In a significant regulatory move, Google Asia-Pacific has been fined $55 million after Australia”s Federal Court approved a settlement with the Australian Competition and Consumer Commission (ACCC) regarding anti-competitive behavior related to its pre-installed search engine agreements on Android devices. This legal action arose from Google”s restrictions that mandated Android devices sold through major Australian telecommunications companies, Telstra and Optus, to feature only Google Search as the default search engine from December 2019 to March 2021.
These agreements also allowed telcos to receive a portion of Google”s advertising revenue, raising serious concerns over market dominance and consumer choice. Google acknowledged its anti-competitive conduct and fully cooperated with the ACCC, leading to this settlement. Notably, Telstra, Optus, and TPG were not implicated in the court proceedings as they had previously committed to comply with competition laws.
An ACCC representative emphasized that the ruling serves as a clear warning against anti-competitive practices in digital markets. This settlement showcases the regulator”s increasing vigilance regarding the influence of tech giants on Australia”s mobile ecosystem.
Following this ruling, Google has consented to lift certain pre-installation limitations on Android devices in Australia, effective from August 18, 2025. This change will allow phone manufacturers and telecommunications companies more flexibility in selecting default search engines, moving away from the restrictive contracts that have been in place. Unlike the European Union, which has enforced a choice screen during Android setup through the Digital Markets Act (DMA), Australia has yet to implement similar measures.
Data from Europe suggests that presenting users with options can dramatically enhance the adoption rates of alternative search engines. For instance, the privacy-focused browser Aloha experienced a 250% increase in user sign-ups, while Opera reported a 63% growth in just one month after the deployment of the choice screen in March 2024.
This ruling opens opportunities for competitors like Bing, DuckDuckGo, and Yahoo to seek revenue and partnership prospects in Australia. By examining the adoption rates from the European choice screen, these companies can gauge potential opt-in rates and negotiate pre-installation agreements with telecoms and device manufacturers.
Moreover, Android original equipment manufacturers (OEMs) and mobile network providers in Australia can now configure default search engines on a per-device model basis. This flexibility allows them to engage with multiple service providers for pre-installation arrangements, thereby creating diverse revenue streams that were previously limited by Google”s exclusive agreements. Marketing technology firms and app developers may also stand to benefit from this expanded variety of default search options.
This development is part of a larger trend towards regulatory scrutiny aimed at curbing the dominance of major technology firms. Despite Google maintaining a mobile search market share exceeding 95% globally, the Australian regulators are signaling that practices within digital markets must facilitate genuine competition and consumer choice. The $55 million fine not only imposes a financial burden on Google but also marks a pivotal moment in Australia”s digital competition landscape, potentially enabling smaller tech providers and alternative search services to gain traction in the mobile environment.
