Google has agreed to pay a fine of A$55 million ($36 million) in Australia after the country’s competition regulator found the company had engaged in anti-competitive conduct by striking deals with the nation’s two largest telecommunications firms to pre-install its search engine on Android devices.
The Australian Competition and Consumer Commission (ACCC) said on Friday that between late 2019 and early 2021, Google entered into arrangements with Telstra and Optus to ensure Google Search came pre-loaded on Android phones, limiting visibility for rival search providers. In exchange, the tech giant shared advertising revenue generated from searches on those devices with the telcos.
Google acknowledged that the deals had a significant impact on competition and confirmed that it had ceased similar practices. Both the company and the ACCC jointly submitted the proposed A$55 million penalty to the Federal Court, which must still determine whether the fine is appropriate.
ACCC Chair Gina Cass-Gottlieb welcomed the outcome, saying it would increase search engine options for Australian consumers. “Today’s result created the potential for millions of Australians to have greater search choice in the future, and for competing search providers to gain meaningful exposure,” she said.
Google said it was satisfied with the resolution of the watchdog’s concerns, adding that the contested agreements had already been phased out. “We are committed to providing Android device makers more flexibility to pre-load browsers and search apps, while preserving the features that help them innovate, compete with Apple, and keep costs low,” a company spokesperson said.
Telstra and Optus, which is owned by Singapore Telecommunications, both said they had cooperated with the ACCC investigation and confirmed they would not sign further exclusive agreements with Google from 2024 onwards.
The fine adds to a turbulent period for Google in Australia. Just last week, the Federal Court largely ruled against the company in a high-profile lawsuit brought by video game developer Epic Games, which accused Google and Apple of restricting competition by blocking alternative app stores. Meanwhile, YouTube, also owned by Google, was recently included in a nationwide ban preventing users under 16 from joining social media platforms—reversing an earlier exemption for the video-sharing site.
The A$55 million penalty is one of the largest ever levied in Australia for anti-competitive behavior and underscores the ACCC’s determination to hold major tech firms accountable. Legal experts noted that Google may still have benefited financially from the exclusivity deals, raising questions over whether the fine alone will serve as a strong enough deterrent.
For now, the ruling marks another setback for the U.S. tech giant as it navigates growing regulatory scrutiny in Australia and around the world.
