The Google European headquarters office blocks in Dublin's Docks. Photo by Derick Hudson/Shutterstock.com

French authorities and Google LLC announced a settlement on Thursday in which the tech company would pay nearly $1.1 billion in fines and back taxes. The settlement could open up the door for similar ones with other U.S. tech companies.

"We have now settled tax and related disputes in France that have persisted for many years. The settlements comprise a [$556 million] payment that was ordered today by a French court, as well as [$517 million] in additional taxes that we had agreed to pay, and that have been substantially reflected in our prior financial results," a Google representative said in an email to Corporate Counsel on Friday.

The settlement ends a four-year investigation into Google's unpaid taxes. French financial authorities claimed Google owed $1.8 billion in taxes and fines. Reports indicate that Google pays most of its taxes to Ireland, where its European headquarters is located.

Antonin Levy, one of Google's lawyers, according to a Reuters report, said in a French court on Thursday that the agreement will settle all past disputes the tech giant had with France.

French budget minister Gerald Darmanin told a French newspaper that the settlement would create a legal precedent and that French tax authorities are having discussions with other multinational companies over unpaid taxes. Darmanin did not name the other companies that may be willing to settle their tax claims.

Google said it believes there needs to be international tax reform to avoid these issues.

"We continue to believe that the best way to provide a clear framework for companies that operate around the world is co-ordinated reform of the international tax system," the representative said.

In July, the French government passed a 3% digital tax that targets 30 tech companies. According to a CNBC report, it applies to companies with revenues greater than 750 million euros which come from "digital activities." That includes revenues of $28 million made in France.

However, the French government said in August it would drop the 3% tax once an international agreement on digital taxes is agreed on. According to reports, France will reimburse the companies once the international agreement is ratified.