Telstra and Optus have agreed to unwind their longstanding deals with Google following an investigation by the competition watchdog.
Previously, Android devices sold by the telcos had Google’s search services pre-installed and set as the default search function.
However, the duo has agreed not to renew or enter any such arrangements with Google following their existing deals’ expiry at the end of last month.
According to the Australian Competition and Consumer Commission (ACCC), which initiated the investigation, Telstra and Optus have had search deals with Google since at least 2017.
The watchdog said the deals “limited the ability for rival search engines to be pre-installed and promoted on Android devices, in return for a share of Google’s advertising revenue”.
The ACCC investigated the telcos’ arrangements with Google as part of the ongoing digital platform services inquiry, adding both telcos cooperated.
“Practices such as entering into agreements to ensure exclusivity can limit consumer choice or deter innovation,” said ACCC commissioner Liza Carver.
The ACCC said it had accepted enforceable undertakings from both Telstra and Optus.
“These … 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,” Carver said.
Google Search’s market share in Australia has remained consistently around 98 percent from September 2021 to February 2024, with other search engines, including Microsoft’s Bing, only having a small presence, the ACCC added.
The ACCC’s digital platforms inquiry has produced a number of reports on the technology powering social media platforms and its potential harms.
Its ninth report is due for final release in March 2025.