The Afterpay Touch Group Limited (ASX: APT) share price was down 5% at lunch on Tuesday, making it one of the worst performers in the ASX 200, according to Google Finance.
Afterpay is the buy now, pay later business that operates in Australia, New Zealand, the US and soon the UK.
Afterpay appears to have been caught up in the general market sell off, given the All Ordinaries Index (INDEXASX: XAO)(ASX: XAO) is down 1.57% at the time of writing.
Overnight, American shares fell with the S&P 500 (INX) down 2%, thanks in part to tech shares falling more. Apple ended down 5% and Amazon was 4.4% lower.
The Afterpay share price has fallen almost 30% over the past two months. It appears that a key reason for this decline is that the Labor Party has launched an inquiry into debt management firms which encompasses Afterpay.
Labor wants to put a spotlight on this section of the financial market in the same way that the Hayne Royal Commission had scrutinised large financial businesses like AMP Limited (ASX: AMP) and Commonwealth Bank of Australia (ASX: CBA).
Fund Managers Roger Montgomery and Ben Rundle have questioned if falling consumer confidence could have an impact on Afterpay in the near future.
Afterpay recently revealed in a business update that it has made progress signing up new retailers and consumers in the US.
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