Digital tax: Weimer demands tax from large platforms!

Digital tax: Weimer demands tax from large platforms!

Wolfram Weimer, the Federal Government Commissioner for Culture and Media, is calling for the introduction of a levy for large online platforms that use media content. This digital levy is intended primarily for companies such as Google and Meta and comes from the coalition agreement between the Union and the SPD. Weimer emphasizes that the levy is intended to make a tax contribution to improve competitive conditions and reduce the high margins of these companies. A corresponding law is currently being prepared and will be discussed with stakeholders and in parliament in the next step. Bietigheimer Zeitung reports that Weimer found great agreement between the three coalition parties in preliminary discussions.

The planned levy could be set at a rate of ten percent of advertising revenue, which the federal government sees as “moderate and legitimate”. This would potentially bring German platforms closer to a regulation similar to that in Austria, where five percent of the revenue from large online platforms has been paid since 2020. Experience from Austria shows that this tax has not resulted in any significant price changes for end consumers. Weimer hopes that a similar situation will also occur in Germany so that private individuals are not affected by higher prices. The Minister of State for Culture describes the levy as a “platform solidarity”. Süddeutsche Zeitung further reports that Weimer is also planning talks with the platform operators at top level to explore alternative solutions.

Goals of the digital delivery

The introduction of this digital levy is part of a broader strategy aimed at reducing Germany's dependence on the technological infrastructure of American companies. Weimer warns of monopoly-like structures that endanger media diversity and sees an urgent need for action to regain control over digital content. The federal government's goal is to create a more diverse and fair media environment through the levy.

However, no detailed information about the possible income and its use has yet been published. However, Weimer's high-profile plans could have a significant impact on the business models of large Internet companies. Discussions about the levy have already gained momentum and could set new standards in the handling of digital media and their monetization in the near future. Deutschlandfunk emphasizes that for Weimer the discussions with the large platforms will be crucial in order to jointly develop practical solutions and create a legal basis for the levy.