The U.S. Federal Trade Commission is in the final stages of preparing a potential lawsuit over YouTube’s suspension and blocking of user accounts, Bloomberg News reported, citing people familiar with the matter. The agency has investigated Alphabet’s video platform since last year, examining whether YouTube violated consumer-protection laws by implying users could post certain content before removing it or suspending their accounts. YouTube, Alphabet and the FTC did not immediately respond to Benzinga’s requests for comment, while FTC spokesman Joe Simonson declined to comment on the probe and said leaks would not affect any investigation or litigation. YouTube has not been accused of wrongdoing, the scope of the accounts under review is unclear, and the inquiry could end without enforcement action. The development follows YouTube’s history of removing and restoring accounts, including President Donald Trump’s account after the Jan. 6 attack on the U.S. Capitol and channels incorrectly flagged as spam in 2024. It also comes after Meta Platforms agreed to a settlement of up to $17 billion with 29 U.S. states over allegations that Facebook and Instagram were designed to be addictive to children and harm their mental health. Alphabet Class A shares closed 0.39% lower at $340.65, while Class C shares fell 0.41% to $337.71 on Thursday.