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Home / Technology / Google shrugs $ 5.1 billion well with another big neighborhood

Google shrugs $ 5.1 billion well with another big neighborhood



SAN FRANCISCO – The European authorities have shown their best momentum, but Google hardly seems to feel it.

Less than a week after the fine by the European Union, Google has charged Google with a record $ 5.1 billion to abuse its dominance in the smartphone market, Alphabet said on Monday, it already had the cost of Fine and still made $ 3.2 billion profit in its last quarter.

Alphabets shares rose 3.5 percent in after-hours trading, and some analysts recommended the company's shares. After clarifying the regulatory issue, Google could once again focus on selling ads on the Internet.

"It's like a delivery company that has to pay for a parking ticket," said Brian Wieser, an analyst at Pivotal Research, who punished Alphabet in the second quarter. "There is no meaningful fine related to the size of this company."

The EU's previous record fine was also directed against Google, a $ 2.7 billion levy imposed last year for unfairly favoring its comparison shopping service. Google booked this charge in the same quarter a year ago – still earning $ 3.5 billion.

More important than the fines are the changes made to the company's Android software, which supports 80 percent of the world's smartphones. European authorities have asked Google to oblige phone manufacturers in Europe to install the Google search engine and the Chrome Internet browser on their devices in order to use the Android software.

Such a change could result in fewer people using Google's search engine. This would undermine an advertising business triggered by users clicking on ads in mobile search results.

But Google is responsible for remedying it, and it will be a great incentive to make a proposal that limits the impact on its business. After Google complied with the European Union's fees in connection with its shopping service last year, competitors complained that their solution would hardly reduce the damage to their businesses.

Google "is especially looking forward to a solution with the tremendous benefits of Android for users," said Sundar Pichai, Google's chief executive, on an analyst visit Monday.

Mr. Pichai said Google plans to appeal the indictment, although it still needs to redress or face more fines by mid-October. (The company said it will dump the fine into an account while the legal process unfolds.) He said last week that Android lowered prices for consumers and encouraged competition in the smartphone market by bringing mobile phone manufacturers with Apple compete. Google has stated that it provides the phone manufacturers with Android for free and that it must recoup its expenses by including its services in the software.

Europe's new privacy policy, known as the General Data Protection Regulation, had little impact on Google's conclusion. The law, which restricts how companies obtain and manage information from users, has led many companies to meet this year. But some analysts believe that Google and its partner in digital advertising duopoly Facebook will benefit from the rules because they can afford to, while smaller competitors may not.

Mr. Wieser said that after reviewing Google's revenue, the privacy rule "probably helped at least in European numbers." Alphabet's revenues increased 26 percent in Europe, Africa, and the Middle East during the same period last year, despite part of the increase (19659002). Alphabet's revenue increased 26 percent to $ 32.7 billion in the quarter, because users clicked on more ads that Google showed on search results and before YouTube videos. Alphabet posted $ 11.75 a share for the quarter, excluding the penalty, which was easily surpassed by analysts at $ 9.54 per share.


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