Google owner Alphabet's profits drop after $5bn fine but shares surge

The European Union fined Google after accusing it of 'serious illegal behaviour', but investors shrugged off the fine

Google parent company Alphabet reported a sharp drop in profits on Monday as the company absorbed the likely $5bn cost of a record-breaking fine from European regulators.

The European Union fined Google earlier this month after accusing it of "serious illegal behaviour" to secure its dominance in mobile search. The company is appealing the decision but included the charge in its latest quarterly earnings report.