A DOJ Alphabet antitrust case, possibly to soon launch, caused the company’s stock to drop by more than 6 percent on Monday…
Facebook and Amazon aren’t the only two mega-corporations facing antitrust oversight. The Justice Department is also reportedly readying a case against Google over its trade practices.
Alphabet Shares Drop over 6 Percent after DOJ Antitrust Probe Revelations
The United States Justice Department and the Federal Trade Commission have reportedly entered into an agreement. Said arrangement gives the FTC the green light to look into Facebook and Amazon for antitrust violations, while providing the DOJ with the go-ahead to do the same against Google.
As a result of the news, Alphabet Inc.’s stock price fell by nearly 7 percent on Monday.
Evercore ISI analyst Kevin Rippey wrote in a note Monday:
“The investigation comes at a time when the stock’s bull case is challenged by concerns of an abrupt revenue slowdown last quarter. GOOGL has successfully navigated an antitrust investigation before (2011-2013), and emerged unscathed after a two year inquiry, as the FTC voted 5-0 not to pursue further action. That said, Android and the Play Store have not been pressure tested in a precedent US-led investigation, adding to the complexity of assessing the spectrum of outcomes.”
Meanwhile, Facebook shares also fell by 8 percent and Amazon shares suffered a 4 percent loss.