On August 18, 2025, the Australian Competition and Consumer Commission (ACCC) made headlines around the world by announcing a hefty fine against Google, one of the globe’s most influential tech giants. The fine, totaling 55 million Australian dollars (about 49.7 billion won or 35.8 million US dollars), was levied for anti-competitive conduct tied to Google’s search engine and app store practices on Android devices sold in Australia. The decision marks a significant moment in the ongoing global debate over the power and reach of major technology firms.
The ACCC’s investigation, which spanned from December 2019 to March 2021, focused on agreements Google had struck with two major Australian telecommunications companies: Telstra and Optus. According to reporting by Yonhap Infomax and Reuters, these contracts required that only Google’s search engine be pre-installed on Android smartphones sold by these carriers, effectively excluding all competing search engines from users’ first experience with their new devices. In return, Telstra and Optus received a share of the advertising revenue generated by searches conducted on those devices.
For the ACCC, the arrangement was more than just a business deal—it was a clear case of anti-competitive behavior. The regulator argued that by locking out rival search engines and restricting access to alternative app stores, Google was abusing its dominant position in the market to stifle competition and limit consumer choice. The ACCC’s statement left little room for ambiguity, asserting that such conduct was not only harmful to competition but also illegal under Australian law.
"Acts that restrict competition in Australia are illegal because they reduce consumer choice, increase costs, or lower the quality of services," said Gina Cass-Gottlieb, Chair of the ACCC, in comments reported by Yonhap News. She emphasized that the enforcement action would have far-reaching benefits: "Millions of Australians will now have greater choice in search, and competing search service providers will have a meaningful opportunity for exposure to Australian consumers."
The details of the agreement between Google and the ACCC were made public in a joint statement, and both parties are now seeking approval from Australia’s Federal Court. The court will ultimately decide whether the agreed penalty and related orders are appropriate. In addition to the financial penalty, Google has pledged not to enter into similar exclusive arrangements in the future and to implement compliance measures designed to prevent a recurrence of such conduct.
Google, for its part, acknowledged the seriousness of the situation and expressed willingness to address the regulator’s concerns. In a statement provided to Yonhap News, a Google spokesperson said, "We are pleased to resolve the ACCC’s concerns. We remain committed to giving Android device manufacturers greater flexibility to pre-install browsers and search apps, while continuing to foster innovation, compete with Apple, and maintain products and features that help reduce costs."
The ACCC’s investigation revealed that during the 15-month period in question, Google not only required the exclusive pre-installation of its own search engine but also imposed unfair conditions on app developers, further cementing its dominance. The regulator found that Google had actively prevented the use of alternative app stores on Android devices, a move that limited consumer access to competing apps and services. According to Reuters, these restrictions were a major factor in the ACCC’s decision to pursue enforcement action.
As part of the settlement, Google submitted a formal undertaking promising not to engage in similar anti-competitive contracts with telecommunications providers in the future. The company also agreed to take corrective actions and to comply with ongoing monitoring by the ACCC. The regulator underscored the importance of these commitments, noting that they would help ensure a more level playing field for all search providers and app developers in Australia.
The broader context of this enforcement action is a global reckoning with the power of big tech. Regulators in Europe, the United States, and Asia have increasingly scrutinized the practices of companies like Google, Apple, and Meta, arguing that their dominance can harm consumers and stifle innovation. In Australia, the ACCC has taken a particularly assertive stance, not only with Google but also with other tech giants operating within its borders.
For Australian consumers, the outcome could mean a more diverse digital landscape. With the exclusive pre-installation agreements now prohibited, smartphone buyers may soon see a wider array of search engines and app stores available on their devices right out of the box. This, in turn, could foster greater competition among service providers, potentially leading to better products, improved privacy protections, and lower costs for users.
Industry observers note that the ACCC’s action sends a clear signal to both tech companies and telecommunications providers: anti-competitive agreements that limit consumer choice will not be tolerated. The fine imposed on Google is one of the largest ever levied by the ACCC in a digital markets case, underscoring the seriousness with which Australian authorities view such conduct.
Gina Cass-Gottlieb, the ACCC Chair, summed up the significance of the settlement: "This agreement creates the potential for meaningful exposure for competing search service providers to Australian consumers." She added that the regulator’s priority is to protect consumer choice and ensure that innovation is not stifled by the market power of a few dominant players.
Google’s response has been measured, signaling a willingness to work within the new regulatory framework while continuing to innovate. The company’s spokesperson reiterated its commitment to providing flexible options for device manufacturers and to maintaining competitive products: "We remain dedicated to supporting innovation and competition, while offering products and features that help reduce costs for our partners and consumers."
Meanwhile, the Australian government is moving ahead with other digital policy initiatives, including plans to restrict social media access for minors under 16 later this year. This context highlights a broader effort to assert regulatory control over the digital environment in Australia, balancing the benefits of technological innovation with the need to protect consumers and promote fair competition.
As the world watches how this case unfolds in Australia’s Federal Court, it’s clear that the outcome will have implications far beyond the country’s borders. For now, the ACCC’s action against Google stands as a landmark moment in the ongoing struggle to ensure that the digital economy remains open, competitive, and responsive to the needs of consumers.
