Google, beset by laws, merges European units

GOOGLE had combined its two European regional divisions as it sought to meet the challenges of tougher regulation across the continent, a source close to the company said yesterday.

The internet giant was merging its northern and western European division with the unit covering southern and eastern Europe, Middle East and Africa, the source said.

The shake-up follows a year of setbacks for the company on political and regulatory fronts on issues ranging from antitrust to privacy to how much tax it pays in different European nations, as well as fraught relations with some European industries including media and telecom groups.

The decision was taken to simplify the organisation, both for commercial reasons, as well as to work more effectively with business partners and policymakers.

Google’s regional headquarters would remain in Dublin, where it employed thousands of staff, and the reorganisation would not result in job losses, the source said.

The US company has become

The headquarters will remain in Dublin and the reorganisation will not result in job losses.

a lightning rod for criticism in Europe of aggressive Silicon Valley business practices, a role reversal from previous years when it was revered as a standard-bearer of innovation.

In response, Google has argued that for Europe to remain competitive in global markets, it needs to form a single digital market instead of relying on national regulations in its 28member states that often act to protect local industries.

Matt Brittin, who previously led Google’s northern and western European division, would head up the combined Europe, Middle East and Africa operation, while Carlo d’Asaro Biondo, formerly the head of the other regional unit, would take on a strategy role, the source said. Brittin would announce Google’s plan to fund a digital job-training programme for 1 million Europeans over the next two years. – Reuters