Alphabet Says EU Antitrust Fine To Cut Q2 Profit By $2.74 Bln

(RTTNews) - Alphabet Inc. (GOOGL, GOOG) said that the European Commission's recent antitrust fine will reduce second-quarter profit by about $2.74 billion.

The company stated that it will report a separate operating expense line for the $2.74 billion charge on the income statement. The fine is not tax deductible. Therefore, the charge will reduce GAAP net income and GAAP earnings per share by the full amount.

On June 27, 2017, Google has been fined a hefty 2.42 billion euros or $2.74 billion by the European Commission for breaching EU antitrust rules. The Commission ruled that Google has abused its market dominance as a search engine by giving illegal advantage to its own comparison shopping service.