Europe is relatively more protective of privacy than the US, which has often led to more controls on tech companies. However, compounded with the economic crisis, European countries are more likely than ever to go after big tech companies who they say are making revenue off their citizens without paying due taxes. These taxes are largely known as “Google taxes”, though they apply to any large Internet-based company.
France has been the most outspoken nation in attempting to tax Internet companies like brick-and-mortar companies. Previously France contemplated a "culture tax" on smart phones and tablets made by Google and other tech companies in hopes of gaining revenue for a cultural fund.
The most recent iteration of the Google tax is France’s assertion that the company owes the country $1.35 billion in back taxes for circumventing the tax laws by diverting much of its French revenue to Ireland (where there are lower taxes). Google's Paris offices reported its revenue was $260.53 million in 2011, while analysts believe revenue was more like $1.89 billion.
After revelations of NSA spying, on top of suspicious tax moves, it’s likely that France and large Internet companies will be sparring financially for years to come.
