Facing probe, Google sets aside cash
SAN FRANCISCO — Google Inc. has set aside $500 million related to the possible resolution of a Justice Department investigation of its advertising business.
That trimmed first-quarter net income to $1.8 billion, or $5.51 a share. The company had reported profit of $2.3 billion, or $7.04. “Although we cannot predict the ultimate outcome of this matter, we believe it will not have a material adverse effect,’’ Google said.
Justice is investigating the use of ads by “certain advertisers,’’ Google said. Google gets almost all its revenue from online advertising, which runs on its search engine and on other sites, such as YouTube.
Also, the Federal Trade Commission is preparing an investigation of Google’s dominance of the search industry, three people said last month. The FTC, which had been considering a broad investigation, waited until Justice concluded its review of Google’s acquisition of ITA Software Inc. in Cambridge, Mass., two people said in April. Justice cleared the deal on the condition Google make ITA’s travel data available to search-engine rivals.
