US DOJ investigating Google for antitrust violations related to Character.AI deal

From Yahoo Finance: 2025-05-23 11:00:00

The US Justice Department is investigating whether Google violated antitrust regulations in a deal with Character.AI. Google obtained a non-exclusive license to use the startup’s technology, raising concerns about competition suppression. Google has stated it is happy to answer regulator questions and has no ownership stake in Character.AI.

The Justice Department’s inquiry is in the preliminary phase, with no accusations made against Google. Character.AI, known for its chatbots, was valued at $2.5bn in the deal with Google. The probe adds to Google’s antitrust challenges, including previous court rulings against its dominance in online search and advertising markets.

In a separate case, the Justice Department recommended Google divest its Chrome browser and requested a ban on payments for default search engine status, including for AI products. Google recently agreed to pay $1.375bn to Texas to settle data-privacy claims. The investigation continues as Google faces scrutiny over its business practices.



Read more at Yahoo Finance: US DOJ probing Google over Character.AI deal