Google parent faces more headwinds from European regulators

SAN FRANCISCO — Google’s parent company Alphabet can easily afford the $2.7 billion writedown it’s taking to cover a big antitrust fine in Europe. But it might find it harder to shrug off the rest of the European regulatory assault that’s headed its way.

In June, a European Commission ruling slapped down Google for abusing its market dominance in search by unfairly directing visitors to its comparison shopping service, Google Shopping, to the detriment of its rivals. The regulators not only imposed a huge fine, they also insisted that Google change the way it provides search results in Europe.

Alphabet is still mulling an appeal of that ruling. But it could take years to get a ruling at the European Court of Justice. And that case is only the first of several such investigations that have embroiled Google in Europe, a situation that raises uncertainty about its ability to operate freely on the continent going forward.

Alphabet Inc. reported secondquarter earnings of $3.52 billion, down 28 percent from the $4.88 billion it earned a year earlier; the former figure includes the effect of the $2.7 billion European fine. Revenues rose 19 percent, to $20.9 billion, after subtracting commissions it paid out, up from $17.5 billion.

Google faces the prospect of additional fines if it doesn’t change the way it displays Google Shopping results in Europe by late September.

“These things tend to hobble a company’s behavior, even if there isn’t a decision,” said Jonathan Taplin, a former professor at the University of Southern California. “I don’t think it’s the end, I think it’s the beginning.”