Google investors not showing much worry

Q: Will Google fall to regulation?

A: Google has been slippery for regulators. The online advertising giant eluded antitrust actions by various states and the Federal Trade Commission. But the European Union isn’t giving up so easily.

EU antitrust regulators announced Wednesday they plan to press further on a case claiming Google used its essential monopoly in online search to bolster other products like shopping services. Also at issue is the way Google bundles its online services with its mobile operating system, Android.

Investors have learned that when large regulators get interested in a tech company, there’s reason to worry. Microsoft had its hands tied behind its back for years as punishment following antitrust actions by U.S. and European regulators.

Google investors think this time is different. Shares rose Wednesday on the news. Colin Sebastian, analyst at Robert W. Baird, wrote in a note to clients that the accusations are out of date and that Google has already reformed. The EU’s move is a warning to Internet companies, and monetary penalties might be paid, but he doesn’t see a long-term risk to Google. Google has beaten raps against it before. And Wall Street analysts think this stock has 16% upside.

But investors have learned: When regulators get involved, surprises can happen.