Google cops $55 million fine for anti-competitive revenue deal with Optus and Telstra on search for Android phones

Google Asia Pacific will pay $55 million in penalties for engaging in anti-competitive conduct over a deal it struck with Telstra and Optus to only pre-install Google Search on Android phones the telcos sold.

The fine was ratified by the Federal Court today, following legal action from the competition watchdog the ACCC. The search giant cooperated with the regulator and admitted that it had engaged in anti-competitive conduct and made joint submissions with the ACCC about its penalty.

The deal with Telstra and Optus saw the telecommunications providers skim a slice of Google’s revenue from ads when their customers used Google Search on Android phones. The arrangement was in place between December 2019 and March 2021,

The ACCC commenced Federal Court proceedings against Google Asia Pacific in August, but left Telstra, Optus and TPG out of the proceedings. having tackled them on the issue last year with court-enforceable undertakings provided by Telstra, Optus and TPG.

In addition to the $55m in penalties imposed by the Court, on 18 August 2025 Google and the US-based Google LLC provided the ACCC with a court-enforceable undertaking in which they committed to removing certain pre-installation and default search engine restrictions from Google’s contracts with Android phone manufacturers and telcos.

ACCC deputy chair Mick Keogh said locking out competing businesses in a way that substantially lessens competition is illegal.

“This penalty should send a strong message to all businesses that there are serious and costly consequences for engaging in anti-competitive conduct,” he said.

“Today’s outcome, combined with the undertakings from Google and the telcos, creates the potential for millions of Australians to have greater search choice in the future. Other search tools, including those enhanced by artificial intelligence, can now compete with Google for pre-installation on Android phones.

“Search tools, including those that incorporate AI, are rapidly changing how we search for information, and it’s critical that competitors to Google can gain meaningful exposure to Australian consumers.”