Google has agreed to pay a A$55 million (about US $35.8 million) fine after admitting to having struck anti-competitive deals with Australia’s two largest telecom operators—Telstra and Optus.
From late 2019 to early 2021, the tech giant paid the carriers to exclusively pre-install its Google Search app on Android phones, effectively locking out rival search engines.
The telcos received revenue shares from ads generated through these pre-installed searches.
The arrangement, the Australian Competition and Consumer Commission (ACCC) said, likely substantially lessened competition.
Google has admitted liability, cooperated with the ACCC, and—along with its parent company—submitted a proposal to the Federal Court recommending the A$55 million fine and committing to remove restrictions in future contracts that limit pre-installation and default search engine settings.
ACCC Chair Gina Cass-Gottlieb stated that the outcome could lead to greater search engine variety and meaningful opportunities for competitors to reach Australian users, particularly as AI-powered search tools gain prominence.
In recent months, Google’s operations in Australia have faced several setbacks.
A court largely ruled against it in a lawsuit filed by Fortnite maker Epic Games, which accused Google (and Apple) of blocking competing app storel.
Additionally, YouTube was recently added to Australia’s ban on social media access for users under 16—a restriction the platform was previously exempt from.
A Google spokesperson emphasized that the disputed clauses had not appeared in its agreements for some time.
Google is now committed to giving Android device makers more flexibility to pre-load browsers and search apps—while maintaining innovation, competition with Apple, and cost efficiency.
Telstra and Optus have also stated they fully cooperated and will not enter into similar exclusive agreements since 2024.
Beyond this case, Australia’s digital market remains under scrutiny.
Telstra, Optus, and TPG, a smaller player, have all previously accepted court-enforceable undertakings to cease such exclusive pre-install deals.
These commitments form part of the ACCC’s broader Digital Platform Services Inquiry, which is studying how dominant tech platforms influence competition, particularly through default and pre-install arrangements.
The fine must still be approved by the Federal Court, which will assess whether the penalty and accompanying agreements are appropriate.
Nonetheless, this resolution arrives amid a growing push—driven by regulatory authorities and fueled by the rise of AI-driven search—for enhancing consumer choice and reducing digital platform dominance.