Alphabet’s (GOOGL) Google has agreed to a $340 million (€326 million) settlement to resolve an Italian tax dispute. Consequently, Milan prosecutors agreed to drop the case against the company’s European division.
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Google Ends Italy Tax Battle
According to Italian prosecutors, the settlement applies to Google’s tax obligations between 2015 and 2019 and includes not just unpaid taxes but also additional costs such as fines, penalties, and interest.
Last year, Reuters reported that Italy demanded €1 billion from Google for unpaid taxes and penalties. This came seven years after Google settled a major tax dispute with Italian authorities. Milan prosecutors argued that Google should have paid taxes on its earnings in Italy, as it operates digital infrastructure in the country.
On the other hand, in 2024, Google managed to reverse a $1.66 billion EU antitrust fine after a court ruled that the 2019 decision, which accused the company of restricting rival ads, had errors.
Google Faces China’s Scrutiny in Trade War Crossfire
All is not well for Google in China, though. According to recent reports, China’s State Administration for Market Regulation has launched an antitrust investigation on Google amid the ongoing U.S.-China trade tensions. The probe is expected to examine potential harm to Chinese OEMs that rely on Google’s Android operating system.
Meanwhile, the South China Morning Post reported that some experts believe the investigation is linked to Google’s restrictions on Chinese smartphone manufacturers using Android. These rules reportedly require Chinese firms to pre-install Google apps on devices sold internationally, a practice that has sparked criticism in China.
Is Google Stock a Buy, Hold, or Sell?
With 27 Buys and 10 Holds, GOOGL stock has a Moderate Buy consensus rating on TipRanks. The average Google share price target of $215.85 implies a 17.5% upside potential.
Year-to-date, GOOGL stock has declined by 3%.
