The latest financial results pf Google dropped below the expectations of analysts as the tech giant absorbed a 1.7 billion dollar (£1.3 billion) competition fine that was imposed by the European Commission.
Alphabet, the parent company of the firm, reported revenue for the last three months of 36.3 billion dollars (£28 billion), below the 37.34 billion (£28.9 billion) that had been predicted.
The net income was reported to be 6.6 billion dollars (£5.1 billion).
The advertising revenue of Google increased during the same period last year, increasing from 26.6 billion to 30.7 billion dollars (£23.7 billion). This was a rise of 17 percent, however, this time last year, the revenue of the firm was growing at a rate of 26 percent.
While the revenue from Alphabet’s Other Bets – the collection of smaller, more outlandish firms which includes Waymo, an autonomous car firm, – saw its revenues increase from 150 to 170 million dollars (£131.4 million).
However, the operating loss for the Other Bets amounted to 868 million dollars (£671 million), an increase from the 571 million (£441 million) that was recorded a year ago.
Ruth Porat, the chief financial officer of Alphabet, stated: “We delivered robust growth led by mobile search, YouTube, and Cloud with Alphabet revenues of $36.3 billion, up 17% versus last year, or 19% on a constant currency basis.”
She added: “We remain focused on, and excited by, the significant growth opportunities across our businesses.”
The fine that was imposed by the European Commission on Google was issued last March when its AdSense advertising network was found to have broken EU competition rules. It was for the “illegal practices in search advertising brokering to cement its dominant market position.”
At the time, Margrethe Vestager, the EC Commissioner for Competition, said that by abusing its position, Google had “denied consumers choice, innovative products and fair prices.”
The shares of Alphabet had been increasing steadily since February when it last reported bumper financial results, an upward trajectory that the analysts from Wall Street expected to continue. However, they dropped by as much as 7pc in after-hours trading today when the firm released its results for the first three months of the year.