EU Courts Chides Hungary Over Google Ad Tax Penalties

Google won the European Union’s top court backing in a clash with Hungary over penalties linked to a local advertising tax.

Hungary imposed a system of penalties for foreign companies that was “disproportionate and therefore unjustified,” the Luxembourg-based court said in a decision on Tuesday.

While the bloc’s rules don’t prevent a member nation from forcing advertising service providers to submit a tax declaration, even if they’re based in another EU country, Hungary went too far with a system of higher penalties for foreign companies in case of non-compliance.

“The system of penalties relating to the Hungarian tax on advertising ...