In the fight between US tech companies and EU regulators, Google just ducked a punch
€1.1 billion
A court just freed Google from a major blow, ruling that the company does not have to pay €1.1 billion ($1.25 billion) in back-taxes in France.
Published | Photo by AP Photo/Jeff Chiu
Because Google had 700 employees in France and sold products to French customers, tax authorities claimed that the company had to pay taxes in France.
But Google argued that sales, including of services like AdWords, were rooted through a subsidiary in Ireland, and that taxes were due there.
On Wednesday (July 12), a court reviewing the case decided that Google’s presence in France was not strong enough for the company to be taxed there.
French authorities will appeal the decision.
The EU has been trying to curb unfair practices by US tech companies in Europe, including by reviewing tax deals closed between firms and individual EU members.
Google had been fined €2.4 billion ($2.7 billion) in Europe in June for using its search engine to favor its own products against those of rivals.
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