Google, Facebook and Amazon Shares Fall $136 Billion Over Gov Probe
Remember all the Googlers crying when Trump won? Before long, they might really have something to cry about.
Here's Phase 1.
Amazon and Google could face increased antitrust scrutiny after federal regulators agreed to split oversight of the tech giants, The Washington Post reported Saturday night, citing 3 people familiar with the matter.
Details: Under the agreement, the Federal Trade Commission would be responsible for oversight of Amazon, while Google would come under the watch of the Justice Department, the Post said, adding the sources spoke on the condition of anonymity "because the government’s work is confidential."
And here's Phase 2.
Alphabet shares tanked on Monday after a report said the Justice Department is readying an antitrust investigation against Google.
Shares dropped 6.7% on Monday.
The probe would look into Google’s search practices and other businesses, The Wall Street Journal reported Friday. Citing sources, the report said third-party critics of Google have been in contact with the department on the matter. It was not clear whether the company had been contacted by DOJ.
Facebook and Amazon shares are also falling.
Facebook shares tumbled as much as 8% Monday following a Wall Street Journal report that said the FTC will be able to examine the effect of Facebook’s practices on digital competition.
Facebook’s drop shaved more than $40 billion from its market cap, bringing it to about $463 billion. Facebook is already under investigation by the FTC over its handling of user data and has said it is expecting a fine of up to $5 billion.
Shares of other tech giants took a hit over similar concerns. Amazon’s stock was down more than 4% Monday following a Washington Post report that the top U.S. antitrust enforcement agencies have a new agreement on tech oversight. The drop shaved about $41 billion from its market cap, bringing it to $833 billion.
And shares of Google parent company Alphabet were down more than 6% after the Journal reported Friday that the Justice Department is readying an antitrust investigation. The stock lost about $55 billion from its market cap, bringing it to around $714 billion.
The philosopher kings who decided they controlled the internet and speech on it are beginning to get a reality check.