The investigation is expected to focus on Facebook's impact on ad prices, data and consumer privacy and the company's past acquisitions, including Instagram and WhatsApp.
"I am proud to be leading a bipartisan coalition of attorneys general to investigate whether Facebook has stifled competition and put users at risk," James said in a statement. "We will use every survey tool available to determine if Facebook's actions may have endangered consumer data, reduced the quality of consumer choices or increased the cost of advertising."
The multistate coalition includes Colorado, Florida, Iowa, Nebraska, North Carolina, Ohio and Tennessee, James said. Facebook did not immediately respond to a request for comment.