The investigation has been looking into whether Google had not declared certain business activities it was conducting in France. The amount is made up of a €500 million fine and additional taxes of €465 million.
Reuters reported that the settlement could serve as a precedent for other big technology companies who have also faced tax inquiries in France.
Google does not pay a great deal of tax in most countries where it operates, instead using a loophole in international tax law to attribute all income to Ireland. This means all sales contracts have to be completed by staff based in Dublin.
GOOGLE MOTTOS: A HISTORY— MGK Hockey 1234 (@mightygodking) 28 March 2018
1999: Don't Be Evil
2003: Try Your Hardest To Not Be Evil
2008: Make A Reasonable Effort To Avoid Being Evil
2013: What Is Evil, Really, When You Get Down To It, I Mean Really
2018: *just a series of high-pitched giggles*
It will cover companies that have global revenue of more than €750 million and French revenue of more than €25 million.
The fine imposed on Thursday is less than the €1.6 billion that the French Ministry of Finance had sought from Google after a raid on the company's offices in May 2016.
Google was also raided by Spanish officials as part of an ongoing tax probe, with the raid in Madrid taking place in July 2016.
In January, Google was fined €50 million by the French National Data Protection Commission (CNIL) for violations of the GDPR following complaints by the organisations None Of Your Business and La Quadrature du Net, the latter representing 10,000 people.