In a significant legal blow to its business model, tech giant Google has been ordered by a US federal court to drastically shorten the duration of its key search engine agreements. The ruling directly challenges the contracts that have cemented Google's dominance on billions of devices worldwide.
Court Mandate Forces Annual Renegotiations
On Friday, December 5, 2025, Judge Amit Mehta of the US District Court for the District of Columbia delivered a landmark judgment. He ordered Alphabet's Google to restrict all contracts concerning default search engine and AI app placements to a maximum duration of one year. This decision enforces antitrust relief following the court's 2024 finding that Google illegally monopolised the online search and search advertising markets.
Judge Mehta emphasised that a "hard-and-fast termination requirement after one year" is essential. Consequently, Google must now renegotiate every default-placement agreement annually. This seismic shift impacts pivotal partnerships, including the lucrative deal with Apple for the iPhone and agreements with major device manufacturers like Samsung.
Opening the Door for AI and Search Rivals
While Google can still financially compensate device makers for the prized default spot, the annual renegotiation clause severely limits its ability to lock in long-term control. Previously, these agreements often spanned multiple years, offering Google market share protection and providing partners with stable, predictable revenue.
The new rule is designed to create a competitive opening in the market. It presents a major opportunity for rivals, particularly in the fast-evolving generative AI sector. Companies developing AI-powered browsers and search interfaces can now aggressively bid for default positions every twelve months, a chance previously blocked by long-term contracts.
Mounting Pressure in the AI Race
This legal setback comes at a time when Google is already facing intense competition in artificial intelligence. The ruling could benefit several challengers who are vying for user attention and market share. Key competitors now positioned to challenge Google's default dominance include:
- OpenAI's Atlas: A new browser powered by ChatGPT.
- Perplexity AI's Comet: An AI-native search interface.
- Microsoft's Edge: Deeply integrated with Copilot AI.
- Opera One browser: Featuring the Aria AI assistant.
The court's judgment fundamentally alters the playing field. By dismantling Google's ability to secure long-term default placements, it forces the search behemoth into a yearly battle to maintain its leadership, potentially reshaping the future of how users access information online.
