Google is reportedly under probe by the US Department of Justice (DOJ) for an antitrust violation about its collaboration with AI startup Character.AI.
A report from Bloomberg suggested that the DOJ is analysing whether Google designed the deal to avoid regulatory formal merger scrutiny.
In 2024, Google partnered with Character.AI, offering the Alphabet-owned firm a non-exclusive license to use the company’s cutting-edge chatbot technology.
Under the terms of the agreement, Character.AI's co-founders, Noam Shazeer and Daniel De Freitas, including other team members, rejoined Google.
"Google says it doesn’t own Character.AI and that the company runs independently, but regulators are assessing the deal to see if it effectively constitutes a hidden acquisition designed to avoid antitrust checks.
This probe joins several current legal hurdles Google is experiencing.
Earlier this year, a federal judge ruled that Google had unlawfully monopolised the online search and advertising markets.
In response, the DOJ indicated possible actions like needing the company to sell its Chrome browser.
Notably, the DOJ is reportedly considering a few measures to maintain a competitive balance in the rapidly evolving AI landscape.
These deals are analysed to assess whether they offer established companies an illegitimate edge over emerging rivals in the AI realm.
With an advancement in the DOJ's probe, the results could reshape the future of AI collaborations that are evaluated under antitrust laws, leading to tighter regulation of Big Tech's expansion into the AI landscape.
