticompetitive deals with two of Australia’s largest telecommunications companies, Telstra and Optus.
The Australian Competition and Consumer Commission (ACCC), which announced the penalty on Monday, said the arrangements—made between late 2019 and early 2021—reduced search competition and limited consumer choice.
According to the regulator, Google’s Asia-Pacific division based in Singapore entered contracts that barred Telstra and Optus from installing rival search engines on Android smartphones sold to customers. The deals, which lasted about 15 months until March 2021, ensured Google Search remained the only pre-installed option. In exchange, the telcos received a share of advertising revenue generated from user searches.
Google has since admitted the agreements were likely to “substantially lessen competition.” Federal Court proceedings are ongoing to confirm whether the AU$55 million penalty is appropriate.
Beyond the fine, Google has signed a court-enforceable undertaking preventing similar restrictions in future contracts with phone makers and telecom operators. Telstra, Optus, and rival TPG have also pledged not to enter agreements that limit search options.
ACCC chair Gina Cass-Gottlieb said the outcome would give Australians more choice while opening the market to rival search providers, particularly as artificial intelligence reshapes online search. “Conduct that restricts competition is illegal in Australia because it usually means less choice, higher costs or worse service for consumers,” she said.
Under new arrangements, telcos may now pre-install competing search engines and configure search services on a device-by-device basis, creating new opportunities for competition in the mobile market.
