GOOG Alphabet Inc

By Jack Nicas 

Google is facing a new front in its regulatory battles after Missouri's attorney general launched a broad investigation into whether the internet giant's business practices violate the state's consumer-protection and antitrust laws.

Missouri Attorney General Josh Hawley on Monday said he issued an investigative subpoena to probe Google's collection of user data, its use of other sites' content, and its alleged manipulation of search results to favor its own services.

Google, a unit of Alphabet Inc., has so far skirted the scrutiny in the U.S. that it has faced in Europe, where regulators levied a record $2.7 billion fine against Google in June for allegedly favoring its shopping ads in its search results. Mr. Hawley said his investigation was in part prompted by the European fine. "We're concerned they're engaged in a similar pattern of behavior in the United States," he told reporters.

Google said in a statement: "We have not yet received the subpoena, however, we have strong privacy protections in place for our users and continue to operate in a highly competitive and dynamic environment." It has disputed European regulators' charges.

The Federal Trade Commission ended a nearly two-year antitrust investigation into Google in early 2013 after the company agreed to make some changes to its business practices for five years -- a period that is about to expire. In the U.S., some federal lawmakers such as Sen. Al Franken (D., Minn.) have called for new probes into the company's power.

Mr. Hawley said the FTC went too easy on Google. "That seemed to me to be short even of a slap on the wrist. Now this is why I think there needs to be a fuller inquiry," he said in an interview. "I don't see a lot of action coming out of Washington. I don't see a lot of action coming out of the FTC....So I think that it's important that some law enforcement agency actually steps forward."

The FTC didn't immediately respond to a request for comment.

Mr. Hawley, a 37-year-old Republican lawyer who was elected as Missouri's attorney general last year, announced last month that he is running for Democratic U.S. Sen. Claire McCaskill's seat in 2018.

Some critics and competitors of Google see state attorneys general as potentially the most likely route to regulatory action in the U.S.

Mississippi Attorney General Jim Hood has sued Google several times, including in January over its collection and use of data on Mississippi public-school students who use its services. Mr. Hood is looking closely at other aspects of Google's business and considering further action, a person familiar with the matter said.

Utah Attorney General Sean Reyes last year called on the FTC to reopen an antitrust investigation into Google. This year, when Mr. Reyes was a candidate for FTC chairman, Google deployed Republican lobbyists to dissuade Trump administration officials from naming him to the post, according to people familiar with the matter.

Since the end of the FTC investigation, European Union officials have been the most aggressive regulators of the internet giant. Aside from the record fine in June, European regulators have four separate probes into Google, including one that examines whether the company uses its dominant Android smartphone software to force phone makers to favor its services on their devices.

Google has disputed antitrust allegations and said the internet remains a competitive marketplace. The company says it has several webpages that shows users what data it has on them and enables them to delete data and opt out of future collection.

Write to Jack Nicas at jack.nicas@wsj.com

(END) Dow Jones Newswires

November 13, 2017 14:42 ET (19:42 GMT)

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