Alphabet’s profit will be hurt by a $2.74 billion fine from European regulators for Google’s practice of favoring its online shopping service over competitors.
Alphabet said in a recent securities filing that it will book an accounting charge for the entire amount in the quarter, which ended in June.
The fine was levied by Margrethe Vestager, competition commissioner for the EU, who ruled Google used its monopoly position in search advertising to hurt rivals.
The company is expected to report a profit of $4.46 a share, based on the average analyst forecasts compiled by Thomson Reuters, down from $8.42 a year earlier — reflecting the impact of the EU fine.
Alphabet’s “other bets” segment likely contributed to the drop in profit. Mark Mahaney, an analyst at RBC Capital Markets, estimated in a report that the unit, which includes self-driving cars, posted an operating loss of $977 million.
