Google has admitted to engaging in anti-competitive conduct by pre-installing its search engine as the default service on Android devices sold by major Australian telecom companies Telstra and Optus. The Australian Competition and Consumer Commission (ACCC) launched court proceedings against Google Asia Pacific, resulting in a $55 million penalty.
The ACCC’s investigation found that Google’s agreements with these telecom providers effectively limited consumer choice by blocking rival search engines from gaining meaningful exposure on mobile devices. These arrangements violated section 45(1)(a) of the Australian Competition and Consumer Act 2010, which prohibits contracts that restrain trade or commerce.
ACCC Chair Gina-Cass Gottlieb emphasized that such conduct restricts competition, ultimately harming consumers through fewer choices, higher prices, or worse services. She added that the penalty, along with commitments from Telstra, Optus, and TPG, opens the door for alternative search providers to compete in the Australian market.
This development comes amid ongoing global scrutiny of Google’s market dominance. In the U.S., federal courts recently ruled that Google violated antitrust laws by maintaining monopolies in internet search and advertising. Similar antitrust allegations and lawsuits have also emerged in Europe and other jurisdictions.
The ACCC’s action signals a firm stance against digital platforms using their market power to stifle competition and restrict innovation, aiming to promote a fairer digital marketplace in Australia.