Alphabet, Google parent company to agrees pay USD2.74 billion EU fine

Alphabet, Google parent company has further agreed to pay off its USD2.74 billion fine imposed on the company by the European Union.

Google said in its second quarter result that the company:

“On June 27, 2017, the EC announced its decision that certain actions taken by Google regarding its display and ranking of shopping search results and ads infringed European competition law. The EC decision imposes a €2.42 billion (approximately $2.74 billion) fine, which we accrued in the second quarter of 2017. The fine is included in “accrued expense and other current liabilities” on our Consolidated Balance Sheet”.

As a result of the fine taking off its balance sheet, full year net income took a huge hit. On a year on year basis, net income crashed to USD3.5 billion compared to USD6 billion posted for the same period last year.

“With revenues of $26 billion, up 21% versus the second quarter of 2016 and 23% on a constant currency basis, we’re delivering strong growth with great underlying momentum, while continuing to make focused investments in new revenue streams,” said Ruth Porat, CFO of Alphabet.

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