Google has agreed to pay a A$55 million ($35.8 million) fine in Australia after the country’s consumer watchdog found the tech giant engaged in anti-competitive practices by paying Telstra and Optus to pre-install its search app on Android devices. The Australian Competition and Consumer Commission (ACCC) said the deals, which ran from late 2019 to early 2021, stifled rival search engines by giving Google an unfair advantage. The company has admitted the arrangements harmed competition and has since stopped such agreements.
The penalty marks another regulatory setback for Google in Australia, where it recently lost a major court case to Epic Games over app store restrictions. Last month, YouTube was also included in Australia’s under-16 social media ban, reversing an earlier exemption. The ACCC emphasized that Google’s cooperation helped avoid prolonged litigation, with both parties jointly proposing the fine to the Federal Court, which must still approve the penalty.
ACCC Chair Gina Cass-Gottlieb said the resolution could lead to “greater search choice for millions of Australians” and more exposure for competing search providers. Google, meanwhile, stated it is committed to giving Android manufacturers more flexibility in pre-loading rival apps while maintaining features that help them “compete with Apple.”
The fine underscores growing global scrutiny of Big Tech’s dominance. Google’s revenue-sharing deals with telcos effectively locked out competitors, reinforcing its search monopoly. As regulators worldwide push for fairer digital markets, the outcome in Australia could set a precedent for similar cases targeting pre-installation agreements.
