Google’s Tax Setup Faces French Challenge

Google’s Tax Setup Faces French Challenge
Arrangement Channels European Revenue to Country With Favorable Tax Laws

PARIS—Google Inc. Chief Executive Larry Page met with France’s premier late last month and quietly pressed home a message: Google has invested heavily in France and is willing to do more.

In a half-hour meeting in the gilded office of Prime Minister Manuel Valls, Mr. Page noted that Google has greatly expanded its Paris operation in recent years and set up a fund for French newspapers, and said he was “totally prepared to continue...