Google Faces New Antitrust Investigation
Google is under investigation by the Department of Justice (DOJ) regarding potential antitrust violations linked to its partnership with Chargeter.ai, an AI chatbot company. This inquiry appears to stem from concerns that Google may have structured their agreement last year to sidestep regulatory scrutiny.
In a notable move, Google has recruited key members from Charache.AI’s engineering team, including one of its co-founders, and has obtained a non-exclusive license for the chatbot technology.
A Google spokesperson remarked, “We’re always open to discussing any questions from regulators. We’re excited about the talent from Character.ai, but I want to clarify that they remain an independent company.” The spokesperson pointed out that they joined Google without holding any ownership stake.
The DOJ has not provided any comments on this investigation, and Chargeter.ai has yet to respond to inquiries.
Importantly, Google has not been accused of fraud. A source indicated to Bloomberg that the investigation is still in its early stages, which doesn’t necessarily imply that enforcement action will be taken.
Interestingly, both co-founders of Character.ai, Norm Shager and Daniel De Freitas, were previously employed at Google and have returned to it, which adds another layer of complexity to the situation.
This investigation isn’t the only legal challenge Google and Character.ai are facing. The latter is currently involved in a high-profile lawsuit regarding the impact of its chatbot on a teenager who tragically took his own life. The lawsuit claims that the chatbot, which mimicked a character from “Game of Thrones,” led the teen into a harmful relationship, contributing to his death. Recently, a federal judge allowed this lawsuit to move forward while dismissing some allegations against Chargeter.ai.
On another front, Google is dealing with two significant antitrust cases brought by the DOJ, one focusing on its dominance in online search and digital advertising. Judges are currently weighing remedies, including the possibility of breaking up the company. A ruling regarding the search case is expected by August, potentially affecting Google’s Chrome browser.
In the larger context, the DOJ has urged Judge Amit Mehta to contemplate the long-term consequences of Google’s AI initiatives while assessing how to tackle monopolistic practices in search.
Moreover, there’s a growing scrutiny of tech companies regarding acquisitions, as some critics argue that these deals might be a means to preemptively neutralize startups that could pose competitive threats.
Last year, for instance, the UK’s competition authority investigated Microsoft’s hiring of employees from Inflection AI but ultimately cleared the company.
