2 Top Legal Battles in Technology: Apple Inc. (AAPL), Google Inc (GOOG)

Leaving aside the fact that it seems unthinkable to suggest that aggregated user data is a violation of one’s privacy, you must wonder what the real motivation of the EU commission might be. It could be argued that the policy is being crafted to perform a quick cash-grab on U.S. companies to help the struggling EU economy. Likewise, I believe there is an argument that by creating unduly restrictive regulation, the EU is trying to clear the way for its own domestic players to have a chance to compete.

I do wonder how the entirety of Europe would react if Google simply said, “No, thank you.” What would the public backlash be if overreaching regulators drove Google out of Europe? This is not likely to ever happen as too significant a portion of Google’s revenue comes from there, but it is a nice thought exercise. As the world continues to become increasingly subject to extra layers of burdensome and unneeded regulation, you must wonder when some major player will simply say, “Enough.” If Google said that it declined to pay, what would happen? Does turning off Google in a major part of the world not cripple a critical piece of the Internet as a whole?

From an investment perspective, the new rule may have a limited short-term impact on the company as it is forced to adapt to the new regulation and protect itself. There is not likely to be a lasting impact unless battle lines are drawn. You should remain aware of what is going on, but don’t fear that such events will be a significant negative catalyst for shares.

The article 2 Top Legal Battles in Technology originally appeared on Fool.com and is written by Doug Ehrman.

Fool contributor Doug Ehrman has no position in any stocks mentioned. The Motley Fool recommends Apple and Google. The Motley Fool owns shares of Apple and Google.

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