Microsoft Corporation (MSFT) Fined, Google Inc (GOOG) on Deck

Google Inc (NASDAQ:GOOG) is reportedly involved in negotiations with the EU to end a probe into some of its search practices. Other search engines, including Microsoft Corporation (NASDAQ:MSFT)’s Bing, have lodged complaints about some of Google’s practices. This settlement will not address the complaint that the company’s practice of collecting aggregated user data violates EU privacy standards, but will go a long way to alleviating some of the tension existing between the company and the regulator.

What happens now?
In all probability, Microsoft will pay the fine, Google will settle and the status quo will shift to a heightened level of regulation that essentially serves as a tax and nothing more. In the land of fantasy, one must wonder how the companies of Europe would react if Microsoft declined to pay the fine and pulled out of Europe. Would enterprise side with a critical productivity provider or one more in a long line of regulators?

The reality of business is that the fine and compliance with the new rules is unavoidable. Neither stock is likely to feel any long-term ill effects of the ruling, but it should not go unnoticed. When developments like this go by without comment, the cost is immeasurable. We should all be paying attention.

The article Microsoft Fined, Google on Deck originally appeared on Fool.com.

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

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