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Google has agreed to pay an Aus$55 million (US$36 million) fine for engaging in “anti-competitive” agreements to pre-install only its own search engine on Android mobile phones sold by two major Australian telecom firms, Telstra and Optus.

Australia’s competition regulator, the Australian Competition and Consumer Commission (ACCC), announced on Monday that it had launched legal proceedings in the Federal Court, and both Google Asia Pacific and the ACCC jointly submitted the penalty for the court’s approval.

The ACCC said in its statement, “Conduct that restricts competition is illegal in Australia because it usually means less choice, higher costs or worse service for consumers.” The commission’s chair, Gina-Cass Gottlieb, emphasized the importance of consumer choice and competitive markets.

According to the ACCC, Google cooperated with the investigation and admitted that the deals with Telstra and Optus—which were in place from December 2019 to March 2021—were likely to substantially lessen competition. In exchange for exclusively pre-installing Google’s search engine, the telecom companies received a share of advertising revenue generated from searches on their devices.

Google stated that it was pleased to resolve the regulator’s concerns and noted that such provisions had not been part of its commercial agreements for “some time.” A Google spokesperson added, “We are committed to providing Android device makers more flexibility to preload browsers and search apps.”

Additionally, both Telstra and Optus entered court-enforceable undertakings last year, agreeing not to make new arrangements to pre-install Google search as the default option on Android devices.

The Federal Court will now determine whether the agreed penalty and proposed orders are appropriate.

Bhupendra singh chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur kiranhis insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.