The case was ultimately classified as a circumvention of tax regulations rather than outright tax evasion, which contributed to the reduced settlement amount.

The investigation involved collaboration with the finance police and focused on revenues from the sale of advertising space.

The settlement is part of a broader effort by European authorities to ensure that multinational corporations pay fair taxes on their earnings within their jurisdictions.

The resolution of this case may set a precedent influencing future taxation policies for tech companies operating in Europe.

The case adds to a history of significant tax-related rulings in Europe, including the European Commission's controversial decision against Apple, which was later overturned due to insufficient evidence.

The European Union is actively working to enforce tax compliance from U.S. tech companies, often accused of shifting profits to lower-tax countries like Ireland and Luxembourg.

Google has reached a settlement of 326 million euros, equivalent to $340 million, with Italian authorities to resolve a tax evasion investigation.

This situation reflects ongoing challenges the EU faces in enforcing tax regulations on major corporations, as seen in previous notable cases involving Apple and Amazon.

The investigation, initiated by prosecutors in Milan, scrutinized Google's failure to pay taxes on advertising revenues from 2015 to 2019, particularly concerning its operational presence in Italy.

A central issue in the case was the definition of a 'permanent establishment' in Italy, with Google claiming its Irish subsidiary was the primary entity, while Italian authorities pointed to its offices and server infrastructure in Milan.

This settlement comes amid increasing scrutiny on tech giants regarding their tax strategies and their contributions to local economies.

As of now, Google has not issued any immediate comments regarding the settlement.