Germany’s Digital Ministry Exercises Caution Over Proposed Online Platform Levy

Germany’s digital ministry has expressed cautious support for a proposed levy on major online platforms, such as Google and Facebook, emphasizing the need for international coordination and measures to prevent additional costs for consumers.

Key Points:

• Proposal Overview: Culture Minister Wolfram Weimer suggested a 10% levy targeting large online platforms. However, specifics regarding whether this would apply to revenue or profit remain unspecified.
• Government Stance: While the ruling coalition had previously agreed to consider a digital services levy, it is not currently a priority. The digital ministry insists that any levy must be:
  • Internationally coordinated
  • Compliant with EU law
  • Designed to avoid passing costs to consumers
  • Beneficial to Germany’s innovation landscape
• Diplomatic Considerations: Chancellor Friedrich Merz is expected to visit Washington to meet with U.S. President Donald Trump, who has previously opposed foreign digital taxes on American companies. This meeting could influence the levy’s development.
• Industry Response: The digital industry association Bitkom criticized the proposed levy, warning it could increase costs for businesses and consumers, potentially hindering the digital transformation of public services and companies.

In summary, while Germany explores the implementation of a digital services levy, the government emphasizes the importance of careful planning to ensure international alignment and to prevent negative economic impacts.

For more details, read the full article on Reuters: German digital ministry treads cautiously over online platform levy.