Google suffered a setback in search antitrust litigation. A federal judge on Friday (Dec. 5) ordered the company to limit all contracts for default search and AI app deployment to a maximum of one year. A December 2025 ruling by Judge Amit Mehta of the U.S. District Court for the District of Columbia means the search giant will no longer be able to enter into long-term deals that have helped solidify its position on billions of devices around the world.According to the ruling, Alphabet Inc.'s Google must now renegotiate all default placement agreements on an annual basis. This includes deals with key partners such as Apple's iPhone and major manufacturers such as Samsung.In his landmark 2024 ruling that Google illegally monopolized the online search and search advertising market, Judge Mehta said “strict termination requirements after one year” were needed to enforce antitrust remedies.
Google lawsuit ruling opens the door for AI rivals
Google retains the right to pay device manufacturers for default placement, but annual renegotiation provisions will limit its ability to secure long-term control. Previously, these agreements often spanned several years, with Google paying companies on an annual basis and offering market share protection, Business Insider reports. The result was stable revenue for device manufacturers. The decision is aimed at giving competition more room, especially in the fast-moving field of generative AI, but the new rules will make it difficult for Google to maintain its market leadership in the long term, as rivals may aggressively bid for the default slot every 12 months. Companies developing new AI-powered browsers and search interfaces can now compete annually for default positions that were previously locked in by long-term contracts.This comes as Google is already facing pressure from multiple challengers in the AI race, including OpenAI, which recently launched its own browser, Atlas (powered by ChatGPT), Perplexity AI's Comet, Microsoft's Edge (integrated with Copilot AI), and the Opera One browser with its Aria AI assistant.
