Sydney ,Australia August 20, 2025

In a significant move to ensure fair competition in the digital landscape, Google has agreed to pay a penalty of A55 million (approximately US36 million) to the Australian Competition and Consumer Commission (ACCC). The fine comes after Google admitted to striking anti-competitive agreements with Australia’s two largest telecommunications companies, Telstra and Optus, that restricted consumer choice in mobile search.

The ACCC, which initiated proceedings in the Australian Federal Court, found that Google’s arrangements with the two telcos, which were in place from December 2019 to March 2021, were designed to pre-install Google Search as the sole search option on Android smartphones sold to customers. In exchange for this exclusivity, Telstra and Optus received a share of the advertising revenue generated from searches on those devices.

ACCC and Google’s Joint Submission

In a joint submission to the Federal Court, Google admitted that these agreements were “likely to have had the effect of substantially lessening competition” in the Australian market. This admission is a notable development, as it acknowledges the negative impact of such deals on consumer choice and the broader digital ecosystem. The ACCC has highlighted that this conduct is illegal in Australia because it typically leads to less choice and can result in higher costs or poorer service for consumers.

 * Court-Enforceable Undertaking: In addition to the financial penalty, Google has signed a court-enforceable undertaking. This commitment requires the company to remove certain pre-installation and default search engine restrictions from its future contracts with Android phone manufacturers and telecommunication providers.

 * Wider Implications: The ruling is part of a broader push by regulators worldwide to address the market dominance of large technology companies. The ACCC’s action follows its ongoing Digital Platform Services Inquiry, which has scrutinized the practices of major tech firms. ACCC Chair Gina Cass-Gottlieb stated that the outcome of this case creates the potential for “millions of Australians to have greater search choice in the future” and provides competing search providers with a more meaningful opportunity to gain exposure.

 * Response from the Parties: Google, through a spokesperson, said it was “pleased to resolve the ACCC’s concerns,” noting that the provisions in question “haven’t been in our commercial agreements for some time.” Telstra, Optus, and a third carrier, TPG, had already agreed to similar court-enforceable undertakings last year, committing not to renew or make new deals with Google that limit search options.

While the fine itself represents a small fraction of Google’s global revenue, the case’s significance lies in its precedent-setting nature. It sends a clear message to technology giants that exclusive agreements designed to stifle competition will not be tolerated. This outcome could encourage regulators in other countries to take similar action, leading to a more open and competitive digital environment globally.