The Australian Competition and Consumer Commission (ACCC) has launched Federal Court proceedings against Google Asia Pacific after the company admitted it reached anti-competitive agreements with Telstra and Optus.
These arrangements, in place between December 2019 and March 2021, required the telcos to pre-install only Google Search on Android devices sold to consumers, shutting out rival search engines.
As part of the arrangements, Telstra and Optus received a share of advertising revenue generated when customers used Google Search. Google has admitted that these exclusivity deals were likely to have substantially lessened competition in Australia. To resolve the matter, the company has co-operated with the ACCC, admitted liability, and agreed to jointly submit to the Court that it should pay a $55 million penalty. It will now be up to the Federal Court to decide whether that penalty, and any other orders, are appropriate.
For users, the impact of these arrangements was significant. Limiting access to alternative search services meant fewer choices and potentially higher costs over time. As ACCC Chair Gina Cass-Gottlieb stated, “Conduct that restricts competition is illegal in Australia because it usually means less choice, higher costs or worse service for consumers.”
The ACCC has also accepted a broader undertaking from Google and its parent company, Google LLC, to address competition concerns linked to Android distribution contracts dating back to 2017. These commitments mean Google will remove certain restrictions in its contracts with Android phone manufacturers and telcos, giving space for other search providers to compete. Similar undertakings from Telstra, Optus and TPG were accepted last year, with the telcos pledging not to enter exclusive arrangements requiring Google Search to be the default option.
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The decision carries weight in a digital environment where competition is already under pressure. Consumers increasingly rely on their phones for information, commerce and communication. With the growth of AI-powered search tools and the speed at which news spreads across social media, ensuring genuine choice of search platforms is more important than ever.
The ACCC’s action follows its five-year Digital Platform Services Inquiry, which examined the dominance of major tech players and their impact on Australian markets. In its reports, the regulator has consistently argued for stronger measures to level the playing field and protect consumer choice. Cass-Gottlieb stressed, “Co-operation with the ACCC is encouraged. It can avoid the need for protracted and costly litigation and lead to more competition.”
For everyday Australians, the outcome could mean more transparency and variety when choosing search services. While the court will decide on penalties, the changes already secured by the ACCC promise a future where digital competition is fairer, users have more options, and tech giants face greater accountability.
Adrianne Saplagio is a Content Producer at Comms Room, where she combines her passion for storytelling with her expertise in multimedia content creation. With a keen eye for detail and a knack for engaging audiences, Adrianne has been instrumental in crafting compelling narratives that resonate across various digital platforms.
