Australia’s Federal Court ordered Google Asia Pacific to pay AUD55 million ($36.1 million) for striking what it judged to be anti-competitive deals with operators Telstra and Optus to exclusively pre-install its Search product on Android smartphones.

The Australian Competition and Consumer Commission (ACCC) stated after it took legal action, Google admitted it engaged in anti-competitive behaviour.

Google conceded its actions “had the likely effect of substantially lessening competition”, the ACCC stated.

ACCC deputy chair Mick Keogh said the penalty “should send a strong message to all businesses that there are serious and costly consequences” for anti-competitive conduct.

“Today’s outcome, combined with the undertakings from Google and the telcos, creates the potential for millions of Australians to have greater search choice in the future,” he added.

Google earlier committed to removing certain pre-installation and default search engine restrictions from its contracts with Android device makers and mobile operators.

The operator deals ran between December 2019 and March 2021 and required them to pre-install Google Search on Android handsets.

Telstra and Optus received a share of the revenue Google generated from adverts displayed to consumers when they used Google Search on their Android phones.

In 2024, Telstra, Optus and TPG Telecom agreed not to enter into new agreements with Google which would enable its search service being exclusively pre-installed and set as default on devices sold to customers.