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Google Faces DoJ Probe over Deal for AI Tech, Bloomberg Law Reports

  • In 2024, the US Department of Justice began investigating Google over a deal with AI startup Character concerning possible antitrust violations.
  • Regulators are investigating if Google arranged the agreement in a way that avoids formal merger review, assessing if it effectively represents a concealed acquisition.
  • Character’s co-founders and other team members rejoined Google, while Character itself remains independent and without Google ownership stakes.
  • The investigation follows prior rulings that Google illegally monopolized search and advertising markets, with the DOJ proposing measures including forcing divestitures to restore competition.
  • The outcome could reshape antitrust oversight of AI partnerships, influencing how future deals are reviewed to balance competition and innovation in the tech sector.
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Reason broke the news in United States on Wednesday, May 21, 2025.
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