Google Inc (GOOG) Slapped with $5 Billion Fine?

For years Google, like Amazon and Starbucks, conducted operations in Europe and has therefore contributed a meaningful portion to Europe’s tax base (in total dollars, not in percentage terms). Last year alone, Google paid nearly $15 million in European taxes, a small percentage on the supposed $4 billion in sales, but still a significant amount. While the European Union would love to line its pockets with more tax dollars, it won’t be able to push hard enough for fear of losing significant revenue.

Finally, Google Inc (NASDAQ:GOOG) is not new to antitrust movements. The last thing both Google and the European Union want is Google to scale back its European operations. Just as Google emerged from its other antitrust trials, it will do so from this attack. And not only emerge, it will continue to dominate. Who knows, maybe another 31% increase of year-to-year revenue is on tap for the second quarter of 2013?

Either way, take a glance at this very simple chart below. Google wins. It really is that simple. Over the life of Google, through antitrust trials, failed products, and continual tax arguments, Google still managed to do one thing well: make money for investors.

Source: Y Charts

What to do?

Google’s future is still bright. It doesn’t matter that every time you turn on BBC, you find yourself watching Europe’s attempt to reel in more tax dollars, or competitors’ attempts to break up Google’s market. Life is still good at Google Inc (NASDAQ:GOOG). And if you’re a shareholder, life is good for you, too.

The article Google Slapped with $5 Billion Fine? originally appeared on Fool.com and is written by Marie Palumbo.

This article was written by Ian Finney and edited by Chris Marasco. Chris Marasco is Head Editor of ADifferentAngle. Neither has a position in any stocks mentioned. The Motley Fool recommends Amazon.com, Google, and Starbucks. The Motley Fool owns shares of Amazon.com, Google, Microsoft, and Starbucks. Marie is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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