Google, the global tech titan whose name is synonymous with online search, has found itself at the center of a landmark antitrust case in Australia. On August 18, 2025, the company agreed to pay a hefty fine of 55 million Australian dollars (approximately $36 million) after regulators determined that it engaged in anticompetitive practices with the nation’s two largest telecommunications firms, Telstra and Optus. The agreements in question, which spanned from December 2019 to March 2021, required these carriers to exclusively pre-install Google Search on Android smartphones sold to Australian consumers, effectively shutting out rival search engines from the market.
The Australian Competition and Consumer Commission (ACCC), the country’s consumer watchdog, spearheaded the investigation and brought proceedings against Google’s Asia Pacific division in the Federal Court. According to the ACCC’s findings, Google not only secured its search engine’s place as the default on millions of devices but also incentivized Telstra and Optus by sharing advertising revenue generated from these pre-installed apps. The arrangement, as Google itself admitted, was “likely to have had the effect of substantially lessening competition.”
In a statement reported by Reuters, ACCC Chair Gina Cass-Gottlieb emphasized the broader implications of such conduct: “Conduct that restricts competition is illegal in Australia because it usually means less choice, higher costs or worse service for consumers.” She further noted, “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 to Australian consumers.”
The agreements, which lasted for 15 months, not only excluded other search engines but also set a precedent for how tech giants could wield their market power through exclusive arrangements. The ACCC’s investigation revealed that the deals had been crafted in such a way that rival search providers were unable to get their apps pre-installed on Android phones sold by these carriers—a move that regulators found particularly troubling in a market increasingly reliant on mobile devices for information access.
Google’s response to the ACCC’s concerns was measured yet conciliatory. A spokesperson for the company told Reuters, “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.” The company also stated, “We’re pleased to resolve the ACCC’s concerns, which involved provisions that haven’t been in our commercial agreements for some time.”
As part of the resolution, Google entered into a court-enforceable undertaking with the ACCC. This legally binding commitment ensures that the company will no longer require its search engine to be the default option in contracts with Android phone manufacturers and telecommunications companies. In practical terms, this opens the door for greater diversity in search engine options on new Android devices sold in Australia—a significant shift from the status quo of recent years.
While the ACCC has commended Google for its cooperation, which helped avoid what could have been a protracted and costly legal battle, the matter is not entirely settled. The Federal Court must still decide whether the $36 million penalty is appropriate, a decision that will likely set a benchmark for future antitrust actions in the technology sector both in Australia and beyond. The ACCC’s proceedings against Google Asia Pacific division underscore the seriousness with which Australian regulators are approaching competition issues in the digital economy.
It’s worth noting that these changes come at a pivotal time for the search industry. As ACCC Chair Cass-Gottlieb pointed out, “Importantly, these changes come at a time when AI search tools are revolutionising how we search for information, creating new competition.” The emergence of artificial intelligence-powered search engines and digital assistants is reshaping the landscape, making the need for open and competitive markets even more pressing.
The impact of this case extends beyond Google and the telcos involved. Last year, Telstra, Optus, and their smaller rival TPG agreed to court-enforceable undertakings with the ACCC that they would not renew or make similar deals with Google to limit search options. This collective move signals a broader industry acknowledgment that exclusive arrangements of this nature are no longer tenable under Australia’s competition laws.
According to Impakter, the case also serves as a reminder to companies operating globally that local regulations and enforcement can have significant ramifications. The fine, which is among the largest ever levied by the ACCC for anticompetitive conduct, underscores Australia’s willingness to take on even the most powerful multinational corporations when consumer choice and market fairness are at stake.
For Australian consumers, the outcome promises a more open digital ecosystem. With Android devices accounting for a significant share of the smartphone market, the ability to choose from a wider array of search engines could lead to innovation, improved services, and potentially even lower costs. As Cass-Gottlieb noted, restricting competition “usually means less choice, higher costs or worse service for consumers”—a scenario the ACCC is determined to avoid.
Google’s admission that the provisions in question “haven’t been in our commercial agreements for some time” suggests that the company had already begun shifting its approach, perhaps in anticipation of regulatory scrutiny. Still, the legally binding undertakings and the substantial financial penalty send a clear message: market dominance must not come at the expense of fair competition.
As the Federal Court deliberates on the appropriateness of the fine, the tech industry and regulators around the world are watching closely. The case may well serve as a blueprint for future enforcement actions, particularly as digital markets continue to evolve and the power of platform companies remains a contentious issue.
With the dust still settling, one thing is clear: Australia’s action against Google marks a significant moment in the ongoing global debate over how best to ensure competition, innovation, and consumer choice in the digital age.
