Google is facing legal troubles in Europe

While Google’s position as one of the few dominant search engines is assured in the Unites States and most developing countries, it increasingly faces challenges in Europe.

The European region has higher regulatory standards, and the company has been plagued in several nations. There have and continue to be legal conflicts over taxes, internet surveillance and antitrust issues.

However, Sheridan believes that Google will win the most important battles concerning its thriving advertising business in Europe.

Google is spending too much money

With perks like free food and sleeper pods, operating costs at Google grew by 21 percent to 13.7 billion in the fourth quarter of financial year 2015-2015.

These costs eat into the profitability of the company. While 3.5 billion was spent on data centers, production technology and real estate, most of it was spent on labor. The headcount at the company went from 26,000 in the first quarter of 2011 to 54, 000 in 2014.

The increase in its workforce has so far been perceived positively by analysts, as there has been an improvement in productivity, but this is expected to hit a plateau soon.

Returns on the high cost of labor at Google should be apparent as a percentage of revenue by 2016, according to Sheridan.

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