Google bitter over $2.74 billion EU fine

Google is presently wiping off bitter tears after being slammed with a recording-breaking fine of $2.74 billion by the European Union (EU).

TheNewsGuru reports Google was recently fined a whooping amount of $2.74 billion by the EU for abusing its dominance within the Commission’s domain.

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Google’s parent company, Alphabet Inc. late Friday confirming the development said the European Commission’s antitrust fine will reduce second-quarter profit by about $2.74 billion.

“It’s not tax deductible, so the charge will reduce Alphabet’s net income and earnings per share by the full $2.74 billion amount,” Alphabet said in a statement.

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According to a report by Bloomberg, the company plans to report the fine in a separate operating expense line on its income statement.

According to data compiled by Bloomberg, analysts expect Alphabet, the owner of Google, to report second-quarter net income of $5.78 billion.

Meanwhile, analysts have 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.

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Googel has a 90-day ultimatum to find ways to give equal treatment to smaller price-comparison services that compete with the Google Shopping ads that appear when people search for products.

 

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