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Google to Pay A$55 Million Fine in Australia Over Search Deals With Telcos

By  |  August 18, 2025

Google has agreed to pay a A$55 million ($35.8 million) penalty in Australia after regulators found it engaged in practices that limited competition in the search engine market, according to Reuters. The fine stems from arrangements the tech company made with the country’s largest telecommunications providers, Telstra and Optus, to pre-install Google Search on Android devices, effectively sidelining rival search engines.

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    The Australian Competition and Consumer Commission (ACCC) said the agreements, which ran from late 2019 to early 2021, included sharing advertising revenue with the two telecom firms. The regulator noted that Google admitted the deals had a significant impact on competition, per Reuters. The company has since halted such arrangements and agreed to the financial penalty, which still requires approval by the Federal Court.

    “This outcome 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,” ACCC Chair Gina-Cass Gottlieb said.

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    The fine adds to a turbulent period for the Alphabet-owned company in Australia. Just last week, a court largely sided against Google in a case brought by Fortnite creator Epic Games, which accused both Google and Apple of blocking competition in the app store market. In another setback, YouTube, which is also owned by Google, was recently included in a ban on social media platforms for users under 16 in Australia, overturning an earlier exemption.

    In a joint submission to the court, Google and the ACCC agreed on the penalty to avoid lengthy litigation, Reuters reported. A spokesperson for Google said the company was pleased to resolve the regulator’s concerns, emphasizing that the disputed contract provisions “haven’t been in our commercial agreements for some time.”

    The spokesperson added that Google is committed to allowing more flexibility for Android device makers to pre-load browsers and search applications, while continuing to provide features that help them compete with Apple and maintain lower costs.

    Telstra, in response to questions, referred Reuters to an earlier statement noting that it and Optus, owned by Singapore Telecommunications, had fully cooperated with the regulator. Both companies have pledged not to enter into similar pre-installation agreements with Google since 2024.

    Source: Reuters