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yesterday

Google Admits Liability in Telco Search Deals, Proposes A$55 Million Penalty

The ACCC has launched Federal Court proceedings following Google's undertaking to strip exclusive pre-installation and default search-engine clauses from its telco contracts.

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A Google logo is seen at a company research facility in Mountain View, California, U.S., May 13, 2025. REUTERS/Carlos Barria/File Photo
FILE - A woman walks by a giant screen with a logo at an event at the Paris Google Lab on the sidelines of the AI Action Summit in Paris, on Feb. 9, 2025. (AP Photo/Thibault Camus,File)
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Overview

  • Google acknowledged that its revenue-share agreements with Telstra and Optus between December 2019 and March 2021 likely lessened competition by requiring exclusive pre-installation of Google Search on Android devices.
  • Under a joint submission, Google proposed paying a A$55 million penalty, though the Federal Court will decide whether that amount and any further orders are warranted.
  • Google signed a court-enforceable undertaking to remove contractual clauses mandating default search-engine settings and pre-installation restrictions in its agreements with Android manufacturers and telcos.
  • Telstra, Optus and TPG provided court-enforceable undertakings in 2024 not to renew similar exclusive search deals and are not defendants in the ACCC’s current action.
  • The ACCC’s case draws on its Digital Platforms Services Inquiry findings and mirrors international efforts to rein in dominant tech platforms’ competition practices.