Google has agreed to pay AUD 50 million (USD 35.8 million) to Australia’s competition watchdog over anti-competitive practices involving its exclusive search engine deals with major telecom operators. The Australian Competition and Consumer Commission (ACCC) alleges that the tech giant’s agreements with Telstra and Optus restricted consumer choice and stifled competition in the mobile search market.
The ACCC has initiated legal proceedings in the Federal Court, which will now determine if the proposed penalty is appropriate. According to the commission, between January 2020 and March 2021, Telstra and Optus pre-installed Google Search as the exclusive search engine on Android devices sold to consumers. In return, they received a portion of the advertising revenue generated through those devices.
These deals effectively excluded rival search engines from reaching users, significantly reducing competition in the mobile search space. Google has acknowledged that its agreements likely resulted in a “substantial lessening of competition,” and has since signed an undertaking to remove restrictive clauses from its contracts with telecom providers and Android device manufacturers.
ACCC Chair Gina Cass-Gottlieb stated that such conduct is illegal in Australia as it leads to “less choice, higher costs, or worse service for consumers.” She added that the timing of these changes is especially significant, as AI-powered search tools are beginning to reshape the competitive landscape in online information access.
Previously, Telstra, Optus, and TPG agreed to court-enforceable undertakings, pledging not to enter into similar restrictive arrangements in the future. The ruling comes amid increased global scrutiny of Google’s dominance in the digital ecosystem. In the U.S., a federal court has similarly found that Google maintained its search monopoly through anti-competitive agreements with device makers and carriers. Google is also reported to pay Apple around USD 20 billion annually to remain the default search engine on iPhones.
The development aligns with broader global efforts to curb Big Tech’s market dominance and promote fair competition in digital markets.
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