Australia Hits Google With $36M Fine Over Unfair Search Deals

Google has agreed to pay a fine of 55 million Australian dollars (approximately $36 million USD) after admitting to anticompetitive agreements with Australia’s two largest telecommunications providers—Telstra and Optus.

The Australian Competition and Consumer Commission (ACCC) announced the settlement on Monday, August 18. According to the regulator, Google’s Asia-Pacific division, based in Singapore, entered into contracts with Telstra and Optus that prohibited the installation of competing search engines on Android smartphones sold to customers.

These agreements, which lasted 15 months and ended in March 2021, ensured that Google Search was the only pre-installed search engine on the devices. In exchange, Telstra and Optus received a portion of the advertising revenue generated from users’ search activity.

Google has acknowledged that the deals likely had the effect of “substantially lessening competition,” the ACCC said.

The regulator has initiated proceedings in the Federal Court to determine whether the AU$55 million penalty is appropriate. In addition to the fine, Google has agreed to a court-enforceable undertaking that will prevent it from including similar restrictions in future contracts with Android device manufacturers or telecom operators in Australia.

“We’re pleased to resolve the ACCC’s concerns, which involved provisions that haven’t featured in our commercial agreements for some time,” Google said in a statement.

ACCC Chair Gina Cass-Gottlieb welcomed the outcome, emphasizing that anticompetitive behavior ultimately harms consumers.

“Restricting competition is illegal in Australia because it often leads to fewer choices, higher prices, or lower-quality service,” she said. “This is especially important now, as AI-powered search tools are transforming how people find information, introducing new forms of competition.”

Last year, Telstra, Optus, and rival carrier TPG agreed to court-enforceable undertakings with the ACCC, committing not to renew or enter into similar restrictive agreements with Google in the future.