Google has agreed to hand over $35.8 million (AU$55 million) after Australia’s competition regulator ruled that the company’s deals with major telecom operators unfairly limited consumer choice in mobile search.
How the Deals Worked
Between late 2019 and early 2021, Google signed revenue-sharing agreements with Telstra and Optus, the country’s two largest carriers. The arrangements ensured Google’s search app was automatically pre-installed on Android devices sold through these providers—effectively sidelining rival search engines before they had a chance to reach users.
The Australian Competition and Consumer Commission (ACCC) said this practice significantly reduced competition in the search market, making it harder for alternatives to get exposure.
Regulator’s Response
ACCC chair Gina Cass-Gottlieb said the decision is meant to reset the playing field:
“Today’s outcome creates 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.”
Google’s Position
Google has since dropped these kinds of agreements and accepted the fine without dispute. The company noted it would continue giving Android phone makers more freedom in choosing which search engines and browsers to preload. A spokesperson said Google remains focused on balancing competition with keeping device costs down.
Part of a Bigger Battle
The penalty is the latest in a string of regulatory setbacks for Google in Australia. Just weeks ago, the Federal Court ruled against the company in a lawsuit from Epic Games, which argued that Google restricted third-party app stores on Android. Separately, YouTube was swept into a nationwide ban on social media platforms for users under 16, further complicating Google’s operations in the region.
What’s Next
The $35.8 million fine has been submitted to the Federal Court for approval. If confirmed, it will serve as another signal that Australian regulators are tightening their grip on Big Tech, particularly when it comes to practices that shape consumer choice in digital markets.
