Google Settles Australian Antitrust Allegations with $23.4 Million Fine

Google has agreed to pay a $23.4 million fine to settle antitrust allegations in Australia. The Australian Competition and Consumer Commission found that Google paid major telecom operators to pre-install its search app on Android phones, effectively sidelining competing search engines. The fine is part of a broader antitrust investigation into Google's business practices in the country. Google's Class A shares remained stable following the announcement.

Google has agreed to pay a $23.4 million fine to settle antitrust allegations in Australia. The Australian Competition and Consumer Commission (ACCC) found that Google paid major telecom operators to pre-install its search app on Android phones, effectively sidelining competing search engines. The fine is part of a broader antitrust investigation into Google's business practices in the country. Google's Class A shares remained stable following the announcement.

The ACCC stated that Google struck revenue-sharing agreements with Telstra and Optus, covering late 2019 through early 2021. Under these deals, Google Search was pre-installed on Android devices, excluding rival search engines. In return, the telcos received a share of the advertisement revenue generated by Google. Google admitted that these arrangements had a substantial impact on competition [1].

The ACCC and Google jointly submitted to the Federal Court that the fine should be imposed. The court will decide whether the penalty is appropriate. 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.

Google's spokesperson stated that the company was pleased to resolve the regulator's concerns, noting that the provisions in question have not been in its commercial agreements for some time. Telstra and Optus have not signed similar deals with Google since 2024.

The ACCC Chair Gina Cass-Gottlieb highlighted the importance of these changes, stating, "These changes come at a time when AI search tools are revolutionizing how we search for information, creating new competition."

References:
[1] https://www.winnipegfreepress.com/arts-and-life/life/sci-tech/2025/08/18/google-to-pay-36m-fine-for-anticompetitive-deals-with-australias-largest-telcos
[2] https://finance.yahoo.com/news/google-fined-36-million-australia-142448565.html
[3] https://www.lightreading.com/regulatory-politics/google-agrees-to-36m-fine-for-restrictive-deals-with-australian-telcos