In a significant ruling, a federal judge has ordered Google to limit its default search and AI app placement contracts to one-year durations, impacting its longstanding dominance in the online search and advertising markets. Judge Amit Mehta’s December 2025 judgment mandates that Google renegotiate all agreements annually, disrupting its ability to secure long-term deals with key partners like Apple and Samsung. This ruling follows a landmark 2024 antitrust decision that found Google had illegally monopolized the industry. While Google can still compensate device manufacturers for default placements, the new requirements will heighten competition, allowing rivals, including OpenAI’s ChatGPT-powered browser and Microsoft’s Copilot-integrated Edge, to vie for these positions annually. This shift could challenge Google’s market leadership as it faces intensified competition from emerging AI technologies and browsers. The decision ultimately aims to foster a more competitive landscape in the search engine sector.
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