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State attorneys general are expected to formally launch antitrust investigations this week into Facebook and Alphabet’s Google.
Background: These are separate from ongoing investigations by the Justice Department and the FTC, which have been looking into the 2 mega companies since last year, plus ongoing inquiries from the FBI and SEC.
Details: The new investigations, which involve 2 large bipartisan coalitions that may include more than 40 attorneys general, is being led by Texas Attorney General Ken Paxton, according to WSJ.
- Separately, New York Attorney General Letitia James is organizing an additional bipartisan, multistate antitrust probe into whether Facebook “has stifled competition and put users at risk,” she said in a statement last week.
Why it matters: While Google's stock has underperformed the broader stock market this year, gaining around 13% compared to the S&P 500's 18% rise, Facebook has managed to nearly double the market's return, up around 35% as it has continued to unroll solid earnings in spite of the mounting controversies.
Yes, but: Since July 2018, when early investigations into Facebook's involvement with the Cambridge Analytica scandal took off, the stock is down almost 3% compared to gains of around 9% for both Alphabet and the S&P.