A federal judge has delivered a significant blow to Google’s search dominance, ordering the tech giant to limit all default search and AI app contracts to just one year. The ruling, issued by Judge Amit Mehta of the US District Court of the District of Columbia in December 2025, requires Alphabet’s Google to renegotiate every default-placement agreement annually, including its highly lucrative deals with Apple’s iPhone and manufacturers like Samsung.
Judge Mehta stated that the “hard-and-fast termination requirement after one year” is necessary to enforce antitrust relief following his landmark 2024 finding that Google illegally monopolized online search and search advertising. This decision represents a major shift from the multi-year contracts that have historically helped Google maintain its position on billions of devices worldwide.
The ruling is specifically designed to open opportunities for competitors, particularly fast-moving generative AI companies, to compete for default spots that have traditionally been locked up for extended periods. This builds on a separate September order that required Google to share some of the data behind its search rankings with competitors.
While Google can still pay device makers for default placement, the annual renegotiation requirement sharply restricts its ability to secure long-term control over the search market. The timing is particularly significant as Google faces mounting pressure in the AI race from OpenAI and other emerging challengers.
OpenAI recently launched its own browser, Atlas, powered by a ChatGPT-based interface, directly challenging Google’s browser dominance. Several other AI-powered browsers are also positioning themselves as alternatives, including Perplexity AI’s Comet, Microsoft’s Edge integrated with its Copilot AI, and the Opera One browser with its built-in AI assistant called Aria.
Google has announced plans to appeal multiple antitrust rulings, including those concerning its Play Store practices and search dominance. In September, the company narrowly avoided being ordered to sell off its Chrome browser as a remedy. Neither Google nor the Justice Department immediately responded to requests for comment on the latest ruling.
Key Quotes
hard-and-fast termination requirement after one year
Judge Amit Mehta used this phrase to describe the strict annual contract limitation he imposed on Google, emphasizing that this measure is necessary to enforce antitrust relief and prevent the company from maintaining its illegal monopoly through long-term default placement agreements.
Our Take
This ruling could mark the beginning of a new era in search and AI competition. Google’s dominance has been built not just on superior technology, but on strategic default placement deals that made it nearly impossible for competitors to gain traction. By forcing annual renegotiations, the court is essentially creating a yearly opportunity window for AI-powered alternatives to prove their value to device manufacturers.
What’s particularly significant is the explicit recognition of generative AI companies as potential competitors. The court clearly understands that the next generation of search may not look like traditional search at all—it may be conversational AI interfaces like ChatGPT or Perplexity. This ruling acknowledges that AI is fundamentally disrupting the search market and that antitrust remedies must account for this rapid technological shift. The real test will be whether AI startups can capitalize on these annual opportunities to displace Google’s entrenched position.
Why This Matters
This ruling represents a watershed moment for the AI industry and could fundamentally reshape how consumers access search and AI tools. By forcing Google to renegotiate default placement deals annually, the court has created an opening for AI-powered search alternatives to gain market share that was previously locked away for years at a time.
The timing is critical as the generative AI revolution transforms how people search for and interact with information online. Companies like OpenAI, Perplexity, and Microsoft are developing AI-first search experiences that could offer compelling alternatives to Google’s traditional search model. The annual renegotiation requirement means device manufacturers can now more easily switch to these emerging AI platforms without being locked into multi-year Google contracts.
For businesses and consumers, this could lead to greater innovation and choice in how search and AI services are delivered. For the broader tech industry, it signals that regulators are willing to take aggressive action to prevent AI monopolies from forming, potentially setting precedents for future AI antitrust cases. The decision also highlights how AI competition is driving regulatory action, as courts recognize the need for nimble enforcement in fast-moving technology markets.
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Source: https://www.businessinsider.com/judge-orders-google-limit-default-search-deals-to-one-year-2025-12