Based on the findings of a new regulatory filing, Google revealed on Tuesday that it has earmarked $500 million for a possible resolution to an investigation by the Federal Government into the company’s online advertising practices.
As confirmed by the Wall Street Journal, Google has admittedly taken a $500 million charge “in connection with an investigation by the US Department of Justice into “the use of Google advertising by certain advertisers.”
Neither Google or the US Justice Department will comment on the precise reasons for the investigation. For Google, however, the $500 million charge is significant, as it reduces Google’s reported earnings for the quarter ended March 31.
Google had previously reported first quarter advertising revenue in the amount of $8.3 billion, which adds up to 97% of the company’s total first quarter earnings.
Tuesday’s filing revealed that while Google says it “cannot predict the ultimate outcome of this matter,” the company maintains that “it will not have a material adverse effect” on its business.
News of Google’s $500 million power-play comes one day after executives from the company testified on Capitol Hill regarding questionable mobile operating system practices around the mobile tech world, including the location tracking of devices without user awareness.