(Bloomberg) -- Alphabet Inc. said late Friday that the European Commission's recent antitrust fine will reduce second-quarter profit by about $2.74 billion.
The company plans to report the fine in a separate operating expense line on its income statement. It's not tax deductible, so the charge will reduce Alphabet's net income and earnings per share by the full $2.74 billion amount, it said in a statement.
Analysts expect Alphabet, the owner of Google, to report second-quarter net income of $5.78 billion, according to data compiled by Bloomberg.
Analysts dismissed the EU fine as a threat to Google's stock position. However several raised concerns about the potential impact of any forced changes to Google's shopping service, a growing revenue source. Google has 90 days to deliver a solution that appeases EU regulators or face further fines.
--With assistance from Mark Bergen
To contact the reporter on this story: Alistair Barr in San Francisco at abarr18@bloomberg.net.
To contact the editors responsible for this story: Jillian Ward at jward56@bloomberg.net, Emily Biuso, Andrew Pollack
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
