The Australian Competition and Consumer Commission (ACCC) has initiated Federal Court proceedings against Google Asia Pacific, alleging anti-competitive agreements with Telstra and Optus concerning the pre-installation of Google Search on Android mobile phones.
Google has admitted liability and agreed to propose a A$55m ($35.8m) penalty, subject to court approval.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
The agreements, effective from December 2019 to March 2021, mandated that Telstra and Optus exclusively pre-install Google Search on Android devices sold to consumers, excluding other search engines.
In exchange, the telcos received a portion of Google’s advertising revenue generated from searches on these devices.
The company has acknowledged that these arrangements were likely to have “substantially” lessened competition.
Additionally, Google and its US parent, Google, have signed a court-enforceable undertaking accepted by the ACCC to address broader competition concerns related to contractual arrangements with Android phone manufacturers and Australian telcos since 2017.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData“Google does not agree with all of the ACCC’s concerns but has acknowledged them and offered the undertaking to address these concerns,” the ACCC noted.
The undertaking includes commitments to remove certain pre-installation and default search engine restrictions in Google’s contracts.Telstra, Optus, and TPG previously provided similar court-enforceable undertakings in June and August 2024, agreeing not to enter or renew exclusive pre-installation and default search agreements with Google.
These telcos are now permitted to configure search services on a device-by-device basis and engage with other search providers.
The telcos are not parties to the current proceedings. The ACCC’s actions stem from its Digital Platform Services Inquiry, which raised concerns about Google’s contractual arrangements for search defaults and choice screens.
ACCC Chair Gina-Cass Gottlieb said: “Today’s [18 August 2025] outcome, along with Telstra, Optus and TPG’s undertakings, have 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.”
“Importantly, these changes come at a time when AI search tools are revolutionising how we search for information, creating new competition,” she added.
