Sydney: Google has agreed to pay a fine of US$36 million (around ₹300 crore) in Australia after admitting to anti-competitive agreements with two of the country’s largest telecom operators, Telstra and Optus. The ruling marks a significant action by regulators to curtail Big Tech’s tactical influence on consumer choice.

Restricting Consumer Choice

The Australian Competition and Consumer Commission (ACCC) found that between December 2019 and March 2021, Google had entered into deals with Telstra and Optus that required its search engine to be pre-installed on Android smartphones.

In exchange, the telecom providers were given a share of the advertising revenue generated from searches conducted on those devices. According to the ACCC, this arrangement effectively locked out rival search engines, limiting options for consumers and reducing visibility for competitors in the market.

Court-Enforceable Undertaking

The ACCC said the arrangements had a “substantial impact on competition.” By paying telcos and securing exclusive placement for its search app, Google consolidated its dominance over mobile search during the 15 months in question.

Following the investigation, Google not only agreed to pay the $36 million fine but also signed a court-enforceable undertaking. This legally binding commitment requires the company to remove similar restrictive provisions from future contracts. As a result, Android device makers and carriers in Australia will have greater freedom to pre-load alternative search engines and browsers.

Regulator Welcomes Decision

ACCC Chair Gina Cass-Gottlieb described the outcome as “significant” for Australian consumers. “This ruling creates the potential for millions of Australians to have greater choice when it comes to search engines on their devices,” she said. The decision, she added, also opens up opportunities for competing providers to gain meaningful exposure in a market heavily dominated by Google.

Google’s Response

In a statement, a Google spokesperson said the company was “pleased to resolve the ACCC’s concerns” and emphasised that the contested provisions were no longer part of its contracts. The spokesperson added that Google continues to support flexibility for Android manufacturers to pre-load different browsers and search apps, while ensuring Android devices remain cost-competitive against Apple’s iPhones.

Growing Global Scrutiny

The penalty adds to a series of regulatory challenges Google has faced around the world. Both the European Union and the United States have examined the company’s practices in search and advertising, raising concerns about its market dominance and its influence over device makers and developers.

For consumers in Australia, the ruling could mean more search options on Android smartphones. For Google, it highlights the growing global pressure to adapt its business practices as regulators intensify scrutiny of Big Tech to ensure fair competition in the digital economy.