In a landmark development for Australia’s digital landscape, Google has agreed to pay a fine of 55 million Australian dollars (approximately $36 million) after regulators found the tech giant had entered into anticompetitive deals with the country’s two largest telecommunications companies, Telstra and Optus. The agreements, which ran from late 2019 through March 2021, saw Google pay the telcos to exclusively pre-install Google Search on Android smartphones, effectively shutting out rival search engines from millions of devices sold to Australian consumers.
According to the Australian Competition and Consumer Commission (ACCC), these deals substantially lessened competition in the search engine market. For 15 months, Telstra and Optus only pre-installed Google Search on their Android phones, excluding all other search options. In return, the telcos received a share of the advertising revenue generated by Google from users of those devices. The regulator stated that such arrangements deprived Australians of meaningful choice and limited the exposure of competing search providers.
The ACCC commenced proceedings in the Australian Federal Court on August 18, 2025, against Google’s Singapore-based Asia Pacific division. Both Google and the ACCC jointly submitted to the court that the AU$55 million penalty should be imposed, but the final decision on the appropriateness of the fine rests with the court. The cooperation between Google and the ACCC in submitting the penalty has helped avoid what could have been years of protracted litigation.
Google has publicly admitted that its arrangements with Telstra and Optus had a substantial impact on competition. The company stated, “We’re pleased to resolve the ACCC’s concerns, which involved provisions that haven’t been in our commercial agreements for some time.” A spokesperson also noted Google’s commitment to providing Android device makers with more flexibility to pre-load browsers and search apps, while still preserving the features that allow them to innovate, compete with Apple, and keep costs low. Google, which owns the Android operating system, emphasized that it has stopped signing similar contracts and is working to ensure broader choice for consumers going forward.
ACCC Chair Gina Cass-Gottlieb described the outcome as a pivotal moment for consumer choice in Australia. “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,” Cass-Gottlieb said. She further emphasized, “Conduct that restricts competition is illegal in Australia because it usually means less choice, higher costs or worse service for consumers.” Importantly, Cass-Gottlieb pointed out that these changes come at a time when artificial intelligence search tools are revolutionizing the way people access information, potentially intensifying competition in the market.
The agreements between Google and the telcos were in place from late 2019 until March 2021. During this period, Android phones sold through Telstra and Optus came with Google Search as the sole pre-installed search engine. This exclusivity meant that alternative search engines, such as Bing or DuckDuckGo, were effectively shut out from reaching new users through these major distribution channels. In exchange for this privileged position, Google shared a portion of the advertising revenue generated from searches performed on those devices with the telcos.
Telstra and Optus, for their part, have fully cooperated with the ACCC investigation. Both companies have committed not to enter into similar agreements with Google since 2024, and their smaller rival TPG has also provided similar undertakings. A Telstra spokesperson told Reuters that the company and Optus, owned by Singapore Telecommunications, have promised not to sign deals with Google to pre-install its search product going forward.
The fine and the regulatory action come at a challenging time for Google in Australia. Just last week, a court ruled against the company in a lawsuit brought by Epic Games, the maker of Fortnite, which accused Google and Apple of imposing unfair restrictions on rival app stores within their operating systems. In another blow to the tech giant, Google’s YouTube platform was recently added to a national ban on social media platforms for users under the age of 16, reversing an earlier decision that had exempted the video-sharing site.
These developments have contributed to a period of heightened scrutiny and regulatory pressure on Google and other major tech companies operating in Australia. While Google-parent Alphabet’s stock has risen 8% so far in 2025, retail sentiment for the company has reportedly been bearish on platforms like Stocktwits, with message volumes described as “extremely low.”
The ACCC’s enforcement action is part of a broader global trend in which regulators are increasingly challenging the market dominance of major technology firms. In Australia, the ACCC has made clear that it will not tolerate conduct that restricts competition or limits consumer choice. The regulator’s willingness to pursue legal action, coupled with Google’s decision to cooperate and accept the fine, signals a new era of accountability for digital platforms.
For Australian consumers, the resolution of this case could have far-reaching implications. By removing contractual restrictions that favored Google Search, the settlement opens the door for greater diversity in search engine options on Android devices. As Cass-Gottlieb noted, the changes “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.”
Looking ahead, the case may serve as a precedent for how regulators elsewhere approach similar anticompetitive practices in the digital economy. The ACCC’s success in securing both a substantial fine and a commitment from Google to change its business practices demonstrates the power of regulatory oversight in shaping the competitive landscape. It also highlights the importance of consumer choice and fair competition in an era when digital services play an ever-expanding role in daily life.
As the Federal Court prepares to rule on the appropriateness of the AU$55 million penalty, all eyes will be on how the decision influences future conduct by both technology companies and the telecommunications industry. For now, the outcome stands as a significant win for competition, transparency, and consumer rights in Australia’s rapidly evolving digital marketplace.
