The Milan Public Prosecutor’s Office announced on Wednesday that Google has paid €326 million to resolve a dispute with Italian tax authorities, recommending that the case be closed.

The Italian judiciary had accused Google of failing to pay taxes between 2015 and 2019. According to the prosecution, Google Ireland Limited, registered in Ireland, did not declare its Italian-generated revenue, particularly from advertising sales.

Following an agreement, Google paid taxes, fines, and interest to settle the case, allowing the company to comply and avoid further legal proceedings. However, the final decision rests with the preliminary investigating judge.

Google Under Continued Scrutiny in Italy

In July 2024, Italy’s competition watchdog launched an investigation into Google and its parent company Alphabet over alleged deceptive and aggressive business practices related to user consent requests for linking services.

Google has faced previous penalties in Italy, including:

-€20 million fine (shared with Apple) in November 2021 for aggressive data practices.

-€102 million fine in May 2021 for abuse of market dominance.

The latest settlement highlights the ongoing regulatory scrutiny faced by tech giants in Europe, particularly regarding tax compliance and fair competition practices.