Telstra Faces Legal Action from ACCC Over Anti-Competitive Search Deal

The Australian Competition and Consumer Commission (ACCC) has launched legal proceedings against Telstra for its role in an anti-competitive search deal. Telstra is an Australia-based telecommunications and technology company that offers a range of services, including telecommunications, technology products, and services to consumer, business, and government customers. The ACCC alleges that Telstra engaged in anti-competitive conduct by entering into an agreement with a search engine provider that hindered the development of competing search engines in Australia. The case is ongoing.

The Australian Competition and Consumer Commission (ACCC) has initiated legal proceedings against Telstra Group Ltd for its involvement in an anti-competitive search deal. The ACCC alleges that Telstra engaged in conduct that hindered the development of competing search engines in Australia. The case is currently ongoing.

According to the ACCC, Telstra and Google Asia Pacific reached agreements between December 2019 and March 2021, which involved the pre-installation of Google Search on Android phones sold by Telstra. In exchange, Telstra received a share of the revenue generated by Google Search ads displayed to consumers. This practice is seen as a barrier to competition, as it limited the exposure of other search engines to Australian consumers.

Google has cooperated with the ACCC, admitted liability, and agreed to jointly submit to the Federal Court a total penalty of A$55 million ($35.8 million). Additionally, Google has committed to removing certain pre-installations and default search engine restrictions from contracts with Android phone makers and telcos. The ACCC Chair Gina-Cass Gottlieb stated that this outcome creates the potential for greater search choice for Australian consumers and for competing search providers to gain meaningful exposure.

Telstra and Optus did not immediately respond to Reuters' request for comment. The case is expected to have significant implications for the telecommunications and technology sectors in Australia, potentially reshaping the landscape of search engine services.

References:
[1] https://www.reuters.com/sustainability/boards-policy-regulation/australian-regulator-sues-google-over-anti-competitive-search-deals-2025-08-18/
[2] https://m.economictimes.com/tech/technology/australian-regulator-sues-google-over-anti-competitive-search-deals/articleshow/123353365.cms
[3] https://www.marketscreener.com/news/australian-regulator-sues-google-over-anti-competitive-search-deals-ce7c51dfdc89ff25