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Judge Orders Annual Rebids for Google’s Default Search and AI App Deals

Judge Orders Annual Rebids for Google’s Default Search and AI App Deals

What Happened: A U.S. federal judge ordered Google to limit default search and AI app placement contracts to one year, requiring annual renegotiations across deals including those with Apple and Samsung.

Why It Matters: The December 2025 ruling follows a 2024 finding that Google illegally monopolized search and aims to open default slots to generative AI rivals and other competitors.

Context: The order complements a September directive to share some search-ranking data and comes as Google prepares to appeal multiple antitrust decisions.

Federal Court Forces One-Year Limits on Google’s Default Search Deals

A federal judge has ordered Google to limit all default search and AI app placement contracts to one year, a major change intended to reduce the long-term exclusivity that has helped cement the company’s position on billions of devices.

The requirement appears in a December 2025 judgment from the U.S. District Court for the District of Columbia, following the court’s 2024 finding that Google illegally monopolized online search and search advertising. Under the order, Alphabet’s Google must renegotiate every default-placement agreement annually — explicitly covering lucrative arrangements with Apple for the iPhone and device makers such as Samsung.

Judge Amit Mehta: “A hard-and-fast termination requirement after one year is necessary to make antitrust relief effective.”

The ruling is designed to open default slots so rivals — particularly fast-moving generative AI firms — can compete for placement that was often locked in for multiple years. It also builds on an earlier September directive that required Google to share some of the data behind its search rankings with competitors, a move intended to lower barriers to entry.

Google will still be allowed to pay device manufacturers and platform owners for default placement, but the annual renegotiation rule significantly limits the company’s ability to lock in long-term control over the search market. The shift could create opportunities for AI-driven alternatives and new browsers to win default status during periodic rebids.

The decision lands as Google faces intensified competition in AI from companies such as OpenAI — which recently launched the ChatGPT-based Atlas browser — and other challengers including Perplexity AI’s Comet, Microsoft Edge with Copilot integration, and Opera One with its Aria assistant.

Google has said it plans to appeal several antitrust rulings, including those related to its Play Store practices and search dominance. In a prior remedy fight in September, the company narrowly avoided an order to divest its Chrome browser.

Responses: Google and the U.S. Department of Justice did not immediately respond to requests for comment.

Source: Business Insider (original reporting)

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