Google has agreed to pay a A$55 million ($35.8 million) fine in Australia after the country’s competition regulator found the tech giant struck exclusive deals with two major telecommunications companies that harmed rival search engines.
The Australian Competition and Consumer Commission (ACCC) announced Monday that between late 2019 and early 2021, Google entered into agreements with Telstra and Optus to have its search application pre-installed as the default option on Android devices. In exchange, Google shared advertising revenue with the telcos, effectively sidelining competitors.
The ACCC said the arrangement significantly reduced opportunities for rival search providers to reach Australian consumers. “Today’s outcome created the potential for millions of Australians to have greater search choice in the future, and for competing search providers to gain meaningful exposure,” ACCC Chair Gina Cass-Gottlieb said.
Google admitted the conduct had a substantial impact on competition and agreed to the fine, which was jointly submitted with the ACCC to the Federal Court. The court will now determine whether the penalty is appropriate. The regulator said the company’s cooperation helped avoid a protracted legal battle.
The case highlights growing scrutiny of Google in Australia. Just last week, the Federal Court largely sided against the company in a lawsuit filed by Fortnite maker Epic Games, which accused Google and Apple of blocking rival app stores from operating on their platforms. Meanwhile, YouTube, also owned by Google, was added last month to a government ban on social media platforms admitting users under 16, reversing an earlier exemption.
In a statement, Google said it was “pleased to resolve” the matter with the ACCC, noting that the provisions in question had not been part of its commercial agreements for several years. “We are committed to providing Android device makers more flexibility to pre-load browsers and search apps, while preserving the offerings and features that help them innovate, compete with Apple, and keep costs low,” a Google spokesperson said.
Telstra and Optus, which is owned by Singapore Telecommunications, said they had fully cooperated with the regulator and confirmed they would not sign similar agreements with Google to pre-install its search engine from 2024 onward.
The A$55 million fine adds to Google’s mounting regulatory challenges worldwide, where authorities continue to scrutinize its market dominance in online search, digital advertising, and app distribution. For Australia, regulators say the ruling marks an important step toward ensuring consumers have genuine choice in how they access the internet on their devices.
