Yahoo said yesterday the Federal Trade Commission was conducting an inquiry into some of its consumer information practices to see if they comply with US federal consumer protection laws.

Shares of Yahoo, one of the most highly-trafficked sites on the Internet, were down more than $16 (€16.69) to $161 in heavy Nasdaq trading in the afternoon.

The FTC has requested information about its practices, the company said in an annual report filed with the Securities and Exchange Commission.