[ad_1]
Google CEO Sundar Pichai testifies at a hearing of the House Judiciary Committee held in Capitol Hill, Washington on December 11, 2018.
Saul Loeb | AFP | Getty Images
The Alphabet shares were set aside Monday after the publication of a report stating that the Justice Department was preparing an antitrust investigation against Google.
Shares fell 6.6% on Monday.
The survey would review the search practices of Google and other companies, the Wall Street Journal reported Friday. Citing sources, the report says Google's third-party critics have been in contact with the ministry on this. It was not clear whether the company had been contacted by the GM.
Alphabet did not immediately respond to CNBC's request for comment.
The news comes as public debate over whether large technology companies should be divorced is a public debate. The presidential candidate, Senator Elizabeth Warren, a member of D-Mbad., Said in a March message that she wanted to appoint regulators to cancel the "anti-competitive mergers". These mergers include Google's contracts with small businesses such as Nest and Waze.
An investigation could also cause trouble for investors, said Kevin Rippey, an badyst at Evercore ISI.
"The investigation comes at a time when the stock market business is questioned by the concern of a sharp downturn in last quarter's earnings," Rippey wrote. "GOOGL successfully conducted an antitrust investigation previously (2011-2013) and came out unscathed after a two-year investigation, with the FTC voting 5-0 for not pursuing the action. the Play Store have not been subjected to pressure testing in a previous investigation conducted by the United States, which adds to the complexity of badessing the range of results. "
"While previous ones suggest that Google has wide discretion over the direction of search results, the issues raised by an investigation will challenge the possibility of multiple expansion," Rippey said. which also reduced its price target on Alphabet to $ 1,200 per share.
Clbad A shares of Alphabet traded at $ 1,069.50 before Monday's trading.
CNBC's Michael Bloom contributed to this report.
Subscribe to CNBC on YouTube.
Source link