Google has been ordered by the Federal Court to pay $55 million in penalties after admitting to anti-competitive conduct linked to exclusive deals with Telstra and Optus, two leading mobile operators in Australia, for pre-installation of online search.
The Australian Competition and Consumer Commission (ACCC), which brought the case, said the deals reduced competition and limited consumer search choice on Android devices. Google is the monopoly in the online search business.
The agreements, in place from December 2019 to March 2021, required the two major telcos to pre-install only Google Search on all Android smartphones they sold. In exchange, Telstra and Optus received a share of Google’s advertising revenue generated when consumers used the search tool on their smartphones.
Google cooperated with the investigation and acknowledged that the conduct was likely to substantially lessen competition. It also made joint submissions with the ACCC regarding the financial penalties.
ACCC Deputy Chair Mick Keogh said the ruling highlights the serious consequences for companies that engage in conduct that harms competition. He noted that the Australian market depends on businesses competing freely rather than locking out rivals.
Alongside the penalty, Google has provided a court-enforceable undertaking to remove pre-installation and default search engine restrictions from contracts with phone makers and telcos. The commitment, provided in August 2025, is designed to improve search engine options for Android users in Australia.
The undertaking follows commitments made last year by Telstra, Optus and TPG, which agreed not to renew or enter new exclusive arrangements requiring Google Search to be pre-installed and set as the default option. The telcos now have the flexibility to configure search settings on individual devices and can work with alternative search providers.
According to the ACCC, these combined actions could expand consumer choice and allow emerging search tools – including those powered by artificial intelligence – to compete more effectively against Google for placement on Android smartphones.
The digital regulator said promoting competition in digital markets remains a key enforcement focus. The penalties and undertakings also align with recommendations from the ACCC’s multi-year Digital Platform Services Inquiry, which called for stronger rules to address dominance by major technology companies and curb exclusive agreements that hinder competition.
The Australian government is currently consulting on a new digital competition regime that would give the ACCC greater authority to regulate designated digital platforms and enforce service-specific codes.
Baburajan Kizhakedath
