The Australian Competition and Consumer Commission (ACCC) has accepted undertakings from Telstra and Optus as part of its ongoing investigation into Google's search services in Australia. The ACCC's investigation revealed agreements between Google, Telstra, and Optus, which ensured Google's search services were pre-installed as the default on Android devices supplied by Telstra and Optus.

These agreements, in place since at least 2017, 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. However, these agreements expired on 30 June 2024. Both Telstra and Optus have undertaken that, after 30 June 2024, they will not renew or enter any new arrangements with Google that require its search services to be pre-installed and set as the default search function on an exclusive basis on devices they supply.

"We are grateful for the cooperation of Telstra and Optus in responding to the ACCC’s competition concerns. The undertakings will allow alternative search engines to be able to compete to be a default search engine on the Android devices these companies supply," said ACCC Commissioner Liza Carver.

The ACCC's investigation into Google's conduct in entering into such agreements continues, as it raises potential competition concerns. "We are continuing our investigation into Google’s conduct in entering into such agreements more broadly, as we consider this raises potential competition concerns. Accordingly, no further comment about the investigation will be made at this time," Carver added.

Carver also warned that practices such as entering into agreements to ensure exclusivity can limit consumer choice or deter innovation. "Digital platforms with significant market power should be aware of their obligations under Australia’s competition laws," she said.

"Globally, a range of measures are underway to protect and boost competition in the digital economy. In our view, 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," Carver noted.

In Australia, mobile devices represent the largest and fastest growing distribution channel for general search services, with 95 per cent of Australian adults having used a mobile phone to access the internet in 2023. Google Search’s market share in Australia has remained consistently around 98 per cent from September 2021 to February 2024, with other search engines, including Microsoft’s Bing, only having a small presence.

"Reform to Australia’s competition and consumer laws, particularly to create targeted service specific mandatory codes of conduct for certain digital platforms to prevent anti‑competitive conduct, remains critically important to address the influence digital platforms have across the economy," Carver concluded.