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5 Silicon Valley Companies Europe Is Gunning For - WSJ
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  • 5 Silicon Valley Companies Europe Is Gunning For

    European policy makers are nervously watching the havoc wrought by Silicon Valley giants on traditional industries, from publishing to taxicabs, fearful they will displace incumbents and squash local startups. They worry manufacturing and automotive will be hit next. Here’s how they’re going after the big U.S. tech firms.

    • 1 Google

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      Europe’s competition regulator is preparing to move against Google in the next few weeks, a person familiar with the matter said Wednesday. While a settlement may still be possible, a decision to file formal charges against Google could kick off the EU’s highest-profile antitrust suit since its campaign against Microsoft.  Google has denied any anticompetitive behavior. Some European governments are also planning a “Google tax” on copyright and overseas tax issues; and a European court said Google needs to implement a right to be forgotten.

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    • Uber faces various legal battles, including bans on its ride-sharing services in a number of countries. The California car-hailing has company filed complaints with regulators in Brussels against EU governments that it claims have violated the bloc’s laws by seeking to ban some of its services. An Uber spokesman said the company expects some key European legislatures will modernize transport rules.

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    • 3 Facebook

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      Privacy watchdogs from France, Spain and Italy have in recent weeks joined a group of regulators probing the social-networking firm’s privacy practices, doubling the number of European countries involved. The investigations could lead to formal orders to change business practices, and possibly also fines. Facebook said it follows EU privacy laws and has been regularly audited by the privacy regulator in Ireland, where its European operations are based.

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    • 4 Amazon

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      Amazon’s tax arrangements in Luxembourg may give the U.S. online retailer an illegal advantage over competitors, EU regulators said in January.  The EU criticized the company’s 2003 tax agreement with Luxembourg, which is still in force. Amazon said it had received no special tax treatment from Luxembourg. Luxembourg said the allegations of state aid in this case are unsubstantiated.

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    • The EU said in 2014 it had reached the “preliminary view” that tax deals struck with Apple in Ireland in 1991 and 2007 constituted illegal state support. Apple said it had received no selective treatment from Irish officials over the years and that it is subject to the same tax laws as other companies who do business in Ireland. Now antitrust authorities are probing Apple’s agreements with record labels as Apple prepares to launch a subscription music-streaming service.

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    • Something that could affect all five companies:  National data-protection regulators in Europe are becoming more emboldened to take on big U.S. firms. Last week, the European Court of Justice — the EU’s top court — heard a case in which a privacy activist urged judges to scrap or limit a 15-year-old EU-US agreement that allows companies including Facebook to transfer European personal data to the U.S. And under a potential new EU data-protection law, regulators could get additional power to conduct joint inquiries and with penalties that could rise, in one draft of the law, to 5% of worldwide revenue.