New York: The European Union on Wednesday launched an antitrust probe into Google Inc`s Android system, and if recent history is any indicator, shares of the Internet giant may have trouble moving forward until the issue is resolved.
There have been high-profile investigations by the EU into two other U.S. tech companies in the past ten years, and in both cases the stocks fell between the date of initiation and the date of resolution, though both rebounded in the two months following the end to the investigation.
Intel Corp fell about 35 percent between July 2007 and May 2009, during an EU investigation. After paying a fine, the Dow component rose nearly 10 percent over the subsequent two months.
The EU initiated three investigations into Microsoft Corp between 2008 and 2013, the first two of which were resolved without a fine. Over the period of the third investigation, which was resolved with a fine, the stock fell about 5 percent, though it subsequently rose by roughly that same amount in the subsequent two months.
The EU`s investigation into Google was first reported by media outlets on Tuesday, when the stock fell 1.6 percent. Shares were up 0.6 percent to $533.53 on Wednesday.
