The Federal Trade Commission has launched a formal probe into the business of Google Inc. triggering alarm among investors who fear that the investigation may be lengthy, distracting and may lead to potential legal action against the search engine giant.
Investors are additionally worried since Microsoft suffered a similar fate in its 20-year legal battle with the United States Department of Justice and attorneys regarding the allegations that it misused its monopoly to get undue advantage in operating systems.
Stakeholders of Google Inc. are eyeing the company for whether Mr. Page manages the probe of his company more unemotionally than Bill Gates who perceived the probe against his company as punishment for being successful.
Page, 38, is identified for an inflexible line and campaigning for and winning grand technologies and products whose short-term financial payoffs are not always plain.
Meanwhile Page and Google Inc. Chairmanhave refused to accept calls to show before the Senate Judiciary Committee's antitrust sub-committee trial on fights in the Internet search business.
Industry analysts hold that the resistance of Google Inc. against government interference will push the search engine giant into a lengthy fight that finally will bring more damages than speedy settlement.
The stocks of Google are already noted for immense pressure as the concerns of investors rises about the escalating rivalry it faces from the likes of Facebook. The shares of Google were noted to kick off the year with a touch over $600 on Nasdaq and dished down 1.11 percent at $474.88.
According to Melissa Maxman, co-chairperson of the antitrust department at law firm Cozen O'Connor, "The longer the specter of an investigation hangs over any major company's head, the more it has a negative impact on everything from its ability to do business to its stock price.”
Google made it clear on Friday that it never engaged in unethical practices, but said it will still engage and cooperate with the government investigators.
"It's still unclear exactly what the FTC's concerns are, but we're clear about where we stand," Amit Singhal, executive at Google Inc., wrote on a blog post on the official site of the company.
The Federal Trade Commission is likely to take in hand the grievances of the competitors of Google who hold that the search engine giant favors its own services over others when it comes to internet search results.
It is pertinent to note that Google accounts for around 69 percent of internet searches globally, dominates the search engine industry and can make or break a company on the basis of its search rankings.