Google faces antitrust investigation over acquisition of AI chatbots

The Department of Justice is investigating whether Google (GOOG. O) violated the Antimonopoly Act by agreeing to use artificial intelligence technology from a popular chatbot maker, according to people familiar with the matter. The antitrust enforcer recently informed Google that it was reviewing whether the structure of its deal with Character.AI was designed to circumvent formal government merger reviews, the people said. The chatbot maker's founder joined Google under an agreement reached last year, and Google has obtained a non-exclusive license to use its technology. "We are always happy to respond to regulatory inquiries," a Google spokesperson said in an emailed statement. The addition of Character.AI talent is encouraging, but Google does not own an equity stake in it, and the company remains independent. "Even if the deal does not require formal review, the Justice Department still has the power to investigate whether it constitutes anti-competitive behavior. It is understood that the investigation, which is currently in its early stages, has not brought misconduct charges against Google and may ultimately not take enforcement action.