Facebook (FB) and Alphabet Inc. (GOOG) aren’t having their best day.
The NASDAQ just entered correction territory, dropping 107 points intraday.
All as Facebook, Amazon, and Alphabet took a big dive on regulatory concerns. In fact, there are reports that antitrust regulators are taking steps that could lead to broader oversight.
Amazon.com (AMZN) Down $81.50
Shares of Amazon were down $81.50, or 4.6% on the day after a Washington Post report noted that U.S. antitrust enforcement agencies may have a new agreement on tech oversight. According to The Washington Post, “The move is the result of the FTC and the Department of Justice, the U.S. government’s leading antitrust enforcement agencies, quietly divvying up competition oversight of two of the country’s top tech companies, according to those people, who spoke on the condition of anonymity because the government’s work is confidential. The Justice Department is set to have more jurisdiction over Google, The Washington Post reported on Friday, paving the way for a potential investigation of the search-and-advertising giant.”
Facebook (FB) Slumps $14.31
Facebook also took a hit on a Wall Street Journal report that the U.S. FTC will be able to examine the effect of FB company practices on digital competition.
“The FTC secured the rights to begin a potential investigation of Facebook and whether it has engaged in unlawful monopolistic practices as part of an agreement that allowed the Justice Department to take the reins in a Google probe, according to people familiar with the matter. The FTC and Justice Department share authority to enforce U.S. antitrust law and at times must work out turf arrangements regarding which agency will handle what issues,” they noted.
Alphabet Inc. (GOOG) Tumbles $72.74
GOOG dropped after The Wall Street Journal said the U.S. Justice Department is prepping an antitrust investigation. “The FTC and the department have been in talks recently on who would oversee any new antitrust investigation of a leading U.S. tech giant, and the commission agreed to give the Justice Department jurisdiction over Google, the people said. With turf now settled, the department is preparing to closely examine Google’s business practices related to its search and other businesses,” as reported.
In short, look out below. Until this news blows over, things could get worse for the NASDAQ.