Alphabet: Google announces a drop in profits due to the EU penalty

Googles earnings dropped in the second quarter due to the record penalty in the EU. This was announced by Google's parent company, Alphabet, on July 23, 2018 after the close of trading on the New York Stock Exchange (PDF). However, revenue minus paid traffic increased 25 percent to $ 26.24 billion, ahead of badysts' expectations. The stock (GOOG and GOOGL) rose 4.7% after trading hours.

Without the fine, net profit increased by 6.26 billion US dollars in the same period of the year. Year earlier to 8.26 billion US dollars. Including the penalty, the profit went from $ 3.524 billion to $ 3.195 billion.

"With sales of $ 32.7 billion, we achieved another quarter of very good performance, up 26% in the second quarter" said Alphabet and the head of Google Finance Ruth Porat .

Google: What happened in the EU?

Last week, the European Commission ruled that Google's 4.34 billion Penalty paid because it abused its dominant position through the Android mobile operating system.

The American company had manufacturers who wanted to pre-install the Play Store on their devices, in addition to Google Search and the Google Chrome mobile browser to deliver. In addition, these manufacturers have been contractually prohibited from offering at the same time browsers or alternative search engines on their devices. In addition, Google has banned device manufacturers from simultaneously offering models with Android forks. Within 90 days, restrictive contractual practices must be discontinued with equipment manufacturers. Group CEO Sundar Pichai said he was opposed and threatened that it would send a signal for proprietary systems and open platforms.