Google Inc set aside $500 million related to the possible resolution of a US Justice Department investigation of its advertising business, resulting in lower first-quarter profit.
The expense trimmed net income to $1.8 billion, or $5.51 a share, in the period, Google said in a regulatory filing. The Mountain View, California-based company had reported first-quarter profit of $2.3 billion, or $7.04, on April 14.
“Although we cannot predict the ultimate outcome of this matter, we believe it will not have a material adverse effect on our business, consolidated financial position, results of operations or cash flows,” Google said in the statement.
The Justice Department is investigating the use of Google ads by “certain advertisers,” Google said in the filing. Aaron Zamost, a spokesman for the company, declined to comment on the disclosure. Google gets almost all its revenue from online advertising, which runs on its search engine and other sites, such as YouTube.
