Google sets aside $500 mln for US ad probe

Internet giant Google has set aside $500 million in anticipation of the results of a US government investigation into the practices of some of its advertisers. "In May 2011, in connection with a potential resolution of an investigation by the United States Department of Justice into the use of Google advertising by certain advertisers, we accrued $500 million for the three month period ended March 31, 2011," the company said in a statement Tuesday. "Although we cannot predict the ultimate outcome of this matter, we believe it will not have a material adverse effect on our business, consolidated financial position, results of operations, or cash flows." The statement, which was filed with the US Securities and Exchange Commission (SEC), did not provide further details on the practices in question or what legal consequences the company might face. The provision reduced Google's net income for the first quarter to $1.798 billion from $2.298 billion announced on April 14. Advertising accounted for 97 percent of the company's $8.575 billion revenue during the same period.