Quietly, Google revealed that it has been the subject of an investigation by the Ministry of Justice in its advertising program. The search giant revealed very few details on the investigation in a regulatory filing with the sec. However, it is clear that Google think that the investigation could be expensive because it has set aside $ 500 million of its first quarter for a possible settlement income.
"In May 2011, in connection with a potential resolution of an investigation by the Ministry of Justice of United States on the use of Google advertising by some advertisers, we accrued 500 million for the three months ended March 31, 2011." "Google said in a regulatory filing. "Although we cannot predict the outcome of this case, we believe that it will not have a negative impact on our company, consolidated financial position, results of operations or cash flows."
This survey was not something that Google included in its first quarter earnings report last month. Giant research has now changed its earnings report, abandoning its $ 2.3 billion GAAP net income to $ 1.8 billion. The change means that Google has acquired only $5.51 by action, not the $7.04 it reported last month. It is well below the expectations of analysts.
Knows exactly what sparked the latest survey of the giant MJ research. The Ministry of Justice has recently approved the acquisition of the ITA Software Google and reached an agreement with Google, Intel, Apple, Adobe, Intuit and Pixar on anti-competitive agreement of poaching. However, the interest of the Ministry of justice in Google advertisers is not we have heard of so far. We bet that this is not the last time that we hear of this investigation.
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