The Australian Competition and Consumer Commission (ACCC) has accepted undertakings from Telstra and Optus during its ongoing investigation into Google’s search services in Australia.
The ACCC’s investigation revealed that Google had agreements with Telstra and Optus to pre-install its search services as the default on Android devices. These agreements, in place since at least 2017, limited the ability of rival search engines to compete for default status on these devices in return for a share of Google’s advertising revenue. These agreements expired on June 30, 2024.
“We are grateful for the cooperation of Telstra and Optus in responding to the ACCC’s competition concerns,” said ACCC Commissioner Liza Carver. “The undertakings will allow alternative search engines to compete to be the default on Android devices supplied by these companies.”
Telstra and Optus have agreed not to renew or enter any new arrangements with Google that require its search services to be pre-installed and set as the default on an exclusive basis on their devices.
The undertakings address the ACCC’s concerns regarding the involvement of Telstra and Optus in the alleged anticompetitive conduct. The ACCC continues to investigate Google’s broader conduct in entering such agreements, as these practices can limit consumer choice and deter innovation.
“Digital platforms with significant market power should be aware of their obligations under Australia’s competition laws,” said Ms. Carver. “These undertakings from Telstra and Optus are an important step in providing Australian consumers with more choice about the digital platforms and services they use, and encouraging more competition in these markets.”
Reform to Australia’s competition and consumer laws, particularly to create targeted service-specific mandatory codes of conduct for certain digital platforms, remains critically important to address the influence digital platforms have across the economy.
The ACCC’s ongoing investigation arose from its Digital Platform Services Inquiry. The ACCC will submit its ninth interim report in September 2024 and its final report in March 2025. The Government has provided in-principle support for all recommendations in the fifth interim report of the inquiry, which focused on regulatory reform.
For more information, visit the ACCC website.
Contact:
ACCC Media Team – 1300 138 917, media@accc.gov.au
