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Alphabet Faces State-led Lawsuit Over Anticompetitive Practices

Alphabet shares end slightly lower after the announcement of the multi-state lawsuit.
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Shares of Alphabet  (GOOGL) - Get Alphabet Inc. Class A Report took a slight dip Wednesday after Texas Attorney General Ken Paxton announced that the state is leading a lawsuit against the tech giant alleging anticompetitive conduct. 

The state is filing a multi-state lawsuit against Google for anti-competitive conduct, exclusionary practices and deceptive misrepresentations.

“Google repeatedly used its monopolistic power to control pricing, engage in market collusions to rig auctions in a tremendous violation of justice," Paxton said in a video announcing the lawsuit.

He also said that Google continually illegally profit from advertisement auctions and takes money from publishers. 

In a Tweet, the Texas Attorney General's office said "This internet Goliath used its power to manipulate the market, destroy competition and harm YOU, the consumer."

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In November, the Wall Street Journal reported that Federal and state antitrust authorities were preparing to file as many as four new lawsuits against  in January for abuse of its competitive position and advertising practices. 

Last month, the U.S. Department of Justice filed a long-awaited antitrust case against Google.

The DoJ said the action was brought to "restrain Google from unlawfully maintaining monopolies in the markets for general search services, search advertising, and general search text advertising in the United States through anticompetitive and exclusionary practices, and to remedy the effects of this conduct." 

Last year, EU antitrust regulators fined Alphabet $1.7 billion for unfairly restricting rivals from displaying ads on its platform via third parties using its AdSense tool.

Google shares ended off $3.89, or 0.2%, at $1,757.19.

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