Google Fined $36M in Australia for Antitrust Violations

Australian regulators have fined Alphabet's Google $36 million for antitrust violations, accusing the company of paying telecoms to prioritize its search app on Android phones, blocking rival search engines. The fine adds to a tough stretch for Google in Australia, where a court recently sided with Epic Games in a case accusing Google and Apple of blocking rival app stores. Wall Street analysts have a Strong Buy consensus rating on GOOGL stock with a 6.5% upside potential.

Australian regulators have fined Alphabet's Google $36 million for antitrust violations, accusing the company of paying telecommunications companies to prioritize its search app on Android phones, thereby blocking rival search engines. This fine is part of a broader series of legal setbacks for Google in Australia, where a court recently sided with Epic Games in a case accusing Google and Apple of blocking rival app stores [3].

The Australian Competition and Consumer Commission (ACCC) stated that Google struck revenue-sharing agreements with Telstra and Optus, owned by Singapore Telecommunications, covering late 2019 through early 2021. Under these deals, Google Search was pre-installed on Android devices, excluding rival search engines. Google admitted that these arrangements had a substantial impact on competition [1].

Google has also signed a court-enforceable undertaking that commits the company to removing certain pre-installation and default search engine restrictions from its contracts with Android phone manufacturers and telecommunications companies [2]. The tech company expressed its satisfaction with resolving the ACCC's concerns, noting that the provisions in question have not been in its commercial agreements for some time [1].

The ACCC emphasized that conduct that restricts competition is illegal in Australia because it usually means less choice, higher costs, or worse service for consumers [2]. The ACCC's chair, Gina Cass-Gottlieb, added that these changes come at a time when AI search tools are revolutionizing how people search for information, creating new competition [1].

This ruling follows a broader series of legal setbacks for Google in Australia, including a recent court decision against the company in a lawsuit brought by Epic Games over app store restrictions. Google's YouTube was also recently included in an Australian ban on social media platforms for users under 16 [3]. Despite these challenges, Wall Street analysts maintain a Strong Buy consensus rating on GOOGL stock with a 6.5% upside potential [4].

References:
[1] https://www.computerworld.com/article/4041394/google-to-pay-36m-in-australia-over-anticompetitive-android-search-deals.html
[2] https://www.latimes.com/business/story/2025-08-18/google-to-pay-36-million-fine-for-anticompetitive-deals-with-australias-largest-telcos
[3] https://finance.yahoo.com/news/google-fined-36-million-australia-142448565.html
[4] https://appleinsider.com/articles/25/08/12/epic-games-gains-partial-victory-over-apple-and-google-in-australia