Alphabet profits decline after EU fine

Alphabet profits decline after EU fine
© Getty Images

Google parent company Alphabet’s second quarter profits this year fell nearly 28 percent when it was hit with a massive antitrust fine by the European Union.

Alphabet’s quarterly earnings report showed $3.52 billion in profits, a decline from the $4.88 billion it recorded over the same period in 2016. The profits per share dropped from $7 to $5.01.

Last month, Google was slapped with a record $2.7 billion fine by the EU for favoring its own comparison shopping tool in its search results.

European antitrust authorities have two other open investigations into the internet search giant and are reportedly expected to announce a new record fine by the end of the year.

Still, Alphabet saw a 21 percent increase in revenue year over year, recording $26.01 billion at the end of June, compared with $21.5 billion last year.

And Google’s advertising revenue, which was $19.1 billion in 2016, rose 18.4 percent to $22.7 billion.