EU fine on Google weighs on parent Alphabet profits

San Francisco: Google parent Alphabet on Monday reported that profit in the first three months of this year sagged under the weight of a hefty antitrust fine in the European Union. Alphabet said that profit in the first-quarter fell 29 per cent to USD 6.7 billion on revenue that climbed 17 per cent to USD 36.3 billion.

The earnings took a hit from a European Commission fine that amounted to USD 1.7 billion at the end of March, according to the quarterly update.

Google shares were down 6.1 per cent to USD 1,208.50 in after-market trades that followed release of the earnings report.

Although profits excluding the one-time costs were better than expected, revenue growth was below forecasts for the technology colossus which is the dominant internet search company and operator of the ubiquitous Android mobile operating system.