Telstra and Optus give up a share in Google’s advertising revenue

Telstra and Optus have given up a share in Google’s advertising revenue following an investigation by competition watchdog the ACCC into Google’s search services in Australia.

The telcos have agreed not to renew, or strike new, agreements requiring Google search services to be pre-installed and set as the default search function on devices they supply.

“We are grateful for the cooperation of Telstra and Optus in responding to the ACCC’s competition concerns,” said ACCC Commissioner Liza Carver said.

"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."

Google’s agreements with Telstra and Optus, 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.

These agreements expired June 30.

"We are continuing our investigation into Google’s conduct in entering into such agreements more broadly, as we consider this raises potential competition concerns,” Carver said.

“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.

“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.

“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."