EU antitrust fine reduces Google's profits by 28%

Google's parent company Alphabet revenues surged by 21% to $26bn (£19.9bn) in the second quarter of 2017 but the European Union's record breaking €2.4bn fine cut profits by 28%.

EU antitrust fine reduces Google's profits by 28%

Google’s advertising revenues were up 18.4% to $22.7bn, suggesting the company suffered little as a result of the brand safety concerns that led a series of brands saying they were going to pull their advertising earlier this year.

The tech giant was hit with the fine of €2.42bn (£2.14bn) last month for breaching EU antitrust laws. According to the European Commission, Google abused its market dominance as a search engine by giving an illegal advantage its comparison-shopping service.

The fine represented 60% of Alphabet's $4,51bn revenue growth during the second quarter.

The fine mean that net income for the quarter was $3.52bn, 43.8% lower than the $6.26bn it would have made without it and a 27.7% decline in its net income in the same period of 2016.

Ruth Porat, chief financial officer of Alphabet, said: "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."

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1 Job description: Digital marketing executive

Digital marketing executives oversee the online marketing strategy for their organisation. They plan and execute digital (including email) marketing campaigns and design, maintain and supply content for the organisation's website(s).