CALIFORNIA, United States (Reuters) — Alphabet Inc reported a 27.7 percent drop in quarterly profit Monday (July 24) as the company recorded a previously announced charge related to a record $2.7 billion fine imposed on its Google unit by the European Union.
EU antitrust regulators last month hit Google with a record 2.4-billion-euro ($2.7 billion) fine for favoring its own shopping service, taking a tough line in the first of three probes of its dominance in searches and smartphone operating systems.
The company’s shares, which closed marginally up in regular trading on Monday, fell nearly 3 percent to $969 after the bell.
The shares had gained nearly 26 percent this year through Monday’s close.
Revenue was boosted by robust demand for advertising on mobile and the company’s popular video service YouTube.
Google’s ad revenue, which accounts for a lion’s share of its business, rose 18.4 percent to $22.67 billion.
The company faces intensifying competition from social media giant Facebook Inc for advertising dollars. The companies together dominate the online ad market.
