Google hit with EU antitrust investigation into its spam policy
1. GOOG faces an EU antitrust investigation related to its spam policy. 2. Complaints from publishers indicate GOOG's practices might impact their revenues.
FAQ
Why Bearish?
This investigation raises regulatory risks for GOOG, reminiscent of past fines which pressured stock prices. Historical instances, like the €4.3 billion Android fine in 2018, have negatively impacted investor sentiment.
How important is it?
Given GOOG's current scrutiny over antitrust issues in various regions, this news is significant. It highlights ongoing risks that could influence revenue and stock performance.
Why Short Term?
The immediate market reaction to regulatory news usually reflects in stock prices quickly. Investors might sell off shares in anticipation of potential fines or regulatory changes.