Google fined $36m in Australia over market restriction deal with Telstra, Optus

Google fined $36m in Australia after admitting to anti-competitive deals with Telstra and Optus that blocked rival search engines

Google fined $36m in Australia after admitting to entering anti-competitive agreements with two of the country’s biggest telecom providers—Telstra and Optus—that limited consumer access to alternative search engines on Android smartphones.

Also read: Perplexity AI offers to buy Google Chrome in shocking $34.5B bid

The Australian Competition and Consumer Commission (ACCC) announced the AU$55 million ($36 million USD) penalty on Monday.

The fine stems from deals Google’s Asia-Pacific division signed that barred the installation of rival search engines on Android phones sold by the two telcos.

In exchange, Telstra and Optus received a share of the ad revenue generated by users’ Google searches. The arrangement lasted 15 months, ending in March 2021.

According to the ACCC, Google acknowledged that these agreements were likely to significantly reduce competition in the mobile search engine market.

The regulator filed proceedings with the Federal Court, which will now determine if the AU$55 million penalty is appropriate.

Gina Cass-Gottlieb, Chair of the ACCC, said the move sends a strong signal to tech companies operating in Australia:

“Restrictive conduct like this hurts consumers. It limits choice, raises costs, and reduces service quality.”

She added that the case comes at a pivotal time, with AI-driven search tools beginning to reshape global search engine competition.

Alongside the fine, Google agreed to a court-enforceable undertaking to stop including exclusivity clauses in future deals with telecoms or device makers.

“We’re pleased to have resolved this matter,” Google said in a brief statement, noting the clauses in question had already been removed from its standard contracts.

The enforcement action follows similar commitments made in 2024 by Telstra, Optus, and TPG, who signed undertakings not to enter future agreements that restrict search engine competition.

The ACCC noted that increasing competition in mobile and AI search tools is essential for both innovation and user choice.

Also read: Google launches storybook AI in Nigeria to transform storytelling for children

This ruling is part of a wider global movement to rein in the market dominance of major tech firms, especially in areas where consumer data and digital ecosystems intersect.