Germany Considers 10% Tax on Google & Meta to Combat Monopoly Power

The German government is currently working on a legislative proposal to implement a 10% tax on major internet companies like Google and Meta. Culture Minister Wolfram Weimer stated that this initiative aims to address the monopoly-like structures and over-concentration of media power, which he believes threaten media diversity. He emphasized that these corporations profit significantly from Germany’s media and cultural output and infrastructure but contribute little in taxes, investments, or societal returns. The proposed bill might be based on Austria’s 2020 model, which introduced a 5% tax on online advertising revenue for large digital platforms. Weimer has also invited Google management and industry representatives for discussions to explore alternatives, including voluntary commitments. This move comes after the European Commission considered digital taxes for post-COVID debt repayment, a proposal previously opposed by Germany and Italy.

Most Important Points

• Proposed Tax: Germany is drafting a bill for a 10% tax on internet giants like Google and Meta.
• Reasoning: The tax aims to counter monopolistic structures and media power concentration that endanger media diversity.
• Profit vs. Contribution: Large tech companies are seen as profiting greatly from German media and culture while paying minimal taxes and investing little.
• Austrian Model: The draft bill may be modeled after Austria’s 2020 5% online advertising tax.
• Discussions with Tech Giants: Germany is open to discussions with companies like Google to explore alternatives, such as voluntary commitments.
• EU Context: This initiative follows broader European discussions on digital taxes for post-COVID debt, which faced prior opposition from Germany.

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