Google fined $55 million for anti-competitive search deals with Australian telcos

Australia’s Federal Courtroom ordered Google Asia Pacific to pay $55 million in penalties on December 2, 2025, for anti-competitive conduct involving unique search engine pre-installation agreements with telecommunications corporations Telstra and Optus. The Australian Competitors and Shopper Fee introduced the proceedings after figuring out that preparations between December 2019 and March 2021 considerably lessened competitors within the search market.

The understandings required Telstra and Optus to solely pre-install Google Search on Android cellphones bought to shoppers. Rival search engines like google and yahoo have been prohibited from these distribution channels. In change for the unique preparations, each telecommunications corporations obtained a share of promoting income that Google generated when shoppers used Google Search on their Android gadgets.

Google cooperated with the ACCC investigation and admitted partaking in conduct that had the doubtless impact of considerably lessening competitors. The corporate made joint submissions with the regulator relating to applicable penalties. “This penalty ought to ship a robust message to all companies that there are critical and expensive penalties for partaking in anti-competitive conduct,” ACCC Deputy Chair Mick Keogh stated. The regulator emphasised that market economies rely upon companies competing freely with one another, making it unlawful to lock out competing companies in ways in which considerably reduce competitors.

The $55 million penalty represents one element of broader enforcement actions addressing Google’s search distribution practices in Australia. On August 18, 2025, Google and the United States-based Google LLC supplied the ACCC with a court-enforceable endeavor. This dedication requires eradicating sure pre-installation and default search engine restrictions from Google’s contracts with Android telephone producers and telecommunications corporations working in Australian markets.

Google’s endeavor dietary supplements court-enforceable commitments that Telstra, Optus, and TPG supplied to the ACCC throughout 2024. The regulator accepted these undertakings to resolve considerations concerning the telecommunications corporations’ involvement in unique preparations with Google. Below their commitments, the three carriers undertook to not renew or set up new preparations requiring Google’s search companies to be pre-installed and set as default search features on an unique foundation on Android gadgets they provide.

The telecommunications corporations gained flexibility beneath the decision framework. Telstra, Optus, and TPG can configure search companies on particular person gadgets relatively than making use of platform-wide restrictions. Machine-by-device configuration permits settings that will not align with Google’s normal configurations. The carriers also can enter into pre-installation agreements with different search suppliers, creating potential distribution channels for Google’s rivals.

“At present’s end result, mixed with the undertakings from Google and the telcos, creates the potential for hundreds of thousands of Australians to have better search selection sooner or later,” Keogh stated. He famous that different search instruments, together with these enhanced by synthetic intelligence, can now compete with Google for pre-installation on Android telephones. The ACCC emphasised that search instruments incorporating AI are quickly altering how shoppers seek for info, making it important that Google rivals acquire significant publicity to Australian shoppers.

Competitors points within the digital economic system symbolize a present ACCC compliance and enforcement precedence. The regulatory focus displays broader scrutiny of digital platform market energy throughout world jurisdictions. Google LLC, a wholly-owned subsidiary of Alphabet Inc., has signed quite a few contractual preparations to distribute Google apps together with Google Search since no less than 2017. These agreements embody cellular software distribution agreements and income share agreements throughout a number of markets.

Google Asia Pacific serves because the contracting counterparty for cellular income share agreements all through the Asia Pacific area, together with Australia. This company construction positioned the regional entity on the middle of enforcement proceedings. The ACCC commenced Federal Courtroom proceedings in opposition to Google Asia Pacific on August 18, 2025. Telstra, Optus, and TPG weren’t events to the court docket proceedings, having beforehand resolved their involvement via the endeavor course of.

The enforcement motion builds on findings from the ACCC’s Digital Platforms Department, which carried out a five-year inquiry into markets for digital platform companies in Australia. The inquiry examined aggressive impacts on companies and shoppers, together with an replace on common search companies printed in December 2024. The inquiry’s fifth report, launched in November 2022, made suggestions to strengthen competitors within the digital economic system, degree enjoying fields between know-how corporations and Australian companies, and cut back shopper costs.

Particular suggestions addressed regulatory approaches to digital platform companies. The ACCC proposed that the federal government introduce a framework for necessary service-specific codes for Designated Digital Platforms. These codes would deal with competitors points together with unique pre-installation and default agreements that hinder market competitors. Treasury has consulted on proposed approaches to implement a brand new digital competitors regime administered by the ACCC, although implementation timelines stay unsure.

The Australian proceedings parallel antitrust enforcement against Google in United States courts, the place Choose Amit Mehta dominated in August 2024 that Google illegally maintained monopolies generally search companies and search textual content promoting markets. United States courts discovered that Google paid $26.3 billion in 2021 to make sure its search engine remained the default possibility on smartphones and browsers, sustaining roughly 90% of the general on-line search market.

The convergence of enforcement actions throughout jurisdictions creates stress on Google’s search distribution mannequin. Remedies proceedings in United States courts have required Google to reveal promoting public sale modifications and finish sure unique distribution agreements, although courts rejected calls for for Chrome browser divestiture. The Australian enforcement provides geographic scope to regulatory challenges dealing with Google’s search enterprise construction.

For digital advertising professionals, the Australian decision impacts how search distribution operates on Android gadgets. The elimination of unique pre-installation necessities creates theoretical alternatives for different search suppliers to achieve Australian shoppers via telecommunications channels. Whether or not rivals can successfully leverage this entry relies on their capacity to barter distribution agreements with carriers and their capability to ship search experiences that retain customers past preliminary machine configuration.

The sensible influence on search market dynamics stays unsure. Default search settings exert highly effective results on person habits, with most shoppers by no means altering pre-configured search engines like google and yahoo even when alternate options can be found. Research presented in United States antitrust proceedings demonstrated that default placement supplies huge aggressive benefits as a result of utilization patterns strongly favor pre-installed companies.

Synthetic intelligence integration in search companies provides complexity to aggressive dynamics. AI-enhanced search instruments from corporations together with OpenAI, Anthropic, and Perplexity symbolize rising alternate options to conventional search engines like google and yahoo. The Australian enforcement creates distribution alternatives throughout a interval when AI is transforming information retrieval methods, doubtlessly amplifying the importance of entry to shopper gadgets.

The telecommunications corporations’ capacity to configure search companies on device-by-device bases supplies flexibility which will profit area of interest search suppliers. Carriers might differentiate machine choices by that includes privacy-focused search engines like google and yahoo, AI-powered alternate options, or specialised search instruments concentrating on particular shopper segments. Whether or not Telstra, Optus, and TPG pursue such differentiation methods relies on business calculations about shopper demand for search alternate options and income alternatives from competing distribution agreements.

Google’s cooperation with ACCC enforcement contrasts with extra adversarial approaches the corporate has adopted in different jurisdictions. The willingness to confess legal responsibility and suggest penalty quantities enabled decision with out protracted litigation which may have uncovered further particulars about income sharing fashions and aggressive methods throughout platform markets. This cooperative stance could mirror strategic calculations about managing regulatory relationships throughout the Asia Pacific area.

The $55 million penalty quantity displays the size of anti-competitive influence that the ACCC decided occurred through the 15-month interval when unique preparations operated. Penalty calculations in competitors issues usually take into account elements together with the character of the conduct, market results, company income, deterrence necessities, and cooperation with investigations. Google’s admission of legal responsibility and joint submissions with the regulator doubtless influenced the ultimate penalty dedication.

Competitors points in digital platform companies lengthen past search distribution to embody advertising technology markets, the place Google faces separate antitrust proceedings in United States courts. Choose Leonie Brinkema dominated in April 2025 that Google monopolized digital promoting know-how markets, with treatments proceedings analyzing potential structural separations of Google’s promoting enterprise parts. The convergence of enforcement actions throughout search and promoting creates complete regulatory stress on Google’s core enterprise operations.

The Australian enforcement represents a big growth in world efforts to handle digital platform market energy via competitors legislation mechanisms. Whether or not the elimination of unique pre-installation necessities produces significant aggressive results relies on the flexibility of different search suppliers to leverage new distribution alternatives and ship experiences that persuade customers to take care of non-Google search configurations over time.

Timeline

• A minimum of 2017: Google LLC begins signing contractual arrangements to distribute Google apps together with Google Search throughout markets
• December 2019: Google Asia Pacific reaches understandings with Telstra and Optus requiring unique pre-installation of Google Search on Android gadgets
• March 2021: Platform-wide provision preparations with Telstra and Optus conclude
• November 2022: ACCC publishes fifth report recommending regulatory regime for digital platform companies
• 2024: Telstra, Optus, and TPG present court-enforceable undertakings to ACCC resolving considerations about involvement in Google preparations
• August 2024: Judge Amit Mehta rules Google illegally maintained monopolies in United States common search companies and search textual content promoting markets
• August 18, 2025: ACCC commences Federal Courtroom proceedings in opposition to Google Asia Pacific; Google and Google LLC present court-enforceable endeavor eradicating pre-installation restrictions
• September 2, 2025: Judge Mehta imposes behavioral restrictions on Google’s search monopoly in United States proceedings
• December 2, 2025: Federal Courtroom orders Google Asia Pacific to pay $55 million in penalties for anti-competitive conduct
• December 2024: ACCC publishes Digital Platform Companies Inquiry replace on common search companies

Abstract

Who: Google Asia Pacific, the regional contracting entity for cellular income share agreements, engaged in anti-competitive conduct with Australian telecommunications corporations Telstra and Optus. The Australian Competitors and Shopper Fee introduced Federal Courtroom proceedings that resulted in penalty orders.

What: Google reached understandings with Telstra and Optus requiring unique pre-installation of Google Search on Android cellphones bought to shoppers. The preparations prevented rival search engines like google and yahoo from accessing these distribution channels. In change, the telecommunications corporations obtained shares of promoting income generated from Google Search utilization on Android gadgets.

When: The anti-competitive understandings operated between December 2019 and March 2021. The ACCC commenced Federal Courtroom proceedings on August 18, 2025. The Federal Courtroom ordered $55 million in penalties on December 2, 2025.

The place: The preparations affected Android gadgets bought to shoppers in Australia via Telstra and Optus distribution channels. The enforcement proceedings occurred in Federal Courtroom. Google Asia Pacific serves because the contracting counterparty for cellular income share agreements all through the Asia Pacific area together with Australia.

Why: The preparations had the doubtless impact of considerably lessening competitors in search markets by stopping rival search engines like google and yahoo from gaining distribution entry via main telecommunications channels. The ACCC emphasised that locking out competing companies in ways in which considerably reduce competitors violates competitors legislation. The decision goals to create potential for hundreds of thousands of Australians to have better search selection and permit AI-enhanced search instruments to compete with Google for pre-installation on Android telephones.