San Francisco - Alphabet said late on Friday that the European Commission’s recent antitrust fine will reduce second-quarter profit by about $2.74bn.
The company plans to report the fine in a separate operating expense line on its income statement. It’s not tax deductible, so the charge will reduce Alphabet’s net income and earnings per share by the full $2.74bn amount, it said in a statement.
Analysts expect Alphabet, the owner of Google, to report second-quarter net income of $5.78bn, according to data compiled by Bloomberg.
Analysts dismissed the EU fine as a threat to Google’s stock position. However several raised concerns about the potential impact of any forced changes to Google’s shopping service, a growing revenue source. Google has 90 days to deliver a solution that appeases EU regulators or face further fines.
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