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August, 2024

ACCC accepts TPG’s undertaking in Google search services probe

The Australian Competition and Consumer Commission (ACCC) has accepted a court-enforceable undertaking from TPG Telecom as part of its ongoing investigation into Google’s search services in Australia. This move follows similar undertakings accepted from Telstra and Optus.

The ACCC’s investigation revealed that Google had initiated and entered into agreements with TPG since at least 2018, which resulted in Google’s search services being pre-installed as the default search service on an exclusive basis on Android devices supplied by TPG.

TPG has now undertaken not to renew or enter into any new agreements with Google that require Google’s search services to be pre-installed and set as the default search function on an exclusive basis on devices they supply.

“We are pleased that now all three mobile network operators in Australia have responded to the ACCC’s competition concerns by offering these undertakings,” said ACCC Commissioner Liza Carver.

“In our view, this undertaking from TPG, following those recently accepted from Telstra and Optus, is another important step towards providing Australian consumers with more choice about the digital platforms and services they use, and to encourage more competition in these markets,” Carver added.

While TPG, Telstra and Optus can continue to offer Google’s search services, and enter into agreements with Google to offer Google’s search services, they must comply with their undertaking to the ACCC.

The ACCC is continuing to investigate Google’s conduct in entering into such agreements more broadly. 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’s agreements with the three mobile network operators in Australia 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 on 30 June 2024.

The ACCC’s ongoing competition investigation into Google’s search services in Australia arose from the ACCC’s consideration of competition and consumer issues in its Digital Platform Services Inquiry (DPSI). On mobile devices, Google Search’s market share in Australia has remained consistently around 98 per cent from September 2021 to July 2024.