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But Germany is part of the EU, an open and free market that allows to sell from other countries of the EU such as Ireland to say Spain. This is probably what's going to happen if the German gov keeps harassing Google as a cash cow.
They are most definitely not harassing Google as a cash cow. They are telling google that they do not get to live by different rules than other businesses operating in Germany and so they should answer their mail. Categorically not reading your mail is not an option for a business.
The Economist have an interesting article regarding Germanys "Googlephobia". I'm not sure I completely agree with the article, but it is an interesting take.

http://www.economist.com/news/business/21615588-why-online-g...

It's not the first time Germany is harassing Google, I remember the google street view thing and more. There are probably tons of companies not answering their email but they are targeting Google only because cash cow. So yeah, harassing in that sense. They're not the only country harassing a successful company to squeeze cash out of them, but Germany (and France) seems to have a sweet spot for Google.
High trees catch a lot of wind. I personally far prefer they target the big companies which can easily afford to defend themselves if they feel they are wrongly targeted than the little guys which could be wrecked by such a lawsuit.

So no, Google is not targeted because they are a cashcow, Google is targeted because they are large and ignore a bunch of law because they think they can get away with it because they are large. The simpler thing would be to simply comply with the law but they choose the confrontational road and rulings like these are the result.

Companies are still not larger than nation states. Maybe one day they will be but for now the nation states seem to have the upper hand when it comes to enforcement.

Based on wikipedia [1] Panama, the 89th highest gdp country (out of 193), has a gdp of $36 billion. Google has a gross annual profit of $38 billion [2] [1] http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nomin... [2] http://www.wikinvest.com/stock/Google_(GOOG)/Data/Gross_Prof...
Germany however is still two orders of magnitude away from parity with Google. And you'd probably have to see that $36B relative to the amount google makes in Germany. And then I doubt Google is larger than even Somalia.
I'm not 100% sure, but I think that Article 22 of "DIRECTIVE 2006/123/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL" ensures that the requirements are by and large similar in all EU member states.
You do realize that in this instance it wasn't the government that sued Google, but a non-profit organization (Verbraucherzentrale, has the goal of protecting the rights of the customers), right?