Google Admits Anti-Competitive Conduct in Australia: What Businesses Can Learn

Published: 18 August 2025

Source: ACCC Media Release

In a major development for digital markets, Google Asia Pacific has admitted to anti-competitive conduct in Australia. The Australian Competition and Consumer Commission (ACCC) has commenced Federal Court proceedings after uncovering exclusive agreements Google reached with Telstra and Optus, restricting competition in the mobile search market.

Google has co-operated with the ACCC, admitted liability, and agreed to recommend to the Court that it pay a $55 million penalty. The Court will ultimately decide whether this penalty and related orders are appropriate.

What Did Google Do?

Between December 2019 and March 2021, Google entered into arrangements with Telstra and Optus requiring them to:

• Pre-install Google Search as the only search engine on Android phones sold to consumers.

• Exclude competing search engines from being pre-installed.

In exchange, Telstra and Optus received a share of Google’s advertising revenue.

The ACCC found this conduct likely reduced competition, leaving consumers with less choice, and limiting opportunities for rival search providers to gain traction in the Australian market.

The ACCC’s Response

Google and its US parent company, Google LLC, have now signed a court-enforceable undertaking with the ACCC to address wider concerns about Google’s contractual arrangements with Australian telcos and phone manufacturers since 2017.

Under the undertaking, Google will:

• Remove certain pre-installation and default search restrictions from its contracts.

• Allow telcos and phone manufacturers greater flexibility in how search engines are configured on devices.

This follows similar undertakings from Telstra, Optus and TPG in 2024, where they agreed not to enter into new exclusive search agreements with Google.

According to ACCC Chair Gina Cass-Gottlieb:

“Conduct that restricts competition is illegal in Australia because it usually means less choice, higher costs or worse service for consumers. Today’s outcome… creates the potential for millions of Australians to have greater search choice in the future.”

Why This Matters for Australian Businesses

This case highlights the serious consequences of restrictive agreements in Australia’s competition law framework. Key takeaways for business leaders include:

• Exclusive supply or service arrangements may breach the Competition and Consumer Act 2010 (CCA) if they substantially lessen competition.

• The ACCC is actively monitoring digital platforms, supply chains, and contractual practices that reduce consumer choice.

• Even global giants like Google, Telstra and Optus are held to account — a reminder that competition law applies to all businesses, big or small.

For businesses entering into supplier agreements, franchise contracts, or digital platform partnerships, this case is a timely reminder: what looks like a commercial advantage could, in fact, create legal exposure.

Need Help Navigating Competition Law?

At Bane Legal Services, we are not a law firm and we do not provide legal advice. Instead, we act as your trusted legal matchmaker — connecting you with the right commercial lawyer for your situation, drawing on over 30 years of business experience.

Whether you’re negotiating supplier contracts, entering a franchise agreement, or managing compliance obligations, the right legal expert can help protect your business and keep you on the right side of the law.

👉 If you’d like to be connected with a reputable and practical competition and commercial law specialist, reach out to Bane Legal Services today.

This blog is based on information published by the Australian Competition and Consumer Commission (ACCC) in its 18 August 2025 media release.