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Antitrust Risk on the Rise for Facebook and Alphabet

Fines and new regulations are likely for both firms, but the political upheaval in an election year puts Facebook more in peril.

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Ali Mogharabi: We believe Alphabet and Facebook stocks are fairly valued, but the latest antitrust movement in the United States creates more risk for both. Possible actions to be taken by politicians and lawmakers include more fines, regulations, and breakups due to what may be considered as previous antitrust acquisitions. We believe the most likely one would be a combination of fines and regulations imposed on the firms.

With the upcoming 2020 elections, politicians, federal agencies, and international lawmakers are proposing more stringent enforcement of antitrust laws on Facebook, Google, and big techs.

Ali Mogharabi does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.