The net profit of Alphabet holding dropped by almost 30%.

American holding Alphabet, which owns the company Google, published a report with the results of the first quarter of 2019, according to which net profit in annual terms decreased by 29.2% to $ 6.66 billion.Earnings per share in the first quarter of the current year were $ 9.5, which is $ 3.8 less than the results ($ 13.33) of the same period last year. Alphabet believes that the decline in net profit is due to the decision of the European Commission to impose a Google fine of € 1.49 billion for violating European competition rules when advertising on the Internet and showing it in search results.

The European Commission has found that Google, abusing the dominant position in the online advertising market, has limited competitors from 2006 to promote their own advertising. Also, Google in search results promoted its first positions to its partners, and paid mobile device and OS manufacturers for pre-installed search applications based on Google.

The report indicates that in the absence of a fine, earnings per share could be $ 11.9. Nevertheless, the company’s revenue for the reporting period increased by 17%, reaching $ 36.3 billion, which is slightly less than analysts’ expectations, which were at $ 37.3 billion. Alphabet Chief Financial Officer Ruth Porat said that significant revenue growth was due to YouTube. Google Mobile Search and Cloud Cloud. In the first quarter of 2019, Alphabet advertising revenues increased by 15.3% to $ 30.72 billion.

Recall that Alphabet includes Google and its products, including search engine, Android operating system, YouTube video hosting, and companies, most of which came under restructuring after Google joined Alphabet, namely, technology company Google X, investment CapitalG, GV Venture Fund, Verily, a research organization, Calico, an independent biotechnology research company, Sidewalk Labs, an innovative organization, and so on.

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