1. Turkey's antitrust authority to investigate Google's Performance Max for competition law violations. 2. The probe may impact GOOG's advertising strategy and market presence in Turkey.
Investigations into competition can lead to fines or operational changes, as seen in EU antitrust cases against Google that previously impacted its stock price negatively during similar situations. The uncertainty surrounding legal outcomes often leads to decreased investor confidence.
This investigation could influence GOOG's advertising approach; major regulatory challenges in significant markets like Turkey can have cascading effects on revenue and strategy, thus impacting investor sentiment. Such scrutiny often raises questions about compliance and future profitability.
The immediate impact relates to the announcement of the investigation, with potential rapid market reactions based on ongoing developments. Historically, investigations can lead to immediate stock volatility until the inquiry's resolution.