Google’s search dominance is getting its most serious shake-up in years. A US federal judge has ruled that the company’s default-search and AI placement contracts can no longer run for multiple years and must instead be renewed annually. It is a direct hit to the distribution system that has quietly powered Google’s market share, with evidence showing these preset defaults funnel nearly half of US search traffic. But now with annual renewals, competitors will finally get regular access to the market the Mountain View-headquartered giant has long controlled.
The ruling, issued by Judge Amit Mehta in the major antitrust case United States v. Google LLC – 2020, marks a foundational shift in how the company is allowed to maintain its presence across smartphones, laptops, browsers, and emerging AI-powered platforms. For over a decade, the tech titan relied heavily on long-term agreements with device makers and browser developers to set Google Search as the built-in option, often paying partners billions of dollars a year for that privileged position. Regulators argued that these deals were the backbone of Google’s ability to maintain a durable monopoly, not just a byproduct of consumer preference.
The court agreed, finding that these extended contracts created an environment where no rival search service had any meaningful opportunity to compete. Therefore, the annual-renewal requirement is designed to break that cycle. Each year, partners like Apple, Samsung, Mozilla, and the makers of emerging AI assistants will be free to reassess their default search provider rather than being locked in for several years at a time.
The latest ruling comes just months after the court issued an earlier decision rejecting calls to break up Google’s ecosystem by forcing the company to sell its Chrome browser. At the time, Judge Amit Mehta concluded that while Google had unlawfully maintained its search monopoly, ordering a divestiture of Chrome would be too disruptive for consumers and the broader web. Instead, the court opted for behavioural remedies aimed at loosening the tech giant’s grip on distribution – setting the stage for this new requirement that all default-search and AI-placement deals be renewed every year.
For consumers, the changes will likely roll out slowly. Devices will still ship with default search engines, and Google is expected to fight hard to remain the preferred option. But as annual cycles accumulate, the competitive landscape may gradually shift. Device makers may test alternative search partners, AI assistants could compete for on-device placement, and regulators will now get more regular insight into how these deals are struck.
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