Google is affected by the annual reset of AI application and default search contracts

Federal judge Amit Mehta has ruled that Google must renegotiate every year any contracts that set its search engine or AI applications as the default on smartphones, browsers, and other devices. The new regulation ends the multi-year contract model, opening up opportunities for competitors—especially in the generative AI market—to vie for the default position.

Although Google is still allowed to pay Apple, Samsung, and other companies to maintain its default position, these contracts must be renewed annually. The ruling follows Mehta’s determination that Google had illegally monopolized the search market, based on the conclusion of the 2024 trial and subsequent arguments in 2025.

Mehta rejected the request to force Google to sell Chrome, instead requiring the company to share search data with competitors. Google said it will comply but still plans to appeal.