Home Tech News Google Reports Huge Profits Despite the EU’s $5 Billion Fine

Google Reports Huge Profits Despite the EU’s $5 Billion Fine

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Google Reports Huge Profits Despite the EU’s $5 Billion Fine

It seems that Google and its parent company Alphabet are not bothered by the recent fine of $5 billion. This is because Alphabet reported its second-quarter earnings that came the European Commission announced after $5 billion fine against Google for Android antitrust violations. Despite the hit, Google still delivered better than expected. The company reported $11.75 per share beating analysts against the estimated $9.66. The reason for this sudden gush was better than expected profits in Google’s ad business.

 The Google execs remained upbeat on its quarterly earning call despite the historic fine. CEO Sundar Pichai said that the company plans to appeal the decision. At the heart of the EU’s complaint is Google’s reliance on bundling its own software into Android, which Europe’s regulators say gives the company an unfair advantage. Sundar Pichai during the call said it thinks it [Android] has created choice for everyone and that the company will appeal the commission’s decision. Also, Google is looking forward to finding a solution above all that preserves the enormous benefits to Android users.

Even if Google fails to win the fight the fine of $5 million, it is hardly a setback because the company reported a total revenue of $32.7 billion this quarter alone. However, the ruling results to how Google implements its software is also interesting namely search in devices in Europe and that could be a potential negative impact company’s bottom line.