A federal judge has ordered Google to limit all default search and artificial intelligence (AI) application contracts to a maximum term of one year, marking a significant blow to the long-term agreements that have underpinned the company’s market dominance across billions of devices, BI reported.
The ruling, issued in a December 2025 judgment, requires Google, a subsidiary of Alphabet, to renegotiate all default-placement agreements on an annual basis. This includes high-profile and financially significant arrangements with companies such as Apple, covering iPhone devices, and manufacturers including Samsung.
Judge Amit Mehta of the U.S. District Court for the District of Columbia stated that a “hard-and-fast termination requirement after one year” is essential to enforce effective antitrust remedies, following his landmark 2024 finding that Google had illegally monopolized the online search and search advertising markets.
The decision is designed to enhance competitive opportunities by allowing rival services—particularly emerging companies in the generative AI sector—to compete more frequently for default placement on consumer devices. The ruling builds on a separate order issued in September, which required Google to share certain data related to its search ranking systems with competitors.
Under the new framework, Google may continue to compensate device manufacturers for default placement; however, the annual renegotiation requirement significantly constrains its ability to lock in long-term market control through multi-year contracts.
The ruling comes at a time of growing competitive pressure in the AI sector. Google faces increasing challenges from OpenAI, which recently launched a new browser called Atlas featuring a ChatGPT-based interface, as well as from other companies developing AI-powered browsing and search tools. These include Perplexity AI’s Comet, Microsoft’s Edge browser integrated with Copilot, and Opera’s Opera One browser with its built-in AI assistant, Aria. Companies involved in these developments include Microsoft and Opera.
Google has indicated that it plans to appeal multiple antitrust rulings, including decisions related to its Play Store practices and search dominance. In September, the company narrowly avoided a court-ordered divestiture of its Chrome browser as part of remedial proceedings.
Neither Google nor the U.S. Department of Justice provided immediate comment in response to the ruling.