FTC lawsuit wipes $500 billion from Alphabet stock

Alphabet shares fell 12 % on Tuesday, wiping about $500 billion from the company’s market value. The drop came after the U.S. Federal Trade Commission filed a new antitrust complaint, accusing Google of using its search and advertising dominance to block rivals. The filing was released early in the morning, and the stock fell sharply as investors rushed to sell.

The complaint follows a long‑running saga. In 2023 a data‑privacy breach exposed the personal details of millions of users. Google spent the next year fighting lawsuits and paying a $5 billion settlement. Regulators have been watching closely, and the new allegations add to a growing list of legal challenges. For a company that earns more than $300 billion a year, the market reaction shows how sensitive investors are to potential fines and restrictions.

The antitrust case claims Google used its search engine to favor its own services and to push out competitors. The company says it will fight the charges and that it remains committed to innovation. Investors reacted by selling shares, pushing rivals like Meta and Microsoft up. The stock market’s reaction is a sign that the tech sector is under more pressure, and that investors are wary of any rule‑making that could limit growth.

Alphabet will respond in a press conference later this week. The company plans to argue that its practices are legal and that they benefit consumers. Regulators will hold hearings in the coming months. Meanwhile, Alphabet’s next quarterly earnings report will be watched closely. If the lawsuit leads to a fine, the company may consider a share buy‑back to shore up its value. The outcome of this case could reshape how big tech firms operate and how they are regulated.