Judge mandates annual rebidding for default search deals with Google in significant antitrust ruling

A federal judge has mandated that Google restrict its default search and AI app contracts to one-year terms. This decision follows a significant 2024 ruling that determined Google had unlawfully monopolized the online search industry. The ruling is aimed at fostering more competition, particularly from rivals in the search app and generative AI sectors.

On Friday, a US District Court judge issued a directive that Google must renegotiate all default search and AI app agreements annually, which includes high-profile deals with Apples iPhone and Samsung device makers. Judge Amit Mehta emphasized that the "mandatory termination after one year" is crucial for ensuring the application of antitrust measures following his 2024 judgment against Google for monopolistic practices in search and advertising markets.

The ruling opens the door for competitors, particularly those in the rapidly evolving generative AI space, to compete for default placements that were previously locked in for extended periods. The decision also builds on an earlier ruling from September that required Google to disclose some of the data used to rank search results to its competitors.

Although Google may still pay device manufacturers for the default placement of its search engine, this new annual renegotiation rule limits the company's ability to secure prolonged control over the search market, marking a significant change in how long-term deals have been traditionally handled.

Author: Riley Thompson