iWorld
Google parent Alphabet’s profit hit by EU fine
MUMBAI: Google’s parent Alphabet has reported a quarterly profit of USD 3.5 billion, with a massive fine by the European Commission biting into earnings.
The technology giant on Monday reported that revenue grew to $ 26 billion in the recently ended quarter, and that profit would have tallied nearly $ 6.3 billion if it weren’t for a $ 2.74 billion anti-trust fine levied on search engine Google by the European Commission, according to an AFP report San Francisco.
Revenue was up 21 percent from the same quarter last year, according to earnings figures. “We’re delivering strong growth with great underlying momentum, while continuing to make focused investments in new revenue streams,” the AFP report quoted Alphabet chief financial officer Ruth Porat as saying.
Alphabet shares slid about 2.9 percent to 969.03 in after-market trades that followed release of the earnings figures.
Investors have been concerned about what the regulatory trouble in Europe means for Alphabet, which gets most of its money from Google advertising while investing in “other bets” such as self-driving cars. Alphabet took in $ 248 million in revenue and posted a narrower loss of $772 million in its “other bets” category in the recently ended quarter.
Meanwhile, Google and the EU are gearing up for a battle that could last years, with the Silicon Valley behemoth facing a relentless challenge to its ambition to expand beyond search results.
Brussels has already spent seven years targeting Google, fueled by a deep apprehension of the company’s dominance of Internet search across Europe, where it commands about 90 percent of the market.
In a verdict that could redraw the online map worldwide, the EU’s top antitrust sheriff Margrethe Vestager in June imposed a record fine on Google for illegally favoring its shopping service in search results, according to the AFP report.
The EU accuses Google of giving its multitude of services too much priority in search results to the detriment of other price comparison services. The decision — if it survives an expected appeal process – could prove to be momentous for Google, as well as for competition law in general.
The EU is also examining Google’s AdSense advertising service and its Android mobile phone software.
iWorld
X launches XChat messaging app on iOS with calls and encryption
Standalone app marks shift from “everything app” vision, adds E2E messaging.
MUMBAI: From one big app to many small chats, X seems to be splitting its ambitions. X has rolled out its standalone messaging app, XChat, to iOS users, opening up a new front in its evolving product strategy. The app allows users to connect with existing X contacts through private and group messages, file sharing, as well as audio and video calls. The launch follows a limited beta phase, where the platform tested the product with a smaller user base to refine the experience. Now available publicly, XChat marks a notable pivot from earlier ambitions championed by Elon Musk to turn X into a single “everything app” combining messaging, payments, commerce and more.
Instead, the company under xAI ownership and backed by SpaceX appears to be building a suite of standalone applications, each targeting specific use cases while expanding its broader ecosystem.
At launch, XChat includes end-to-end encrypted messaging, PIN-based access, disappearing messages, and features such as message editing, deletion for all participants, and screenshot blocking. The company has also said the app is free from advertisements and tracking mechanisms, positioning it as a privacy-first alternative in a crowded messaging space.
However, security claims around the platform are likely to face scrutiny. Earlier iterations of XChat drew criticism from experts who argued it fell short of established encrypted platforms like Signal. With the wider rollout, the app is expected to undergo fresh evaluation to assess whether those concerns have been addressed.
Beyond messaging, XChat will also house X’s Communities feature, which is being discontinued on the main platform due to low usage and spam concerns. Migrating these users could provide an early boost to adoption, effectively turning XChat into both a communication and community hub.
The move underscores a broader recalibration at X less about cramming everything into one app, and more about spreading bets across multiple touchpoints, one message at a time.
