What U.S. Tech Giants Face in Europe in 2017

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For American tech behemoths like Google and Facebook, Europe can be both a blessing and a curse.

The region and its 500 million consumers are one of the companies’ most important overseas markets. And in cities from Lisbon to Ljubljana, people often can’t get enough YouTube videos, Amazon purchases and Twitter messages.

Yet policy makers in the 28-member European Union have also become some of the most ardent critics of how Silicon Valley companies dominate much of the digital world. The criticisms include the companies’ perceived failure to pay local taxes and their collection of reams of personal information.

These tensions took center stage in 2016: Apple was ordered to pay 13 billion euros, or about $13.7 billion, in back taxes to the Irish government; Google was accused of unfairly favoring some of its digital services over those of rivals; and Uber was prohibited from operating some of its ride-booking services in the region. The companies deny wrongdoing.

The next 12 months are shaping up to be potentially even more painful. Many of the investigations that started in 2016 will be decided in the coming year. If Silicon Valley companies lose the battles, they could be forced to change how they operate not only in Europe, but also farther afield.