Google Fined $36 Million in Australia for Anti-Competitive Deals with Telcos

Google has agreed to pay a hefty fine of A$55 million (US$35.8 million) in Australia after the country’s consumer watchdog found the tech giant engaged in anti-competitive practices by paying leading telecommunications firms to favour its search engine.

The Australian Competition and Consumer Commission (ACCC) announced on Monday that Google’s arrangements with Telstra and Optus — the nation’s two largest telcos — gave it an unfair advantage over rival search providers. Between late 2019 and early 2021, Google struck deals that ensured its search app was pre-installed on Android smartphones sold through these carriers. In exchange, the telcos received a share of advertising revenue generated from Google Search.

The regulator said such agreements effectively sidelined competitors, reducing the chances for alternative search engines to reach millions of Australian consumers. Google has since admitted the arrangements had a “substantial impact on competition” and confirmed that it no longer signs such deals.

ACCC Chair Gina-Cass Gottlieb welcomed the outcome, emphasizing its importance for consumer choice. “Today’s outcome … created the potential for millions of Australians to have greater search choice in the future, and for competing search providers to gain meaningful exposure to Australian consumers,” she said.

The penalty comes at a turbulent time for Google in Australia. Just last week, the company faced another legal setback when a court largely ruled against it in a case filed by Fortnite developer Epic Games. That lawsuit accused both Google and Apple of unfairly restricting competition by blocking rival app stores from operating on their platforms.

Adding to its challenges, YouTube — also owned by Google’s parent company Alphabet — was recently included in a national ban on social media platforms accessible to users under 16, overturning an earlier exemption for the video platform.

While the A$55 million fine is yet to be confirmed by the Federal Court, the ACCC said the joint submission between the regulator and Google has prevented a drawn-out legal battle.

A Google spokesperson said the company was satisfied with resolving the regulator’s concerns. “We are committed to providing Android device makers more flexibility to pre-load browsers and search apps, while preserving the offerings and features that help them innovate, compete with Apple, and keep costs low,” the spokesperson said.

Telstra and Optus have both pledged not to enter into similar pre-installation agreements with Google. In a previous statement, Telstra confirmed it had fully cooperated with the ACCC’s investigation, while Optus’ parent company, Singapore Telecommunications (SingTel), was not immediately available for comment.

Although the fine marks a financial setback, the broader impact lies in how it reshapes the competitive landscape for digital search in Australia. Regulators say the outcome ensures a more level playing field for rivals while granting consumers greater freedom to choose their preferred search tools.