Google has acknowledged in Australia that it was guilty of anti-competitive agreements with telecom companies Telstra and Optus regarding the default installation of Google Search on Android devices.
The agreements ran from late 2019 to early 2021. During that period, the two telcos were required to pre-install only Google Search. In exchange, they received a share of the advertising revenue generated by searches on these devices.
The Australian competition watchdog ACCC initiated proceedings against Google Asia Pacific in the Federal Court. Google not only admitted guilt, but also agreed to a joint recommendation to the court to impose a fine of 55 million Australian dollars.
It is now up to the court to determine whether this penalty is appropriate. According to the ACCC, Google’s behavior was likely to significantly restrict competition. The US parent company Google LLC also supports the commitments made to address the competition concerns.
Importantly, the commitments are not limited to Google. Telstra, Optus, and TPG already reached an agreement with the ACCC in 2024. They promised not to enter into any new exclusive agreements with Google regarding pre-installed search services or default settings on Android devices. This will allow telecom companies to decide for themselves which search engine to offer on each device and give them the freedom to enter into partnerships with other providers.
Important step for consumers
According to ACCC chair Gina Cass-Gottlieb, this is an important step forward for consumers. She argues that anti-competitive agreements are illegal in Australia because they lead to less choice, higher prices, or poorer service.
She believes that the new agreements will give millions of Australians more freedom to use alternative search engines. Cass-Gottlieb emphasizes that this change comes at a crucial moment, as AI search technologies are emerging and disrupting the online search market.
The case is part of a broader effort by the ACCC to break up power concentration on digital platforms. Previous investigations into digital services have already shown that exclusive deals and default settings stifle competition. By getting both Google and the telecom companies to make formal commitments, the regulator hopes to bring more dynamism to the market and create space for new players.