Google Fined $36 Million in Australia Over Anticompetitive Search Deals
Google has been fined 55 million Australian dollars (US$36 million) after admitting to anticompetitive agreements with telecom giants Telstra and Optus that limited search engine competition and reduced consumer choice.
The Australian Competition and Consumer Commission (ACCC) announced the penalty on Monday, revealing that Google’s Asia-Pacific arm, based in Singapore, struck exclusive contracts with the telcos between late 2019 and early 2021.
Under the deals, Telstra and Optus were barred from pre-installing rival search engines on Android smartphones sold to customers. Instead, Google Search remained the sole default option, in exchange for a share of advertising revenue generated from user searches. The arrangements, which lasted about 15 months until March 2021, effectively locked out competitors and cemented Google’s dominance.
Google has since admitted that the agreements were likely to “substantially lessen competition.” Proceedings are now before the Federal Court, which will determine whether the AU$55 million fine is appropriate.
In addition to the financial penalty, Google has signed a court-enforceable undertaking requiring it to remove such restrictions from future contracts with Android manufacturers and telcos.
ACCC Chair Gina Cass-Gottlieb welcomed the outcome, stressing the consumer harm caused by restricting competition.
“Conduct that restricts competition is illegal in Australia because it usually means less choice, higher costs, or worse service for consumers,” she said.
She added that the ruling will open the door for greater search choice for millions of Australians and provide rival search engines with much-needed exposure.
Cass-Gottlieb also highlighted the significance of the decision at a time when AI-driven search tools are beginning to reshape the way users access information.
“Importantly, these changes come at a time when AI search tools are revolutionising how we search for information, creating new competition,” she noted.
Under the new arrangements, Telstra, Optus, and TPG will be free to configure search services on a device-by-device basis, including partnerships with other providers, instead of being locked into Google defaults.
The case stems from a broader Digital Platform Services Inquiry, which raised concerns about Google’s dominance over default search settings and choice screens.
Cass-Gottlieb said cooperation with regulators can help avoid costly litigation and foster healthier markets.
“More competition drives economic dynamism. The reverse is true when markets are not sufficiently competitive. We remain committed to tackling anticompetitive conduct and cartel behaviour,” she warned.
Last year, Telstra, Optus, and TPG agreed to court-enforceable undertakings pledging not to enter into similar restrictive deals with Google in the future.
