Google faced further legal woes in Australia as the nation’s consumer protection ombudsman lined up a AUD55 million ($35.8 million) court action over a search deal the company struck with operators Telstra and Optus.

The Australian Competition and Consumer Commission (ACCC) indicated the court is effectively being asked to ratify a deal reached after Google Asia Pacific admitted liability and the pair agreed the financial penalty proposed.

Google conceded deals with Telstra and Optus requiring its Search feature to be installed on Android phones was anti-competitive. The ACCC stated the breach covers a period between December 2019 and March 2021, and involved rival search engines being omitted from the devices.

The ACCC stated the operators received a cut of related Google advertising revenue.

A court-enforceable deal between the local Google division and its parent company was also signed, covering other ACCC concerns dating to 2017, though it emphasised the search giant did not necessarily agree with all of its worries despite moving to address them.

Actions agreed include “removing certain pre-installation and default search engine restrictions” from Android device manufacturer and operator contracts.

Telstra, TPG Telecom and Optus agreed their own remedial actions in 2024.

ACCC chair Gina-Cass Gottlieb said the net result is better choice for consumers, with the outcomes timely as “AI search tools are revolutionising how we search for information”.