Google has agreed to pay a fine of AUD 55 million ($36 million USD) for anticompetitive practices, the Australian Competition and Consumer Commission (ACCC) announced.
The case stems from exclusive deals Google struck with leading Australian telecommunications companies Telstra and Optus, which required that only Google Search be pre-installed on certain Android devices sold through the carriers.
Crucially, the agreements barred the installation of any rival search engines, locking in Google as the default option for millions of mobile customers. In exchange, Telstra and Optus received a share of the advertising revenue generated when their customers used Google Search. These deals were active between December 2019 and March 2021, a period in which regulators said competition was stifled.
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Google admitted the arrangements were “likely to have had the effect of substantially lessening competition,” a rare concession from the tech giant, which has often resisted antitrust cases globally.
“Conduct that restricts competition is illegal in Australia because it usually means less choice, higher costs or worse service for consumers,” ACCC Chair Gina-Cass Gottlieb said.
She added that the case comes at a critical moment, with AI-powered search tools beginning to disrupt the industry.
“Importantly, these changes come at a time when AI search tools are revolutionizing how we search for information, creating new competition. With AI search tools becoming increasingly available, consumers can experiment with search services on their mobiles,” she said.
The fine reflects a broader global trend of regulators cracking down on Big Tech’s control over digital markets. In the European Union, Google has already faced heavy penalties, including a €4.3 billion ($5 billion) fine in 2018 for forcing phone manufacturers to pre-install Google Search and Chrome on Android devices. That ruling led to Google offering EU Android users a range of search engine choices beginning in 2020 — a move that helped diversify options for consumers, though critics argue Google’s dominance has barely shifted.
In Australia, Google’s willingness to cooperate is notable. Unlike past cases where the company fought antitrust rulings tooth and nail, here it has admitted liability and even proposed the $55 million fine itself, leaving the court to decide whether it is an appropriate penalty. The company’s posture signals an effort to soften regulatory pushback at a time when scrutiny is intensifying globally.
The telcos involved have also adjusted course. Both Telstra and Optus reached settlements with the ACCC last year, pledging not to enter into similar exclusivity agreements with Google in the future.
The outcome underscores how Google’s search dominance, which underpins its multibillion-dollar advertising business, remains under threat from two sides: regulators wary of its market power, and the rise of AI-driven search rivals that could erode its near-monopoly.
This case adds to Google’s long-running global battle with regulators over competition issues. In the United States, the Justice Department has been pursuing a landmark antitrust lawsuit against Google over its dominance in search and advertising markets, with prosecutors arguing that its deals with device makers and carriers unfairly cement its monopoly.
The ACCC’s remarks highlight a recognition that the evolution of search is not just about fair competition today, but about ensuring diverse access to emerging AI-powered search tools that could reshape the future of online information.