Google faces a new antitrust probe by attorneys general from 49 states and DC

FAN Editor

Sundar Pichai, chief executive officer of Google LLC, arrives to the White House for a meeting in Washington, D.C., U.S., on Thursday, Dec. 6, 2018.

Andrew Harrer | Bloomberg | Getty Images

Fifty attorneys general are joining an investigation into Google over possible antitrust violations, Texas Attorney General Ken Paxton, the initiative’s leader, announced Monday.

The news confirms reports last week about the bipartisan investigation into Google’s practices. The probe will take place as Facebook faces its own antitrust investigation led by New York Attorney General Letitia James with attorneys general from seven states plus the District of Columbia.

Paxton said the probe will focus on Google’s advertising business, “but the facts will lead where the facts lead.”

The state investigations put an additional layer of pressure on both companies, which are already facing antitrust scrutiny on the federal level. Facebook confirmed an antitrust probe by the Federal Trade Commission in July after the agency slapped it with a $5 billion fine over its privacy practices. And the Department of Justice will conduct its own antitrust investigation into Google, according to The Wall Street Journal.

So far, regulatory action on the federal level has had a minimal impact on Big Tech. Both Google and Facebook recently received fines from the FTC over their handling of user data that would be considered large by most standards but represented just a small fraction of their quarterly revenues.

But antitrust, compared to privacy and consumer protection concerns, poses a more direct threat to these companies’ business models. If the federal or state probes find evidence of anti-competitive behavior at Google, for example, it could be compelled to make its algorithms friendlier to rivals even if it eats at its own profits. It could also be forced to spin off entire business units like YouTube.

The focus on Google and Facebook by the state attorneys general does mean other tech giants like Amazon and Apple will be free from scrutiny. Sources told the Journal last week that the investigations could expand to other companies.

This story is developing. Check back for updates.

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