Google, the global tech behemoth, has found itself once again in the regulatory spotlight—this time in Australia, where the company has agreed to pay a hefty $36 million fine after the country’s competition watchdog found it had struck anticompetitive deals with the nation’s two largest telecommunications companies, Telstra and Optus. The decision, announced on August 19, 2025, marks a significant moment in the ongoing global debate about the power of Big Tech and the lengths to which governments are willing to go to ensure a level playing field in the digital marketplace.
The case, brought by the Australian Competition and Consumer Commission (ACCC) against the Singapore-based Google Asia Pacific division, centers on a series of agreements that began in late 2019 and lasted for 15 months until March 2021. According to the ACCC’s statement, these deals required Telstra and Optus to preinstall only Google Search on Android phones sold to their customers, effectively locking out rival search engines from gaining a foothold on the country’s most popular mobile devices. In return, the telcos received a share of the advertising revenue generated by Google from those users—a lucrative arrangement for all parties involved, except, of course, for the competitors and the consumers whose choices were quietly curtailed.
"We’re pleased to resolve the ACCC’s concerns, which involved provisions that haven’t been in our commercial agreements for some time," Google said in a statement, as reported by the Associated Press. The company acknowledged that the agreements were likely to have the effect of "substantially lessening competition"—a rare admission from a tech giant that has often pushed back against regulatory scrutiny in other jurisdictions.
The impact of these deals was far from trivial. As the ACCC’s chair, Gina Cass Gottlieb, put it, "The result is crucial since it gives the people of Australia more flexibility in the future. Competitors in the search engine business will find it easier to access users, unlike previously, when they were restricted from accessing users due to exclusive deals." According to the ACCC, the majority of mobile operating systems in Australia are Android, giving Google a significant upper hand in the market. By limiting preinstalled search options, the company was able to reinforce its dominance and stifle competition at a foundational level.
But the $36 million penalty—equivalent to roughly A$55 million—represents more than just a financial slap on the wrist. As noted by Reuters and other outlets, the sum is a drop in the bucket for a company of Google’s size. What truly matters, observers say, is the message it sends: regulators are increasingly willing to challenge the business practices of tech giants and demand changes that promote consumer choice and market fairness.
In addition to the fine, Google has signed a court-enforceable undertaking that commits it to removing certain preinstallation and default search engine restrictions from its contracts with Android phone manufacturers and telecommunications providers. This means that, moving forward, device makers and telcos in Australia will have more freedom to pre-load other browsers and search applications—potentially opening the door to greater innovation, improved privacy protections, and a wider array of features for consumers.
For their part, Telstra and Optus have also faced scrutiny for their roles in the arrangement. Both companies have stated that they fully cooperated with the regulator’s investigation and have vowed not to enter into similar agreements with Google after 2024. Optus, a subsidiary of Singapore Telecommunications, has remained largely silent on the details of the case, but the message is clear: exclusive deals that limit consumer choice are now under the microscope, and the days of quiet collusion between tech giants and telecom operators may be numbered.
This penalty comes at a particularly rough patch for Google in Australia. As reported by the BBC, the company is already embroiled in a high-profile lawsuit filed by Epic Games, the maker of Fortnite, which alleges that both Google and Apple have blocked competitive app stores from operating on their mobile operating systems. The court has largely sided against Google in this matter, suggesting a broader pattern of regulatory pushback against the company’s market practices. Additionally, earlier this year, Australia reversed exemptions that allowed children under 16 to use social media platforms such as Google and YouTube, further signaling a toughening stance toward Big Tech.
According to a Google spokesperson, the company has "ceased entering into these kinds of agreements and has cooperated with the regulator when resolving the situation." That cooperation, the spokesperson noted, helped avoid a protracted and expensive court battle. The company also emphasized its desire to "provide device makers with Android machines more freedom," allowing them to pre-load other browsers and search engines as they see fit. At the same time, Google maintains that its services help keep the cost of Android devices low and competitive with Apple’s offerings.
But while Google’s financial muscle remains formidable, the regulatory tide appears to be turning. Governments around the world are increasingly intervening to disrupt the grip of large companies in industries such as search, app stores, and digital advertising. The Australian case is seen by many as a warning shot—a signal that authorities are willing to combat practices that restrict competition for consumers, even when the companies involved are among the richest and most powerful in the world.
What does this mean for the average Australian? In the short term, it could mean more choice when buying a new smartphone, as rival search engines and browsers become more readily available out of the box. In the longer term, it may spur further innovation as competitors are finally able to reach users without having to fight through layers of preinstalled software and exclusive deals. As Gina Cass Gottlieb of the ACCC suggested, "This result is crucial for increasing flexibility for Australian consumers and easing access for competitor search engines."
For Google, the Australian fine is just the latest in a series of regulatory challenges it faces globally. The company’s approach to exclusive deals, app stores, and user data is being scrutinized from Brussels to California, with regulators keen to ensure that the digital marketplace remains open, competitive, and fair. The $36 million penalty may be pocket change for Google, but the precedent it sets could have lasting implications for how tech giants operate—not just in Australia, but around the world.
As the dust settles on this particular case, all eyes are on how Google and its rivals will adapt to a new era of regulatory oversight—one in which consumer choice, market access, and fair competition are no longer negotiable.
