SYDNEY, Australia: Google has agreed to pay a A$55 million (US$35.8 million) fine in Australia after regulators found it stifled competition by paying Telstra and Optus to pre-install Google Search on Android devices, shutting out rival search engines.

The Australian Competition and Consumer Commission (ACCC) said the deals, in place between late 2019 and early 2021, included revenue-sharing arrangements from advertising generated on Android phones. Google acknowledged the agreements had a significant impact on competition and confirmed it had stopped entering such contracts.

"Today's outcome … created the potential for millions of Australians to have greater search choice in the future, and for competing search providers to gain meaningful exposure to Australian consumers," said ACCC Chair Gina-Cass Gottlieb.

Google and the ACCC jointly recommended the fine to the Federal Court, which must still approve the penalty. The regulator said Google's cooperation helped avoid drawn-out litigation.

A Google spokesperson said the company was "pleased to resolve the ACCC's concerns" and noted the provisions in question have not been part of its commercial agreements for some time. Google added that it is committed to giving Android phone makers more flexibility in pre-loading browsers and search apps, while also preserving features that help them compete with Apple and keep costs down.

The fine is the latest in a series of setbacks for Alphabet in Australia. Just last week, a court mostly ruled against Google in Epic Games' lawsuit alleging that Google and Apple blocked rival app stores on their operating systems. And in July, YouTube was added to an Australian ban on social media use by children under 16, reversing an earlier exemption for the platform.

Telstra and Optus, owned by Singapore Telecommunications, said they had fully cooperated with the ACCC and have not signed agreements with Google to pre-install its search app since 2024.