Sydney, Australia — Google has agreed to pay a fine of 55 million Australian dollars (US$36 million) after admitting to anticompetitive agreements with the country’s two largest telecommunications firms, the Australian Competition and Consumer Commission (ACCC) confirmed on Monday.
According to the regulator, Google’s Asia Pacific division, based in Singapore, signed contracts with Telstra and Optus that prohibited the installation of rival search engines on Android smartphones sold to customers.
The deals, which lasted for 15 months until March 2021, ensured that Google Search remained the sole pre-installed option. In exchange, the telecom companies received a share of advertising revenue generated from user searches.
The ACCC noted that Google admitted the agreements were likely to “substantially lessen competition”. The regulator has since filed proceedings in the Federal Court, which will determine whether the AU$55 million penalty is appropriate.
In addition to the fine, Google has signed a court-enforceable undertaking requiring it to remove restrictions on pre-installation and default search options from all future contracts with Android phone manufacturers and telecom operators.
“We’re pleased to resolve the ACCC’s concerns, which involved provisions that haven’t been in our commercial agreements for some time,” Google said in a statement.
ACCC Chair Gina Cass-Gottlieb welcomed the resolution, stressing that anticompetitive behavior directly harms consumers. “Conduct that restricts competition is illegal in Australia because it usually means less choice, higher costs, or worse service,” she said. She added that the ruling was particularly timely as AI-powered search tools are transforming how people access information, creating new forms of competition.
Last year, Telstra, Optus, and rival TPG also entered into court-enforceable undertakings with the ACCC, pledging not to renew or sign similar contracts with Google that limit search engine choices.
By Adeola Olaniya | August 19, 2025
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