The Federal Court of Australia has ordered Google Asia Pacific to pay $55 million in penalties after finding the company engaged in anti-competitive conduct through agreements with major telecom operators Telstra and Optus. The action was brought by the Australian Competition and Consumer Commission (ACCC).
Between December 2019 and March 2021, Google reached understandings requiring Telstra and Optus to exclusively pre-install Google Search on all Android mobile phones sold to consumers. In exchange, the telcos received a share of advertising revenue generated through Google Search on those devices. The Court found these arrangements had the likely effect of substantially lessening competition.
Google cooperated with the ACCC during the investigation, admitted to the conduct, and made joint submissions with the regulator regarding penalties.
“This penalty should send a strong message to all businesses that there are serious and costly consequences for engaging in anti-competitive conduct,” ACCC Deputy Chair Mick Keogh said. “Locking out competing businesses in a way that substantially lessens competition is illegal.”
Undertakings to Remove Exclusive Search Restrictions
In addition to the Court-ordered penalty, Google Asia Pacific and Google LLC provided a court-enforceable undertaking in August 2025 committing to remove certain pre-installation and default search restrictions from contracts with Android phone manufacturers and telecommunications companies.
This undertaking follows similar commitments from Telstra, Optus and TPG in 2024. Under those undertakings, the telcos agreed not to enter into new or renewed exclusive arrangements requiring Google Search to be the sole pre-installed or default search engine on Android devices they supply. They may now configure search services on a device-by-device basis and enter agreements with alternative search providers.
According to the ACCC, these combined measures create the potential for millions of Australians to have greater choice of search tools, including emerging options enhanced by artificial intelligence.
“Search tools, including those that incorporate AI, are rapidly changing how we search for information,” Keogh said. “It’s critical that competitors to Google can gain meaningful exposure to Australian consumers.”
Part of Broader Regulatory Focus on Digital Platforms
Competition issues in the digital economy remain a key ACCC enforcement priority. The penalty follows findings from the ACCC’s five-year Digital Platform Services Inquiry, which recommended a new regulatory regime to address competition concerns, including exclusive pre-installation and default agreements.
The ACCC commenced proceedings against Google Asia Pacific on 18 August 2025. Telstra, Optus and TPG were not parties to the case.