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Alphabet profits rocked by EU fine

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Profits at Alphabet, the parent company of search giant Google, have been hit by the record fine imposed by the European Commission last month.The firm said second quarter revenues were just over $26bn (£19bn), up 21% compared to the same period in 2016. But profits for the three months to the end of June were $3.5bn, more than 40% lower than they would have been without the fine.Year-on-year profits were down by almost 30%.Google was fined 2.42bn euros ($2.7bn; £2.1bn) by the European Commission last month after it ruled the company had abused its power by promoting its own shopping comparison service at the top of search results.The amount was the regulator’s largest penalty to date against a company accused of distorting the market.Alphabet has already said it may challenge the fine.The tech giant’s shares, which had risen ahead of the firm’s publication of its earnings, fell more than 2% in after-hours trading.Alphabet makes most of its money from advertising. It said revenues from advertisers on its own sites, such as YouTube, and independent sites together increased 18% year-on-year to $22.6bn.Its other revenues – which include money from things such as app purchases and its cloud services – jumped more than 40%.”We’re delivering strong growth with great underlying momentum, while continuing to make focused investments in new revenue streams,” said chief financial officer Ruth Porat.
Source: BBC