You will be redirected back to your article in seconds

After EU Fines Google Over Android, Alphabet Will Take $5.07 Billion Charge in Q2

Alphabet, Google’s parent company, said it will take a charge of $5.07 billion against second-quarter 2018 earnings to account for the record €4.34 billion fine by the European Commission, alleging the internet giant violated EU anti-competition laws.

The company made the disclosure in a regulatory filing. The development hasn’t led investors to panic: Alphabet stock closed down 0.5% Wednesday, after edging into positive territory earlier in the session.

The European Commission announced the fine on Wednesday, and after finding that certain contractual provisions in agreements between Google and Android partners violated European law, including requiring manufacturers to pre-install the Google Search app and Chrome browser app as a condition for licensing Google’s Play Store app.

Google said it will appeal the decision — and CEO Sundar Pichai said that the EU decision threatens to disrupt Android’s free distribution model and ecosystem, which he said boosts consumer choice. “The Commission’s Android decision ignores the new breadth of choice and clear evidence about how people use their phones today,” Pichai wrote.

Alphabet is scheduled to report Q2 earnings next Monday (July 23) after market close.

Alphabet said it will report a separate operating expense line for the $5.07 billion charge (based on the exchange rate on June 30, 2018) on it Q2 2018 income statement. Because the fine is not tax-deductible, the charge will reduce Alphabet’s net income and earnings per share by the full amount.

More Digital

  • Chris Sumner - Refinery29

    Refinery29 Hires Live Nation's Chris Sumner as Senior VP, Business Development and Strategy

    Alphabet, Google’s parent company, said it will take a charge of $5.07 billion against second-quarter 2018 earnings to account for the record €4.34 billion fine by the European Commission, alleging the internet giant violated EU anti-competition laws. The company made the disclosure in a regulatory filing. The development hasn’t led investors to panic: Alphabet stock […]

  • IMAX-VR-Centre---Reception_800x500

    Future of Imax VR Uncertain After Company Closes Two Centers

    Alphabet, Google’s parent company, said it will take a charge of $5.07 billion against second-quarter 2018 earnings to account for the record €4.34 billion fine by the European Commission, alleging the internet giant violated EU anti-competition laws. The company made the disclosure in a regulatory filing. The development hasn’t led investors to panic: Alphabet stock […]

  • Infowars Alex Jones

    Twitter Blocks Infowars and Alex Jones From Periscope, Suspends Infowars' Ability to Tweet

    Alphabet, Google’s parent company, said it will take a charge of $5.07 billion against second-quarter 2018 earnings to account for the record €4.34 billion fine by the European Commission, alleging the internet giant violated EU anti-competition laws. The company made the disclosure in a regulatory filing. The development hasn’t led investors to panic: Alphabet stock […]

  • LeLe Pons

    Lele Pons Signs With Universal Music Group’s 10:22 pm Label

    Alphabet, Google’s parent company, said it will take a charge of $5.07 billion against second-quarter 2018 earnings to account for the record €4.34 billion fine by the European Commission, alleging the internet giant violated EU anti-competition laws. The company made the disclosure in a regulatory filing. The development hasn’t led investors to panic: Alphabet stock […]

  • Viper Club - Susan Sarandon -

    YouTube's 'Viper Club' Starring Susan Sarandon to Get Theatrical Release by Roadside Attractions

    Alphabet, Google’s parent company, said it will take a charge of $5.07 billion against second-quarter 2018 earnings to account for the record €4.34 billion fine by the European Commission, alleging the internet giant violated EU anti-competition laws. The company made the disclosure in a regulatory filing. The development hasn’t led investors to panic: Alphabet stock […]

  • Music Streaming Wars

    T-Mobile Customers to Get Free Pandora Subscriptions, $25 Live Nation Tickets

    Alphabet, Google’s parent company, said it will take a charge of $5.07 billion against second-quarter 2018 earnings to account for the record €4.34 billion fine by the European Commission, alleging the internet giant violated EU anti-competition laws. The company made the disclosure in a regulatory filing. The development hasn’t led investors to panic: Alphabet stock […]

  • Amazon Music Names Andre Stapleton Head

    Amazon Music Names Andre Stapleton Head of U.S. Label Relations

    Alphabet, Google’s parent company, said it will take a charge of $5.07 billion against second-quarter 2018 earnings to account for the record €4.34 billion fine by the European Commission, alleging the internet giant violated EU anti-competition laws. The company made the disclosure in a regulatory filing. The development hasn’t led investors to panic: Alphabet stock […]

More From Our Brands

Access exclusive content