Judge Orders Google to Rebid for Default Search Deals Every Year in Major Antitrust Blow
Summary:
A federal judge mandated Google to rebid annually for default search engine placement contracts on devices, striking a blow to its long-term market dominance. This follows a 2024 ruling finding Google illegally monopolized online search through exclusionary contracts with Apple, Samsung, and other manufacturers. The order specifically prohibits multi-year agreements for default search or AI application positioning, forcing Google to negotiate contracts yearly. This judicial remedy aims to increase competition in search markets and generative AI ecosystems as rivals like OpenAI’s Atlas and Perplexity’s Comet challenge Google’s position.
What This Means for You:
- Expect increased browser/app choice prompts during device setup as competitors gain access to default placement auctions
- Anticipate faster AI feature adoption in mobile search as new players enter default positions
- Prepare for potential search marketing cost fluctuations as competitive bidding reshapes traffic acquisition economics
- Monitor emerging antitrust compliance tools that may reveal new competitor insights through mandated data sharing
Original Post:
A judge opened the door to upending Google’s dominance as the default search on your phone.
On Friday, a federal judge ordered Google to limit all default search and AI app contracts to one year, a setback for the long-term deals that have helped cement the company’s dominance on billions of devices.
The ruling, detailed in a December 2025 judgment, requires Alphabet’s Google to renegotiate every default-placement agreement annually, including lucrative deals with Apple’s iPhone and manufacturers like Samsung.
Judge Amit Mehta of the US District Court of the District of Columbia said the “hard-and-fast termination requirement after one year” is necessary to enforce antitrust relief after his landmark 2024 finding that Google illegally monopolized online search and search advertising.
The decision aims to open the door for rivals, especially fast-moving generative AI companies, to compete for default spots that have historically been held for years at a time. It builds on a separate September order requiring 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 rule sharply restricts its ability to secure long-term control over the search market.
The ruling lands as Google faces mounting pressure in the AI race from OpenAI and a wave of newer challengers. OpenAI recently launched its own browser, Atlas, that is powered by a ChatGPT-based interface. Several other browsers powered by AI could also be coming for Google’s position as default browser, including Perplexity AI’s Comet, Microsoft’s Edge integrated with its Copilot AI, and the relatively new Opera One browser with a built-in AI assistant called Aria.
Google plans to appeal multiple antitrust rulings, including those concerning its Play Store practices and search dominance. In September, the company narrowly escaped being ordered to sell off its Chrome browser as a remedy to a ruling.
Google and the Justice Department did not immediately respond to requests for comment.
Extra Information:
DOJ Antitrust Complaint (2020) – Original legal framework challenging Google’s search distribution agreements. FTC’s Advertising Tech Suit – Parallel case examining Google’s advertising technology stack implications.
People Also Ask About:
- How do default search agreements work? – Device manufacturers receive payments to pre-install search engines as unchangeable defaults.
- What percentage of searches does Google control? – Approximately 92% of global searches occur through Google properties.
- Can I change my default search engine? – Yes, though court findings show <5% of users modify factory settings.
- How much does Google pay Apple annually? – Estimated $18-20B for Safari default positioning (2025 SEC filings).
Expert Opinion:
“This ruling fundamentally reshapes search economics by turning default placement from capital assets into operational expenses,” notes antitrust scholar Fiona Scott Morton. “Annual rebidding creates openings for AI-native players while testing Google’s ability to maintain parity through continuous innovation rather than contractual lock-in.”
Key Terms:
- Default search engine antitrust remedies
- Annual search distribution contract rebidding
- Generative AI browser competition
- Mobile search market access reforms
- Antitrust compliance in digital platforms
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