Google agrees to pay a hefty $36 million fine to Australia, here's why

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Google will pay AUD 55 million (USD 36 million) after admitting to anticompetitive practices in Australia. The fine, announced by the Australian Competition and Consumer Commission (ACCC), relates to deals struck with telecom giants Telstra and Optus, which exclusively pre-installed Google Search on Android devices between December 2019 and March 2021.

Under the agreements, no rival search engines could be pre-installed. In return, Telstra and Optus earned a cut of ad revenue from users searching via Google. The ACCC said this arrangement substantially reduced competition, with Chair Gina Cass-Gottlieb stressing that such restrictions “usually mean less choice, higher costs or worse service for consumers.”

What’s notable is Google’s decision not to fight the charge. Instead, it has admitted liability and cooperated with the regulator, jointly proposing the fine—though a court will decide if the penalty is sufficient. This marks a softer stance compared to previous global battles where Google often appealed or resisted rulings.

The timing is also significant. Gottlieb highlighted that AI-powered search tools are reshaping how people discover information, creating fresh competition in a market long dominated by Google. With new AI-driven search services gaining traction, she argued, consumers should be free to experiment without artificial barriers.

Google has faced similar scrutiny elsewhere. In Europe, the company was fined €4.3 billion ($5 billion) in 2018 and has since offered Android users more choice in default search providers. In Australia, Telstra and Optus have already pledged not to strike such exclusivity deals again.