2017.07.2421:56:00UTC+00Alphabet’s Quarterly Profit Hit by EU Fine

Profits at Alphabet Inc., the parent firm of Google, has been significantly affected by the 2.4 billion fine imposed by the European Commission.

Last month, European regulators ruled that the firm has overstepped its power by promoting its own shopping comparison service at the number one post of search results.

Profits for the quarter from April-June stood at $3.5 billion, denoting a 40 percent slide compared to the figures excluding the fine.

Despite the hit from the EU penalty, Alphabet reported solid growth during the second quarter, with revenues of around $26 billion, up 21 percent from the same period last year. The company also reported its advertising business maintained its momentum, as clicks on its ads jumped 52 percent compared to the second quarter of 2016.

However, the company's fastest growing sectors, mobile and YouTube advertising has generated less money per ad than search ads both on mobile and personal computers. Because of this, revenue per click slid 23 percent during the quarter, the widest spread between the clicks and revenue per click in at least six years.