Google has agreed to pay a A$55 million (US$36 million) fine in Australia after regulators found the company cut deals with major telecom operators that limited competition in the search market.
The Australian Competition and Consumer Commission (ACCC) said Google struck agreements with Telstra and Optus between 2019 and 2021, ensuring its search app came pre-installed on Android phones. In return, the telcos received a share of advertising revenue generated through Google Search. Rival search engines were effectively locked out of new devices during that period.
Google admitted the arrangements gave it an unfair edge and said it has already stopped signing similar contracts.
“This outcome opens the door for millions of Australians to have more choice in search engines and allows competitors a real chance to reach users,” ACCC Chair Gina Cass-Gottlieb said.
The penalty still requires sign-off from the Federal Court, but Google and the regulator have jointly submitted the proposed fine, avoiding what could have been a drawn-out legal battle.
A Tough Stretch for Google in Australia
The decision comes during a turbulent period for the Alphabet-owned giant in Australia:
- Just last week, a court largely sided with Fortnite maker Epic Games in a lawsuit accusing Google and Apple of blocking rival app stores.
- In July, YouTube was added to a national ban preventing social platforms from hosting under-16s, overturning an earlier exemption for the site.
Together, the cases underline growing pressure on Google’s dominance in both digital advertising and app distribution.
Company and Telco Responses
A Google spokesperson said the company was glad to put the matter to rest, stressing that the contracts in question were no longer part of its business practices.
“We’re committed to giving Android partners more flexibility in how they preload apps, while ensuring Android remains competitive with Apple and affordable for consumers,” the spokesperson said.
Telstra and Optus, which had cooperated with the regulator, reiterated they have not signed any similar pre-installation deals with Google since early 2024.