Google won a major victory in one of its many
court battles when a Paris court dismissed a €1.11 billion ($1.27
billion) tax bill levied against the tech giant.
Paris'
administrative tribunal ruled Wednesday that Google's advertising
business doesn't have a taxable
presence in France, absolving it of
responsibility for five years of back taxes for a period ending in 2010.
The tax authority had accused Google of routing ad sales in the country
through its Irish-based subsidiary.
Google said in a statement
the ruling "has confirmed Google abides by French tax law and
international standards," adding, "We remain committed to France and the
growth of its digital economy."
The ruling is a victory amid a
series of legal challenges Google has faced across Europe on concerns
including taxes, competition and privacy.
Last month, the European Union slapped Google
with a 2.42 billion euro ($2.72 billion) fine for favoring its own
shopping services in its search results over those of rivals. The fine
is the biggest antitrust penalty the EU has ever applied to a single
company, exceeding the $1 billion fine handed to Intel in 2009.
The
EU has also taken aim at Google for its Android operating system,
expressing concern that consumers will automatically use Google's
built-in apps, rather than explore other options. The Competition
Commission has also found the internet giant systematically abuses its dominance in search to promote its own shopping services.
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